EasyJet has lowered expectations of a fast turnround in the European airline industry after it warned the market would remain tough because of increased competition that was pushing down fares. Europe’s second-biggest low-cost carrier on Thursday lifted its full-year profit forecast to a range of GBP380m to GBP420m, above the current analyst consensus of GBP375m, after reporting a strong Q3. But shares in easyJet fell by almost 5% after the airline said it expected revenue per seat to fall by 2% in the six months to September. It added that pressure on yields was also likely to extend into the next financial year. Dame Carolyn McCall, who will leave easyJet at the end of the year to head up UK broadcaster ITV, said there has been a lot of additional capacity in Spain and Portugal this summer. “We’re not saying it is getting worse. The capacity environment is better but there is still growth and the reason for that growth in capacity is that fuel remains low. We’re simply saying pricing is not going to bounce back to plus-this or plus-that,” she said. Analysts said it would dampen expectations of a fast turnround in the European airline industry, which has been struggling with a glut of new capacity that is pushing down fares as well as the effect of the terror attacks in the EU and Brexit. <br/>
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Frontier Airlines pushed back its IPO, people familiar with the matter said, as competitive tensions flared between the no-frills carrier and United. The share sale could slip until September or later, said the people, who asked not to be identified because the matter is private. Frontier Group Holdings, which is backed by private equity firm Indigo Partners, had been planning to hold the IPO as soon as Q2, people familiar with the matter said in March. The delay comes as Frontier prepares to more than double routes -- an expansion that drew a warning from United President Scott Kirby. He vowed to stave off any attempt by Frontier to grab a bigger share of the Denver market. The discount carrier is based in the city, which is the most profitable hub for United. Frontier on Tuesday detailed plans to add 21 cities to its network and more than double total routes by mid-2018, while offering limited-time fares for as low as $39. On Wednesday, Kirby said the expansion means that Frontier is moving toward a network more like United’s, with connecting flights through major airports instead of focusing on the point-to-point service typically favored by low-cost carriers. <br/>
Jet Airways plans to slash pay of dozens of its junior pilots by as much as 50 percent in a cost-cutting move that could impact up to 400 pilots, according to two sources and letters seen by Reuters. The airline, in letters sent to pilots earlier this month, has proposed they either take 30-50% salary and stipend cuts, or quit, saying it was forced to take such steps as it was "intensely focused on fleet and network rationalisation". The measures are to be implemented from Aug. 1. "Certain developments in the market, including that of the Gulf region, as well as our continued efforts to enhance internal efficiencies, has resulted in the review of our network, fleet and crew utilisation," a Jet spokesman said. The spokesman said it has made some interim changes to its crew work patterns which will be reviewed in future, in line with network growth. Jet Airways has struggled to keep a tight lid on costs in one of the world's fastest-growing aviation markets where competition from low-cost carriers such as InterGlobe Aviation's IndiGo and SpiceJet is on the rise and is putting it under pressure. While India's domestic passenger traffic rose 22% in the fiscal year ended March 31, Jet Airways saw only 5% growth and its market share fell to 18% at the end of June from about 23% two years ago, industry data showed.<br/>
Oman's national airline is in talks with planemakers Airbus and Boeing to expand its wide-body fleet to 25 jets and hopes to conclude the deal in the next two to three months, its CE said Thursday. Oman Air CEO Paul Gregorowitsch said the airline currently has 16 wide-body planes - six Boeing 787 Dreamliners and 10 Airbus A330 - but hope to increase that number to 25. This would involve replacement of some existing Airbus planes, and adding nine more new jets. "We have negotiations currently with Airbus and Boeing. If (Boeing) has a good offer, we may take all, or we could have a mixture of Airbus A350 with the Boeing 787," he said. On the Gulf dispute restricting Qatar Airways, Gregorowitsch said the airline is "filling in the gaps where required" to fly stranded Muslim pilgrims to their home destinations. The dispute led to flight slots for Qatar Airways at the Dubai Airport being taken away, which Oman Air had pitched for and obtained. "We then have the opportunity to increase flights between Muscat and Dubai from 8 to 10 daily," he said.<br/>