U.S. airline stocks tumbled Tuesday to their lowest levels since late last year after data showed some economic concerns, hitting what had been a bright spot for consumer spending. The moves also come after President Donald Trump imposed new tariffs on Mexico and Canada and raised tariffs on Chinese goods, actions that were met with plans for retaliatory duties. Some executives, including the heads of Best Buy and Target, warned the tariffs could mean higher prices for consumers. United Airlines, which has the most exposure to China of the U.S. airlines, fell about 6%, along with Delta Air Lines. American Airlines dropped close to 4% for the day, while domestic-focused carriers JetBlue Airways lost nearly 6%, Allegiant Air shed more than 9%, and ultra-low-cost carrier Frontier Airlines ended more than 4% lower. Airlines, especially full-service carriers with big international networks, had been a bright spot thanks to strong demand and moderating domestic flight growth, but some analysts are now anticipating potential demand impacts, particularly for more price-sensitive customers ahead of the crucial spring travel season.<br/>
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Airline passengers flying through the Dallas-Fort Worth area ran into heavy delays on Tuesday, as both major airports canceled flights amid high winds and thunderstorms. By 11 a.m. Tuesday, Dallas-Fort Worth International had 275 flights canceled and 417 with delays, while Dallas Love Field had 63 cancellations and 87 delays, according to Flight Aware. Much of North Texas was under a severe thunderstorm warning and tornado watch early Tuesday, with more than 270,000 experiencing power outages throughout the area. A traffic management program because of the weather was continuing to delay arriving flights at DFW Airport by more than two hours as of 9 a.m., according to the FAA. “We have about 50 cancelations today as a result of this morning’s storms,” Southwest Airlines spokesperson Dan Landson said in a statement. “Our teams are working to get customers on those flights to their destinations as quickly as possible. As always, we encourage customers to check their flight status at Southwest.com or the app.”<br/>
Aviation industry members on Tuesday again urged lawmakers for newer air traffic control technology and more hiring of air traffic controllers as airlines continue to complain about longtime shortfalls, while air travel demand has boomed. Their testimony was delivered to a House committee hearing about a month after an American Airlines regional jet and an Army Black Hawk helicopter collided near Ronald Reagan Washington National Airport, killing all 67 people on board the two aircraft in the deadliest U.S. airline crash since 2001. Transportation Secretary Sean Duffy said last week that the Trump administration is taking steps to increase air traffic controller staffing, raising starting salaries by 30% for staff who go through the FAA’s academy. Air traffic controller staffing is down about 9% from 2012, while air travel demand has hit records, according to testimony from Nick Daniels, president of the National Air Traffic Controllers Association. Duffy’s comments come as President Donald Trump has tasked his billionaire advisor Elon Musk with cost-cutting throughout the federal government. But Musk’s involvement has raised concerns about conflicts of interest from Democratic lawmakers, especially since the FAA is one of the regulators of Musk’s company SpaceX. The cost cuts have included layoffs of about 300 FAA employees. The Department of Transportation said it didn’t include air traffic controllers. “This demoralizes the entire workforce and distracts from the agency’s efforts to modernize and improve the aviation system — as well as taking away from the primary mission of the FAA to ensure the safety and effectiveness of the U.S. aviation system and ultimately, the safety of the American flying public,” David Spero, president of Professional Aviation Safety Specialists, said in written testimony. He said, “blanket changes, indiscriminate dismissals or other arbitrary edicts will not help this country maintain the safest air traffic control system.”<br/>
