JetBlue Airways eked out a $57m profit for Q3 as strong travel demand and higher fares helped the carrier cover more expensive fuel and other costs. The New York-based airline’s revenue rose 30% during the quarter from the same period last year to $2.56b, in line with analysts’ estimates. JetBlue’s operating margin narrowed to 5.4% from 9.4% a year earlier after expenses rose nearly 36% from the same period of 2021. JetBlue’s CEO, Robin Hayes, said the carrier expects “another solid quarter of mid-single-digit pre-tax margins in the fourth quarter, and we’ll look to expand on that further in 2023 as we continue to restore our earnings power.” “While the revenue outlook is strong, we have to continue to be thoughtful about every penny we spend, particularly in today’s environment, since our entire business model of competing with lower fares is based on having lower costs relative to the legacy airlines,” JetBlue’s CFO, Ursula Hurley, wrote in a note to employees. Hurley said despite the quarterly results, the airline won’t post a full-year profit in 2022 “after the bumps we faced in the first half of the year with the Omicron variant and operational challenges.” Larger US carriers have been upbeat about travel demand and largely outperformed analysts’ expectations on resilient bookings, particularly on the return of international trips. Airline executives say they are limited in how much capacity they can add because of shortfalls in aircraft and pilots, which is helping keep fares high. Airlines have also held back on adding flights after a host of costly operational meltdowns prompted them to add more slack in the system. JetBlue said it plans to expand flying 1% to 4% in the fourth quarter compared with 2019 levels. Airlines are comparing capacity levels with those of three years ago to show their recovery from the Covid pandemic.<br/>
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JetBlue Airways is finally coming back from its operational missteps this spring that forced deep cuts to its summer schedule. But that recovery may hit turbulence this winter as air traffic control issues remain a top concern for the airline. Joanna Geraghty, president of the New York-based carrier, repeatedly cited air traffic control “constraints,” including “staffing headwinds,” as operational concerns this winter and into 2023. Speaking during JetBlue’s Q3 earnings call on Tuesday, she said the situation has forced the airline to maintain an elevated number of pilots in “reserve” — or on call — in the event of delays. “The [air traffic control] environment remains fragile,” Geraghty said, even as she thanked the US FAA, which manages air traffic control, for its transparency on the situation. Concerns with US air traffic control staffing came to the fore this spring. That’s when a shortage at the FAA’s center in Jacksonville, Fla., prompted delays and cancellations to thousands of Florida bound flights. Executives at JetBlue, Southwest Airlines, and Spirit Airlines all cited the issues in April. And by the summer, air traffic control staffing was widely cited as contributing to airline operational issues in Florida and the northeast. FAA officials have broadly denied that air traffic control has a major contributor to airline flight delays and cancellations in the US this year. However, the agency has acknowledged staffing issues in Florida and the northeast.<br/>
Hawaiian Holdings, parent company of Hawaiian Airlines, reported a Q3 loss of $9.3m as the carrier continues its pandemic recovery. By comparison, the airline posted a $14.7m profit during the same period of 2021. However, excluding US government aid, it lost $48.7m that quarter. “The company’s overall operating revenue was down 1.9% from third quarter 2019 as its international network is still rebuilding,” Hawaiian says. Hawaiian reports Q3 operating revenue of $7.4b, a 46% increase from $4.5b during the three months ending 30 September 2021, the airline says 25 October. “Demand for travel to, from and within Hawaii remained strong,” Peter Ingram, Hawaiian’s president and CE, said during a 25 October conference call. “Leisure travel has led the global recovery, and I expect this to continue.” During Q3, the airline operated at 93% of Q3 2019 passenger capacity. Last year, Hawaiian operated at 79% of its 2019 capacity. Demand for flights between Hawaiian and the mainland USA has been “fully recovered for some time, and the peak summer period did not disappoint at all”, Ingram says. The airline anticipates a recovery in Hawaii-Japan travel, with Japan lifting most of its Covid-related travel restrictions on 11 October. “Mindful of the cautious nature of the Japanese public and the continuing weakness of the Japanese yen relative to the US dollar, we are choosing to add capacity back gradually,” Ingram says. Hawaiian is also feeling competitive pressure from Southwest Airlines, which started offering inter-island service in Hawaii in April 2019. Southwest has recently “initiated unusually aggressive pricing”, Ingram says. “I’m going to be asked to speculate on how the current situation evolves in the months ahead,” he adds. “The simple answer is that I do not know. But I do know is that the appropriate response to this challenge is to compete. So we will lean in.”<br/>
