Southwest Airlines plans to eliminate about one-third of its flights to Atlanta next year to save money as it comes under pressure from a hedge fund to increase profits and boost the airline’s stock price. The retreat in Atlanta, where Southwest is far smaller than Delta Air Lines, will eliminate more than 300 jobs for pilots and flight attendants, although they will have a chance to relocate, according to the company. A Southwest official said Wednesday the airline needs to cut unprofitable routes, and “demand for Atlanta doesn't support our level of flying.” While the airline's planners “try everything they can before making hard decisions like this one, we have to make this change to help drive us back to profitability,” the Atlanta-based official, Tiffany Laurent, said in a memo to employees. Southwest executives are expected to detail other changes that it plans to make when it holds an investor meeting Thursday. The session is in response to Elliott Investment Management’s campaign to shake up Southwest’s leadership and reverse a decline in profits over the past three years. Southwest will cut 58 flights per day and reduce its presence at Hartsfield-Jackson Atlanta International Airport from 18 to 11 gates, according to the Southwest Airlines Pilots Association, which says the news is painful for Atlanta-based employees. “It is simply amazing that the airline with the strongest network in the history of our industry is now retreating in a major market because this management group has failed to evolve and innovate,” the union said in a memo to pilots.<br/>
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Struggling Wizz Air has conceded that its CE is unlikely to deliver on performance targets needed to earn a controversial £100mn bonus after a “parade of black swans” hammered its shares. Shareholders in the London-listed low-cost airline have instead backed a new bonus scheme for József Váradi that includes a one-off share award worth around E2.3mn for this year, and the opportunity to earn around E4mn per year in shares as bonuses from 2026. Stephen Johnson, interim chair of the remuneration committee, said on Wednesday that a new plan was needed to “motivate” and “retain” Varadi, who was “by far the worst compensated CEO” among his airline peers. Wizz Air’s ambitious growth plans have been knocked by a string of crises, most notably the grounding of scores of its aircraft because of possible engine problems. Its shares have slumped 39% this year, while those of BA owner IAG have risen by almost a third. Váradi was paid a total of E1.4mn in Wizz Air’s 2024 financial year, down from E4mn in 2019. That compares with IAG CE Luis Gallego, who was paid GBP3.1mn in 2023, and easyJet’s Johan Lundgren who received GBP2.2mn. Both these companies have enjoyed a smoother ride as the industry has recovered from the pandemic. Váradi, who was one of the airline’s founders in the early 2000s, has grown it into one of the most significant players in European aviation after masterminding a growth strategy that prioritises cutting operational costs.<br/>
Ryanair will offer more flights from Sweden, adding two aircraft to its fleet there and will consider reintroducing domestic flights following a government decision to scrap an aviation tax, the airline said on Wednesday. As part of the expansion, Ryanair will introduce 10 additional routes to international destinations from mid-2025. "Sweden is suddenly more attractive," Eddie Wilson, the CE of the group's largest airline, Ryanair DAC, told a press conference in Stockholm. Sweden's right-wing government last month announced it would end the tax on airline tickets from the middle of next year, aiming to reduce prices and boost availability. The tax was introduced in 2018 by the then-ruling centre-left government which sought to raise the cost of carbon emissions that cause climate change. Competition is intensifying in the Nordic market, with Scandinavian airline SAS in August completing a restructuring that boosted its finances and announcing a deal last week with a regional carrier to increase SAS' domestic Swedish flights.<br/>
Air Astana will eliminate the technical stop on its flights between Almaty and London Heathrow, following modifications made to its Airbus A321LR narrowbodies. The Kazakh national carrier has installed additional fuel tanks on its A321LRs, allowing it to operate nonstop to London, which, at around 9h 35min, will be one of the world’s longest narrowbody flights. Flights are currently operated with a technical stop in the far western Kazakh city of Aktau. This came after Russia’s invasion of Ukraine in 2022, which forced the carrier to avoid flying near Ukrainian airspace. The route had previously been operated with Boeing 757s, which are now retired, and 767-300s before the introduction of the A321LR. The new nonstop service will begin on 4 October, says Air Astana. It will operate four times weekly. “This modernisation is a key component of Air Astana’s long-term strategy to enhance operational efficiency,” says the airline. ”It incorporates all necessary technical and safety aspects, providing passengers with more comfortable conditions for long-haul flights and improving the airline’s operational performance.”<br/>