India’s low-cost carriers will lead the shift to the Navi Mumbai Airport, the highly anticipated second airport for the commercial capital developed by billionaire Gautam Adani, as it targets a May opening. India’s largest airline IndiGo will shift part of its operations to the new airport, according to people familiar with the matter who did not want to be identified as the information is private. Tata Group’s low-cost carrier Air India Express and smaller rivals SpiceJet and Akasa are also in discussions to eventually relocate all of their operations, the people added. Air India’s full-service carrier will continue to operate from the existing airport for now but will shift more of its domestic operations to Navi Mumbai, about 22 miles southeast of Mumbai’s congested existing aerodrome, the people said. The Adani Group’s new $2.1b airport is a landmark infrastructure project for the sprawling metropolis of 21m people aimed at reducing aviation bottlenecks and creating an international transit hub similar to Dubai, London or Singapore. Local authorities plan to build an “aero city” around the new airport to boost non-aviation sources of revenue. Both the existing Mumbai airport and the new one on the city outskirts are managed by the Adani Group, putting the Indian ports-to-power conglomerate in a strong position as it negotiates with the airlines over moving some of their flights to the new facility.<br/>
The number of business jets in the Asia-Pacific is expected to grow at a rate of 2.1% a year from 2025 to 2034, faster than the global average of 1.4%. Speaking to the media at a press conference for the inaugural Business Aviation Asia Forum and Expo on March 4, Leck Chet Lam, managing director of organiser Experia Events, cited these updated figures from aviation analysis platform Aviation Week Intelligence Network to explain how an international event dedicated to business aviation in Asia was birthed. He added that within the Asia-Pacific, market sentiment has improved, as 58% of business aviation professionals said in Q4 2024 that they intend to buy a business aircraft within the next year, up from 51.9% in Q4 of 2019. The data comes from aviation consultancy Asian Sky Research. Noting that these figures signal positive developments in Asia-Pacific’s business aviation market, Leck said he expects to see “healthy growth” in this sector over the next 10 years, given the high demand for luxury travel in this region. Running from March 4 to 6, the Business Aviation Asia Forum and Expo at the Changi Exhibition Centre is expected to welcome around 2,000 attendees from more than 50 countries over three days. Among the 31 exhibitors are Chinese jet manufacturer Amber Aviation, Boeing Business Jets and Lufthansa maintenance, repair and overhaul subsidiary Lufthansa Technik.<br/>
Australia’s major airlines have detailed the options for customers booked on flights to destinations affected by Tropical Cyclone Alfred. Qantas, Jetstar and Virgin Australia are all cancelling flights and offering changes as the category 2 system charges towards land between Queensland’s Sunshine Coast and Gold Coast. “While airspace is not generally closed in response to weather conditions, airlines may decide not to fly in adverse conditions and airports can elect to close,” Air Services Australia said on Wednesday. “Decisions on whether to cancel flights are a matter for airlines, and passengers with travel plans over coming days are advised to check the status of their flight with their airline.” There could also be delays caused by reduced staff levels if employees are unable to get to work amid the cyclone, Air Services Australia said. Air Services Australia said it has staff contingency plans and backup power supplies in place alongside other emergency arrangements to support the sector over the next few days. “Should emergency services require ongoing access, Air Services will look to support these requirements,” it said.<br/>
A new study by the World Economic Forum (WEF) and Kearney reveals that capital expenditures required to meet SAF demand by 2030 could reach $45b. According to the report, “Financing Sustainable Aviation Fuels: Case Studies and Implications for Investment,” global SAF demand is expected to reach 17m tons per year by 2030, representing about 5% of total jet fuel consumption. By the end of 2024, production capacity will be 4.4m tons per year, with an additional 6.9m tons per year expected from new refineries and facility expansions. However, to meet 2030 demand, an extra 5.8m tons of production capacity is needed by 2026. Scaling up SAF production requires urgent action. The total capital expenditure needed to meet SAF demand by 2030 is estimated to be between $19b and $45b, depending on the technology mix. The capital landscape for SAF investments is complex, requiring navigation of policy, market, technology, and feedstock risks, particularly through long-term policy consistency and feedstock security. The report identifies 10 financial methods to support SAF investments, including research grants for early-stage technologies, multilateral development bank support, loan guarantees, long-term offtake agreements, green bonds, private equity, and infrastructure investments. Collaboration between producers, governments, and investors is essential for scaling SAF production. “If we are serious about hitting SAF targets by 2030, SAF producers, governments, and investors will need to work together to de-risk production and scale employment,” said Kearney’s Global Sustainability Director, Claudia Galea.<br/>