Volaris airlines is planning its budget on the expectation that Mexico will regain its Category 1 aviation safety rating by the second half of 2023, the Mexican airline's finance chief said on Tuesday. "We are budgeting for the second half of next year, and we are closely monitoring that," Volaris CFO Jaime Pou said in an investor call. Mexico President Andres Manuel Lopez Obrador said at a regular news conference Tuesday that authorities from his country will travel to the United States this weekend to discuss regaining the rating. In May 2021, the FAA downgraded Mexico's aviation safety rating, an action barring Mexican carriers from adding new U.S. flights and limits the ability of airlines to carry out marketing agreements with one another. Over the objections of the Mexican government, the FAA downgraded Mexico - one of the most common international destinations for US air travelers - from a level called Category 1, which signifies compliance with international standards, to Category 2, the lowest level. "Things are really advancing," Lopez Obrador said, explaining that the head of the transportation ministry, the deputy minister and the head of the aviation authority would make the trip to Washington. An FAA spokesman said Tuesday the agency continues "to provide assistance to Mexico’s civil aviation authority." About 90% of countries rated achieved Category 1 and meet international air safety standards.<br/>
Aer Lingus is set to run Jersey's first regular commercial route to Belfast in nearly a decade. Ports of Jersey said the seasonal route would start in May, with 6,000 seats available on twice-weekly direct flights through the summer. Passengers have not had a regular link between the Channel Islands and Northern Ireland since 2013, it said. Matt Thomas, Ports of Jersey's CE, said the new route was a 'great vote of confidence' for the hub. Figures from Ports of Jersey show the airport has faced a steep road to recovery following the pandemic. Thomas said: "We already have a successful link with Dublin, and this route will strengthen our connections and expand travel options for both islanders and visitors." Kirsten Morel, Minister for Economic Development, Tourism, Sport and Culture, said the launch would be welcomed by islanders, many of whom have family connections with Northern Ireland. Ciaran Smith, from Emerald Airlines, which operates Aer Lingus' regional services, said they expected the route to be popular among both business and leisure travellers. Starting on 6 May 2023, the flights will run on Wednesdays and Saturdays.<br/>
Ryanair boss Michael O'Leary hailed the appointment of Rishi Sunak as British prime minister on Tuesday, saying he was glad the "Brexiteer wing" of government was on its way out and calling for a trade deal with Europe to end post-Brexit turmoil. He said he was glad "adults have taken charge again". "They are getting rid of some of the people who were there, from Boris Johnson to Liz Truss, all the Brexiteer wing of the Tory party - they are crazies," the CE of one of the world's largest airlines told Reuters on the sidelines of an event in Lisbon. "...We all accept that we left the EU. Brexit is done but at least have the best free trade deal you can have. Europe is still the UK's largest trading partner." The Irishman, who last week described the economic situation in Britain as a "car crash" caused by Britain's exit from the European Union, hoped Sunak's first decision would be to rejoin the free trade agreement. Although the cost of living crisis has hit Britain and the rest of Europe hard, O'Leary said inflation was "very good" for his company because "people don't stop flying" but choose cheaper airlines like Ryanair instead. "In a recession people become more price sensitive," he said. "They shop in Lidl and Aldi, they spend more on furniture in IKEA and when they want to fly, they fly with Ryanair." Asked if bookings were holding up in the face of inflation, O'Leary said they were "growing faster than expected". "We thought bookings would level off after August into September, October and November (but) they are still remarkably strong."<br/>
Egyptian carrier Nesma Airlines is looking to expand its fleet next year, having consolidated its operation under a single air operator’s certificate. The airline was operating with Egyptian and Saudi Arabian licences but has been brought under Egyptian investment, CE Karim Baky said. Baky, who joined the carrier from local operator FlyEgypt, says the new ownership means the carrier is “clean” with “no debt”. He says Nesma had been using a single wet-leased Airbus A320 but recently replaced it with two dry-leased A320s. It is aiming to expand its operation next year with another pair of A320s. Cairo-based Nesma flies to five destinations in Saudi Arabia, as well as Kuwait, and operates Red Sea charters from Europe. Baky says the carrier, a relatively new member of AACO, wants to use its expanded fleet to open routes to the United Arab Emirates as well as more European charter services.<br/>
