general

U.S. airlines were flying high less than two months ago on talk of a new golden age, as strong travel demand and tight industry-wide capacity raised the prospect of a multi-year profit boom. But President Donald Trump's broad tariffs and a crackdown on government spending have upended that optimism. Tourists and companies have reduced spending amid rising economic uncertainty, forcing carriers to cut their first-quarter profit forecasts. With travel a discretionary item for many consumers and businesses, growing odds of weak economic growth and high inflation have clouded the outlook for the remainder of the year as well. The S&P 500 passenger airlines index is down about 15% this year and widely underperforming the broader S&P 500 index. Shares of Delta and United Airlines have fallen about 20% each this year. Discounter Frontier Airlines is down 2%. "Your first needs are food and shelter. And then, we're a little bit down the list of expenditures," said David Neeleman, CEO of low-cost carrier Breeze Airways, in an interview. "If you don't have a job, you're not going to go buy an airline ticket." With demand slowing, airlines have started culling flights to avoid lowering fares and to protect margins. Frontier, Delta, United, American Airlines, JetBlue and Allegiant all trimmed their April-June quarter capacity in the past two weeks. United CEO Scott Kirby has warned of a large drop in industry-wide capacity by the second half of August if demand does not rebound. To be sure, bookings for premium and long-haul travel are holding up. United reported an 8% year-on-year jump in spring international bookings.<br/>

All aircraft flying near Ronald Reagan National Airport will now be required to broadcast their positions to air traffic controllers, the acting administrator of the FAA told a Senate subcommittee on Thursday. The policy, which took effect on Thursday, was put in place after it was revealed that technology in an Army helicopter that collided with a passenger jet near the airport in January was turned off at the time of the deadly crash. Known as the Automatic Dependent Surveillance-Broadcast Out, the technology broadcasts an aircraft’s position, altitude and speed, and it could have allowed air traffic controllers to better track the helicopter’s movements. Military helicopters can turn off the technology during so-called continuity of government missions, which take place during national emergencies and ensure that the whereabouts of top government officials remain untracked. The policy change was disclosed as the F.A.A. and military officials were pressed by senators to explain how the Army helicopter, which was on a training mission, could have collided with the passenger jet, which was coming in to land on a heavily trafficked route. “The fact of the matter is, we have to do better,” Chris Rocheleau, the acting F.A.A. administrator, said on Thursday. “We have to identify trends, we have to get smarter on how we use data and when we put corrective actions in place. We must implement them with diligence.” Rocheleau said there would be some exemptions to the new policy, though those were not discussed during the hearing. He appeared before the Senate panel with Jennifer Homendy, the chairwoman of the National Transportation Safety Board, and Brig. Gen. Matt Braman, the Army’s director of aviation. For about two hours, they answered questions about the ongoing investigation into the January crash, which killed 67 people. It was the first investigative hearing into the collision by the subcommittee, the aviation panel of the Senate Commerce, Science and Transportation Committee. Senator Ted Cruz, a Texas Republican who chairs the Commerce Committee, said that military and other operations had continued to interfere with passenger flights at Reagan Airport. <br/>

Testing of counter-drone technology near Reagan Washington National Airport by the U.S. Secret Service and Navy earlier this month led to numerous flight crews receiving faulty alerts of potentially nearby aircraft, the Federal Aviation Administration and a U.S. senator said on Thursday. Senate Commerce Committee Chair Ted Cruz said at a hearing that the March 1 faulty alerts that caused some flights to abort landings were due to the government testing using the same spectrum band as the alerting system. That led to interference that impacted at least a dozen flights. Cruz's statement was the first indication of what may have caused the significant number of faulty alerts. Cruz, a Republican from Texas, called the testing inappropriate and "deeply disturbing" after a fatal collision on January 29 between an American Airlines regional jet and an Army helicopter killed 67 people. Acting FAA Administrator Chris Rocheleau said that Cruz's account was correct. "The FAA had previously warned the Navy and the Secret Service against using that specific spectrum band due to interference risks," Cruz said, adding the committee planned to investigate what happened.<br/>

