unaligned

Frontier Airlines is exploring a renewed bid for Spirit Airlines, the Wall Street Journal reported on Tuesday, citing people familiar with the matter. The two budget carriers have had recent discussions about a possible merger though the talks are at an early stage and a deal may not come to fruition, the WSJ report said. If a deal between Spirit and Frontier is reached, it would likely happen as part of Spirit restructuring its debt and other liabilities in bankruptcy, the report added. Spirit and Frontier did not immediately respond to Reuters' requests for comment. Spirit Airlines came close to a merger deal with Frontier Group Holdings in 2022, the parent company of Frontier Airlines, which was terminated after JetBlue won the bidding war for Spirit. The report comes as Spirit faces an uncertain future following the collapse of its $3.8b merger deal with JetBlue Airways after the merger was blocked in March by the U.S. Department of Justice. The Journal had reported earlier in the month that Spirit was in talks with bondholders over the terms of a potential bankruptcy filing in the wake of its failed merger with JetBlue. Spirit has been losing money despite strong travel demand and has failed to report a profit in five out of the last six quarters, raising doubts about its ability to manage looming debt maturities. The ultra low-cost carrier said last week it has reached an agreement with its credit card processor U.S. Bank National Association to extend a debt refinancing deadline by two months until Dec. 23.<br/>

American Airlines’ regional subsidiary PSA Airlines plans to add 14 MHIRJ CRJ900s to its fleet of regional jets, with the first aircraft expected to be delivered next month. The incoming twinjets will be purchased by American and leased to PSA, the Ohio-based regional says. The aircraft will operate under the American Eagle banner. “PSA is on a well-planned growth trajectory that involves more team members flying more aircraft and customers as we continue to expand and enhance our operation,” says Dion Flannery, PSA’s CE. He adds that the regional carrier has ”fully restored staffing, resurrected all our parked aircraft and inducted the last of the seven aircraft as part of a previous agreement”. PSA currently operates 80 CRJ900s, and plans to operate a 94-strong fleet of the type once it completes its next integration phase. That process will involve converting the aircraft to PSA’s 76-seat, two-aisle configuration. Dozens of regional jets are being resurrected from the Arizona desert and re-entering commercial service as regional carriers throughout the USA take advantage of a temporary reprieve in pilot attrition. <br/>

Latam Airlines Group SA, the largest carrier in South America, still sees plenty of room for growth in the region even after raising this year’s financial forecasts. “We now have the financial strength to define how we want to take the opportunity of growth in a region that is under-penetrated,” CEO Roberto Alvo said in an interview in New York. “Distances between main cities are measured in hundreds and thousands of kilometers. There is no alternative in many cases to air travel and, therefore, the region is ripe for growth and we have the fleet and the financial situation to take advantage of that growth.” Latam Airlines hosted an investor day at the New York Stock Exchange Tuesday where the company said it hopes to increase capacity, measured by available seat kilometers, by as much as 16% in 2024 compared to last year. That growth is expected to slow to high-single digits in 2025 and mid-to-high single digits in 2026. The company also outlined that current liquidity represents 27% of revenue, and that adjusted Ebitdar is expected to reach $3.4b next year. Other airlines in the region, specifically in Brazil, are struggling. Azul SA is in the midst of creditor talks and is struggling to raise debt, while Gol Linhas Aereas Inteligentes SA is going through Chapter 11 restructuring and preparing to raise exit capital. However, Latam is back with full force and recently returned to the New York Stock Exchange with an offering of American depositary shares. A group of shareholders raised $456m in an initial public offering in July, and they have risen 15% since then. <br/>

Airline operators in Spain expect to sell 12% more seats this winter than a year earlier as travellers look to steer well clear of conflict zones, the head of Spain's airlines industry group (ALA) said on Tuesday.<br/>Tourist destinations such as the Canary Islands will see more flights as some airlines re-route planes from Israel and other destinations in the Middle East, ALA President Javier Gandara told a press conference in Madrid. For the winter, "there have been a number of changes in airline schedules, many of them caused by the conflict in the Middle East, and Spain has had additional schedules," he said. An ALA estimate published on Oct. 15 forecast sales of 137m seats through March, an increase on the 134m predicted by Spanish airport operator Aena from data provided by airlines in August, before the Middle East conflict spread. Spain received a record 64.3m foreign tourists from January to August, up 11% from the same period in 2023, putting it on track for another record year for visitors despite growing local discontent over the impact of tourism in some hotspots. "Airline capacity continues to grow and we believe it can break the all-time record of last year again in 2024," Gandara said. Analysts expect southern European airports to outperform their northern counterparts by traffic volume this year, with southern terminals receiving more leisure travellers while northern destinations remain focused on business passengers.<br/>

IAG’s Irish carrier, Aer Lingus, is to open a new Airbus A321XLR transatlantic service to the US city of Indianapolis next year. The carrier will fly four-times weekly from Dublin beginning 3 May. Aer Lingus, one of the first airlines set to introduce the long-range A321XLR, will operate the twinjet on the route. The Dublin-Indianapolis sector has a great-circle distance of around 3,200nm. Aer Lingus will configure the aircraft in two classes including 16 seats in the business cabin. The new route will operate almost year-round, with a “short break” between January and February, says the Indianapolis airport authority.<br/>

Icelandair Group is expecting its transformation efforts to generate significant improvements in profitability in the fourth quarter as well as the 2025 full year. The company made the forecast as it unveiled a third-quarter net profit of $69m. Icelandair Group embarked on a transformation programme in the first half, and CE Bogi Nils Bogason says results have “already started to materialise”. It is aiming for a $70m benefit from the initiative through cost-reduction projects and enhancement of revenue generation, including airline partnerships – several tie-ups have recently been disclosed with such carriers as Southwest Airlines, Emirates and TAP. Icelandair Group has shifted its focus to the transatlantic sector – although lower yields have had an impact on its results – and the ‘to Iceland’ market is “starting to regain its strength”, says Bogason. Rival carrier Play has opted to back away from transatlantic operations, owing to intense competition, instead favouring point-to-point services. Icelandair Group’s cargo operation, which had been suffering losses, is showing “continued improvement” and the company’s leasing business turned in “strong” results, Bogason adds. The company has a long-term target of an 8% margin for EBIT.<br/>

Since Israel began bombarding Beirut’s southern suburbs as part of its offensive against the Hezbollah militant group, Lebanon’s national air carrier has become a local icon simply by continuing to do its job. Middle East Airlines is the only commercial airline still operating out of the Beirut airport, located on the coast next to the densely-populated suburbs where many of Hezbollah’s operations are based. Unlike the bruising monthlong war between Israel and Hezbollah in 2006, in which an Israeli strike almost immediately took Lebanon’s only commercial airport out of commission, it has not been targeted in the current conflict. Capt. Mohammed Aziz, adviser to MEA chairman Mohamad El-Hout, said the airline has received assurances that Israel won’t target its planes or the airport as long as they are used solely for civilian purposes. The carrier conducts a risk assessment each day to determine if it’s safe to fly, he said. “As long as you see us operating, it means our threat assessment says that we can operate,” Aziz said. “We will never jeopardize the life of anyone.” Still, the sight of jetliners rising and descending as fire and clouds of smoke blacken the Beirut skyline can be alarming.<br/>