Alaska Airlines forecast Q2 and full-year earnings well ahead of estimates on Thursday with executives predicting a strong peak travel season, despite a Q1loss stemming from a midair blowout of a door plug on a nearly new Boeing 737 Max 9 in January. Alaska received $162m from Boeing for the Jan. 5 accident, which caused the FAA to briefly ground the planes. Alaska said it expects additional compensation from the manufacturer. The Seattle-based carrier lost $132m, or $1.05 a share in Q1, down from a net loss of $142m, or $1.11 a share a year earlier. The accident has added additional regulator scrutiny on Boeing and slowed its deliveries of new Max planes, of which Alaska is a major customer. Alaska CEO Ben Minicucci stood by Boeing on Thursday’s earnings call but reiterated that he expects Boeing to fall short on its airplane delivery plan to the carrier this year. “We remain committed partners but we will hold Boeing to the highest bar for quality out of the factory and to that end we have enhanced our in-person oversight of our 737 production line,” Minicucci said. “Alaska [Airlines] needs Boeing, our industry needs Boeing and our country needs Boeing to be a leader in airplane manufacturing,” he said. Minicucci told CNBC’s “The Exchange” on Thursday that he was “encouraged” after Boeing’s leadership visited Alaska’s offices in Seattle on Monday to outline the manufacturer’s quality improvement plan. Boeing’s safety crisis has sparked criticism from lawmakers and its customers. Boeing’s CEO Dave Calhoun last month said he would step down by year’s end, part of a broader shakeup at the manufacturer amid frustration voiced by airline CEOs.<br/>
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Alaska Air Group is not concerned about the production rate of Boeing's 737 MAX planes as it is more focused on the quality and safety of the planemaker's jets, a top company executive said on Thursday. The Seattle-based carrier had to ground its MAX 9 fleet for weeks following a mid-air cabin panel blowout on one of its flights in January. The grounding cost the company $162m in Q1, resulting in a quarterly loss. CFO Shane Tackett said Alaska has deployed more of its inspectors at Boeing's factories since the incident to ensure the jetmaker produces the highest quality aircraft that it can confidently fly safely. "We are prioritizing quality and safety first," Tackett told Reuters. "And (production) rate, it just isn't one of our priorities right now." The US FAA has capped the MAX production at 38 jets a month following the Jan. 5 incident. However, Boeing's monthly output is well below that level and in late March fell as low as single digits, Reuters reported this month. The Boeing situation is rippling through the industry, compelling airlines to adjust their fleet plans at a time travel demand is projected to hit record levels. Alaska, which operates an all-Boeing fleet, has also trimmed its growth plans and now expects its 2024 capacity to grow at less than 3% from a year ago. Tackett attributed the revision to the company's expectations of fewer-than-expected aircraft deliveries from Boeing.<br/>
The direct flights between China's Chengdu and Auckland of New Zealand officially resumed on Wednesday as a Sichuan Airlines' aircraft carrying over 200 Chinese tourists landed at the Auckland International Airport. The services had been suspended for more than four years due to the COVID-19 pandemic travel restrictions. The Chinese tourists were welcome by a special ceremony featured with traditional Maori dance and singing at the airport on Wednesday afternoon. Chinese Ambassador to New Zealand Wang Xiaolong said there are now six airlines in operation of direct flights between the two countries, involving seven Chinese cities. Rachel Maidment, the director of the Auckland office of the New Zealand Ministry of Foreign Affairs and Trade, said that the resumption of the Sichuan Airlines flight between Chengdu and Auckland is a positive milestone for New Zealand-China connectivity.<br/>
Fiji Airways, the national airline of the Pacific island nation of Fiji, has announced it has signed an interline agreement with Toronto-based Porter Airlines, a regional carrier that operates scheduled services in Canada and the US. The agreement will allow passengers to purchase a single to fly from airports served by Porter Airlines and to seamlessly connect onto an onward Fiji Airways-operated flight out of Vancouver (YVR), Los Angeles (LAX), and San Francisco (SFO). The interline is being seen by Fiji Airways as an integral step in the carrier’s ambitions to open up its home nation to more tourism and to attract more business traffic from cities across North America. “Our bookings to and from North America have been strong, collectively making up the second-largest group of visitors to Fiji in 2023,” said Fiji Airways Managing Director and CEO Andre Viljoen. “Many of these guests are flying in from other cities to catch our flights out of the three ports that Fiji Airways serves.” <br/>
In response to the volcanic eruption at Mount Ruang in Indonesia on April 18, 2024, Malaysia Airlines has announced the suspension of several flights connecting KL International Airport (KUL) with Sabah and Sarawak. This precautionary measure is in line with the airline’s commitment to the safety and well-being of its passengers amid the natural disaster. The decision to cancel flights came swiftly after reports confirmed that volcanic ash clouds could pose a risk to flight safety. Volcanic ash, a notorious hazard for jet engines, can cause significant damage and interfere with aircraft operation. The airline’s prompt action reflects its preparedness for such unforeseen events and its adherence to international safety protocols. Malaysia Airlines is actively communicating with passengers affected by the cancellations. The airline has set up a dedicated line and updated its website and social media platforms to relay information promptly. Passengers are advised to check their flight status regularly and stay informed through the airline’s official channels.<br/>