The acting head of the Federal Aviation Administration said on Thursday that members of Elon Musk's DOGE government reform team did not make the agency's decision to test Starlink terminals. Acting FAA Administrator Chris Rocheleau also said at a U.S. Senate hearing that no Starlink terminals have been plugged into the air traffic control system and that no DOGE employees are involved in the decision-making process around the deployment of additional terminals. Musk's SpaceX owns Starlink. The FAA said earlier this month it was testing eight Starlink terminals in Alaska to restore access to weather information and in Oklahoma City and Atlantic City. Musk last month posted on X that "the FAA assessment is single digit months to catastrophic failure, putting air traveler safety at serious risk." Senator Ed Markey repeatedly pressed Rocheleau if he agreed with Musk's assessment. Rocheleau did not directly answer but said he could assure the flying public that air travel is safe. "I would also say the air traffic system is in dire need of upgrade," he said. The FAA had three special government employees from SpaceX and now the agency is only in contact with one of them, Rocheleau said. Transportation Secretary Sean Duffy criticized Verizon earlier this month for not moving fast enough and soon plans to ask Congress for tens of billions of dollars to reform air traffic control. Many Democrats have cautioned that the FAA could cancel a $2.4b contract awarded in 2023 to Verizon and give it to Starlink because of Musk's close ties to President Donald Trump. Musk, who is leading the so-called Department of Government Efficiency federal downsizing operation, has criticized the current FAA telecom system. But Starlink has denied it wants to take over the Verizon FAA contract.<br/>

As the trade war between the United States and Canada continues and fears of detention at the U.S. border mount, Canadians are channeling their sentiments through their wallets and choosing to travel elsewhere. According to aviation data firm OAG, airline bookings from Canada to the U.S. have collapsed in recent months. "Using forward booking data from a major GDS supplier, we've compared the total bookings held at this point last year with those recorded this week for the upcoming summer season. The decline is striking — bookings are down by over 70% in every month through to the end of September," a statement from the firm said. "This sharp drop suggests that travelers are holding off on making reservations, likely due to ongoing uncertainty surrounding the broader trade dispute." OAG data shows that airlines are also starting to trim capacity on routes between the U.S. and Canada, and Canadian airlines previously told Canadian news outlets that they are considering redeploying their aircraft on other routes. "Comparing the total number of scheduled one-way seats between the two countries filed on 3rd March and those filed on 24th March … 320,000 seats have been removed by airlines operating between the two countries through to the end of October," a statement from OAG said. "The most noticeable cuts are in July and August – the two peak summer season months – where airlines have cut capacity by some 3.5%."<br/>

When the new airport in Tulum opened last year, it promised visitors to Mexico's Mayan Riviera a more streamlined travel experience to resorts beyond Cancún. Airlines were initially bullish on a new way to get their passengers to a popular tourist destination, but about a year and a half after opening, Felipe Carrillo Puerto International Airport in Tulum hasn't yet fully caught on. "Launching a new airport is a huge endeavor – especially so for those that are entirely tourism dependent. In the case of the Yucatan, Cancún has huge brand awareness in the U.S. and Canada amongst sun worshippers and has for decades, with Cozumel second in brand footprint and air traffic," Mike Arnot, a spokesperson for aviation data analytics company Cirium, told USA TODAY in an email. "For Tulum Airport, the build will be a marathon, not a sprint." A closer look at the data from Cirium shows that airlines have progressively scaled back their service to Tulum, and some carriers have abandoned the airport altogether. In December 2023, Spirit Airlines had planned 60 flights to Tulum for April 2024, representing a capacity for more than 10,000 passengers that month. By February 2024, the airline had axed its entire schedule to Tulum. For context: Spirit is struggling with capacity across its network as engine problems keep some of its planes grounded and financial shortfalls have led it to lay off some of its staff. Nevertheless, it's not a great sign for a leisure-focused airline to pull out of a leisure market ahead of spring break. The airport was still ramping up service in March 2024, so it's hard to compare flights in the early part of spring break last year versus this year.<br/>

Brazil's President Luiz Inacio Lula da Silva said on Friday Vietnam may buy Embraer planes and become a regional hub for Brazilian meat processing operations, as he met Vietnam's President Luong Cuong in Hanoi. Lula also recognised the Communist-run country as a market economy, invited Vietnam to attend a BRICS summit in Brazil later this year and pledged a Mercosur trade agreement with Hanoi. Lula's second visit to Vietnam comes as Hanoi, under pressure from the Trump administration to reduce its large trade surplus, has promised to boost U.S. imports, including farm products such as soybeans of which Brazil is a top exporter to the country. Lula also said he was aware that flagship carrier Vietnam Airlines was "positively assessing Embraer's offer" for regional jets, noting Brazil wanted to export planes to Hanoi. The Brazilian planemaker is in talks for the possible sale of ten E190 narrow-body jets to Vietnam Airlines, one Brazilian official told Reuters last week. The two companies did not comment. Embraer and JBS are part of a large business delegation accompanying Lula on his trip to Vietnam.<br/>

