Consolidation would lower the cost of capital for Latin American airlines, resulting in better services for customers, according to Azul CEO John Peter Rodgerson. “We’ve always been big believers in consolidation,” Rodgerson said in an interview in New York Wednesday. “The product improves for customers, and it could really strengthen a great market in Brazil that we’re seeing today.” Rodgerson declined to comment on “active” M&A processes. Azul is said to be exploring a merger with Gol Linhas Aereas Inteligentes SA, with talks underway for a potential deal with the controlling shareholder of the struggling rival Brazilian airline. Latin American airlines have largely struggled since the pandemic as governments across the region offered little help for the sector. Avianca Holdings SA, Latam Airlines Group SA and Grupo Aeromexico SAB filed for bankruptcy in 2020. Brazil’s Gol filed for protection from creditors in late January after a dozen debt exchanges. The Azul CEO has met with Brazilian President Luiz Inacio Lula da Silva to discuss a plan to use public funds as collateral for loans, giving airlines some breathing room. He said the government understands the importance of providing debt relief, and is actively working on a solution, which should come “in a few months.” “If you have access to credit at a lower cost of capital, it allows for fares to be cheaper, and for more aircraft to be purchased,” Rodgerson said. “When I talk with the Brazilian government, those are the most important things.” Rodgerson also reaffirmed the company’s Ebitda forecast for the year, even as Brazilian airlines get hit by a falling currency, rising fuel costs and deadly floods that have devastated the country’s southern region.<br/>
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LATAM Airlines will increase the frequency of seven of its international routes connecting Brazil to the United States and countries in Europe and Africa, it said on Thursday. The move by Chile-based LATAM, whose local unit is currently Brazil's No. 1 carrier in international operations by market share, comes as rival Air France KLM also announced it would add a new route to the South American nation. Carriers have been enjoying healthy demand for air travel in Latin America's largest economy and expressed optimism about the Brazilian market, even as they struggle to add capacity during an ongoing aircraft shortage. LATAM said starting Oct. 27, it will increase flights from Sao Paulo to Orlando, Los Angeles, Johannesburg, Milan, Rome, Madrid and Lisbon by 38% when compared to the same period a year ago. All flights will be operated by widebody aircraft seating up to 410 passengers, LATAM said, such as the Boeing 777. The company's long-haul fleet also includes the Boeing 787. The South American airline has been growing since its exit in late 2022 from a bankruptcy process triggered by a drop in traffic related to the coronavirus pandemic. It expects to post record core earnings in 2024 backed by increased demand.<br/>
EasyJet’s CE Johan Lundgren is to leave the low-cost airline after seven years in the top job and will be replaced by chief financial officer Kenton Jarvis. Lundgren, who started his career as a tour guide and joined easyJet in 2017, will leave the company early next year. He steered the airline through the pandemic crisis and has since sought to capitalise on the rebound in travel. Analysts said picking Jarvis, who joined easyJet in 2021 and previously ran travel company Tui’s airline business, as Lundgren’s successor signalled that the carrier would continue with its current strategy. Jarvis said he has “100% bought into” the airline’s current strategy, and to that extent is a “continuity” hire. From its main base at London Gatwick, Lundgren has focused the airline on lucrative routes to primary airports across Europe. But like many airlines, easyJet’s management has struggled to convince investors to fully back its vision despite the current travel boom. The airline’s shares are languishing 60% below pre-pandemic levels. The airline has successfully competed with national flag carriers such as British Airways, but some analysts and investors have questioned how much the business can grow in a mature market where capacity at many airports is constrained.<br/>
EasyJet has said it will reopen a base at London Southend Airport for the first time since before the Covid-19 pandemic. The airline said six new routes would be introduced and it would "create about 130 jobs". Passenger numbers at the Essex terminal dropped by 90% during the lockdowns and all commercial flights stopped temporarily. The airport also announced that the takeover by private equity firm Carlyle, as majority shareholder, was completed overnight. EasyJet's planes have already been flying in and out of Southend, but the new base meant that three aircraft would remain there permanently. The airline has nine other bases in the UK and the new base would open in March 2025.<br/>
Japan’s Skymark Airlines generated an operating profit of Y4.6b ($29m) in its 2023 financial year, up 35.2% from a year earlier. Revenue for the 12 months ended 31 March grew 22.9% to Y104b, the carrier says. The recognition of gains on foreign currency denominated assets helped ordinary profits to double to Y7b. In Japan, ordinary profit is calculated by adjusting operating profits with non-operating income and expenses. The carrier says that during the year the Japanese economy showed signs of recovery in the wake of the coronavirus pandemic. “Strong passenger demand is expected to continue, due to the shift of travellers to domestic travel due to the weak yen and an increase in tourists visiting Japan,” says the carrier. Still, the carrier says it faces a challenging environment. The weak yen has raised costs, alongside rising energy prices and global inflation. These factors helped push operating expenses up 23.3% year on year to Y93b. Skymark says it carried 7.9m passengers in the period, up 13.2% from a year earlier.<br/>