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Airbus is in discussions with Qatar Airways to try to resolve a bitter legal and safety dispute over the A350 passenger jet, the planemaker's CE said on Sunday. "There's progress in the sense that we are communicating; we are working with each other," Guillaume Faury said on the sidelines of an airlines meeting in Doha. "I think we share the view that a settlement would be a better way forward, but as long as you don't have an agreement, you have no agreement." Qatar Airways was not immediately available for comment. The two sides are at loggerheads over the airworthiness of Europe's newest long-haul jet after damage to its protective outer skin exposed gaps in lightning protection and prompted Qatari authorities to ground more than 20 jets. Airbus, backed by European regulators, has acknowledged quality flaws with the jets at several airlines but denies the problems amount to a safety risk, because of backup systems. Qatar Airways, supported by its own national regulator, which has ordered the jets out of service as the problem appears, insists that the safety impact cannot be properly understood until Airbus provides deeper analysis. In an unprecedented London court battle, it is pursuing Airbus for more than $1b in damages, with the value of the carrier's claim rising by $4m per day. "We are in a difficult place, but we in Airbus are really willing to find a way out," Faury said. "We have been in discussion (and) the line of communication has never been broken between us and Qatar Airways. I am not suggesting it's easy...but we're speaking to each other and we continue to support Qatar Airways in their operations."<br/>

Japan Airlines is on track to soon log a monthly profit for the first time since the global spread of the coronavirus, President Yuji Akasaka told Nikkei, as the country starts opening back up to international travel. "We will roughly break even in June and will definitely see positive earnings before interest and taxes in July," Akasaka said. The flag carrier last booked a monthly operating profit back in February 2020, when it was still using Japanese accounting standards. As of last November, JAL had aimed to return to the black this March, only to miss that target amid the rise of the omicron variant of the virus behind COVID-19. JAL's bullish outlook comes as travel demand recovers more quickly than was expected. The Japanese government doubled its cap on daily international arrivals to 20,000 this month. JAL had expected demand for international flights to reach around 25% of pre-COVID levels in the April-June quarter as of May. But "we're now at nearly 40% and expect to hit 50% by the end of September," Akasaka said. Much of the demand comes from international students and businesspeople, as well as travelers headed from Asia to North America via Japan. Flights connecting Japan with North America and with the rest of Asia are now around 80% full. Wholly owned JAL unit Zipair Tokyo is recovering faster than expected. The low-cost carrier is expected to book an operating profit for June, thanks to growing passenger numbers on North American routes, as well as sustained demand for cargo shipments. JAL's cost-cutting efforts through the fiscal year ended in March have helped buoy its performance as well. <br/>

Cathay Pacific Airways continues to experience a very high rate of pilot resignations, and may improve allowances and benefits to appease crew who took deep pay cuts to help Hong Kong’s flag carrier navigate its way through the city’s Covid-19 crisis. “We still have resignation rates at much higher levels than we’ve historically had,” Chief Operations and Service Delivery Officer Greg Hughes said at a town hall meeting for Cathay staff. “It would also be an incorrect statement for me to make that COS18 is not one of the reasons.” COS18 refers to contracts introduced in 2018 for new employees, and expanded to all existing crew in October 2020, that cut pilots’ pay by about 40% and reduced housing and retirement benefits. “We truly believe that it’s a competitive remuneration package for Hong Kong pilots,” Hughes said. “That doesn’t mean it’s satisfactory for everyone.” Cathay’s workforce has shrunk almost 40% during the pandemic as Hong Kong’s stringent travel curbs and effectively closed border saw the airline burning cash, forcing it to drastically scale back staff and operations. In addition to redundancies, those who retired or left to join other airlines or industries, hundreds of Cathay employees departed after being caught up in the government’s aggressive clampdown on infections. There was an uptick in resignations in November after about 150 Cathay staff and their families were sent to a government-run Covid isolation camp called Penny’s Bay when three crew members became infected while overseas. People across industries have left Hong Kong because of its strict Covid policies and Beijing’s growing influence over the city, but Cathay and its employees have been particularly exposed, with staff also embroiled in anti-China protests that rocked the hub in 2019.<br/>

Malaysia Airlines plans to announce a decision on replacing its fleet of 21 Airbus A330 widebodies with more fuel-efficient new-generation planes around mid- to late July, its chief executive said on Sunday. "We are in a late stage of the process. We are looking at one-to-one replacement on our A330 fleet," Malaysia Airlines chief executive Izham Ismail told Reuters on the sidelines of airline industry body IATA's annual meeting in Qatar. He declined to say whether the airline would order the planes, meant to replace 15 A330-300s and six A330-200s, from a manufacturer directly or from lessors. The Airbus A330neo, A350 and Boeing 787 are the new-technology options competing in that size range, but Izham declined to disclose which types were under consideration. Malaysia Airlines has A350s in its fleet and had placed a provisional order for 787s in 2017 but let the deal lapse. The fleet modernisation plan designed to help lower carbon emissions comes as the airline, which was loss-making for years even before the pandemic, has been reporting positive cashflow since October.<br/>

Airbus and Qantas Airways will make a joint investment aimed at kick-starting Australia’s sustainable aviation fuel industry. The planemaker and airline plan to invest as much as $200m to accelerate the adoption of SAF in the country, they said Sunday ahead of the International Air Transport Association’s annual meeting in Doha. “The use of SAF is increasing globally as governments and industry work together to find ways to decarbonise the aviation sector,” Qantas CEO Alan Joyce said at a joint press conference. “Without swift action, Australia is at risk of getting left behind.” The partners will make equal investments in the project, with a smaller contribution from Raytheon Technologies Corp.’s Pratt & Whitney arm, whose geared turbofan engines Qantas selected for a recent Airbus A220 and A320neo order. The firms could ultimately also take equity stakes in SAF ventures that are deemed viable. Sydney-based Qantas currently uses around 1% SAF in its network but will look to grow this, Joyce said. The CEO said that corporate demand is back to 90% of 2019 levels, with leisure bookings rebounding even faster and now at 120% of the pre-Covid position as the end of travel curbs prompts people to take a holiday or visit family and friends. International capacity should be fully recovered by Q2 2023, he said.<br/>

Qantas anticipates international capacity will return to pre-pandemic levels around the middle of 2023, amid “strong robust demand” as borders reopen. Airline CE Alan Joyce disclosed this at a press briefing where the airline announced a joint partnership with Airbus to develop a sustainable aviation fuels industry in Australia. Asked to comment on the return of travel demand, Joyce notes that the “main issue” is a lack of capacity. The airline is operating at around 50% pre-Covid-19 capacity, and expects to increased this to reach 85% by year-end. The airline’s previously-disclosed international capacity forecast was around 70% by end-September. The “really strong demand”, particularly for international flights, is helping to drive up yields and offset rising fuel prices, he adds. On the domestic network, Joyce says demand is already surging ahead of pre-pandemic levels. Leisure travel, in particular, is now at 120% pre-Covid-19 levels. However, he warns that “there may have to be a bit less capacity” to absorb the steep increase in fuel prices. “We are working through that at the moment,” he adds. The airline has in recent months been restoring its international network, as Covid-19 restrictions ease across the world. In late-May, it said it “ramped up significantly” trans-Tasman flights, as neighbouring New Zealand eased entry requirements. A re-boot of Japan is in the cards with Tokyo’s lowering of travel restrictions, with Jetstar to resume its Cairns-Tokyo and Cairns-Osaka from late July. Qantas will also resume flights to Japan from September. The airline is also in the process of bringing back its Airbus A380s, which were stored amid a collapse in demand during the pandemic. <br/>