Europe’s airlines have called on the EU to cut back on its environmental rules, in a significant shift in tone for an industry struggling to decarbonise. The CEs of four of the region’s biggest carriers, including Ryanair and International Airlines Group, which owns British Airways, said EU carbon pricing rules for aviation should be eased and brought in line with a cheaper, global standard. “We need to cut and revise EU regulations quickly,” said Carsten Spohr, Lufthansa CE. The executives, who also included the head of Air France-KLM and spoke on behalf of 17 airlines, called on the bloc to review a rule that requires fuel suppliers at airports to provide a portion of sustainable aviation fuel (SAF) for departing flights. Brussels has come under pressure from business groups to cut back its sustainability agenda to help European companies become more competitive, particularly as President Donald Trump launches a deregulation drive in the US. The bloc’s economic competitiveness tsar last month suggested the EU was prepared to water down some of its green policies to placate the bloc’s industry. Speaking at a meeting of trade body Airlines for Europe in Brussels, the CEs insisted they remained committed to a long-term target of contributing net zero new carbon emissions to the atmosphere by 2050. However, they said the EU should delay rules that require fuel companies to provide airlines with an increasing amount of SAF each year. The requirement is for airlines to use 2% this year, and rises to 6% by 2030. These fuels — which are typically made from organic material, such as used cooking oil or crops — can reduce the net carbon emissions from flying by about 70%. But they are far more expensive than fossil fuels and in short supply. “Unless action is taken now, the only realistic solution is to move the 2030 SAF mandate date to the right,” said Luis Gallego, CE of IAG.<br/>

Britain’s aviation watchdog will review the rules on “resilience” after Heathrow was closed because of a fire at an electricity substation. Europe’s largest airport was closed in the early hours of Friday last week after the blaze at the Hayes substation in west London hit electricity supplies. No planes were allowed to take off or land, causing diversions which affected about 1,300 flights and roughly 250,000 passengers. Some flights resumed on Friday evening. As part of a review of the airport before the next price control period, the Civil Aviation Authority (CAA) said it would “carefully consider the rules on resilience”. Separate to the review, the CAA said it remained in close contact with Heathrow. It said it would support the National Energy System Operator’s review and would take into account its outcomes, alongside the results of the airport’s own investigation, in “considering whether it should take further steps under Heathrow’s licence”. Earlier this week, the CE of National Grid said there had been enough power for Heathrow to remain open during the entire period it was shut down. John Pettigrew said two other substations that served Heathrow were working and could have supplied the airport with all the power it needed. Airlines could take Heathrow to court over the closure. A body representing more than 90 airlines using the airport has said there may be a case for legal action if a settlement over the costs incurred from the closure is not reached.<br/>

A fleet of flying taxis operating in Abu Dhabi became more of a likelihood following confirmation of an agreement between the emirate's aviation authority and the firm behind the machines. Archer Aviation was working towards launching a fleet of flying taxis before the end of the year, viewing the Gulf as the perfect launch pad to demonstrate its vehicles to the rest of the world. Abu Dhabi Aviation confirmed on Thursday morning that an agreement had been made to deploy the first fleet of Archer Aviation's Midnight electric vertical take-off and landing (eVTOL) aircraft this year. "As a leading force in the aviation industry across the region and the largest helicopter operator in the Middle East, Abu Dhabi Aviation has the expertise to develop a scalable urban air mobility service," said Nader Al Hammadi, chairman of Abu Dhabi Aviation. "We are excited to lead the way in launching the region’s electric air taxi service, starting right here in Abu Dhabi.” Abu Dhabi Aviation will fund the deployment of the Midnight flying taxis, making it the first operator of electric air taxis in the region, according to a statement released on Thursday. The Midnight is a piloted, four-passenger aircraft designed to perform back-to-back flights with minimal charge time between flights.<br/>

Airbus will in the coming weeks begin work on a new scaled wing demonstrator under a project backed by the UK’s Aerospace Technology Institute. While still part of the broader Wing of Tomorrow programme for its Next-Generation Single-Aisle (NGSA), the new project will explore the integration and manufacturing challenges around an open-rotor engine, says Sue Partridge, head of Wing of Tomorrow. Airbus has yet to select an engine supplier for the NGSA but is working closely with CFM International on the integration of its RISE open-rotor demonstrator ahead of flight tests aboard an A380 later this decade. Partridge says it is vital to “anticipate” the effects of the open-rotor installation, in particular its large fan diameter. Airbus, she says, has already “launched the next phase of exploration” to understand the open-fan technology. “We need to understand how we manage the vibration, noise and the aerodynamic flow over the wing,” she told FlightGlobal at the Airbus Summit in Toulouse on 24 March. To ensure sufficient ground clearance for the fan, the wing will need to gull slightly towards the engine mount, she says, which in turn affects how the wing is made. “From an industrialisation point of view there are different challenges to manage,” says Partridge.<br/>