Boeing is telling airlines they will receive fewer 737 Max jets than expected this year, forcing them to trim schedules and raising the prospect of higher fares during the busy summer travel season. Carriers in the US and Europe are preparing to have fewer new shorter-haul aircraft than they planned for, an unwelcome surprise that is driving up labour costs and keeping older aircraft in service. Boeing has reduced production rates after a door panel blew out from a 737 Max during an Alaska Airlines flight in January. The company this week reported burning almost $4bn in cash in Q1. The US FAA has said Boeing can make no more than 38 737 Max planes a month as it works to improve quality controls. In March the planemaker delivered 24 jets to customers, compared with 52 the same month a year earlier. European rival Airbus, meanwhile, delivered 51 of the A320 and A321neo, planes that compete with the Max. Southwest Airlines, the carrier with the most 737 Maxes in service and on order, said on Thursday it would receive only 20 of the 46 single-aisle jets it had expected this year. In January, it said it was planning to receive 79 Max aircraft, rather than the 85 that had been agreed. With less capacity, Southwest now projects 2024 operating revenue will grow by less than 10% compared with last year. Previously it had forecast double-digit growth. The carrier, which posted a Q1 net loss of $231m, announced a series of cost-saving measures, dropping service to four US airports and cutting headcount by 2,000 employees by the end of the year. It is limiting hiring, offering voluntary time off and trimming its schedule for the second half of the year. Southwest also is delaying retirement for some aircraft, reducing “turn times” to ready a jet for its next flight and adding some red-eye flights, as it tries to generate more revenue from planes already in its possession.<br/>
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The Biden administration is expected to release a climate model for its sustainable aviation fuel (SAF) subsidy program on Tuesday, two sources familiar with the matter said. The rule will dictate how ethanol producers can use climate-smart agriculture to qualify for tax credits in the production of SAF. The ethanol industry views SAF as a way to build demand for its products going forward, as gasoline consumption is expected to decline. In early April, Reuters reported the model was expected to be more restrictive than what the corn-based ethanol industry had expected, according to anonymous sources.<br/>
Argentine jet fuel providers in Buenos Aires refused to service Cuban state airline Cubana this week citing concerns over U.S. trade sanctions on Cuba, the Havana-based carrier said late on Wednesday, prompting multiple unexpected flight cancellations. Cubana de Aviacion S.A., which operates flights within Cuba and to various cities internationally, said it had cancelled flights on April 23 and 24, as well as other flights contracted to partner airlines, forcing the company to rebook passengers or provide refunds. "This decision is due to the refusal of aviation fuel supply companies in the Republic of Argentina to provide service to the airline, invoking the provisions of the United States blockade measures against Cuba," the airline said in a brief statement. Argentina`s foreign ministry and Office of the Presidency did not immediately respond to a Reuters request for comment on the matter. The U.S. trade embargo against Cuba was put in place following Fidel Castro's 1959 revolution. The web of US laws and regulations complicate financial transactions and the acquisition of goods and services by the Cuban government, while also raising risks for foreign companies who trade with Cuba. Cubana`s long-standing flights between Havana and Buenos Aires ran largely unfettered despite the sanctions under the administration of Argentina`s leftist former president Alberto Fernandez, who maintained close ties with Cuba.<br/>
The Federal Government said the Nigerian Civil Aviation Authority (NCAA) will conduct a comprehensive audit of all local airlines. The Minister of Aviation and Aerospace Development, Festus Keyamo disclosed this in an interview on Channels Television’s Politics Today on Thursday. He said beyond the suspension of Dana Airlines and the ongoing audit of the airline, all other carriers in the country would be audited to guarantee the safety of passengers and the health of the civil aviation industry. Recall that Keyamo had come under criticism in the last 24 hours over what some civil aviation players called “external interference” in the autonomy of the NCAA. On Wednesday, Keyamo directed the NCAA to suspend Dana Airlines, saying recent events of the local carrier raised serious concerns regarding both the safety and financial viability of their operations. The NCAA Director General Chris Najomo enforced the suspension of the airline immediately, until a comprehensive audit is conducted. The suspension of Dana Air was enforced 24 hours after one of the airlines’ planes skidded off the runway at Lagos airport. Speaking on the suspension, however, Keyamo said the law empowers him to direct the NCAA to do the right thing “in matters of national security.”<br/>
