As United considers selling part of its MileagePlus program, other carriers are likely to consider a similar move to open a significant -- if risky -- source of capital in uncertain times. Frequent-flyer programs are among the most lucrative assets at major airlines, typically bringing in as much profit as passenger tickets. But with travel junkies hungry for miles, carriers generally have resisted selling their loyalty plans, preferring to keep the stable cash flows and steady profits they offer. The few airlines that have offloaded the programs regretted the decisions almost immediately. In-house loyalty plans have provided critical financial lifelines during periods of financial duress, allowing carriers to presell miles to raise cash and serve as collateral. United, American Airlines and Delta all raised money in 2020 to survive the pandemic by issuing bonds backed by their programs. The rationale against outright divestitures has been that these programs are innately tied to the underlying product -- air travel -- and separating them doesn’t make business sense.<br/>
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As air travel collapsed in the early days of the pandemic, many passenger planes got a makeover, with airlines stripping out seats and converting empty cabins into cargo holds. At first, these so-called “cabin freighters” airlifted ventilators, masks, and other crucial medical supplies to hard-hit hospitals. Eventually, as factory shutdowns and port closures tangled the world’s supply chains, the planes transported everything from mayonnaise to dog food. Air Canada was one of the first airlines in the world to yank the seats out of part of its passenger fleet in April 2020, three months after the first confirmed Canadian covid case. The seatless configurations served the company well as chaos in the container ship industry drove up the price of air cargo. But now, Air Canada is betting on the start of a new phase of the pandemic. To prepare, it’s reinstalling seats in the 11 planes it converted to seatless cabin freighters and will return them to passenger service by May. “I believe the era of cabin freighters is over. They served a great service at a poignant time,” Air Canada cargo head Jason Berry said. “However, we see the need and demand for this configuration coming to an end by [the third quarter], as passenger capacity begins to return closer to pre-pandemic levels.” Canada, like much of the world, is emerging from its most dramatic spike of covid cases yet, fueled by the highly infectious omicron variant. By the end of January, cases had dropped by more than half from their peak that month. Before omicron, Canadian passenger air travel had been recovering from its pandemic lows. Demand fell sharply once again during the worst of the omicron wave, but by the end of January, daily air traveler numbers once again started to tick up.<br/>
Turkish Airlines has started using sustainable aviation fuel across its flight network that connects 128 countries. Aviation fuel obtained from sustainable sources was used for the first time on TK1823, the flight that departed from Istanbul to Paris on February 2. While sustainable fuel will be used for one day per week on the chosen route, there are plans to implement the practice on different routes on a wider scale. This sustainable fuel with high energy helps reduce harmful particles of SOx and NOx emissions due to clean burn. It is produced from sustainable raw materials and devoid of harmful heavy metals. Sustainable aviation fuel reduces emissions by 87%. The fueling process is also facilitated by Turkish Airlines subsidiary Turkish Fuel Services (TFS). Sourced from Neste, the environmentally friendly product is stored at the TFS fuel farm and gets loaded to aircraft after being blended with jet fuel. Turkish Airlines is also conducting a project on microalgae-based sustainable biojet fuel along with Bogaziçi University, supported by TUBITAK. When the project is complete, the first carbon-negative integrated bio refinery of Turkey and Europe will start its service.<br/>
Singapore Airlines has been ranked the top global airline by Fortune. It was also cited as the leading Asian firm in the magazine's list of the 50 Most Admired Companies in the world, which was announced on Wednesday. The Singapore carrier came in 32nd overall, up two spots from 34th last year. This is the 20th time the company has made it to the annual list. Tech giants Apple, Amazon and Microsoft held the top three spots while Pfizer came in fourth. It is Apple’s 15th straight year in No. 1 position. SIA ranked ahead of Japanese carmaker Toyota Motor, which came in at 34th place, the only other Asian company to have made the list. It also beat other global giants such as BMW, Bank of America, PepsiCo, IBM and Visa. Global consulting firm Korn Ferry, which works with Fortune on the list, described the annual ranking as the "definitive report card on corporate reputations". It was based on a survey of 3,740 executives, directors and analysts across a range of industries, who were asked to rank the companies they admired most in any industry. Companies were evaluated on nine attributes, such as their ability to attract talents and the quality of their management and social responsibility. SIA took the top global airline spot this year, climbing up from No. 2 last year. It came in ahead of Delta and Air France-KLM, which were second and third respectively in the airline scene. The ranking is based on responses from executives in the airline industry. SIA CE Goh Choon Phong said the global airline industry has faced unprecedented challenges over the last two years. "This recognition by Fortune is an acknowledgement of SIA's unwavering focus on providing industry-leading products and world-class service to our customers, as well as the spirit of innovation that permeates all areas of our business despite the disruption caused by the pandemic," said Goh, adding that the company will build on ongoing efforts to emerge stronger as a leading international airline.<br/>