Ryanair has issued its second profit warning in 4 months, saying airfares were falling more than expected over the winter. The company said Friday that full-year profits would be in the range of E1b-E1.1b, down from E1.1b-E1.2b, because of a predicted 7% drop in ticket prices. The previous forecast was for a 2% fall, but fast growth in the number of seats is pushing down prices across the low-cost sector. CE Michael O’Leary said he was “disappointed” about the downgrade and warned: “We cannot rule out further cuts to air fares and/or slightly lower full-year guidance if there are unexpected Brexit or security developments.” European airline shares have performed badly over the past year as high fuel prices, summer disruption and capacity growth have knocked investor enthusiasm. <br/>
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The union representing Ryanair's British pilots said it and its sister associations around Europe would not continue labour talks with the airline while it uses the threat of base closures "to bully its staff". "If Ryanair wishes to avoid a return to the industrial uncertainty and unrest of 2018, we suggest that senior management should consider abandoning the age-old failed practices of bullying their staff to enforce their way," BALPA said Friday. The European Cockpit Association said Wednesday that unions in several countries had suspended talks in protest at what they see as Ryanair's use of the threat of base closures as a bargaining tool. <br/>
AerCap has delivered the first of 4 Boeing 787-9s on long-term lease to El Al Israel Airlines. It will deliver the remaining 3 aircraft later this year. El Al has 16 787s on order, in a mix of -8 and -9 models, from either lessors or direct from the manufacturer. The airline is using the Boeing twinjet to replace its fleet of aging 747-400s and 767-300s. “The arrival of El Al’s eighth Dreamliner, combined with the phase-out of the last 767 at the end of this month, is another step towards modernising and greater efficiency of our fleet,” El Al CE Gonen Usishkin said. “The delivery of our first 787 to El Al heralds the next chapter in the long history of successful cooperation between our two companies,” AerCap CE Aengus Kelly added. <br/>
Emirates Airline will be reducing its baggage allowance on some Economy Class tickets issued from Feb 4 by 5 kilograms. The carrier said on its website that the allowance for tickets in the ‘Special’ category will be reduced to 15 kilograms from 20 kilograms, while allowance in the ‘Saver’ category will be down to 25 kilograms from 30 kilograms. The new weight allowances apply on all Emirates routes, with the exception of those for travel to and from destinations in the Americas and travel from Africa. Baggage allowance for tickets in the ‘Flex’ and ‘Flex Plus’ will remain unchanged at 30 kilograms and 35 kilograms respectively — as will baggage rules for tickets for flights in Business and First Classes. Emirates did not elaborate on why it is changing its baggage rules. <br/>
Avianca Brasil's battle with its aircraft leasing firms intensified Friday after Brazil's aviation regulator said it would no longer ground 10 of the struggling carrier's planes and another lessor renewed its effort to repossess 10 others. Aircastle and GECAS have been trying to repossess planes from the airline since it fell behind on lease payments, but their efforts were hampered when Avianca Brasil filed for bankruptcy protection in December. ANAC, the country's aviation regulator, announced Friday that it would not intervene in the dispute, a move that came a day after it had said it would ground 10 of Avianca Brasil's 46 planes at the request of GECAS. "Avianca will be able to operate its previously scheduled flights normally," ANAC said , citing what it described as an agreement between Avianca and its aircraft leasing firms. <br/>
The Transportation Safety Board says an on-board fire that forced a WestJet plane to return to the Calgary International soon after take-off last June was caused by spare e-cigarette lithium-ion batteries that a passenger failed to declare in his checked baggage. The agency says in a report that a backpack caught fire and caused minor thermal damage to the cargo compartment’s fire-resistant liner near the bag. An investigation could not determine if the damage occurred before the batteries arrived at the airport or during baggage handling. The proliferation of personal electronic devices using these batteries has increased events involving smoke, fire or explosion because of the high temperatures they generate. The US FAA has recorded 206 incidents involving lithium-ion batteries between 1991 and May 2018. <br/>