United Airlines says travel demand has been resilient lately — except from the U.S. government. Government travel “has fallen off here post-inauguration,” United’s CFO Mike Leskinen said at a Barclays industry conference on Wednesday, referring to the start of President Donald Trump’s term last month. Trump and his advisor, billionaire Elon Musk, have vowed to cut costs in the government, and thousands of government workers have either been laid off or offered buyouts. Jobless claims have surged in Washington, D.C. The government travel segment is about 2% of United’s revenue, a United spokeswoman said. The airline brought in nearly $52b in passenger revenue last year. Leskinen said other demand is helping to make up for the shortfall. Strong international leisure travel demand continues to outshine domestic demand, Leskinen added.<br/>
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The Philippines is advancing its discussions with India’s flag carrier, Air India, over possible direct air services between the countries, the Civil Aviation Authority of the Philippines (CAAP) said. In a statement on Wednesday, CAAP said the necessary documentation, technical specifications and procedural framework are all in place to secure flight approvals, CAAP said, adding that the proposed routes and frequencies are now being assessed. CAAP is committed to facilitating the flight approval process, Director-General Manuel Antonio L. Tamayo said. CAAP said that Air India has also expressed its optimism on the possible economic and cultural impact of direct services. The Transportation department has said that it is looking at expanding flight networks and air talks between the Philippines and various destinations, with consultations ongoing with India, the US, Australia, Thailand, the UK, Uzbekistan, Qatar, Ethiopia, Oman and the Seychelles. <br/>
Air New Zealand warned on Thursday that up to 11 aircraft may remain grounded at times in the second half of fiscal 2025, which will affect its full-year earnings, after it reported an 18% drop in its first-half profit. New Zealand's flagship carrier said its jets are estimated to remain out of service at times during the second half of 2025 due to global engine maintenance issues affecting its Airbus neo and Boeing 787 Dreamliner fleets, which are powered by Pratt & Whitney and Rolls-Royce engines. CEO Greg Foran acknowledged that "2025 is set to be particularly challenging financially, as the airline navigates its first full 12-month period with up to 11 jets out of service at any time", the company said. The carrier's net profit after tax came in at NZ$106m ($60.43m) for the six months ended December 31, a 17.8% drop from last year. That, nonetheless, beat a Visible Alpha consensus of NZ$101.6m. "This is a strong result when you consider the headwinds we have been navigating for almost a year now", Chair Therese Walsh said in a statement. Reflecting confidence in its balance sheet, the carrier announced a share buyback of NZ$100m and declared an interim ordinary dividend of 1.25 New Zealand cents per share. This is not the first time that engine issues have substantially affected the carrier's operations, with maintenance issues having impacted the company's bottom line in fiscal 2024. Late last year, an Air New Zealand flight had to divert from its path to land in Auckland after facing engine problems. <br/>