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American Airlines reported a $483m profit for Q3 and joined rivals in forecasting resilient travel demand, as the airline industry continues to shrug off concerns about an economic slowdown. American’s revenue rose to a record $13.46b in the three months ended Sept. 30, up 13% from 2019 despite flying nearly 10% less, a sign passengers are still traveling despite higher fares. Its quarterly sales came in slightly ahead of analysts’ estimates. “Demand remains strong, and it’s clear that customers continue to value air travel and the ability to reconnect post-pandemic,” CEO Robert Isom said in an employee note Thursday after the company reported results. Isom said on an earnings call that the airline will likely get back to 95% to 100% of its 2019 capacity next year, an expansion he said is limited by slower aircraft deliveries and a pilot shortage on regional airlines. American said it expects the strength to continue through the end of the holiday season. For the fourth quarter it’s expecting total revenue to be up as much as 13% over three years ago, before the Covid pandemic. It forecast its capacity during the quarter to be down 5% to 7% from 2019 and is projecting adjusted per-share earnings of between 50 and 70 cents. The company’s shares lost 3.8% on Thursday, more than the broader market and its closest rivals.<br/>

American Airlines expanded on its plan to drop first-class seats on its international flights and replace them with more business class seats. Some of the new seats on long-haul international flights will be dubbed “Flagship Suites” and feature seats that convert into beds and doors for privacy. The change was first disclosed last month and reiterated Thursday in a conference call with investors by Vasu Raja, the company’s chief commercial officer, who said the change is in response to customer demand. “The first class will not exist … at American Airlines for the simple reason that our customers aren’t buying it,” he said in response to a question. American Airlines later said that Raja was referring to international flights only. “The quality of the business class seat has improved so much. And frankly, by removing [first class] we can go provide more business class seats, which is what our customers most want or are most willing to pay for,” Raja said. Most planes used on domestic routes, including virtually all single-aisle jets, will continue to have the standard first class seats at the front of the planes. Although they also have more leg room and might recline more than economy seats, they don’t lay flat. “This is mostly a name change. Business class at most carriers is what we would have called first class 20 years ago,” said airline consultant Mike Boyd.<br/>

Alaska Air Group turned a narrow profit in the third quarter, reporting income of $40m for the three months ending 30 September. The parent company of Alaska Airlines and Horizon Air reports revenue of $2.8b – more than in any quarter in company history –“despite the impact of exceptionally high fuel prices and multiple new labour contracts”, chief executive Ben Minicucci said during a 20 October conference call. Passenger load factors exceeded 2019 levels every month of the quarter, the company says. Unit revenue (measured in revenue per seat per mile) jumped 27% over the same quarter in 2019, “which we believe was the best in the industry and underscores that our commercial initiatives are delivering”, Minicucci says. “We ran an industry-leading operation with completion rates over 99% every month,” he says. “We set a new revenue record, and our double-digit pretax margin will likely lead the industry. Alaska and Horizon also ratified three major labour deals. This is a strong foundation that we look forward to building on in 2023.” Amid the industrywide pilot shortage, Alaska recently “became the first major airline to reach a deal with its mainline pilot group”, Minicucci adds. On 17 October, 3,300 Alaska Airlines pilots represented by the Air Line Pilots Association, International (ALPA) voted in favour of a new three-year contract that includes wage increases of up 23%, depending on length of service. Additionally, more than 700 Horizon pilots represented by the International Brotherhood of Teamsters secured higher pay with a new contract effective 16 October. <br/>

Nestled near Europe’s rooftop, Finland spent decades leveraging its location to become a popular gateway for Asian travelers. Its flagship airline, Finnair, offered flights from Tokyo, Seoul and Shanghai to Helsinki that, by crossing over Russia, were hours shorter than flights to any other European capital. Airport chiefs invested nearly $1b in a new terminal with streamlined transfers. There were signs in Japanese, Korean and Chinese, and hot water dispensers for the instant noodle packets favored by Chinese tourists. Then Russia sent troops across Ukraine’s border on Feb. 24, and overnight the carefully constructed game table was overturned. Russia closed its airspace to most European carriers in response to bans on Russian planes. What was once a nine-hour flight to Helsinki when routed over Russia’s 3,000-mile expanse would now take 13 hours and as much as 40% more fuel because it had to swoop around borders. Finnair’s competitive advantage as the fastest connection from Asia and a travel hub for Europe vanished in a wisp. The sudden disintegration of Finnair’s business model is part of the wide-ranging economic upheaval that the war in Ukraine is causing for businesses around the globe. The closed airspace caused Japan Airlines and ANA to cancel flights to Europe. And this month Virgin Atlantic said it was ceasing all traffic to and from Hong Kong because of Russia’s ban. For Finnair, though, the fallout has been extreme. “The Asia strategy had been 20 years in the making,” Topi Manner, Finnair’s chief executive, said from the company’s headquarters, next to the Helsinki terminal in Vantaa. Services were tailored to meet the tastes of its Asian customers. Half of its in-flight movies are dubbed or subtitled in Japanese, Korean and Chinese. Meal offerings include crispy chicken in Chinese garlic and oyster sauce and Korean-style stir-fried pork in spicy sauce with bok choy and steamed rice. The airline’s ground staff in Helsinki are fluent in the region’s native languages. Story has more.<br/>

