Southwest Airlines said Thursday it plans to slow its capacity growth next year, citing moderating travel demand as booking patterns shift back to pre-Covid pandemic norms. Southwest will expand its flying between 10% and 12% in the first quarter of 2024 from a year earlier, down from a previous forecast of as much as 16% growth, Southwest said in an earnings release. It expects to grow between 6% and 8% for the full year 2024, it said. Airlines have expanded their flying this year, while travelers have returned to more traditional booking, traveling during peak vacation periods or holidays. That capacity expansion has driven airfare lower. Last year, executives cited high amounts of traditionally off-peak travel coupled with a shortage of aircraft and other challenges that kept fares high. Southwest forecast unit revenue, the amount an airline brings in for each seat it flies a mile, would drop between 9% and 11% from a year earlier in Q4, with capacity up about 21%. “As we move into 2024, we are slowing our [available seat mile growth] rate to absorb current capacity, mature development markets, and optimize schedules to current travel patterns,” CEO Bob Jordan said in a quarterly earnings release. Southwest’s net income in the third quarter dropped 30% from a year earlier to $193m, or 31 cents per share, while revenue advanced 4.9% to $6.53b. Adjusting for the impact of labor contract adjustments and other one-time items, the company earned 38 cents per share.<br/>
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Spirit Airlines said manufacturing problems with engines made by Pratt & Whitney will ground an average of 26 of its Airbus SE A320neo aircraft next year, slowing the carrier’s growth to the mid-single digits or less. All of the geared turbofan engines in its fleet, including those slotted for future aircraft deliveries for an undetermined period, are potentially among those subject to inspection and possible replacement because of the issue, Spirit said in a statement Thursday as it reported quarterly results. Based on an analysis from Pratt, an average of 10 planes will be grounded this quarter, and climb through next year to 41 in December, the carrier said. “This expectation drives a dramatic decrease in the company’s near-term growth projections,” Spirit said. There are 202 planes in Spirit’s fleet, and the carrier already has had to cut some flying because of the required inspections. Pratt & Whitney parent RTX Corp. announced earlier that 3,000 jet engines need inspections for potentially flawed components made with contaminated metal powder. The issue will idle hundreds of A320neo aircraft over the next three years, with the total time needed for repairs taking between 250 and 300 days. Spirit has started talks with Pratt over compensation for the engine availability issue, but the amount, structure and timing haven’t been determined.<br/>
Mexican low-cost carrier VivaAerobus earned $56m during the third quarter of 2023, its second consecutive quarter with a profit, as demand was high and fares improved. The Monterrey-based ultra-low-cost carrier said on 26 October that revenue during the three months that ended on 30 September rose 44.8% to $571m. Its operating profit (before interest and taxes) was $113m. “Our [third quarter] performance reflects the strength of the underlying market in Mexico and a disciplined capacity deployment, delivering our highest revenue, operating profit (EBIT), and net income in a quarter,” says CEO Juan Carlos Zuazua. “Our core markets are poised to benefit from the solid fundamentals, leveraging our unique and well-positioned network and effective revenue and ancillary management strategy.” Mexican carriers including VivaAerobus rejoiced last month when the FAA lifted the country’s safety status back up to Category 1, the highest category, after two and a half years. That allows the country’s airlines to once again begin expanding their networks and adding transborder flights back to their schedules – which they were unable to do as long as the country had been downgraded to the lower Category 2. “The Mexican domestic market continues to grow at a healthy double-digit rate while the recovery of Cat 1 opens the opportunity to increase our presence in attractive markets in the US, allowing for more flexibility in our network,” says Zuazua. Shortly after the Category 1 announcement, Viva said it would introduce six new routes to the United States – to Austin, Denver, Miami, New York, Oakland and Orlando – beginning in the first half of 2024. ”The US routes are designed to serve the world’s largest international air travel market with affordable options, truly making it easier for people to visit family and friends, take vacations or conduct business,” Zuazua said at the time.<br/>
Etihad Airways is resuming flights to East Africa with daily flights to Nairobi set to start on May 1, 2024. The new route connects Kenya’s capital with Etihad’s growing global network. "We are thrilled to be re-starting flights to Nairobi, a dynamic and exciting city in itself and also the gateway to a Kenyan safari, a dream adventure for many travellers, offering a view of the diverse and magnificent wildlife of Africa,” said Antonoaldo Neves, CEO of Etihad Airways. “Equally, we will be delighted to welcome guests from Kenya to our extraordinary home as well as offering them access to our growing global network.” The flights will restore commercial non-stop passenger connections between the two cities, and guests from Kenya will be able to connect with Etihad flights to the GCC, the US, Europe, India and South-East Asia. The link will further stimulate cross-business and trade opportunities between the UAE and the growing Kenyan economy.<br/>
Pakistan International Airlines (PIA) has canceled 349 flights in the last two weeks due to a shortage of fuel, it said on Thursday, underscoring the difficulties faced by the cash-bleeding national flag carrier. The flight cancellations since Oct 14 have affected both domestic and international routes, a PIA spokesperson told Reuters. The crisis comes after Pakistan announced it would privatize the airline as part of a fiscal discipline plan agreed under an International Monetary Fund (IMF) bailout agreed in June. The airline has accumulated billions of dollars in losses and liabilities, which the current caretaker government says it can no longer fund. Flights are being rescheduled on a daily basis, the company said in a statement, without giving details on how long the crisis would last. “The flights are being scheduled as per the availability of fuel,” it said. The PIA and the Pakistan State Oil company (PSO) have been locked in a dispute over payments. The airline says the PSO has suspended its credit line for the fuel, and is now releasing supplies only against a daily advance payment. “The PIA is trying to manage funds,” the statement said, adding that the resumption of the usual schedule would depend on the availability of funds. It said Canada, Turkey, China, Malaysia and Saudi Arabia would be priority destinations when flights resumed and it would keep passengers updated on flight schedules.<br/>