Archer Aviation, a leader in the development of electric vertical takeoff and landing (eVTOL) aircraft, signed a framework agreement in Abu Dhabi Thursday with ADIO (Abu Dhabi Investment Office) to accelerate Archer’s planned commercial air taxi operations in the UAE. The areement was signed at the DRIFTx mobility event, held at the Yas Marina Circuit showcasing the latest in advanced urban mobility, driving discussions, collaboration, and innovation across the sector. Slated to launch as soon as next year, the air taxi programme includes in-country manufacturing, operations and training across the region. This comprehensive agreement positions Abu Dhabi as one of the world leaders in promoting urban air mobility, with plans to commence air taxi operations with Archer’s Midnight aircraft as soon as next year. Key components of Archer’s collaboration with ADIO include vertiport construction, operational enablement for air taxi operations in the UAE, and in-country manufacturing of Archer’s Midnight aircraft. Under the agreement, ADIO will also ensure local workforce development programmes for Emirati talent and facilitate the establishment of Archer’s international headquarters and Centre of Excellence in Abu Dhabi.<br/>
Airbus will further increase production of its advanced A350 widebody jet as the planemaker benefits from surging demand and as arch-rival Boeing remains absorbed in a crisis of confidence. The European planemaker is moving to a rate of 12 A350 jets a month by 2028, superseding previous plans to reach 10 by 2026, it said as it reported figures for Q1. Earnings before interest and tax reached E577, missing the E814m forecast by analysts in a Bloomberg survey, amid higher costs. The company had a cash outflow of E1.79b because of higher inventory created in preparation for increased production, as well as supply-chain issues. Revenue rose to E12.8b, and Airbus reiterated its guidance issued in February. Airbus has enjoyed a smoother start to the year than Boeing, which has been mired in crisis following a near-catastrophic accident early in January. As a result, the US planemaker has taken up much of the public attention in the global planemaking duopoly, while Airbus has quietly pressed its advantage, picking off orders from Boeing loyalists clamoring for more planes. Still, Airbus continues to struggle with a supply chain that remains constrained, at a time when the manufacturer is ramping up production to satisfy soaring demand. The company still expects to deliver 800 planes in 2024, while Boeing remains under fire from regulators, lawmakers and customers over its manufacturing quality in the wake of the fuselage blowout on a 737 Max 9 on Jan. 5. “We delivered first quarter 2024 results against the backdrop of an operating environment that shows no sign of improvement,” Airbus CEO Guillaume Faury said on a media call. “Geopolitical and supply chain tensions continue.”<br/>
Airbus is in talks with China over a potentially major aircraft order ahead of a visit to France by Chinese President Xi Jinping, two people familiar with the matter said. The Chinese leader is due to make his first Europe trip in five years next month and diplomatic sources have said trade will be high on the agenda, amid mounting EU-China tensions. China has historically signalled large jet orders timed to coincide with state visits, but the negotiations between Airbus China's CASC buying agency are expected to go down to the wire and are not guaranteed to result in a deal, the people said. One of the people said a package could involve hundreds of jets, but the other cautioned talks are at a preliminary stage.<br/>Airbus declined comment and CASC could not immediately be reached for comment. In April last year, Airbus agreed to build a second Chinese assembly line or its A320neo narrow-body family during a state visit to China by French President Emmanuel Macron in a move to strengthen access to the world's second-largest aviation market.<br/>
Bombardier turned a $110m profit in Q1 2022 despite a dip in aircraft deliveries, and has rolled out a new logo it says reflects the company’s shift into solely a business jet manufacturer. “This solid start reinforced out confidence in our ability to reach our guidance for the year,” Bombardier CE Eric Martel said on 25 April. “Our new brand identity reinforces our successful shift toward business aviation.”<br/>He adds that Bombardier’s financial results and aircraft delivery volume during the quarter were “exactly and precisely to plan”. The company delivered 20 aircraft during Q1, two fewer than it handed over in the same period of 2023 As a result, Bombardier generated $1.3b in Q1 revenue, down 12% year on year. Bombardier ended March with a backlog of aircraft orders valued at $14.9b, up 5% in one year. The company cites ongoing strong demand for its business jets – which include the Challenger and Global lines – saying it sold 60% more jets in Q1 2024 than in Q1 of last year. “Bombardier’s production plan remains on track to meet full-year 2024 delivery guidance,” the company adds.<br/>