International Airlines Group is moving forward with its planned takeover of Spain’s Air Europa by evaluating deal structures that could pass muster with European regulators. The group maintains its goal to close the deal by the end of 2023, even as it lacks a clear path to taking over the Spanish airline, Iberia CEO Javier Sanchez said on the sidelines of the ALTA Leaders Forum in Buenos Aires. IAG owns 20% of the Spanish airline after converting a E100m loan to equity in August. The group previously sought to buy Air Europa outright for E500m but cancelled that transaction last December after regulatory pushback. “The goal is trying to find a new deal … structure before year end, [and] getting the approval maybe post-summer or in the third quarter or beginning the fourth quarter of the 2023,” Sanchez said. The challenge, however, remains convincing authorities in Brussels that the merger is good for consumers, he added. IAG claims that a larger airline, with a greater share of the Spanish — and particularly Madrid — market, would be able to grow more, and expand to more destinations than it can without consolidation. For example, Iberia could offer more flights between Madrid and Asia, a region where it historically has flown little, by merging with Air Europa. “It is also true that we have not being successful in convince the authorities that this, it is good and will be even better in the future for consumers,” Sanchez said. If the Air Europa deal is approved, IAG would control 37 percent of seats in, to, and from Spain based on fourth quarter numbers, according to Diio by Cirum schedules. The group, which owns Iberia, Iberia Express, and Vueling, currently has a nearly 31% share. IAG’s strength would be even greater in Madrid where it hopes to build a “360-degree hub” to compete with the likes of Amsterdam and Frankfurt. The addition of Air Europa would boost its share of seats in the Spanish capital above 50 percent to nearly two thirds, December quarter numbers from Diio show.<br/>

Malaysia Airlines will be offering 20% discounted fares to facilitate voter movement for the 15th General Elections set for Nov 19. In a statement on Thursday, Malaysia Airlines said it launched the “Jom Balik Mengundi” (Let’s go back to vote) campaign which would run from Oct 20 to Nov 19 for travel from Nov 11 and Nov 27. The airlines will also mount 26 additional flights and upgrade 16 domestic services to wide-body A330 aircraft to accommodate the surge in demand to several routes in Peninsular Malaysia, Sabah and Sarawak. The 20% discount promotion is applicable on all fare categories and is available for booking via malaysiaairlines.com, the airlines said. The Malaysian Aviation Commission (Mavcom) will monitor the pricing of flight tickets to ensure that airlines do not hike up prices arbitrarily in light of the general election, said Transport Minister Datuk Seri Dr Wee Ka Siong.<br/>

Qantas has suspended selling tickets for its new services from Perth to Johannesburg and Jakarta weeks before they were due to launch. The airline said it has “temporarily paused” sales while it works with government departments on the “customs and biosecurity requirements” of the flights. The high-profile Johannesburg service was due to launch on 1 November and Jakarta on 30 November, with Qantas chief executive Alan Joyce even making the announcement in a joint press conference with WA Premier Mark McGowan. The announcement raised eyebrows after the pair had several major arguments during COVID-19 — with Joyce comparing Western Australia’s border policies to those of North Korea. McGowan retaliated by arguing his pandemic restrictions actually made WA “the most successful economy in the world”. In a remarkable turnaround, Joyce used the occasion to say he now thought the WA premier was “one of, if not the best, politicians easily in the country at the moment and he’s done a fantastic job here”. “Indonesia is a rapidly growing economy that’s home to more than 270 million people, and these new flights will open up more trade and investment opportunities and a new gateway for travellers looking to explore Indonesia,” said Joyce.<br/>