unaligned

Spirit Airlines, which recently entered bankruptcy court protection, has “substantial doubt” about its ability to continue operating during the next year due to steep financial losses amid difficult market conditions. Despite that warning, revealed in Spirit’s just-released third-quarter financial filing, the Miramar, Florida-based airline has said it intends to continue operating as it restructures it finances and operation. On 19 November, CE Ted Christie said, “We look forward to emerging as a stronger company”. Still, Spirit’s third-quarter report, filed on 25 November with the US Securities and Exchange Commission, warns of uncertainty. “The company’s operations and ability to develop and execute its business plan, its financial condition, liquidity and its continuation as a going concern are subject to a high degree of risk and uncertainty,” Spirit’s filing says. “Management believes there is substantial doubt about the company’s ability to continue as a going concern.” The airline would typically have filed its third-quarter report several weeks ago but delayed the filing due to its troubled financial condition. Spirit on 18 November filed for Chapter 11 protection in US Bankruptcy Court for the Southern District of New York.<br/>

Virgin Atlantic CEO Shai Weiss on Monday said the U.K. Labour government's landmark October budget presented a "tax on growth" due to higher rates placed on the aviation industry. Weiss said during the Airlines 2024 conference in London that both Labour and the previous Conservative administration had "not done enough to recognize aviation as a strategic asset" for the U.K. "All we've seen is an increase on Air Passenger Duty," Weiss said. Air Passenger Duty (APD) is levied on airlines and aircraft operators on a per-passenger basis, with rates differing by distance traveled and the cabin class traveled in, and is generally – though not always – passed on to customers in ticket costs. "I would call [the Budget] a tax on growth," Weiss said Monday, adding that while it was necessary to cover Britain's budget deficit, it was also important to recognize the contribution of aviation to the wider U.K. economy. Under Labour policy, APD will increase on short-haul economy class tickets to GBP15 from GBP13 from April 2026, with the rate on other cabin classes rising to GBP32 from GBP28. For journeys between 2,001 and 5,500 miles, APD will rise to GBP102 from GBP90 in economy and to GBP244 from GBP216 in other classes. Regarding the APD hike, the U.K. Treasury says rates would increase by the rate of inflation measured in the Retail Price Index, with a further increase to account for inflation not incorporated into previous budgets. According to Treasury forecasts, the higher rate of APD – which also includes a 50% rate in the amount paid on private jet passengers – will see revenue generation jump from approximately GBP100m to GBP500m annually. Aviation taxes are a increasingly popular revenue-raiser for governments which are broadly also trying to meet carbon emission reduction targets. The industry argues that airlines are already struggling with low margins and that higher air fares drag on the wider economy while also holding back investment in areas such as sustainable jet fuels.<br/>

Virgin Atlantic Airways Ltd. sees very robust demand for travel in its business and premium economy cabins this winter, as fliers continue to spend on luxury travel. While economy demand was “slightly weaker,” it was in line with the carrier’s expectations with fares “relatively stable,” Virgin’s CEO Shai Weiss said in an interview on Monday. The carrier has between zero and two Boeing Co. 787s grounded due to issues with their Rolls-Royce Holdings Plc engines, although Weiss doesn’t expect the grounding to impact fares. Airlines on both sides of the Atlantic are seeing continued demand for premium travel. Last week, Delta Air Lines Inc, which part owns Virgin Atlantic, said it would expand its premium seating and expects millennial travelers to buy many of those pricier tickets. Virgin, along with larger rival British Airways has been forced to scrap some routes next summer due to a shortage of aircraft caused by 787 maintenance. Virgin has said it would delay the restart of services to Tel Aviv and a new service to Ghana due to a lack of planes. <br/>

Virgin Atlantic’s boss has revealed he never meets his British Airways counterpart alone because he does “not want to get caught out”. Shai Weiss said he has “professional respect” for Sean Doyle but is cautious because of the dirty tricks scandal. In the early 1990s, British Airways was accused by Virgin Atlantic of hacking its computer records so it could obtain its passengers’ details and attempt to poach them. A protracted legal affair ended with British Airways having to pay Virgin Atlantic founder Sir Richard Branson large damages and having to fork out for punitive legal costs. Weiss was asked about his relationship with Doyle on stage at the Airlines 2024 conference in Westminster on Monday. The 56-year-old said: “I’ve never met Sean on a one-to-one basis, it’s just not happening. “I remember the dirty tricks campaign launched by British Airways. I’m not going to get caught out. I have professional respect for him, we co-operate when we need to, and we try to kick the shit out of them in the marketplace.” Weiss said the UK is “privileged to have two very strong carriers”, and believes both airlines are “better” because of the competition they provide to each other.<br/>

Emirates airline took delivery on Monday of its first long-delayed Airbus A350-900 wide-body jet in Toulouse, marking the first new aircraft model to join its fleet of Airbus A380s and Boeing 777s since 2008. The plane is embarking on its ferry flight from Toulouse to Dubai on Monday at 4pm UAE time, the airline said. The delivery flight was powered by a blend of jet fuel and sustainable aviation fuel. The A350 will enter commercial service in January when it makes its debut flight to the Scottish capital of Edinburgh, followed by eight other destinations across the Middle East, West Asia and Europe. "Once the Emirates A350 lands in Dubai, the aircraft will receive its finishing touches at Emirates Engineering before being officially unveiled at a special event later this week," the airline said. The Emirates' A350-900, registered as A6-EXA, is the first from an order of 65 A350 aircraft, deliveries which were supposed to start in August and continue for the next three and half years. However, the handover of its first A350 model was postponed several times this year. The delays stemmed from a combination of supply chain issues for parts including seats and the in-flight entertainment, as well as technical testing of items on board the aircraft while on the ground and in the air, Adnan Kazim, deputy president and CCO of Emirates, told The National in October.<br/>

Etihad Airways has announced 10 new direct routes from Abu Dhabi to destinations in Asia, Africa and the United States – including Hong Kong and Atlanta. As part of its expansion plans for next year, which CE Antonoaldo Neves predicts will be the company's biggest ever, the UAE's national airline is now selling tickets to and from seven destinations in Asia, two in Africa and Atlanta on the US Eastern Seaboard. Atlanta will be the first of the 10 new routes to take off, with flights scheduled to begin on July 2, 2025. When that happens, Etihad will be the only airline offering direct flights between the UAE and the capital of Georgia. Flights to Taipei in northern Taiwan will start in September, followed by new routes to Medan, Phnom Penh and Krabi in October and Tunis, Chiang Mai, Hong Kong, Hanoi and Algiers in November. Tickets for each destination are already on sale.<br/>