JetBlue Airways said on Wednesday it expects a smaller-than-expected drop in its 2024 revenue as domestic travel demand rebounded following the U.S. presidential election. Shares of the carrier were up as much as 10% in morning trading. JetBlue now expects annual revenue to decline between 3.5% and 4.5%, compared with the 4% to 5% fall projected earlier. The airline had in October forecast a bigger-than-expected fall in 2024 revenue amid a moderation in domestic travel demand ahead of the U.S. elections. The New York-based airline said on Wednesday improved bookings closer to departure dates over the Thanksgiving week boosted revenue during the November holiday peak. The airline also said bookings for December travel exceeded its previous expectations. JetBlue said it now expects its 2024 revenue per available seat mile, a proxy for pricing power, to drop between 3% and 4%, compared with the 2.5% to 4.5% decline it estimated earlier.<br/>
unaligned
Brazilian carrier Azul is not alone in having growth plans stifled by poor turbofan reliability, as carriers worldwide have been hobbled for months by engine issues that have forced them to ground hundreds of jets. Azul CE John Rodgerson told investors during a 3 December meeting in New York City that engine problems are squeezing the Sao Paulo-based carrier’s finances. He also directed sharp criticism toward turbofan makers. Rodgerson says Azul is reviewing costs as it attempts to free up cash in the coming years, adding that roughly 85% of the company’s capital expenses have been going toward aircraft engines. Azul has also been negotiating with engine OEMs for more-favourable terms. “There’s a global problem with OEMs today,” he says, specifically calling out Pratt & Whitney (P&W), GE Aerospace and Rolls-Royce. “None of the engine manufacturers are coming anywhere close to how they should be performing.” Rodgerson says the “majority” of an additional $100m in cash flow that the airline expects to achieve between 2025 and 2027 will be “going back to those OEMs”. “Over the last two to three years, what Azul has asked for is payment terms,” Rodgerson adds. “We asked for help from a cash-flow perspective… [We are] saying, ‘Hey, this engine is not performing to the standard that we signed up for, therefore we want to be compensated fairly for it.’”<br/>
IAG’s Spanish long-haul carrier Level has secured its own air operator’s certificate, enabling it to embark on developing its network from Barcelona. It will fly under the designator code ‘LL’ and the callsign ‘Dali’ – a cultural reference to Catalonian artist Salvador Dali. Level states that granting of the AOC gives it operational autonomy and enables it to switch from “being a commercial brand to an airline”. It is preparing to take a seventh Airbus A330-200 over the next few weeks and intends to have eight in 2026. The carrier was established in 2017 as a low-cost long-haul service but has previously operated under the authorisation given to Iberia. It disclosed in November last year that it would pursue its own AOC. Level says it has had to increase personnel numbers, establish new operations teams, and source pilots and cabin crew.<br/>