IATA is set to cut its forecast for this year’s airline industry profits as fuel prices continue to rise more quickly than expected. IATA is scheduled to release its next industry financial forecast June 4 during the group’s annual general meeting (AGM). Speaking at an event before the AGM, IATA DG Alexandre de Juniac signalled that the profit forecast will be revised downward. In the last forecast in December, IATA predicted a global industry profit of more than US$38b. De Juniac noted that “solid demand growth” is good news for the CEs gathering for the AGM. However, “they will certainly also be worried about the rising cost of fuel,” he said. The December forecast assumed oil prices of $60 per barrel, but prices are now approaching $80. The industry is still expected to remain in the black this year, de Juniac said. <br/>
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A former federal transportation secretary said Thursday that he has “100% confidence” that the chaos that brought John F. Kennedy International to a standstill during a January blizzard would not recur. Ray LaHood said he believed that the changes in how the airport’s managers prepare for winter storms would prevent a repeat of the debacle. The most important change, he said, would be the creation of a centre for command and control of the airport during storms and other emergencies. During a 4-month review of what went wrong at the airport after a nor’easter swept up the East Coast Jan 4, LaHood said he and a team of investigators found there had been “deficiencies in communication” and “inadequate overarching leadership by J.F.K. management,” two issues that have been previously cited as contributing to the mess. <br/>
The US and UK are reportedly nearing the completion of a new Open Skies agreement, as the two countries look to ensure a smooth transition for transatlantic aviation post-Brexit. The two countries are negotiating the deal because the current US-EU agreement will no longer apply to the UK after Brexit, when it exits the EU in March 2019. Govt officials from the two countries met mid-May in Washington DC for informal talks, and have resolved in principle many of the outstanding issues between them, a source familiar with the talks said. The biggest sticking point remaining is determining the set of rules that would govern ownership and control for airliners. This is not an issue for US-based carriers, which are required by law to be controlled by US citizens, but it presents a challenge for UK-based carriers. <br/>
Jeddah’s new King Abdulaziz International Airport opened for initial flights May 29. The airport is embarking on a soft launch program, with services gradually ramping up over the next nine months. Saudi aviation regulator GACA describes the airport as the most important one in the country, as it is the gateway for Haj and Umrah pilgrims to Mecca. Operations at the airport will increase over 4 phases to enable full domestic and international flights next year, GACA president Abdulhakim Al Tamimi, said. The first phase, running from May includes the soft opening, to be followed by a second phase between July and September, which will receive domestic flights, Al Tamimi said. The final phase between January and March 2019 will include full domestic and international flights through the airport’s 46 gates. <br/>
Sino-Russian commercial aircraft consortium CRAIC has received 7 proposals for engines for its CR929 widebody airliner, said COMAC, one of the partners. The responses follow a request for proposals issued in Dec 2017. COMAC has not named the proposers, but only General Electric and Rolls-Royce have been expected to be realistic bidders to provide an initial engine for the aircraft, which is due to go into service no later than 2027. Pratt & Whitney is not known to be working on an engine of the necessary thrust, which will be 78,000 lb., according to the other partner, United Aircraft Corp. Aero Engine Corp. of China and Russia’s United Engine Corp., both state organisations, were presumably two of the other proposers, but only to formally declare their hopes of eventually powering the CR929. <br/>