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Air Canada and WestJet are set to book higher profit in 2024, according to Moody’s Investors Service. Analysts predict robust demand from travellers, despite a potentially slower global economy. Air Canada reported soaring profit in its latest quarter. Canada's largest carrier also saw a higher year-over-year passenger count during the recent holiday travel season. Meanwhile, privately owned WestJet has boasted about “record-breaking guest volumes” from mid-to-late December. However, a weaker global economy in 2024, war in the Middle East, and potentially volatile fuel and labour costs could threaten their post-pandemic recoveries. At the same time, Air Canada and WestJet face growing competition from low-cost Canadian carriers like Lynx Air and Flair Airlines. “We believe operating profit increased for Air Canada and WestJet in 2023, and will also do so in 2024, exceeding pre-pandemic levels this year,” Moody’s analysts Aziz Al Sammarai and Paresh Chari wrote in research published earlier this week. “These two airlines will outperform their Canadian peers, and different factors will drive their profitability growth.” They say passenger demand will continue to support profit growth in 2024, “even as economic growth slows globally.” Moody’s sees Air Canada benefiting from strong demand for international travel, and the higher fares those passengers are willing to pay. Sammarai and Chari estimate the airline generates nearly three-quarters of its revenue from these routes. In October, Air Canada's executive vice-president of network planning and revenue management called for strong demand “in almost every single geography that we operate in, [and] in almost every single segment that we operate in.”<br/>

Somalia’s government denied entry by a flight carrying Ethiopian officials to the breakaway region of Somaliland, ratcheting up tension between the neighboring countries over a proposed port deal. The Somali authorities turned back Ethiopian Airlines flight ET8372 “after it became clear that the aircraft did not have any permission to use Somali air space,” the Somalia Civil Aviation Authority said in a statement on Wednesday. The flight’s passengers included “VIP Ethiopian delegates” en route to the Somaliland capital of Hargeisa, CAA Director-General Ahmed Moalim said by phone, without identifying them. Relations between the two nations have been strained since Ethiopian Prime Minister Abiy Ahmed announced on Jan. 1 that his country will recognize Somaliland as a sovereign state and hand over an unspecified stake in state-owned Ethiopian Airlines Group in return for access to the Red Sea. The accord will enable Addis Ababa to lease land from Somaliland that it can use to establish a military base and for commercial maritime purposes. Somalia lays sovereign claim to Somaliland and has threatened military retaliation should Ethiopia advance with its plans. Officials from Egypt, Eritrea and Saudi Arabia have either visited Somalia or issued statements in support of its sovereignty since the agreement was signed. Ethiopian Airlines operates a commercial service between Addis Ababa and Hargeisa. Flight ET8372 took off from the Ethiopian capital at 8:32 a.m. local time, turned back before it reached the Somali border, and landed again at 10:20 a.m., according to the aircraft-tracker FlightRadar24’s website. Ethiopian Airlines and Ethiopian State Minister for Government Communication Services Selamawit Kassa didn’t respond to a request for comment. Somaliland officials declined to comment on the planned delegation, or who was part of the trip citing security reasons.<br/>

The Tourism and Civil Aviation Committee of Egypt's House of Representatives recommended on Wednesday a comprehensive restructuring of the EgyptAir Holding Company to address its recent service deficiencies. These recommendations were prompted by the recent exclusion of EgyptAir, the flag carrier, from both the top 100 global airlines ranking and the list of the top 10 Arab airlines. The committee convened in the presence of Minister of Civil Aviation Mohamed Helmy, EgyptAir officials, and other figures. Nora Ali, chairperson of the committee, emphasized EgyptAir's prominent status as one of the oldest Arab airline companies, ranking second in Africa. “The company was the first in the Middle East and seventh worldwide to become a member of the International Air Transport Association,” she said. Ali stressed the need for EgyptAir to conduct thorough and regular safety and security assessments, particularly concerning aircraft leasing and procurement contracts. She highlighted the importance of maintaining high performance evaluation standards. The committee also called for the introduction of competition from the private sector to drive development, offering improved services and competitive pricing, thereby contributing to an increase in tourist numbers. During the session, Helmy said that investments in air transport reached EGP 28.83b ($660m) between 2014 and 2023, encompassing various enhancements.<br/>

An American airline passenger allegedly bit a female cabin crew member mid-flight on Tuesday, forcing an All Nippon Airways (ANA) flight bound for Seattle to return to Tokyo, an airline spokesperson said. Flight ANA 118 departed Tokyo’s Haneda Airport at 9:47 p.m. local time and turned around a little over an hour into its journey, according to flight-tracking website Flightradar24. An ANA spokesperson told CNN that the male passenger was detained by police after the plane landed in the Japanese capital. They did not name him. The female flight attendant sustained minor injuries, the spokesperson said. The Tokyo Metropolitan Police Department declined to provide further details on the case. <br/>