United Airlines Holdings and American Airlines Group have reached an agreement to press ahead with an $8.5b revamp of Chicago’s O’Hare International Airport, the world’s fourth busiest airport. The deal comes after months of disagreements over ballooning costs for the project, which was first announced in 2018. In separate statements, the dual hub partners said they and the city have found a solution to avoid further delays and keep costs in check — although it won’t be easy. “The path ahead will be challenging, and we’ll all need to continue working together to get this project completed within the allotted budget,” American said in a statement. Mayor Brandon Johnson praised the agreement. “We look forward to prioritizing the O’Hare Global Terminal to bring benefits to the traveling public sooner, while providing thousands of jobs and contracting opportunities to Chicago,” the mayor’s office said in a statement. Chicago unveiled the expansion plan for O’Hare in 2018, vowing to transform the aging hub into a global showcase. But six years later, very little has been done and estimates for the project were running some $2 billion over budget. Under the agreement, the airlines will need to approve any plans to cut the scope of the project or add to the budget, according to United. Construction will also happen in phases, with priority being given to the construction of one of two satellite concourses. The Chicago Department of Aviation will also plan a phased construction of the Global Terminal, which would replace the existing terminal two. “The Global Terminal has always been the centerpiece of this program and the crucial piece needed to ensure Chicago maintains its status as a global hub,” United said in a statement. “Under this new phasing plan, we can deliver the most impactful elements of the modernization project the quickest.” The full scope of the agreement has yet to be announced by either the city or the airlines, and it’s not yet clear whether it will include the 25% gate increase that had previously been a part of the project. Reaching that target is critical, Senator Tammy Duckworth said at a groundbreaking event for improvements to Terminal 3 last month. <br/>
star
Traveling between Guam and Japan just got a bit more convenient with daily flights to Tokyo/Haneda. On Wednesday, United Airlines made its inaugural trip on the Tokyo/Haneda-Guam route, celebrating the historic event with its passengers at gates in Tokyo and Guam, the airline announced in a press release. “The new daily nonstop service provides greater choice for customers in Tokyo to travel to Guam and creates a more direct link between Guam and Tokyo’s city center. From Tokyo/Haneda, customers will also benefit from 30-plus connections to destinations across Japan with United’s Star Alliance partner, ANA. United now offers direct services to Guam from five airports in Japan – Tokyo/Haneda, Tokyo/Narita, Osaka, Fukuoka and Nagoya,” United Airlines said in the release.<br/>
Croatia Airlines is gearing up for fleet renewal and introduction of its fifteen Airbus A220 aircraft. Seeking to operate a monogamous Airbus fleet in the long term, Croatia’s flag carrier has confirmed the delivery of its inaugural A220 in June 2024 with the second aircraft expected to join the fleet in November. Fifteen planes in total will be leased, sourced from three different aircraft leasing companies. Among these, three will be leased through an agreement with Azzora, while six will come from Griffin Global Asset Management, and the remaining six will be provided by Air Lease Corporation. Throughout Q1 2024, the carrier has been actively engaged in thorough preparations. This has involved the recruitment of extra flight crew members alongside aircraft engineers, operational personnel, and maintenance staff to bolster its team. The carrier has also already made an advance payment for a spare Pratt & Whitney GTF engine to power its upcoming fleet, ensuring readiness for any potential operational needs. <br/>
Japan Airlines and compatriot ANA Holdings have very different earnings expectations for this fiscal year as intensifying competition and the weak yen leave the outlook for the industry uncertain, especially for outbound travel. JAL predicts its group net profit will grow 5% to 100b yen ($650m) for the year ending March 2025 -- just above the QUICK Consensus analyst estimate -- which would be its first time reaching that level since fiscal 2018. The carrier projects revenue will climb 17% to 1.93t yen. Performance indicators "have remained strong from April on," JAL Executive Vice President Yuji Saito said Thursday when presenting the full-year forecast. Meanwhile, ANA, the parent of All Nippon Airways, expects consolidated net profit to sink 30% to 110b yen this fiscal year. "We'll focus on solidifying our footing for the time being," ANA Holdings President Koji Shibata said. "We'll attain full-fledged growth from fiscal 2026." The contrast stems from how Japan's two top airlines view the post-pandemic path ahead for the aviation industry. Rising demand for air travel provides reason for optimism, but a chronically weak yen and stiff competition for passengers could be a drag on earnings. Competition is already intensifying. Global air passenger traffic will reach 4.7b people this year, the IATA, a "historic high" surpassing the 4.5b travelers in the pre-pandemic year of 2019. Airlines are taking notice. Indian low-cost carrier IndiGo said last year it was ordering 500 passenger jets from Airbus, and flag carrier Air India is ordering a combined 470 aircraft from Airbus and Boeing. Turkish Airlines looks to field a fleet of 800 planes by 2033, roughly double the scale in 2023. "The aircraft market is heating up," Shibata has said. "If we don't place orders, we won't be able to secure our position." ANA plans to select as early as this fiscal year a small aircraft to order in place of the canceled Mitsubishi SpaceJet, as well as a supplier for a new wide-body aircraft model for international routes.<br/>