Shares of JetBlue are up more than 18% in Tuesday afternoon trading as activist investor Carl Icahn took an almost 10% stake in the airline. Icahn, who purchased the shares in January and February, said in a regulatory filing that he believe JetBlue’s stock is undervalued and represents an attractive investment opportunity. The stock is down abut 29% in the past year. He has had talks, and plans to continue talking with JetBlue in regards to possible representation on its board of directors. “We are always open to constructive dialogue with our investors as we continue to execute our plan to enhance value for all of our shareholders and stakeholders,” JetBlue said in a statement. Icahn became widely known as a corporate raider in the 1980s when he engineered a takeover of TWA, or Trans World Airlines. Icahn bought the airline in 1985 but by 1992 it filed for bankruptcy. TWA emerged from bankruptcy a year later but continued to operate at a loss and its assets were sold to American Airlines in 2001.<br/>
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Barcelona-based Volotea has secured three leased Airbus A320s as it aims to boost capacity for the coming summer season by around 15%. The carrier says it will operate 44 aircraft – 24 A320s and 20 A319s – when the three CFM International CFM56-powered jets enter service in April, up from 41 last year. The aircraft are fitted with 180 seats, it adds. “We are very proud to continue our growth in alignment with the expansion plans we set for this year and to do so hand-in-hand with Airbus as a valued partner,” says Volotea CFO Stephen Rapp. The carrier does not provide details of the specific airframes or the lessors involved in the deal but describes the incoming aircraft as representing “a significant long-term investment in the airline’s fleet and future”. With France, Italy and Spain as its primary markets, Volotea recently announced that it plans to increase its network to 450 routes this year from 410 in in 2023. It expects to boost passenger numbers by 17% versus 2023 and by 60% compared with 2019, to 12m. Volotea completed the phase-out of its Boeing 717s during the pandemic as it switched to an all-Airbus operation, in a fleet strategy focused on taking previous-generation second-hand jets through lessors.<br/>
PLAY will not be adding any new aircraft in 2024 and terminated its two LOIs for dry leases of aircraft due in 2025, prioritising to shore up its financial liquidity given the current market environment. "The last few months have shown us that external factors are something that we need to take into account and we basically need a buffer for those fluctuations. We will operate ten aircraft this year, and we will optimise the business, really turn the screws and basically get ourselves stabilised after this massive growth period, and we will prepare ourselves for the next phase of growth," CE Birgir Jónsson said during the quarterly investor call. He stressed that 2023 "was looking to deliver very acceptable financial results" before the second half of the year brought about a number of external headwinds, including the Gaza crisis, the spike in oil prices, inflationary pressures on costs, and, locally, volcanic eruptions that scared foreign tourists from visiting Iceland. As a result, the carrier posted a USD$35.2m operating loss in 2023. By pausing the capacity growth for 2024, the airline aims to boost its capital. Jónsson stressed that "in a stable environment", this would not have been necessary. This will be the first year in the Icelandic LCC's history when it will not grow its fleet.<br/>
Ryanair has cancelled all flights to Ben Gurion Airport in Tel Aviv, Israel, scheduled in March and April, citing high terminal costs. A spokesperson for the Irish airline said it has “regrettably” cancelled all its flights to and from Israel from 27 February after Ben Gurion airport closed its low-cost Terminal 1, which Ryanair previously used. It’s not clear how many scheduled flights have been affected. Affected passengers have been notified and advised of their options, Ryanair said. “Ryanair remains committed to Tel Aviv and looks forward to resuming operations when the low-cost Terminal 1 is re-opened,” the spokesperson told The Journal. “We sincerely apologise for any inconvenience caused to passengers as a result of these regrettable cancellations.” Ryanair is allowing customers to book flights online from locations including Rome and Budapest to Tel Aviv airport from early May 2024. Previously the firm has said it had to axe 960 flights in November 2023 and 950 flights in January 2024 to and from Israel as a result of heated conflict in Gaza.<br/>