Saudi Arabian Airlines (Saudia) is in talks with planemakers Airbus and Boeing on orders for itself and a new carrier the kingdom plans to launch, the state-owned airline's CE said Tuesday. The talks are for aircraft for both airlines as they have the "same shareholder", Ibrahim Koshy told Reuters on the sidelines of Saudi Arabia's FII investment conference. Reuters reported on Monday that Saudi Arabia's wealth fund was in advanced negotiations to order almost 40 A350s from Airbus, with Boeing also lobbying for a slice of the kingdom's aviation expansion despite a chill in US-Saudi relations. Several analysts believe an order could be split between the two plane giants. Asked on Tuesday whether potential orders were for the new airline or Saudia, Koshy said "both". Provisionally named RIA, the new airline will be based in the capital Riyadh, while state airline Saudia will be based out of Jeddah under a transportation strategy that calls for the establishment of two hubs to rival United Arab Emirates and Qatari carriers.<br/>
The aviation industry needs to prepare for the future to address the expected higher levels of travel demand, climate change challenges and operational safety, Emirates airline president Tim Clark has said. Industry investment in air navigation systems, new technology, skilled aviation workers and infrastructure are inadequate, he said in a keynote speech on Tuesday at the International Air Transport Association's Safety Conference in Dubai. "These days a few things are keeping me awake and one of them is future readiness," Clark said. "Are we as an industry truly ready to tackle the next 20 to 30 years? I fear that what I’ve been seeing so far are signs of an industry failure to provide the right infrastructure for the future. And more worrying, a dearth of leadership. How can we operate safely if we are not investing in systems, in technologies, in people and in bricks-and-mortar infrastructure?" The aviation veteran lambasted plane-makers over repeated delays of aircraft deliveries as the airline steps up its operations to meet a surge of travel demand after bouncing back from the Covid-19 pandemic. "How can we be assured of safety when the biggest manufacturers in commercial aviation are failing to deliver aircraft programmes to the standards and timelines requested to replace ageing fleets? Where is the accountability and oversight from their senior managers?" Clark said.<br/>
Some bondholders of Hong Kong Airlines are seeking to block a $6.2b debt restructuring plan, which they say treats them unfavorably compared with the company’s owner and its affiliates. The ad-hoc group, representing some holders of perpetual notes and advised by law firm Allen & Overy, will vote down a proposal to reduce the debt of the embattled carrier by 74%, according to court documents. Hong Kong Airlines began a debt restructuring process in Hong Kong earlier this month. It opened a parallel procedure in the UK on Tuesday to deal with its unsecured creditors, including some lenders, lessors of aircraft and $683m of bondholders. As part of the restructuring plan, unsecured creditors would get paid in cash an amount equivalent to about 5% of the money owed to them. The group’s lawyers told judge Timothy Fancourt on Tuesday that it can prevent the company from reaching the required 75% support to go ahead with the deal. The group said it expects Hong Kong Airlines to then apply for a so-called cross-class cram down, which would effectively allow it to proceed despite their opposition. The bondholders say that the carrier wouldn’t meet the criteria to apply for such a process because of “unfair” favorable treatment given to the firm’s owner and its affiliates. Creditors will vote on the restructuring plan ahead of a sanction hearing scheduled in December. The bondholder group is also opposing the company’s proposal to bundle the vote of secured and unsecured creditors together. <br/>
The airasia Super App has partnered with over 50 key hotel groups from Malaysia, Thailand, Indonesia and the Philippines to help strengthen the application’s position as one of the region’s fastest-growing online travel and lifestyle platforms. Capital A Bhd, the holding company of the AirAsia Aviation Group, said the partnerships would allow the app to offer customers an extensive array of hotel options to choose from according to their budget. airasia Super App CEO Amanda Woo said the direct hotel partners are able to leverage AirAsia’s strong brand presence and connectivity network. "This enables airasia Super App to avail more marketing opportunities and visibility for each hotel partner while offering them extremely competitive rates,” she said during the mass signing ceremony here today. Woo said the hotel platform offers consumers a choice of over 700,000 hotels worldwide, the ability to earn and redeem AirAsia points, and even to pair their flights and hotel bookings in one seamless transaction via SNAP -- its hotel and flight combination package. "airasia Super App’s hotel booking platform will also guarantee the best hotel prices on the platform, with a best price guaranteed scheme which will be launched very soon, aside from special members’ rates,” she said.<br/>