Younger travelers are big business for airlines. No matter what one thinks of millennial, Gen Z, and younger cohorts, these generations make up more than half the U.S. population and are among those leading the air travel recovery. Delta has these demographic shifts firmly in its sights with its latest booking offering: a buy-now, pay-later function provided by American Express. The Plan It tool, which debuted Thursday on the Atlanta-based carrier’s website and its app, gives potential travelers three options to pay for their trips in installments over three to 24 months. American Express charges users a fixed fee based on the total for the purchase monthly for the duration. The feature is the latest in the broader trend towards more trip flexibility for travelers. The largest change in this sphere was when airlines ended most change fees early in the Covid-19 pandemic. As American Express Head of Global Lending and Co-brand Anthony Cirri put it in an interview, “consumer travel needs have changed” and Plan It is the “next evolution” in this process. <br/>
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Ben Smith, the Canadian executive in charge since 2018, told the Financial Times the Franco-Dutch group was also pursuing a “plan B” to industry consolidation, with a push to expand its low-cost routes. In addition, he aims to further integrate the airlines in the hunt for cost savings, overcoming some resistance from Netherlands-based carrier KLM. The plans were revealed as the group reported improved revenues and a lower-than-expected loss for 2021, with Q4 operating income above pre-pandemic levels as long-haul flights pick up again. The airline said it was considering options for a capital raising of up to €4bn, including a rights issue and quasi equity debt issues, that would help repay state aid. “We want to have the flexibility to participate [in consolidation] where it makes sense,” Smith said, adding however that the group had “no gun to our heads” in terms of timing. Shares in Air France-KLM fell 5% to E4.27 by mid-morning on Thursday in Europe in reaction to the capital-raising plans that would heavily dilute shareholders, analysts said. Air France-KLM received E10.4b in support in 2020 when the coronavirus outbreak hit, including through direct French and Dutch state loans. A E4b recapitalisation was backed by Paris last year, which included a ban on acquisitions. That is stifling expansion plans in areas such as cargo or maintenance and proving a hindrance at a time when German rival Lufthansa is circling Italy’s ITA Airways. Smith has sought to mend ties with French unions as part of efforts to restructure Air France, the struggling partner in the group formed by the merger with KLM in 2004 and which has cut close to 8,000 full-time jobs in the past two years. The group is aiming to return to profitability in its French market by 2024. Part of the overhaul has included shifting resources to low-cost carrier Transavia, which could form a greater part of an alternative plan if external moves remained off the table, Smith said. This would include building up connections between French cities outside Paris, such as Nice, and other European capitals. “We can’t stand these remedies and we’re doing everything we can to pay back the state aid as quickly as possible,” Smith said. “We are not totally hamstrung.” Air France-KLM could still potentially look at ITA, the former bailed-out Alitalia, or consider a commercial agreement that could lead to taking an equity stake in the company further down the line, Smith said. But the group would not “lose sleep” if one or two independent carriers, such as ITA, Norwegian or SAS, were picked up by competitors, he added, saying that he did not see a scenario of a larger or more threatening takeover of a group such as Ryanair materialising.<br/>
KLM said it would cancel almost 170 flights to and from Amsterdam Schiphol Airport on Friday due to a severe storm. Storm Eunice is expected to hit the Netherlands on Friday afternoon with wind gusts of up to 130 kilometres per hour, the Dutch meteorology institute said as it urged people throughout the country to stay indoors if possible. <br/>