Aurigny's decision to stop using social media to announce delays has been described as "a PR own goal". Corporate communication expert Nick Britten said the company's move to only post details on its website was a "retrograde" step. The States-owned Guernsey airline announced the decision following a survey of customers in January. Aurigny said the move to a dedicated webpage would reduce the risk of information being missed. Britten, who advises business leaders on corporate communication, questioned the decision making of the airline. "Social interaction with customers has become an increasing part and a bigger step forward for most travel companies across the industry," he said. "I'd be interested to know why they think it's a bad idea. How are they going to communicate and answer customer questions?" Britten said customers trust companies that respond quickly on social media. "If they can't get through and they can't get the answers that they need, it's just bad for the organisation's reputation," he said. He added that the airline must "still find a way to answer people's questions very simply and very quickly".<br/>
Latvian state-owned carrier airBaltichas about half a year left to find E200m to repay investors who bought bonds the company issued in 2019. The task is doable, CEO Martins Gauss said in an interview on the LTV programme De Facto on the evening of Sunday, February 11, but the state may have to help. Repaying the debt is a prerequisite for the company’s much anticipated listing on the Nasdaq Riga stock exchange, which is planned towards the end of the second half of this year. Gauss expressed confidence that the company will be able to raise the money, but he did not rule out the possibility that the state may have to get involved as the majority shareholder. Although turnover is growing, borrowing will likely be expensive for the company. At the Latvian Capital Market Forum 2024 hosted last week by central bank Latvijas Banka, airBaltic’s CFO, Vitolds Jakovļevs, revealed that the company was in negative equity to the tune of E71m, which would inevitably mean higher interest rates for loans.<br/>
Kenyan airlines and other African carriers are expected to carry nearly 100m passengers this year as demand is projected to rise. The latest data from the African Airlines Association (AFRAA) shows that airlines on the continent will ferry 98m passengers in 2024. Since November 2023, traffic carried by African airlines has exceeded the 2019 level. Regarding cargo, 149.6m kilograms were moved to and from Africa in November 2023, among which African airlines represented 30.8%. “At some major African airports (Johannesburg, Nairobi, Addis Ababa, Lusaka, Cairo, Casablanca, Abidjan and Lagos), intra-Africa connectivity reached or exceeded pre-Covid level since December 2022,” AFRAA said. AFRAA also says that African airlines last year posted increased earnings, narrowing the income gap compared to 2022. “The full year 2023 revenue shortfall of African airlines will be around US$200m or less, compared to 2019 full year,” it adds. “The 2022 full year passenger’s revenue gap was US$3.5b for all African airlines combined, compared to 2019.” However, AFRAA states that the Jet A1 price continues to fluctuate marginally from week to week.<br/>
Middle Eastern low-cost carrier Air Arabia remains optimistic about its business model, despite increasing operating costs arising from macroeconomic pressures and supply-chain disruptions. Air Arabia has turned in a Dhs1.54b ($420m) full-year net profit, up by 27% on the previous figure. The airline generated the surplus on the back of a 14% rise in revenues to Dhs6b. “While the softening in yield margins is expected, the demand for air travel remains strong across all key markets,” the carrier states. It has expanded its fleet to 73 aircraft, comprising 64 Airbus A320s – distributed between two emirates and four other countries – and nine A321LRs. Another 120 aircraft are on order with deliveries due to commence this year. The carrier expanded its network last year to 206 routes from its various hubs. Chairman Sheikh Abdullah bin Mohamed Al-Thani says the carrier has “successfully maintained its growth momentum” and produced “exceptional” results. “We remain optimistic about the future of low-cost air travel,” he adds. “We have full confidence in Air Arabia’s unique business model, operational excellence, and value-driven product.”<br/>
The European Union has reimposed sanctions on Syria's Cham Wings Airlines for its alleged support for the regime of Syrian strongman Bashar al-Assad. The privately-owned carrier was previously designated by the bloc between December 2021 and July 2022 for its alleged role in a migrant-smuggling scheme orchestrated by various governments hostile to the EU. "Cham Wings uses its flights to engage in the transfer of Syrian mercenaries, arms trade, narcotics trafficking, and money laundering, which supports the activities of the Syrian regime. As the only private airline in Syria, Cham Wings is therefore benefiting from, and providing support to the Syrian regime," the EU said in its January 24, 2024, sanctions list update. While the carrier was sanctioned by the US Department of the Treasury's Office of Foreign Assets Control in 2016 for its ties to the Syrian government, the EU adopted a markedly softer approach only sanctioning it in December 2021, after it operated a number of charter flights to Minsk National, allegedly carrying migrants who were then transported by the Belarussian regime to the Lithuanian and Polish frontiers thus orchestrating a humanitarian crisis.<br/>