U.S. budget carrier Southwest Airlines' fourth-quarter profit surpassed Wall Street estimates on Thursday, helped by robust travel demand and improved airfares. The airline also forecast better-than-expected unit revenue (RASM), a proxy for pricing power, for the first quarter. Airlines across the U.S. have cut seating to boost fares after a surplus capacity, introduced last summer in anticipation of a demand surge, forced airlines to offer discounts and sacrifice margins. Airfares in December rose at their fastest pace in 21 months. This helped Southwest report an adjusted profit of 56 cents per share for the fourth quarter ended Dec. 31, compared with analysts' average estimate of 44 cents, according to data compiled by LSEG. Its operating revenue rose 1.6% to $6.93b from a year earlier. At its investor day in September, the airline unveiled plans including vacation packages and aircraft sale-leasebacks to enhance its revenue and liquidity, at a time when the industry struggles with inflated labor and aircraft maintenance expenses. "While we still have much work to do, we are pleased that the improvements from our tactical initiatives are materializing faster than expected, and our progress continues to be further supported by a constructive demand environment and industry backdrop," CEO Bob Jordan said. The company expects first-quarter RASM to grow about 5% to 7%, compared with analysts' expectation of a 2.62% increase. It sees cost per available seat mile, excluding fuel, to be up 7% to 9% as it bears the brunt of expensive labor contracts.<br/>
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IT issues at Frontier Airlines triggered a brief ground stop at all of the U.S. budget carrier's destinations on Thursday evening, according to an advisory from the U.S. FAA. The ground stop was requested by the Denver-based airline at 2233 GMT, and the stop was canceled at 2254 GMT, according to the FAA. Frontier confirmed that the ground stop had been lifted, and said its systems operations center experienced a short internet outage that caused the airline to initiate a brief ground stop.<br/>
Low-cost carrier Wizz Air has issued its second profit warning in six months as it grapples with the grounding of its aircraft because of engine problems. The airline said on Thursday that net losses widened to €241mn in the three months to the end of December, from €105mn a year earlier, due to higher costs stemming from a fifth of its fleet being out of action. Airbus engine supplier Pratt & Whitney began recalls for inspections in 2023, amid concerns over contaminants in the powdered metal used to make its turbofan engines. Wizz Air has been the worst-hit airline in Europe. Wizz Air said it now expected net income in its 2025 financial year to fall to between €250mn and €300mn, from €365.9mn a year earlier. It had previously forecast 2025 net income in a range of €350mn-€450mn, having cut its guidance in August last year from a range of €500mn-€600mn. The London-listed carrier’s woes pushed its shares down as much as 16% in early trading, before recovering to trade down 5%. CE József Váradi said the airline’s higher costs had been “entirely” caused by the “unprecedented” groundings of its aircraft. Difficulties with its Pratt & Whitney engines have hampered Wizz Air for more than a year and forced it to lower its growth ambitions as it pays to hire spare planes to fill gaps in its flight schedules. Varadi said he hoped “the peak of the issue is behind us” as more planes were returned to service. He added that aircraft shortages at other airlines meant he hoped Wizz would not be at such a competitive disadvantage over the next 12 to 18 months. Ryanair, its major low-cost rival, this week lowered its forecasts for passenger numbers because of delivery delays from Boeing.<br/>
Emirates has confirmed it has temporarily closed its Auckland lounge. The lounge at the international terminal closed on January 19 and will remain shut until March to allow for a much-needed refurbishment to take place. An Emirates spokesperson told Stuff Travel all eligible passengers, including first and business class passengersand Emirates/Qantas platinum and gold members, will be able to access the Strata Lounge instead. “The refurbishment of Emirates' Airport Lounge is part of the airline’s ongoing investment to further enhance and upgrade its products to ensure a seamless and enjoyable travel experience for its customers," the spokesperson said.<br/>The airport’s revamped Strata Lounge reopened in August 2022, after closing during the pandemic. It has bookable wellness pods for guests, and is available for the everyday traveller to pay to enter, not just business and first class passengers. Guests can pay for a standard stay of up to four hours for $66 per person, or an extended stay of up to eight hours for $95. The bookable wellness pods are additional, starting at $166.<br/>
An investigation into a fire that engulfed an Air Busan plane at a South Korean airport this week is being slowed by a large amount of fuel and oxygen still on board, an air crash investigation official told Reuters. Authorities on Friday conducted a risk management assessment ahead of a full investigation of the burned-out Airbus A321ceo plane which remains on the tarmac at Gimhae International Airport in the southern city of Busan. The fire, which began around 10:15 p.m. (1315 GMT) on Tuesday as the jet was preparing for departure to Hong Kong, was first detected by a flight attendant in an overhead luggage bin in the rear left-hand side of the plane, an Air Busan spokesperson told Reuters on Friday. All 169 passengers and seven crew members were evacuated using emergency slides after the fire broke out, with only a few minor injuries, Air Busan said. The incident came a month after the deadliest air disaster on South Korean soil when a Jeju Air plane crashed on Muan Airport's runway as it made an emergency belly landing, killing all but two of the 181 people on board. Air Busan's single-aisle 17-year-old plane has burnt out holes along the length of the fuselage roof. Its wings and engines were not burned, a transport ministry statement said. The plane still contains around 35,900 lbs (16,280 kg) of jet fuel and other hazardous materials such as oxygen tanks, the transport ministry said on a statement on Thursday. Authorities need to decide whether the fuel needs to be offloaded before a full investigation begins, the ministry said.<br/>