United Airlines on Tuesday forecast a stronger-than-expected profit in the current quarter, after its earnings topped Wall Street estimates in the fourth quarter on robust travel demand and improved pricing power. The Chicago-based airline's shares were up about 4% in after-hours trading. United said it is witnessing a strong and broad-based demand for travel across all geographies. In the December quarter, sales of its premium and basic economy seats were up 10% and 20% year-on-year, respectively. Corporate bookings rose 7% from a year ago. The company said accelerating demand trends have put it on the path to double-digit pre-tax margins in 2025, up from 7.3% a year ago. United and rival U.S. carriers are also benefiting from a sharp reduction in airline seats in the domestic market, which has driven up ticket prices and bolstered the industry's earnings outlook. Airline fares rose at their fastest pace in 21 months in December on a combination of a limited supply of seats and strong holiday travel demand.<br/>
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United Airlines struggled significantly with air traffic control (ATC)-related delays at its congested airport hubs last year as the Federal Aviation Administration still lacks sufficient staffing, particularly in the Northeast USA. ”Staffing at the FAA remains a challenge for the airline industry and most importantly the travelling public,” says Brett Hart, United’s president. ”In 2024, even on clear, blue-sky days, 66% of United’s delays were driven by ATC challenges in technology and staffing.” US lawmakers have recently renewed focus on addressing ageing ATC technology and understaffing, problems that have plagued the FAA for years. That includes a renewed push to potentially decouple the country’s ATC system from the FAA, which may gain steam under Donald Trump’s second presidential term. Trump proposed in 2017 removing ATC from the FAA and putting it under a new non-profit entity. The concept has faced opposition by Democratic lawmakers as well as some aviation groups, and received support from prominent airline industry advocacy group Airlines for America. “We remain engaged with leaders in Washington in both parties to get the FAA resources they need,” Hart says, “and we’ll look for opportunities to work with the new Congress and new administration to achieve that goal.”<br/>
A reduction in airline seats in the domestic market that is fueling U.S. airline earnings is here to stay, United Airlines CEO Scott Kirby said on Wednesday. A sharp pullback in flying by U.S. carriers since summer has driven up ticket prices, helping them mitigate rising costs and shoring up the industry's outlook. Those conditions helped United smash Wall Street estimates in the fourth quarter and forecast stronger profit in the current quarter. Two weeks ago, rival Delta Air Lines also offered an upbeat outlook, calling the industry's restraint in adding seats a "constructive" backdrop. Kirby said high operating costs at airports in New York, Chicago, Los Angeles and San Francisco have priced out low-cost airlines, making them focus on markets where they have a competitive advantage and putting a lid on unprofitable flying.<br/>"It really is a transformed industry," he told analysts on an earnings call. Annual domestic seat growth this year is estimated to be the slowest in at least a decade. Tight supply and strong travel demand led to the fastest pace of airfare increases in 21 months in December. Carriers' discipline in adding seats has turned analysts and investors sanguine about the industry.<br/>
If you're flying Air Canada domestically or to some sun destinations, expect to pay new fees if you want to change your seat at check-in while on a basic fare. As of Tuesday, those who book one of the airline's economy basic fares will still get a "complimentary" seat assignment when they check in if they did not pay to choose their seat in advance, but if they wish to change their assigned seat they'll have to pay to do so. According to Air Canada, the seat change can be done either when checking online, over the airline's mobile app or at a check-in kiosk at the airport. The change was part of several put in place this month which saw frustration from not only customers, but the federal government as well. One of the most prominent changes was removing the allowance of carry-on bags for this ticket fare for anyone who booked on or after Jan. 3 and was travelling within Canada, to and from the U.S. — including Hawaii and Puerto Rico — and to and from sunshine destinations like Mexico, Central America and the Caribbean.<br/>
Portugal's airline TAP, which is slated for privatisation, carried 16.1m passengers last year, a 1.6% rise from 2023, led by North American and Brazilian routes, the company said on Tuesday. Passenger numbers on North American routes rose by 8.9% to 1.59m, while more than 2m passengers travelled between Brazil and Europe, hailed by the company as a record-breaking achievement after a 7.1% increase from 2023. Portugal's airline TAP, which is slated for privatisation, carried 16.1m passengers last year, a 1.6% rise from 2023, led by North American and Brazilian routes, the company said on Tuesday. Passenger numbers on North American routes rose by 8.9% to 1.59m, while more than 2m passengers travelled between Brazil and Europe, hailed by the company as a record-breaking achievement after a 7.1% increase from 2023. The North and South American routes are seen as the company's most significant and profitable as Portugal's government plans to resume the privatisation of the national carrier this year. Air France-KLM, British Airways-owner IAG and Lufthansa are among those to have expressed an interest in TAP. The airline said that European travel, excluding Portugal, had a modest uptick of 0.9% to 8.8m passengers, while routes to and from Africa saw a marginal decline of 0.1% to 1.1m.<br/>
Free in-flight wi-fi is coming to Air New Zealand domestic flights, with ATR announcing they will be partnering with the airline to bring in Starlink high-speed internet connectivity. The announcement comes after successful test flights carried out on ATR’s 72-600 test aircraft in the past few months proved successful. Engineered by SpaceX, Starlink is the world’s first and largest satellite constellation using a low-Earth orbit to deliver broadband internet capable of supporting streaming, online gaming, video calls and more. The move means that in-flight wi-fi on Air New Zealand flights will be of a quality similar to that travellers experience when at home. Air New Zealand’s Chief Digital Officer Nikhil Ravishankar said exploring in-motion connectivity with Starlink on Air New Zealand flights was a no brainer. “Whether travelling for work or leisure, we know maintaining seamless internet connectivity is something that will transform the travel experience for customers,” he said. The introduction of the system will also allow pilots to connect to aviation weather services that will help enhance flight safety through more informed decision-making. Air New Zealand will be the first airline in the world to have Starlink enabled on its flights, ATR said.<br/>