unaligned

Brazilian airline Azul expects to go "back to basics" and be able to focus more on its operations this year, CE John Rodgerson said, after a challenging 2024 marked by some market disruptions and a major debt restructuring. "I am excited about 2025. It can't be worse than 2024," he told Reuters in an interview as the carrier reported on Monday fourth-quarter core earnings slightly above market expectations, with full-year figures matching its previously released outlook. Azul in 2024 struggled with supply chain issues delaying aircraft deliveries, floods that kept the key Porto Alegre airport closed for months, a weaker Brazilian real, and balance sheet pressures leading to debt deals with lessors. The carrier recently concluded the major restructuring that included the termination of almost $1.6b in debt from its balance sheet, while also raising $525m in fresh money. "We are well positioned as we have concluded all our renegotiation, so now we can focus a lot more on operations. I would say go back to basics and deliver the Azul product the market knows," Rodgerson said. "We did not do our best last year because we had to survive. Now that we are alive, time to go back to what we used to be." Azul expects to deliver earnings before interest, taxes, depreciation and amortization (EBITDA) of around 7.4b reais ($1.29b) this year, implying growth of around 22% when compared to 2024. In the fourth quarter, core earnings reached 1.95b reais, up 33% year-on-year, helped by higher passenger traffic and load factor. Rodgerson highlighted unit revenue was roughly flat on a yearly basis despite increased capacity.<br/>

Following a year in which it averaged more than 30 Airbus jets out of service for Pratt & Whitney (P&W) engine removals, Mexican low-cost carrier Volaris does not foresee its fleet availability issues being resolved any time soon. During the Mexico City-based company’s year-end earnings call on 24 February, CE Enrique Beltranena said that Volaris is “proactively managing schedules to ensure that the engine inspections and overhauls are carefully planned” through at least 2027. Volaris has been among the global airlines most affected by P&W’s broadly disruptive geared turbofan (GTF) engine recall to inspect for potential turbofan blade defects. Latest-generation Airbus A320neo-family and A220 jets, as well as Embraer E190-E2s, are powered by GTF engines. About a third of those jets remain grounded worldwide, with the number of out-of-service aircraft inching up in recent months. The inspection and overhaul processes take months. US carrier JetBlue Airways recently disclosed that its GTF engines that require removal are spending about a year off-wing before returning to service. Volaris currently has 34 A320neos and A321neos in storage, according to aviation analytics company Cirium. Almost all of those jets are likely grounded for GTF inspections. The company itself expects to continue averaging more than 30 jets on the ground in coming months. <br/>

Two long-running defamation cases taken by Ryanair arising from a TV programme broadcast in 2013 have been struck out by the High Court after being settled on undisclosed terms. Ryanair had sued UK broadcaster Channel 4 and Blakeway Productions Limited over a 2013 broadcast of Dispatches that focused on alleged fuel level concerns of pilots in Spain in July 2012. In 2013, the airline said it rejected “false and defamatory claims made by the Channel 4 Dispatches programme” which, it alleged, “impugn and smear” Ryanair. The company said Ryanair had an “outstanding 29-year safety record” and claimed the programme was based on “nothing more than anonymous hearsay claims made by individuals whose identity was concealed”. The Dispatches episode, Ryanair: Secrets from the Cockpit, aired in August 2013 and featured anonymous pilots raising concerns about the airline’s fuel policy. After it was aired, a spokesperson for the company released a statement confirming Ryanair had instructed its lawyers to issue proceedings for defamation. “Ryanair looks forward to this matter being resolved in the courts and the safety of Ryanair’s operations being thoroughly vindicated,” said a spokesman. Channel 4 said the station was “standing by” its journalism. Ryanair also took defamation proceedings against John Goss, a veteran Ryanair pilot of 25 years’ service, who had his employment at the airline terminated in the aftermath of the programme.<br/>

Ryanair has indicated in the High Court that it will seek amendments to a judgment dismissing the airline’s challenge to plans for a proposed E200m underground cargo tunnel at Dublin Airport. John Kenny, BL, appearing for the airline, said on Monday that, based on their contention that there was a material error in Mr Justice Richard Humphreys’ judgment, they were seeking to have it reopened. Mr Justice Humphreys said that he would hear Ryanair’s application to reopen the judgment next week. Earlier in February, the judge dismissed the airline’s appeal to An Bord Pleanála’s decision to approve airport operator DAA’s 1.1km tunnel, which is to run beneath the “crosswind” runway. Ryanair’s challenge was grounded in the claim that the board’s permission was in breach of the European Commission’s Water Framework Directive, which aims to protect water quality and corresponding Irish regulations, as the appeals board did not ensure the project would not jeopardise the status of a body of surface water. Mr Justice Humphreys rejected this argument, stating that the airline didn’t demonstrate any factual basis that the project “could have jeopardised the attainment of good water status”. The airline also maintained in its challenge that the board did not recognise that the proposed development is inconsistent with the Dublin Airport Local Area Plan, as it requires the loss of two aircraft stands. While the judge said he tended to agree with parts of the Ryanair’s argument on this point, he said the airline relied on Section 37(2) of the Planning and Development Act 2000 in making this argument, a subsection that he said does not apply to cases of material contravention of local area plans.<br/>

Flydubai reported a 5% increase in its profit for 2024 as the airline continues to expand its fleet amid strong air travel demand. The Dubai airline's annual profit grew to Dh2.2b ($611m) last year, from Dh2.1b in 2023, and it achieved a "record" pre-tax profit of Dh2.5b for the year, a 16% rise from the previous year, flydubai said on Monday. Revenue increased more than 14% cent to Dh12.8b, as the airline carried 15.4m passengers from Dubai last year, an annual increase of 11%. Flydubai’s financial performance for the fourth consecutive year demonstrates the airline’s continued ability to navigate difficult economic and geopolitical challenges, said CE Ghaith Al Ghaith. Flydubai cancelled the launch of routes planned for the second half of last year and reduced capacity on others because of delays in jet deliveries from Boeing and supply-chain problems. The airline said it did not receive any of the aircraft it was contractually scheduled to receive last year due to continuing challenges with the US plane maker's delivery schedule. As a result, flydubai extended the leases on four Next-Generation Boeing 737-800 planes that had been scheduled for return. Flydubai said it expects to receive 12 new Boeing 737s this year and replace some of its existing aircraft to support its network expansion plans.<br/>

Malaysia's Capital A Berhad, owner of budget airline AirAsia, said on Monday it will start to publish internal business targets alongside quarterly results to give investors a better picture of the company's financial outlook. Capital A was hard hit by pandemic travel restrictions and classified by Malaysia's stock exchange as 'PN17', or financially distressed. It is seeking to exit PN17 status. It is also in the process of selling its AirAsia aviation business to long-haul unit AirAsia X Bhd, which it announced a year ago in a move to consolidate long and short-haul operations under a single AirAsia brand. Capital A companies want "to build investor confidence through consistent and reliable financial disclosures while ensuring that all stakeholders have the necessary information for a fair and reasonable valuation of the company", it said.<br/>Publication will begin from Wednesday, the investment holding company said.<br/>