Uganda Airlines, the country's national carrier, launched its direct flights to Zambia on Wednesday, marking a significant step in strengthening ties between the two countries. The airline will operate four weekly direct flights between Entebbe, Uganda, and Lusaka, the capital of Zambia. Zambian Acting Minister of Transport and Logistics Elvis Nkandu welcomed the inaugural flight at Kenneth Kaunda International Airport, calling it a testament to the strong bilateral relations between Uganda and Zambia. Nkandu said the new service would not only boost trade and tourism between the two nations but also deepen people-to-people connections. The airline industry plays an important role in Zambia's economic growth, Nkandu said, noting that the government is committed to making Zambia an aviation hub in the region. As part of this effort, the Zambian government has embarked on upgrading airport infrastructure to further improve the country's aviation sector, he added. <br/>
The Israeli Transport Ministry has granted an operating license to Air Haifa, a new airline scheduled to start flights on Monday, according to a joint statement issued by the ministry and the airline on Wednesday. The low-cost airline, based in Haifa, is Israel's fourth commercial airline and its first new one in over 30 years. Air Haifa plans to operate flights from northern Israel's Haifa to the country's southernmost Red Sea resort city of Eilat and the Cypriot coastal city of Larnaca. However, due to the security situation in northern Israel, the carrier's inaugural flights to Eilat, scheduled to depart from Haifa Airport on Monday, will be launched from Ben Gurion Airport in central Israel, instead. According to the statement, if the security situation allows and relevant authorities approve, flights from Haifa to Eilat are expected on October 13, with the Haifa-Larnaca route commencing a day after.<br/>
Etihad Airways on Wednesday revealed a $7b investment plan over the next five years in a bid to “double the size of the airline until 2030.” Speaking to CNBC’s Dan Murphy, Etihad’s Group CEO Antonoaldo Neves revealed passengers should expect “a totally different airline” within the next two to three years. Much of the $7b will go into revamping its existing fleet of planes, as well as the purchase of new aircraft further down the line, he said. The Abu Dhabi-based airline currently has 92 planes operating. But Neves is aiming for the skies, with the hope of having up to 170 planes by the end of the decade. The expanded network of planes will allow the company to offer more “convenient” time slots for passengers traveling to Europe and Southeast Asia who want to travel at 2 p.m. in the afternoon rather than in the early hours of the morning, he said. Neves said Etihad will begin retrofitting and revamping “dated” Boeing 777 planes from 2026 onward, this is due to what he described as “the constraints that we have in the global aviation market.” “There are no planes available,” he said. The purchase of new planes, the retrofitting of the Boeing 777s, boosting the number of business class seats and replacing existing in-flight WiFi with stronger connectivity are all priorities for the United Arab Emirates-based airline.<br/>
SpiceJet Ltd., which raised 30b rupees ($359m) last week in an institutional share sale, plans to add 75 aircraft to its fleet over the next two years to fuel the carrier’s domestic expansion. The embattled Indian budget airline aims to get 30 of its planes that are currently grounded back in the skies by the end of 2025 and purchase as many as 45 jets from the secondary market using funds raised from the share sale, Managing Director Ajay Singh told local media ET Now on Wednesday. The carrier also plans to become debt free by using the proceeds to make outstanding statutory payments and pay employee dues, as well as settle with lessors, Singh said. SpiceJet’s financial woes mean the airline has several overdue payments to airports. It’s also been forced to furlough staff and withhold mandatory social security payments. Auditors have raised concerns about tax payments while India’s aviation regulator is increasing scrutiny of the carrier due to its financial instability. The airline is betting India’s rapidly expanding aviation market can underpin its recovery. SpiceJet is still flying but its market share fell to just 2.3% in August, ranking it sixth among local airlines. It used to command around 15% of the market just prior to Covid in 2020.<br/>
AirAsia X Bhd (AAX) has released a detailed circular on the RM6.8bil acquisition of Capital A Bhd’s entire equity stake in AirAsia Aviation Group Ltd and AirAsia Bhd for its shareholders’ review ahead of its EGM on Oct 16. In a statement, AAX said the proposed acquisition aims to create a focused aviation powerhouse, encompassing seven airlines across Malaysia, Thailand, Indonesia, the Philippines and Cambodia. “Upon completion of the transaction, the new aviation group will cover the full spectrum of short, medium and long-haul air travel services to capitalise on growing travel demand,” it said. AAX CEO Benyamin Ismail said this corporate exercise will strengthen the airline group’s competitive edge and enable them to capture growing demand in the aviation sector. He said the shareholders stand to benefit from the exercise by being part of a more resilient and agile aviation group, ready to adapt and thrive in a rapidly recovering international air travel market.<br/>