unaligned

JetBlue Airways said Wednesday that it is still in talks with multiple airlines to establish a partnership and is willing to allocate more funds to get a deal done. In November, the Boston-based 1st U.S. Circuit Court of Appeals sided with the U.S. Department of Justice in blocking the JetBlue and American Airlines' "Northeast Alliance," which had allowed the two carriers to coordinate flights and pool revenue. "When I look at the benefits that we got from the partnership we had, I think that's something that's attractive for us," JetBlue President Martin St. George told the audience at the Barclays 42nd Annual Industrial Select Conference in Miami, Florida. The biggest benefit of a partnership would be improving the utility of the company's loyalty points for customers which trails multiple competitors, he said. "If we find a deal that's accretive, we'll absolutely do it," St. George said, adding that the company is looking forward to letting the Northeast Alliance "play out in the original design." The Justice Department under the Biden Administration argued that the alliance would hurt consumers, saying the partnership eliminated incentives for American to cut prices to lure customers from JetBlue, a historically disruptive rival with often lower fares. St. George said there is money in its JetForward plan allocated for partnership but said if the number had to change, the company will provide a guide, adding that a financier would be good for the airline. The company said its JetForward initiatives included priorities to improve the company's reliability, network, product and financial future, targeting $800m to $900m for incremental EBIT through 2027.<br/>

Southwest Airlines' first company-wide layoffs in its nearly 54-year history are aimed at shoring up profits, but they run the risk of undermining a company culture of putting employees first that made it stand out from rivals and cultivated a loyal fan base. Until this week, the U.S. carrier never resorted to mass layoffs and furloughs, even as the industry underwent crushing downturns. But soaring costs and sagging profits forced its hand on Monday to announce that it will slash 1,750 jobs, or 15% of its corporate workforce. Conor Cunningham, an analyst at Melius, said the layoffs go against the company's long-built culture, which he described as "the special sauce that makes everything possible." The layoffs also reflect a new reality at Southwest, where activist investor Elliott Investment Management's nominees currently hold five of 15 board seats and CEO Bob Jordan is under pressure to produce a fast turnaround. At meetings with Southwest's unions last year, Elliott had emphasized the need to "right-size" the company's headquarters, according to a person who attended the meeting. Jordan has outlined a strategy that seeks to lift Southwest's operating margin to at least 10% in 2027 from 2% last year. Robert Mann, a former airline executive who now runs a consulting firm, said the job cuts suggest there is a greater urgency to deliver on those goals. "It's a nod to the pressure that they're under from Elliott," Mann said. Elliott declined to comment. Southwest said while the layoff decision was "extremely difficult," it has tried to provide support and care to the affected employees.<br/>

Southwest Airlines said on Wednesday its chief transformation officer, Ryan Green, will step down from his role, months after the carrier reached an agreement with activist investor Elliott Investment Management. The Dallas-based budget airline also amended the cooperation agreement with Elliott, raising the investor's maximum allowable stake to 19.9% from the previous limit of 14.9%. Green, who was in charge of the airline's transformation strategy including its transition to assigned and premium seating, will step down from his position effective April 1, 2025, the company said in a filing. His exit comes days after the airline said it would cut about 15% of corporate jobs, or about 1,750 roles, as it looks to reduce costs and streamline its organizational structure. Elliott had spent months advocating for a board overhaul and the removal of Southwest Chairman Garry Kelly and CEO Bob Jordan, holding them responsible for the airline's underperformance.<br/>

Several Sunwing flights out of Toronto Pearson International Airport on Thursday have been cancelled. In a statement on its website, the airline said the cancellation of southbound flights would allow it to “prioritize the safe return of customers currently delayed in destinations due to recent weather disruptions, crew availability constraints and extremely limited hotel capacity.” The airline added that customers would receive a full refund to their original form of payment within 21 business days. Sunwing apologized to its customers impacted by the cancellation. “This difficult but essential operational decision allows us to redirect our resources toward bringing delayed customers home as quickly and safely as possible,” Sunwing said. “Our team continues to work diligently to minimize further impact on our operations and support affected passengers.” It is unclear how many flights are impacted. The new cancellations come hours after the airline cancelled a handful of scheduled flights on Wednesday, citing a similar reason.<br/>

Britain's Jet2 said on Wednesday that profit margins were likely to come under pressure this year as high inflation is increasing costs and causing consumers to rein in their spending on holidays. Its shares tumbled about 10%. The company, which offers scheduled flights and package holidays, said visibility for demand ahead was "limited", although seats sold for the summer season were 8.5% higher than last year. Jet2's warning comes after Europe's largest travel operator TUI this month reported tepid growth in bookings for the summer, also sending its shares sliding. Jet2 said inflationary pressures have raised the costs of aircraft maintenance and other operational charges. It also expects to incur costs due to likely delays in getting possession of new Airbus A321neo aircraft, and will suffer a 45m pound hit from higher employer pension costs and fuel costs.<br/>"The current macro-economic conditions and the many demands placed on consumer discretionary incomes, which combined with the later booking profile and cost headwinds detailed, may mean profit margins in the year ahead come under some pressure," CEO Steve Heapy said in a statement. The British company estimated profit for the year to March 2025 to rise 8%-10% to between GBP560m and 570m.<br/>

Etihad Airways posted a record after-tax profit of Dh1.75b ($476m) last year, more than three times that of 2023, driven by strong passenger and cargo revenue as the Abu Dhabi airline continues to expand its route network. Total revenue increased by 25% annually to Dh25.3b ($6.9b), driven mainly by a 25% surge in passenger revenue, the airline said on Wednesday. Passenger traffic grew by 32% annually to 18.5m, as Etihad Airways launched more than 20 more destinations during the year, including Boston, Jaipur, Bali and Nairobi. Flights to more than 10 of these cities are set to begin operations this year. Passenger load factor reached 87%, while available seat kilometres (ASK) increased 28% year-on-year. The airline’s profit growth was also supported by a 24% annual increase in its cargo revenue to Dh4.16b, fuelled by increased capacity and volume. “Looking ahead, I am confident we will continue to be a financially strong airline,” Antonoaldo Neves, CE of Etihad Airways, said. Etihad said it “strengthened profitability and expanded margins through an optimised fleet and network, and improved efficiency”. Earnings before interest, taxes, depreciation and amortisation reached Dh4.7b last year, a 32% year-on-year increase. Global air passenger demand reached a record high in 2024, with full-year traffic increasing by 10.4% annually, according to the Iata. Middle East airlines reported a 9.4% traffic jump during the year. “The year 2024 made it absolutely clear that people want to travel. On average, 83.5% of all seats on offer were filled – a record high, partially attributable to the supply chain constraints that limited capacity growth,” said Willie Walsh, Iata’s director general, in January. He added that there is every indication that demand for travel will continue to grow this year, “albeit at a moderated pace of 8%”.<br/>

Australia's Regional Express Holdings (Rex) on Thursday said its voluntary administrators from Ernst & Young (EY) have begun a sale and recapitalisation process for the collapsed regional airline. Rex went into voluntary administration in July 2024, resulting in hundreds of job losses and the suspension of its Boeing 737 flights between Australia’s major cities. However, the airline continues to serve rural areas. It currently owes A$500m ($316.85m) to 4,800 creditors after struggling to compete with Qantas and Virgin Australia, which together dominate about 98% of the domestic market. Last week, the federal government suggested that if Rex fails to secure a successful sale, the Commonwealth may step in to acquire the airline. The government had in January said it would buy A$50m of debt from the company's largest creditor, Asian private equity house PAG Asia Capital, in a bid to have more control during the voluntary administration process.<br/>