Japan Airlines reported an increase in its second-quarter earnings, amid an uplift in revenue across its business units and despite a rise in operating costs. For the quarter ended 30 September, the airline group disclosed a positive EBIT of Y63.5b ($416.6m), up about 6% year on year. However, the increase was not enough to offset an overall dip in EBIT: JAL reported a 6.1% drop in EBIT for the six months to 30 September, at Y91.2b. Group revenue rose 8.7% during the quarter to Y478b, with its international passenger and low-cost carrier business showing the highest revenue increases. JAL notes that international yields have yet to fully normalise, which has helped boost its quarterly revenues by 4.6%. During the July-September quarter, the network operator carried 1.87m passengers, up 8.6% year on year. On the domestic front, JAL reported a smaller increase in passenger revenue during the quarter, at 1.7%, against a 3.7% rise in passenger volumes to 9.3m. JAL’s two low-cost units – Zipair and Spring Japan – each reported 33% increases in quarterly revenue, as they each “successfully captured” strong inbound traffic from North America and Asia, as well as Mainland China, respectively. <br/>
oneworld
More government pressure is needed for Hong Kong’s aviation sector to meet its climate goals, even as uptake of sustainable aviation fuel (SAF) has risen from a low base thanks to corporate support, according to Cathay Pacific. “Regulators have a key role to play for a level playing field, so that every [player] is doing the right thing for society,” Grace Cheung, the flagship carrier’s general manager of sustainability, told the Asia Securities Industry and Financial Markets Association’s sustainable finance conference on Wednesday. “If we leave it to the market, every company will wait for their competitors to make the first move.” Aviation is difficult to decarbonise due to the industry’s long innovation cycles, the prioritisation of safe operations and the high costs of key technologies, consultancy McKinsey said last year. SAF is three to five times more expensive than conventional jet fuel, according to industry media outlet AvBuyer. Policies are needed to grow SAF demand and encourage the development of a supply chain financed through grants, loans and a revenue mechanism, Cheung said. In his policy address last month, CE John Lee Ka-chiu committed to formulating a plan to establish an SAF supply chain and to setting a usage target for Hong Kong by next year to cater to rising demand from international airlines. Cathay aims to have SAF make up 10% of its fuel consumption by 2030, compared with 0.03% last year, which Cheung attributed to limited global supply. The 2030 target is achievable based on SAF mandates or targets that governments globally are expected to implement, she told the Post. “Regulated SAF usage policies have been announced in the European Union, Britain and Singapore, while policy discussions are ongoing in South Korea, Japan, Indonesia, Thailand, Malaysia and mainland China,” she said, adding that she is encouraged by rising financial support from Cathay customers that have their own emissions targets.<br/>
The Coalition plans to use Senate estimates this week to press senior bureaucrats on whether the Prime Minister had a hand in the decision to block additional Qatar Airways flights. As reported in The Australian, Liberal Senators Richard Colbeck and Simon Birmingham last week sent a letter to Department of Prime Minister and Cabinet secretary Glyn Davis advising her to be prepared for questions on PM Anthony Albanese’s ties to Qantas. The letter seen by the newspaper indicates Professor Davis will be asked whether the PM or anyone from his office “interfered to protect Qantas”, including whether officials from PM&C met with Qantas or discussed Qatar’s application for more capacity before Transport Minister Catherine King made her decision to reject it, and whether the PM or his office made any instructions or opinions clear to Minister King regarding the application. Qatar had asked the government for an extra 21 flights per week into Australia’s four major airports of Sydney, Melbourne, Brisbane and Perth, an application Minister King denied on “national interest” grounds. “We note that some of these questions may require liaison between PM&C and the PMO, which is a key reason advance notice is being provided, along with copying this correspondence to the Prime Minister’s chief of staff,” the senators wrote. The renewed focus on Qatar Airways comes as politicians from both parties face questions about free Qantas flight upgrades and other benefits.<br/>