Wizz Air said it was working to evacuate its Ukrainian based crew, their families and four aircraft on Thursday after Russia's invasion forced it to suspend all operations in the country. "Due to the current events in Ukraine and the airspace closure, Wizz Air regrets to inform our customers that the airline must temporarily suspend all flight operations in the country," the airline said. According to aviation analytics firm Cirium, Wizz Air had operated the second highest number of flights between Europe and Ukraine, behind Ryanair. The company said it was working to evacuate all of its Ukrainian-based crew, and their immediate families. It also has four aircraft on the ground there, three in Kyiv and one in Lviv. Ukraine closed its airspace to civilian flights on Thursday after Russia launched a land, sea and air invasion of its neighbour, while Europe's aviation regulator warned about hazards to flying in bordering regions. <br/>
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Volaris says its ”disciplined growth strategy” through the changing demand environment during Q4 helped it achieve a 43% rise in total revenue over the same period in pre-pandemic 2019. Revenue at the Mexico City-based ultra-low-cost carrier rose to Ps.13.9b ($680m) during Q1 of the year. That compares to Ps.9.73b in the same period two years ago. For the full year 2021, the airline reported revenue of Ps.44.7b, a 29% increase over 2019. “In 2021, despite the demand uncertainty associated with Covid-19, we were able to report a strong performance,” CE Enrique Beltranena says on 24 February. “Going forward we will continue to focus on executing our growth strategy. This centres upon catering to the travel demands of a large, growing middle class in Mexico, focusing on longer-haul bus substitution, and growth in our international markets.” The company said it posted a Q4 loss of Ps.200m that was impacted by a one-off accounting charge of Ps.2.25b “related to the termination of a non-derivative financial instrument as a result of the change in the functional currency”. Without the charge, the airline would have earned a profit of Ps.1.56b, up 21% over the figure for Q4 2019. Volaris changed the currency in which it reports from the Mexican peso to the US dollar at the end of 2021. “As a result of the recent developments in the company’s operational environment, the way it measures its business performance, the determination of the selling fares based on US dollar, the increase of operations in the international market, and that most of Volaris’ cost is determined and denominated in US dollars, the company concluded that the currency that most reflects its operations is the US dollar,” the carrier says.<br/>
Canada’s WestJet has appointed ex-British Airways chief executive Alex Cruz to its board of directors. “Alex’s impressive experience leading both full service and low-cost airlines make him an invaluable addition to our board as the airline continues to improve its cost position to compete more vigorously with carriers of all sizes,” WestJet’s chairman of the board Chris Burley says on 24 February. “This appointment will help strategically position the WestJet Group as it emerges from the pandemic serving an even greater number of guests looking forward to travelling once again,” he adds. Cruz led BA from April 2016 through October 2020. Prior to that, he founded and served as the CEO of low-cost carrier Clickair, which merged with Vueling in July 2009. He also held several management roles at American Airlines before founding his own aviation consulting company. “I am delighted to join the WestJet Group board of directors,” Cruz says. “Few carriers navigated the pandemic without issuing equity or debt, or accepting sector-specific government support. It speaks to WestJet’s cost position and I look forward to helping deliver even more value for guests.” WestJet recently appointed former Austrian Airlines chief executive Alexis von Hoensbroech as its new CEO after Ed Sims retired at the end of 2021. Hoensbroech began work in the role last week.<br/>
Brazil’s Azul achieved record revenue during Q4 2021 as it continued to build out its domestic passenger and cargo operations. The Sao Paolo-based airline on 24 February reported revenue of R3.7b ($720m) in the final three months of the year, compared to R1.8b in the same quarter in 2020. The Q4 2021 figure was 14.7% higher than revenue in Q4 of pre-pandemic 2019, and a company record. For the full year, revenue topped R8.8b, up from R5.1b in 2020. “During the quarter, we continued to focus on our domestic network. We are now flying to almost 150 destinations, a remarkable addition of more than 30 destinations compared to 2019,” says chief executive John Rodgerson. “Over time, the growth from these new destinations will contribute significant incremental demand to our network.” “Our strong fourth-quarter results give us confidence in our business model,” he adds. Azul posted a Q4 loss of R946m, primarily owing to a financial expense that included interest accrual, lease liabilities and an unfavourable exchange rate. Its earnings before interest, tax, depreciation and amortisation (EBITDA) was R1.03b, 16% below the R1.23b it reported in Q4 2019.<br/>
Kuwait Airways has rejigged its aircraft orders with Airbus, including a notable switch to the A330-900, to match more closely its development plans over the next few years. The carrier will also take a batch of A321neos including long-range versions of the twinjet. Kuwait Airways had eight A330-800s on order – two of which have been delivered – but will instead take four. It also had orders for five A350-900s, yet to be received, but the new plan envisions two of the type. The airline had originally opted to take 10 A350s in 2014 but subsequently chose to take the A330neo in another order rethink four years later. Kuwait Airways is again turning to the A330neo in the latest restructuring, opting to introduce seven A330-900s configured with 291 seats. The carrier has also overhauled its agreement for single-aisle jets, which originally included 15 A320neos of which six have been delivered. It will take nine A320neos with 134 seats, supplemented with six A321neos and three A321LRs – all configured with 169 seats. Kuwait Airways chair Ali Al-Dukhan says the airline views the A330-900 as offering improved economics, with the capability of transporting over 50 more passengers than the 235-seat A330-800. “This agreement is one of the largest concluded between Kuwait Airways and Airbus,” he says. “Airbus has greatly contributed to the development of the Kuwait Airways fleet, with its modern and diverse aircraft.” <br/>
