unaligned

British airline Virgin Atlantic warned Tuesday that it expects to fall back into loss this year after three years of profits, as competition intensifies, fuel costs rise and a cheap pound takes its toll on the business. CE Craig Kreeger put the impact on profits of Britain's decision to leave the EU at around GBP50m after the carrier reported a 2% increase in underlying pre-tax profit for 2016 to GBP23m. It had originally expected a significant increase in profits for 2016. Virgin Atlantic, which is owned by founder Richard Branson's Virgin Group with 51% and US carrier Delta on 49%, typically sells more of its tickets to customers in Britain than elsewhere and the fall in sterling following the Brexit vote affected both revenues and profits last year. With the weak pound making it more expensive for Britons to travel abroad, Virgin Atlantic is now seeking to increase ticket sales to customers based in the United States, Hong Kong and China. After Delta bought its stake in Virgin from Singapore Airlines for $360m in 2013 it put a new emphasis on transatlantic routes. "The UK has never been a better bargain," Kreeger told Reuters. "We are selling much more aggressively to foreign points of sale. But even that feels like it won't be enough," he said.<br/>

Qatar Airways' CE said Monday he did not believe the ban on carrying most electronics in the cabins of passenger flights to the US from eight Muslim majority countries was designed to hurt Gulf airlines. The US introduced new security measures on March 25 banning electronics larger than a mobile phone from passenger cabins on direct flights to the US from 10 airports in the Middle East, North Africa and Turkey, including Qatar. The announcement of the restrictions prompted media reports that the move, enacted by President Donald Trump's administration, is to protect US airlines by stifling the growth of the fast-expanding Gulf carriers and Turkish Airlines, a theory dismissed by US officials and many experts. Gulf airlines Qatar Airways, Emirates and Etihad Airways have been battling a lobbying campaign in Washington by US carriers that accuse them of receiving unfair subsidies, charges that the Gulf carriers deny. "I don't think it is fair for me to say it is targeting Gulf airlines," Qatar Airways CE Akbar Al Baker said. "As far as I am concerned it is a security measure and we have to comply with that." The regulations, prompted by reports that militant groups want to smuggle explosive devices in electronic gadgets, state that electronics larger than a mobile phone - including laptops and tablets - must be stowed with checked baggage on U.S.-bound passenger flights. Industry experts argue the ban could weaken passenger demand for the Gulf carriers on US routes, especially among business travellers who use the long flying time to complete work on their laptops. "At the moment it is too early to say if it will affect our business," Al Baker said.<br/>

Qatar Airways may order 100 new jetliners before the end of this year to power its push into India and also plans to announce two new routes to the UK even as the country prepares to exit the EU, CEO Akbar Al Baker said. The Persian Gulf carrier is confident that a new aviation policy mapped out by “futuristic” Indian Prime Minister Narendra Modi will permit 100% foreign ownership of a domestic airline, Al Baker said Monday in London. Qatar Airways is briefing lawyers in India and will seek formally to establish the new airline soon, with a tender for aircraft to follow. “It could be this year,” the CEO said. “It depends how fast we can arrange our application.” Al Baker revealed last month that he planned to set up an Indian carrier with a fleet of 100 narrow-body jets, breaking into a fast-growing market where local rules previously prevented full ownership by foreign airlines. He said at the time that the Qatar Investment Authority could fund the venture, leaving Qatar Air to run it, though it’s not clear whether such an arrangement would avoid the curb. Qatar Air is targeting an Indian foothold after Etihad Airways of Abu Dhabi took a 24% stake in Jet Airways India. Qatar Air’s expansion plans elsewhere include the addition of two new routes to Britain, the CEO said. The carrier already offers 72 weekly services to the UK, where it serves London’s Heathrow hub as well as Manchester and Birmingham in England and Edinburgh in Scotland.<br/>

THAI Smile's planned launch of regular flights from Bangkok to Cebu in the Philippines is being put off for two months because of regulatory issues. The wholly owned full-service subsidiary of THAI now hopes to commence service on the route on July 1 instead of May 1 as scheduled earlier. THAI Smile acting chief executive Woranate Laprabang told the Bangkok Post that the launch delay is due to some complications in processing papers with the Philippine authorities, rather than any objection to traffic rights on their part. "Admittedly, we were not quite familiar with their procedures, resulting in more time required to complete the process," he said. THAI Smile intends to offer seven flights a week on the Bangkok-Cebu route using Airbus A320 narrow-body jets. With the debut, THAI Smile would become the only airline to offer a direct air link between the Thai capital and the Philippines' oldest city and first capital. <br/>