Teamsters Local 19 has reached a four-year tentative agreement with Southwest Airlines that provides a 23% wage increase to flight simulator technicians, the union said in a statement on Thursday. The agreement comprises improved retirement package and paid paternity and maternity leave, as well as significant ratification bonuses for the 54 technicians apart from the wage increase. The union members will vote on the contract within the next few weeks, said Teamsters Local 19, which represents aviation workers throughout Texas.<br/>
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Transat AT, the parent of Canadian leisure operator Air Transat, has posted lower fiscal third-quarter earnings as aircraft availability due to Pratt & Whitney engine issues and lower yields put pressure on the company. The Montreal-based carrier told investors on 12 September that “year-to-date financial performance has been below expectations”. Fiscal third-quarter revenue was slightly down at C$736m ($542m). Adjusted EBITDA was C$41.3m, compared with C$114.8m a year ago. The airline reports an adjusted net loss of C$43m, compared with a profit of C$42m during the same period in 2023. “The intensified competition, industry-wide overcapacity, inefficiencies resulting from the Pratt & Whitney [geared turbofan] engine issue affecting revenue management and the economic uncertainty put downward pressure on airline unit revenues,” the company says. “Demand for leisure travel remains healthy, as evidenced by higher traffic, but consumers are increasingly price conscious given the current economic uncertainty,” adds CE Annick Guerard. “Capacity increases throughout the industry also added to competitive pressure and negatively impacted yields.” The airline has launched a new corporate plan called “Elevation” after a strategic review this summer, which is designed to drive long-term growth and is targeting a $100m improvement in annual adjusted EBITDA over the next 18 months.<br/>
Ryanair Holdings Plc lowered its fare outlook for the September quarter, in the latest sign that demand for air travel is softening. Ticket prices could fall as much as 10% in the fiscal second quarter, though will likely decline in the range of 5-9% from the year-ago period, CEO Michael O’Leary said. The company previously had estimated average fares would drop by about 5%. Ryanair shares fell as much as 4.9% as the airline hosted its annual general meeting in Dublin. They recovered most of the drop after O’Leary, who initially referenced the remainder of this year, clarified the time frame for his outlook. Consumer spending remains constrained as a post-pandemic boom in travel starts to level off. The Irish discounter had already cut its pricing outlook in July for for crucial summer season, saying fares would be “materially lower” as fliers grew more cautious. The company followed up last month by saying it expected the weakness to extend into winter. O’Leary said he doesn’t expect second-quarter yields to decline into the double-digits. He added that he has “no visibility” for the third quarter. Yield is a measure of revenue per passenger with the distance flown factored in. Revenue can include ticket prices as well as add-ons such as seat selection and baggage fees. As long as Ryanair continues to deliver its services and remains disciplined on cost, “the market will work it out eventually in time,” O’Leary said at the meeting. <br/>
Nigerian investigators probing an Embraer ERJ-145 overrun at Lagos have revealed that the crew had been forced to hold just before the approach because the runway was closed due to bad weather. The XE Jet aircraft (5N-BZZ) had been inbound from Abuja on 11 May. Some 25min before landing, another flight – operated by United Nigeria Airlines – had executed a missed approach to Lagos’s runway 18L and diverted to Asaba, citing the weather conditions. Heavy rain and thunderstorms were in the vicinity and the runway was subsequently closed, states the Nigerian Safety Investigation Bureau. The ERJ-145 entered a holding pattern and descended to 5,000ft while the runway remained shut. It stayed in the hold for around 8min before the runway re-opened and the aircraft was cleared for an ILS approach. The crew was informed that heavy rain and thunderstorms were still present and visibility was down to 1,000m, and Lagos approach control asked the pilots’ intentions, given the United Nigeria abort. Story has details.<br/>