The latest Airline Business Index shows the global airline industry’s revenue soared even further above 2019 levels in Q1 2023, as the sector moved to within touching distance of its pre-Covid size. The revenue score of 109 (2019 = 100) marked a rise of three points from the previous quarter – and was achieved despite passenger numbers being 10 points below pre-Covid levels at 90, as carriers benefited from strong yields. Workforce size (94) and fleet (98) were both closer to parity with 2019, having recorded small increases over the three months. Notably, amid a ‘normalisation’ of the air travel sector following the pandemic, there is no longer a strong mismatch between the business fundamentals – workforce and fleet size – and the performance-focused metrics of revenue and passenger numbers. At the index’s lowest points in the Covid-19 crisis, workforce and fleet bottomed out at 81 and 95 respectively, compared with a revenue low point of 20 and a lowest passenger-number score of 10 – the latter two seen in Q2 2020. The overall score of 98 represents a rise of three points from the 31 December 2022 score of 95 and six from the 30 September 2022 score of 92. The latest score is an increase of 44 from the first index, which covered Q2 2020. Using data from 14 of the largest airline groups that release quarterly or half-yearly results – covering the Americas, Asia-Pacific and Europe – the index considers four metrics: size of workforce by employee number, size of fleet, and revenue and passenger numbers at the end of the most recent reporting period – in this case, Q1 2023. It compares those figures with equivalent pre-crisis data from 2019.<br/>
general
It was the year of “the summer of lost luggage”, in which travellers across the world told stories of disappearing bags as the aviation industry struggled to keep up with rebounding demand. Now, newly collated statistics show the extent of the disruption: the rate of mishandled baggage almost doubled globally in 2022, with 26m pieces of luggage delayed, lost or damaged. That mishandled luggage rate soared to 7.6 bags per 1,000 passengers in 2022, up from 4.35 in 2021 and 5.6 in 2019, according to the aviation data company SITA’s annual insights report. For international flights, the mishandling rate was 19.3 bags per 1,000 passengers, more than eight times higher than the rate of 2.4 for domestic flights. This was largely because flight transfers were more likely on international journeys, SITA’s CE, David Lavorel, said. Errors during flight transfers were the largest contributor to mishandled baggage in 2022, accounting for 42% of affected luggage. Lavorel described the rise in mishandled baggage as an “exponential increase”. “The swift comeback took the industry by surprise,” he said. This left ground handlers scrambling to navigate the surge in traffic with reduced staff, he said. There were 3.42b air passengers in 2022, up from 2.28b in 2021 but still down from the pre-pandemic peak of 4.54b in 2019. Nicole Hogg, a baggage expert with SITA, said a less favourable consequence of the return of air travel was the emergence of “baggage mountains”.<br/>
Campaigners have lost their appeal to stop Bristol Airport from expanding. The airport plans to increase capacity from 10 to 12m passengers a year and enhance its facilities. Bristol Airport Action Network (BAAN) said it was disappointed by the decision from the Court of Appeal in this time of a climate crisis. Bristol Airport welcomed the court's decision to uphold the planning permission and said its plans will create thousands of new jobs. In January, the High Court ruled that the airport's expansion plans could go ahead following a lengthy legal battle, but BAAN appealed against this decision. Now Bristol Airport has announced that the appeal had been "refused on all grounds". The ruling found that there was no "real prospect of success and no other compelling reason for the Court of Appeal to entertain an appeal". A spokesperson for the airport said: "We will now take forward our multi-million-pound plans for net zero operations by 2030 and look forward to working with stakeholders and the community to deliver responsible growth." Steve Clarke, from Bristol Airport Action Network, said: "I'm not really surprised by this decision, but I am angry and disappointed. They must understand though that we are not going away - we will be energised by this ridiculous decision."<br/>
