Colombian flag carrier avianca is back in the US market with the announcement of two new cobranded credit cards in partnership with American Express. The cards will be introduced next month, with a special introductory offer for frequent flyers who sign up for the waitlist. The carrier has revealed that it will introduce the new American Express credit cards in "late May" to increase earning opportunities for travelers based in the United States. There will be two versions of the card, the Standard and Elite, presumably set at different price points to cater to both premium/buisness and leisure travelers. This will be the first time avianca has offered a US product since its previous two offerings with Puerto Rico's Banco Popular were discontinued in March 2022. Interested parties can sign up for the waitlist now, which comes with the advantage of receiving up to 10,000 bonus miles in addition to the standard sign-up bonus. A representative confirmed exclusively to Simple Flying that members who join the waitlist, apply, and get approved for the credit card within four weeks of the sign-up for the credit cards going live will receive an extra 5,000 bonus LifeMiles on the standard card or an additional 10,000 bonus LifeMiles on the Elite card, subject to minimum spend requirements. While further details are still to be revealed, Simple Flying can confirm the cards will be issued by American in conjunction with Cardless, the company behind the recent TAP Air Portugal Amex card launch and LATAM's cobranded Mastercard products in the US. In an exclusive interview with Simple Flying last month, representatives for the Portuguese flag carrier confirmed its cobranded card was exceeding expectations and well on the way to reaching 10,000 cardmembers in the US by the end of this year.<br/>
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Deutsche Lufthansa and Air France-KLM are embarking on a cost-cutting drive after the European airlines suffered higher first-quarter losses in the wake of strike disruptions and restrained bookings caused by tensions in the Middle East. The two companies announced the steps as they reported earnings for the first three months. Lufthansa said it will freeze projects and review hiring in some areas at its namesake airline brand, while Air France KLM said it’s putting a hold on adding support staff. Both airlines reported widening deficits for the quarter. The first months of the year, while traditionally the weakest period for airlines, were particularly tough for Europe’s biggest airlines after strikes at Lufthansa brought operations to a standstill on numerous occasions and Air France also had to contend with labor disruptions as well as weaker cargo demand. At the same time, the companies said things are looking up into the latter half of the year, with promising bookings into the busy summer period and the risk of strikes now averted after reaching agreements with labor unions. “We are now leaving the first quarter behind us, which was mainly impacted by strikes, and are at a turning point,” CEO Carsten Spohr said in a statement, adding that the company sees strong demand and that planes “remain well filled throughout.” Shares of Lufthansa were little changed in Frankfurt trading at the open. The company had already cautioned in mid-April that it would remain behind its earnings goals for the year because of the strikes, which led to E350m in costs in the first quarter alone. The Franco-Dutch group’s operating loss widened to E489m from E306m in the same period last year. At Lufthansa, the total adjusted operating loss jumped to E849m from a E273m deficit a year earlier. The company also back its capacity forecast for 2024, estimating 92% of pre-pandemic levels, two percentage points below its previous goal. Although Lufthansa has settled the labor disputes with new wage agreements, the walkouts will cost another €100 million in the second quarter as sales were hurt from reluctance by customers to book, the airline said. Consequently, operating profit will be lower in the second quarter compared to a year earlier, before increasing again during the second half.<br/>