Southwest Airlines is the latest US carrier to raise fourth-quarter financial expectations thanks in part to the early returns of a sweeping plan to overhaul its business model. CE Bob Jordan said during Goldman Sachs’ industrials and materials conference on 5 December that Southwest’s more positive outlook is also based on a backdrop of strong demand for holiday travel and reduced passenger capacity throughout the USA. “The holidays are coming in very strong,” he says. “I think the main thing is the tactical initiatives that we put into place to work the network, really work on the things that we are doing to mature the revenue-management system.” Southwest now expects revenue per available seat mile to rise 5.5-7% year on year, versus its previous forecast of a 3.5-5.5% increase. The carrier also expects fourth-quarter passenger capacity, as measured in available seat miles, to be down 4% relative to the October-December period of 2023. Southwest’s end-of-year update mirrors that of leisure-focused competitor JetBlue Airways, which issued a brighter fourth-quarter outlook on 4 December. New York-based JetBlue also cites a strong demand environment and a financial turnaround plan that may be beginning to bear fruit. Several US carriers are trimming their networks and introducing new seating options amid a broad shift toward higher-paying consumers. <br/>
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A Spirit Airlines executive argues that major US carriers have sought to put the discounter “out of business” as it faces imminent de-listing from the New York Stock Exchange (NYSE). Spirit’s stock will be de-listed from the NYSE on 16 December, confirming the struggling carrier’s earlier prediction that it would be dropped from the world’s largest exchange amid bankruptcy proceedings. The NYSE notified the US Securities and Exchange Commission (SEC) of the decision in a 5 December filing, which notes that all existing shares will be wiped out as a result of its Chapter 11 restructuring. ”All of the company’s existing common stock and other equity interests will be cancelled without any distributions to the holders of such common stock and other equity interests on account thereof,” reads the SEC filing. Spirit had an opportunity to appeal the NYSE’s decision but did not file such a request. Trading of Spirit stock under the SAVE ticker was suspended following the company’s bankruptcy filing on 18 November. The stock has since started trading on the OTC Pink Market – ”a significantly more-limited market” than the NYSE, Spirit said on 20 November. “The company can provide no assurance that its common stock will continue to trade on this market.” <br/>
The CEO of Frontier Airlines has choice words for passengers who attempt to fly without paying for carry-on baggage. In an interview with Reuters published on Tuesday, Barry Biffle hit back at accusations from the Senate that the low-cost airline company is exploiting customers with “junk fees” — charging separately for basic amenities, such as carry-on luggage, and unbundling services that used to be covered by the cost of an airline ticket. The Senate’s Homeland Security Permanent Subcommittee on Investigations claimed in a recent report that Frontier and Spirit Airlines paid $26m in 2022 and 2023 to gate agents for catching passengers who attempted to avoid carry-on fees. “Frontier personnel can earn as much as $10 for each bag a passenger is forced to check at the gate,” the report said, adding that an unnamed Frontier official told the Subcommittee that “bag policy enforcement was necessary because the airline does not want customers to be taking more or ‘stealing’ from the airline.” In response, Biffle defended the budget airline’s practice by arguing that avoiding baggage fees is unfair to passengers who comply with the rules. “These are shoplifters. These are people that are stealing,” he told Reuters. “It’s not equitable to everyone who follows the rules.”<br/>
Etihad Airways has welcomed the bilateral codeshare with Air Astana which comes into operation from December 5. The agreement enhances connectivity for customers of both airlines across a range of destinations and gives Etihad's customers convenient access to 10 destinations through Air Astana’s gateways in Almaty and in Astana, all of which are new to Etihad's extended network. Kazakhstan's largest city, Almaty, is a cultural hub with stunning mountain views, vibrant nightlife, and rich history, while the futuristic capital, Astana, is known for its striking modern architecture and dynamic urban landscape. The codeshare arrangement simplifies the travel experience for guests, allowing them to make a single booking and undergo a seamless check-in process, along with the added convenience of having their baggage effortlessly transferred to their final destination. Air Astana’s network becomes easily accessible to Etihad's customers, who can connect to it via recently launched nonstop flights to Abu Dhabi by the Kazakhstan carrier.<br/>
Pakistan’s state-run airline is preparing to resume direct flights to European countries early next month, officials said Thursday, days after the European Union’s aviation safety agency lifted a ban on Pakistan International Airlines flying to Europe over compliance with its safety standards. The ban on PIA by the European Union Aviation Safety Agency had been in place since 2020 after 97 people died when a PIA plane crashed in Karachi, the capital of southern Sindh province. The ban was causing a loss of nearly $150m a year in revenue to PIA, officials say. Airline spokesman Abdullah Hafeez said after more than four years the first direct flight from the capital Islamabad to Paris will resume in early January. He told The Associated Press that EASA has expressed “complete satisfaction over the safety standards of PIA” and that arrangements are underway to resume PIA’s flights to other cities in the European countries. The EU agency had said it was “concerned about the validity of the Pakistani pilot licenses” when it imposed the ban in 2020. It said it was concerned about Pakistan’s capability in certifying and overseeing its operators and aircraft in accordance with applicable international standards.<br/>
The president and CCO of Cebu Pacific Air says that at some point it will likely integrate AirSWIFT, after recently acquiring the carrier for US$31m, but is in no major hurry to do so. “I think, over time, we will integrate it,” Xander Lao told the news site InsiderPH in a recent interview. His comment created considerable attention in local news outlets, prompting Cebu Pacific to issue a clarifying statement to the Philippine Stock Exchange the following day. "The company acknowledges that it has explored the potential integration of the AirSWIFT brand into its operations," the December 3 statement reads. "However, the company wishes to clarify that this is not an initiative currently planned for the near future. While the integration remains a possibility, no definitive plans or timelines have been formulated at this stage." Cebu took over AirSWIFT in October following a share purchase deal with Ayala Land Inc. AirSWIFT operates two ATR42-600s and three ATR72-600s on short leisure-orientated routes from Manila and Angeles City Clark International to Cebu, Caticlan, Busuanga, and Panglao. The acquisition gives Cebu Pacific access to El Nido, an AirSWIFT stronghold and gateway to the Bacuit archipelago, a popular holiday area.<br/>
A Sarawak-based passenger airline could operate as far afield as Frankfurt International, according to the would-be carrier's chief supporter, Abang Johari Openg. Sarawak's premier has spent the past 12 months trying to close a deal with the Malaysian government and state-owned Malaysia Aviation Group to acquire regional operator MASwings. Despite the ongoing lack of success persuading Kuala Lumpur to hand over ownership and despite MASwings being an ATR - Avions de Transport Régional operator, the premier told a business event in Kuching last month that the German hub, Jakarta Soekarno-Hatta, Bangkok Suvarnabhumi, Hong Kong International, Korea, and Japan were his top destinations to operate to. Abang Johari's current timeline to finalise the MASwings acquisition is this month, and he says once that happens, the Swarak government would purchase "several new aircraft" capable of long-haul flying. The premier also wants Malaysia's Khazanah Nasional sovereign wealth fund, owner of Malaysia Aviation Group, to finance the acquisition.<br/>