Sadiq Khan has been urged to take action over the rising number of private flights from London to Paris – with the short journey now being made up to 10 times per day. The mayor of London, Saqiq Khan, was pressed on the issue during a London Assembly Q&A on Thursday and accepted the environmental damage they cause but stopped short of backing a ban. Greenpeace found that 90,256 private flights were made in total in the UK in 2022, a 75% rise on the year, to emit half a million tonnes of carbon dioxide (CO2) – more than in any other European country. The London and Paris route was the most popular with 3,357 flights being made despite the Eurostar departing 10 to 15 times per day. Khan has been accused of letting the super-rich “off the hook” despite his pro-environmental stance. Doug Parr, policy director at Greenpeace UK, said: “Private jets are staggeringly polluting and generally pointless. “Many of these journeys can be covered almost as quickly by train, and some of them by bicycle. Millions of people around the world are facing climate chaos, losing livelihoods or worse, while a tiny minority are burning jet fuel like there’s no tomorrow. “If the government is serious about net zero and a fair transition to low-carbon transport then private jets should be first on the chopping block.” The most carbon-intensive flight was the five-mile distance from Farnborough and Blackbushe airports in Hampshire, which was made 13 times in 2022. Around 40% of all private jet flights in Europe were classified as “very short-haul” meaning’ that they were less than 500km.<br/>
Neste Oyj plans to supply renewable diesel and sustainable aviation fuel to regions across the world from its expanded refinery in Singapore, as global green ambitions drive up demand. The recently completed E1.6b expansion has turned the plant into the world’s biggest renewable diesel refinery and largest producer of sustainable aviation fuel, with capacity to make as much as 1m tons of SAF a year, according to the Finnish company. Demand for diesel and jet fuel made from biofuels has grown in recent years as governments, particularly in the west, have sought to reduce the carbon footprint of energy consumption. SAF has long been seen as the aviation industry’s best way to reduce emissions, but supply is lagging. “If you look at today, the demand it has been for renewable diesel, which is the main product mainly in Europe and in North America,” Neste’s CEO Matti Lehmus said during an interview on a visit to Singapore to mark the plant expansion. “We can supply both markets from here.” Neste has also bought a minority stake in the fuel storage and infrastructure joint venture at the Singapore’s Changi airport to be able to offer blended SAF. There’s been a “lot of interest from Asian airlines,” Lehmus said. While European countries and the US mandate a certain percentage of biofuels in most transport fuels, there’s been slower uptake in Asia. Singapore is mulling rules to mandate SAF, the Straits Times reported Thursday.<br/>
Rolls-Royce jet engine technology powered by sustainable fuel has completed its first tests at a facility in Derby. The firm says the UltraFan technology is quieter and more fuel efficient than anything it has made before. UltraFan delivers a 10% efficiency improvement over the world's most efficient large aero-engine in service, the Trent XWB, Rolls-Royce said. Company bosses have described the technology as a "game-changer". Rolls-Royce said the successful tests meant the industry was a step closer to achieving its target of net zero flight by 2050. CE Tufan Erginbilgic said: "The UltraFan demonstrator is a game changer - the technologies we are testing as part of this programme have the capability to improve the engines of today as well as the engines of tomorrow. "That is why this announcement is so important - we are witnessing history in the making, a step-change in engine efficiency improvement." Tests took place at the Testbed 80 facility in Sinfin and the demonstator was powered by 100% Sustainable Aviation Fuel (SAF). This is derived primarily from waste-based sustainable feedstocks such as used cooking oils, Rolls-Royce said.<br/>
Driven by a rise in leisure travelers willing to pay more for a wider seat, extra legroom and a nicer meal in premium economy or first or business class, airlines are cashing in by reconfiguring their cabins to accommodate more of those higher-priced comfy seats, and using larger planes that have more premium seating on existing routes. The moves are significant: Major US airlines are expanding premium seating by 25 to 75% in portions of their fleets. Leisure travelers began upgrading in earnest as the pandemic eased, said David Slotnick, who follows the aviation industry for the travel website the Points Guy. Still feeling the lingering fear of an airborne virus, some fliers felt safer with a little more space between them and the passenger next door, and were willing to pay more for it. And after months of not spending any travel dollars, there was a good deal of pent-up demand. Premium seat prices fell during the pandemic because business travelers weren’t flying, said Mr. Slotnick, giving leisure travelers a chance to experience life at the front of the plane in first, business and premium economy seats. Airlines noticed the appetite of these customers, and have been setting prices as high as they can while still feeling affordable, he said. The price of airline tickets overall has also surged as inflation has risen and travelers have rushed to make up for lost time. At the same time, previously lagging business travel has started to pick up again. Airlines see this shift in demand as a financial boon, said Chris Lopinto, a co-founder of ExpertFlyer, a website that provides seat maps, cabin upgrade availability and other information to frequent fliers. Aircraft are being upgraded with more premium seating to increase revenue per flight, Lopinto said.<br/>