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Alaska rebounds after taking $150m hit from 737 Max 9 grounding

US carrier Alaska Airlines estimates the grounding of its Boeing 737 Max 9s following the 5 January door plug blow-out on flight 1282 resulted in lost profits of at least $150m. However, the carrier disclosed in a 12 March filing with the US Securities and Exchange Commission that its Q1 performance ”is now on track to exceed the expectations we held coming into the year”. ”Those expectations for improved Q1 results were driven by strategic network adjustments implemented by our commercial teams, and further supported by strong demand in the quarter,” says the Seattle-headquartered carrier. Alaska says it would have seen a year-on-year profit improvement of 30% in Q1 absent the Max 9 grounding. It has received compensation from Boeing, which will be reflected in its Q1 earnings report. ”Given recent strength in demand through spring break travel periods and continued recovery of West Coast business travel, we now expect an even greater year-over-year improvement in Q1 2024 profitability,” it says. Alaska stands to be impacted throughout 2024 by Boeing’s ongoing quality and production issues, which have resonated throughout the airline industry and badly delayed 737 Max deliveries for rival US carriers such as Southwest Airlines and United Airlines. “Full-year capacity expectations are still in flux due to uncertainty around the timing of aircraft deliveries as a result of increased Federal Aviation Administration and Department of Justice scrutiny on Boeing and its operations,” it says. Alaska holds 80 unfilled orders for 737 Max jets, including 43 orders for the still-uncertificated Max 10, Cirium fleets data show. <br/>

Qatar Airways and Aer Lingus launch new codeshare partnership

Qatar Airways and Aer Lingus (EI) are launching a new codeshare partnership beginning 13th March 2024. The codeshare will give customers greater access to more destinations across the UK and Ireland, and benefit passengers across the globe – including in Africa, Asia, Australia, the Middle East and New Zealand. Qatar Airways will add its codeshare on flights operated by Aer Lingus (EI), the national carrier of Ireland, and Aer Lingus Regional, in a move which further strengthens Qatar Airways’ ongoing partnership expansion with International Airlines Group (IAG). Once implemented, Qatar Airways will have codeshare coverage with all IAG carriers, including British Airways, Iberia, Vueling, and Aer Lingus, solidifying its position in the European market. This new codeshare will enable connections between Qatar Airways and Aer Lingus (EI) flights through Dublin, London, and Manchester. Customers will be able to travel between Irish and UK destinations including Aberdeen, Belfast, Cork, and Glasgow, and Qatar Airways’ extensive global network through Doha’s hub at Hamad International Airport.<br/>

Cathay begins mid-sized widebody renewal campaign with orders to come in next few years

Cathay Pacific’s ongoing campaign for new mid-sized widebody jets is “still in its early days” with the airline expecting to place an order only in the next few years. Shedding more light on its fleet plans, Cathay’s operations chief Alex McGowan says the airline is open to both Airbus and Boeing jets, and that the new aircraft should be able to operatre not just within Asia but also on longer flights, such as to Australia and Europe. McGowan was speaking at a briefing following the release of the airline’s annual results, where it swung back to a net profit in 2023. “What we’re looking for… is an aircraft which is capable of multiple missions. That certainly brings Boeing and Airbus aircraft into contention, aircraft which exist today and don’t have a huge degree of certification risk associated with them,” he adds. “We are looking at this order to be three or four years between now and delivery,” says McGowan, without elaborating further. The Hong Kong-based airline in December 2023 placed a $2.7b order for six Airbus A350 freighters, which will replace its fleet of older Boeing 747 freighters. In September, it signed for 32 A321neo/A320neo narrowbodies, firming up options from a 2017 purchase agreement. The mid-sized fleet renewal campaign was first floated in November 2022, and airline chief Ronald Lam confirmed the airline was looking at new mid-sized aircraft during an interview with FlightGlobal a year later. Any new aircraft will likely replace its older A330-300s. The airline operates 43 A330s, some of which will undergo a retrofit with new regional cabin products from 2026. <br/>

MH370: How Malaysia Airlines came back from twin tragedies

Ten years ago, Malaysia Airlines was devastated by the twin disasters of MH370 and MH17. Flight MH370 from Kuala Lumpur to Beijing disappeared over the Indian Ocean on 8 March 2014 with 239 people on board. Despite millions of dollars spent on the largest search in aviation history the plane has still not been found. The airline was still reeling from that tragedy when in July of the same year, MH17 was shot down by a Russian-controlled armed group above conflict-ridden Ukraine. All 283 passengers and 15 flight crew were killed. There had been 160 planes flying over the war zone that day but it was MH17 that was hit. An airline losing two passenger jets in five months was an event that remains unprecedented to this day. Many saw it like a curse, on an airline which had operated for 70 years largely unscathed. Malaysia Airlines had long enjoyed an excellent safety record and had even won awards for service. It had a huge fleet flying all over the world from its base in Kuala Lumpur. But after the calamities in 2014, passengers got the jitters. Customers switched to other airlines and media reports from the time showed near-empty flights on longer routes. Last year, though, its CE said the company was on track to see its first annual net profit in a decade. The airline did not respond to the BBC's questions but analysts say a slew of route cuts helped shore up its finances, while rebranding with an emphasis on safety has won back customers. "It is now a leaner, more focused company - albeit one with somewhat reduced ambitions," says aviation industry watcher Greg Waldron. Today, Malaysia Airlines continues to cross the skies, transporting millions of passengers around the world each year. So how did it keep going? Story explains.<br/>