"I thought COVID-19 was just going to be a passing cloud, but I was wrong," says Tony Fernandes. The larger-than-life executive behind AirAsia, the Malaysian budget airline whose parent company now goes by the name Capital A, was in a reflective mood in a recent interview with Nikkei Asia. He confessed he'd assumed the coronavirus would pass as quickly as other health emergencies, like SARS or H1N1. "I actually have to apologize to my communication team because I said, why are you making such a big deal out of this and scaring people? I thought I had seen everything in 20 years. But obviously the pandemic is a global phenomenon that I never imagined [would] be how it is today." Under Fernandes, 58, AirAsia has snatched a significant share of the Asian market from premium carriers like Malaysia Airlines and Indonesia's Garuda, and it flew over 50m passengers in 2019 before the pandemic hit. But now it finds itself at perhaps its lowest point. Over 200 aircraft from a fleet of 260 planes have remained idle for most of the last two years. Annual results for 2021, expected next week, will show a cash outflow of 1.4b ringgit ($333m), according to an estimate from Nomura. Amid all this, Fernandes has pursued a frenetic expansion of the company into new businesses such as food delivery and a digital wallet, with ambition to build a full-blown "superapp" to rival Grab and GoTo. It is a strategy that entails heavy investment. Losses on those digital businesses in the third quarter last year almost added up to the loss in the core airline business. Capital A has pursued a frenetic expansion into new businesses such as food delivery and a digital wallet, with ambition to build a full-blown "superapp." (Photos by AirAsia) Last month, the Bursa Malaysia stock exchange raised a red flag over Capital A's finances, putting it under "Practice Note 17," which demands that it conduct a financial restructuring within a year or face automatic delisting. The shares fell 25% on the day the bourse made the announcement, and although the stock has recovered some ground since, at 62 sen this week it is a far cry from the 4.60 ringgit all-time high recorded on March 1, 2018. Story has more.<br/>
Malaysia's Firefly is set to jet off again from its Penang hub beginning April 11 and has launched sales of tickets to Johor Baru, Kuching and Kota Kinabalu. Customers can now grab fares from as low as RM69 one-way to these new routes. The airline will start with twice daily return flights from Penang to Johor Baru and one daily return flight from Penang to Kuching and Kota Kinabalu. This will be ramped up to three times daily return flights from Penang to Johor Baru and twice daily return flights from Penang to Kuching and Kota Kinabalu from April 25. Firefly CEO Philip See said they were excited to continue the jet services with a value service concept that entailed product unbundling for extra convenience and perks. “Guests will also have the opportunity to accrue and redeem Enrich points. As part of the Malaysia Aviation Group and code sharing with sister companies Malaysia Airlines and MASwings, Firefly will provide seamless travel experiences for passengers,” he said, adding that it has been a challenging past two years for the travel industry. “We hope these new services will accelerate economic recovery and boost domestic tourism in 2022.”<br/>
Thai Lion Air (TLA) intends to launch a new hub for international flights from Suvarnabhumi airport, with the first route to Jakarta set to launch before Songkran and the introduction of other overseas destinations by the end of the second quarter. The airline uses Don Mueang airport as its hub for domestic flights, as do most local low-cost airlines, and plans to continue to do so for routes within Thailand. As TLA has an international cargo service at Suvarnabhumi, there was an opportunity to carry both cargo and passengers from connecting cross-border flights, said Nuntaporn Komonsittivate, TLA's head of commercial operations. TLA's fleet has been reduced from 30 aircraft in 2019 to today's 11, of which two Airbus A330s are currently stationed at Suvarnabhumi to serve the cargo business, which saw 20-30% growth during the pandemic. Nuntaporn said the Jakarta route will start with one flight per week, to see what demand is like. The additional routes in the second half of this year could be Singapore, India or Japan, depending on the travel restrictions in each country. Besides Jakarta, flights bound for Tokyo's Narita airport might also use Suvarnabhumi as a hub, as they have to fly with the Airbus A330.<br/>
Australian carrier Regional Express (Rex) swung to pre-tax loss in the first half of its 2022 financial year, as revenue also declined. Rex’s pre-tax loss was A$53m in the six months to 31 December 2021, compared with a pre-tax profit of A$14.2m in the previous corresponding period, according to its financial results. The carrier also swung to a net loss of A$36.7m, compared with a net profit of A$9.9m a year earlier. The carrier’s net result was aided by A$16m in tax benefits. Total revenue fell 6.8% to A$116m, mainly due to government grants and subsidies declining from $59m to $28m. Otherwise, revenue from ‘contracts from customers’ grew 34.7% to A$88m, owing to the carrier’s new domestic air transport business, which operates Boeing 737-800s on trunk routes. The first half of Rex’s 2022 financial year was the first accounting period in which the 737 domestic operation is fully reflected, following the operation’s launch in early 2021. This operation helped ASKs more than double, with Rex carrying 346,000 passengers, up 82% from the first half of its 2021 financial year. Load factors, however, were challenged, falling 7.3 percentage points to 53.4%. Charter revenue for the six months ended 31 December declined 2.5% to A$15.4m. Rex attributed its performance to the coronavirus pandemic, which had two resurgences in Australia in 2021.<br/>