Airbus is working on vital sales campaigns aimed at extending the life of its flagship A380 superjumbo, with outgoing marketing chief John Leahy seeking to secure orders by the Dubai Air Show in November, people familiar with the matter said. Key to the push is a requirement for 20 jets worth US$8.7b at leading A380 customer Emirates, with follow-on orders from IAG, ANA and THAI also in the mix, according to the people. Airbus may not feel that it can proceed with the smaller sales, likely to be for 5 to 10 planes apiece, without the Emirates deal to bolster the backlog, the people said. In the absence of new orders the company is set to pare output to less than 1 A380 a month, most likely sounding the death knell for the jet amid a dwindling backlog, and could detail the envisaged cut in an earnings update this week. <br/>
unaligned
Ryanair reported a 55% jump in net profit for Q1 of its 2018 financial year, with the post-tax figure rising to E397m (US$453m), compared to E256m a year ago. It achieved the result on revenues of just over E1.9b, up 13% year-over-year. Passenger numbers for the quarter also rose 12% YOY to 35m. Load factor climbed 2% to 96%, compared to the same period last year. Ryanair CFO Neil Sorahan cautioned that the result had been flattered by the inclusion of Easter in this year’s Q1, which was not the case last year. The demand for flights saw the average fare on Ryanair rise 1% to E40.30. However, Sorahan said the company continued to drive down average fares, with an 8% drop expected in 2H this year, compared to the same period in 2016. <br/>
Ryanair warned rivals Monday that it may cut its fares in late summer by as much as 9% from last year, triggering a share sell-off by investors concerned about the impact on profitability. Ryanair has helped drive down short-haul ticket prices in Europe by increasing its capacity by a third, or about 30m seats, in the past 2 years. Some investors thought higher fares in the 3 months to the end of June were a sign that a period of heavy discounting may be ending. But management made clear the annual increase was just a blip due to the timing of Easter and that prices would fall sharply in the coming months. "It's a competitive market out there. You're looking at fares down anywhere between 7, 8, maybe as much as 9%," , CFO Neil Sorahan said, referring to then 3 months to the end of September. <br/>
Ryanair has held talks with Boeing about its new larger version of the 737 airliner, the MAX 10, but has made clear it would only be interested if the price is lowered, Ryanair CE Michael O'Leary said Monday. Ryanair declined to comment in June when it was reported the airline was in talks with Boeing about buying the new plane, which seats up to 230 passengers compared to 189 seats on its current 737-800 fleet and the 196 seats on Boeing MAX 200 aircraft it has ordered. "We have told them to go back and if they can come up with a price on the Max 10 that meaningfully reduces our unit cost, we would be very happy to place an order," O'Leary told analysts on a conference call. O'Leary said Ryanair did not need to order any more planes for 5 years, but would consider an offer if the price was right. <br/>
Ryanair is one of several airlines to have made a bid for Alitalia ahead of the launch of a full-scale tender process for the lossmaking carrier in the coming weeks. Ryanair confirmed Monday that it had submitted a non-binding offer for Alitalia, which collapsed into administration May 2 after its employees voted to reject a restructuring plan involving salary reductions and lay-offs. Neil Sorahan, CFO at Ryanair, refused to outline the details of its offer but said the airline felt it was right to be involved in the bidding process. Ryanair’s CE, Michael O’Leary, has previously said it was only interested in pursuing Alitalia if it was restructured by its commissioners. Ryanair’s interest in Alitalia comes as the bidding process for the airline is in its early stages, with final offers not expected before the end of October. <br/>
Cash-strapped holidaymakers are making their toddlers drag suitcases on-board planes to escape baggage fees, according to Ryanair bosses. Fewer passengers than ever are checking bags into the aircraft hold. Instead, travellers are avoiding charges by bringing more and more luggage into the cabin. Ryanair’s CFO, Neil Sorahan, said the airline could review its second bag allowance, introduced in late 2013, as passengers were starting to “take the piss”. He said: “I’ve seen 2-year-olds wheeling a bag up to the plane as people try to take advantage.” Fewer than 1 passenger in 6 now pays to check in luggage on Ryanair. The airline admitted its takings were falling as passengers looked to squeeze ever more into the cabin. <br/>
The CE of Horizon Air sent a stark email to employees last week expressing disappointment about an ongoing pilot shortage that he describes as derailing the regional carrier's expansion plans. The note by Horizon CE David Campbell, also says the carrier will extend schedule cuts into September, transfer some flying to Alaska Airlines and SkyWest Airlines and take steps to ensure that executives remain accountable. "Our ability to attract, train and retain pilots did not keep pace with our growth plans, and that led to numerous cancellations since December. Clearly, we were not at our best and our leadership team did not deliver for you and our guests," he says. Pilot shortages affected the operation of Bombardier Q400 turboprops, Horizon's primary fleet type, Campbell says <br/>
IAG has firmed 3 options for Airbus A330-200 widebodies for its new Level long-haul LCC after a strong start for bookings. The airline began services from Barcelona in June, with routes to Los Angeles, San Francisco (Oakland), Punta Cana in the Dominican Republic and Buenos Aires, Argentina. Level began life with 2 A330-200s and said it planned to increase its fleet to 4 or 5. The 3 new aircraft will be delivered in summer 2018 and will be used to expand the airline’s route map. Level operates its initial aircraft in a 2-class configuration, with 21 premium economy and 293 economy seats. The company has said bookings are well ahead of expectations and the brand is appealing to many people who have not previously considered long haul. It is looking at opening further bases, with Paris and Rome among the options. <br/>
EasyJet will recruit more than 1,200 new permanent- and fixed-term cabin crew positions—the largest cabin crew intake in its 21-year history—as the carrier continues to grow. Earlier this year, EasyJet said it would hire more than 450 new pilots and provide career opportunities to promote first officers to captain positions. The recruitment announcement was made just days after EasyJet Europe launched operations after securing an air operator’s certificate and operating license by Austrian aviation authorities. EasyJet currently employs more than 6,900 cabin crew. A typical EasyJet Airbus A319/320 includes 3 flight attendants and a cabin manager. EasyJet, which flies more than 270 aircraft on over 880 routes in 31 countries, will offer the new cabin crew positions across nearly all of its 28 European bases. <br/>
Azul Brazilian Airlines has named long-time CFO John Rodgerson as its new CE, replacing Azul founder David Neeleman, who will remain with the airline as chairman of its board of directors. Neeleman said he will stay involved in day-to-day business and strategic decisions. Neeleman founded Azul in 2008. Azul raised more than US$570m in an IPO earlier this year. As CE, Neeleman also orchestrated the domestic merger of Azul and TRIP Linhas Aereas in 2013. Rodgerson has been part of Azul’s management team since the airline’s founding. Alex Malfitani will replace Rodgerson as CFO. Malfitani has been the head of Azul’s loyalty program, TudoAzul, since 2015 and previously was the carrier’s treasurer and finance director. <br/>