Southwest Airlines’ new policies such as charging for checked bags for the first time could backfire, Fitch Ratings said Thursday. Southwest is reversing its decades-old two “bags fly free” policy for checked luggage in May, though there are exceptions for travelers with a Southwest credit card, elite frequent flyer status or who buy the highest classes of tickets. It is also launching assigned seating and a no-frills basic economy fare and said flight credits will expire. Fitch issued a negative ratings outlook for the company, long known for its strong balance sheet, because “Southwest may shift to a less conservative capital allocation and financial policy, while ongoing strategic changes have the potential to impact its competitive position relative to network carriers. “Items aimed at improving profitability such as the introduction of bag fees and expiring flight credits risk eroding Southwest’s competitive strengths relative to peers,” Fitch said. Social media posts from Southwest, even if they’ve been unrelated to policy changes, have drawn angry comments about the shifts, but market share loss, if any “is uncertain,” the firm noted. Southwest declined to comment on Fitch’s new outlook. The airline has been under more intense pressure to improve margins since activist hedge fund Elliott Investment Management took a stake in the carrier and later won five board seats in a settlement last year.<br/>
unaligned
Cost-conscious air travellers will likely tighten spending on vacations as a result of US-imposed tariffs roiling global markets, from the perspective of Sun Country Airlines chief Jude Bricker. Speaking on 3 April during CAPA’s Airline Leader Summit in Grand Cayman, Bricker commented on growing fears of a sustained economic downturn and how “that pertains to my business”. ”Mostly, the concern is probably how everybody’s thinking about the US consumer and the effect of the tariffs on their pocketbook, and whether that squeezes out discretionary spending on leisure activities,” he says. “I think that’s probably going to happen and I think it’s going to put downward pressure on demand.” Much of the North American airline sector’s focus has recently fallen on demand for Canada-to-USA air travel, which is sagging amid geopolitical tensions between the two countries – largely related to an escalating trade war – and the rise of the “buy Canada” movement encouraging Canadians to spend domestically. Carriers such as Toronto’s Porter Airlines and Calgary-based low-cost carrier Flair Airlines have recently boosted domestic flying in response to lower demand for US flights. From Sun Country’s vantage, suppressed transborder travel could “benefit us somewhat” because Canadian travellers “drive up the trip costs in Florida and the desert southwest and Southern California”, Bricker says. <br/>
Virgin Atlantic says flights between Toronto and London are here to stay after the airline resumed service between the two cities for the first time in a more than a decade. Starting this past Sunday and through the summer, the airline has daily flights between Toronto and London. On board one of the first flights at Pearson Airport Thursday was Virgin Group Founder Sir Richard Branson. He exited the aircraft with much fanfare, flanked by his team along with Canadian and British flags. “We’re just so, so pleased to be back here again,” said Branson at a press conference a short time later. “For some reason or another, it seems a lot of Canadians want to go that direction at the moment and so we’re happy to oblige.” Some airline analysts believe now is a good time to bring back Virgin Atlantic’s London-Toronto route. “It’s summer, so a lot of Canadians are travelling but fewer Canadians are travelling to the U.S. because of the relationship between the two countries,” said McGill University Desautels Faculty of Management Professor, Karl Moore. He said the timing makes sense with demand for flights to the U.S down, while London is a key connector for many other world cities.<br/>
Budget carrier Wizz Air is rolling out a new three-year investment programme intended to prioritise customer service across its operation. It has unveiled the transformation plan – branded as the ‘Customer First Compass’ – stating that it aims to put customers “at the forefront” of its activities. Wizz Air has previously faced rough publicity from consumer surveys over its customer service, to which the carrier has objected. It insists that the new initiative, focusing on four key areas, marks a “new chapter” for the carrier. “This is not just a framework, but a shift in how we think, act and deliver across the business,” says corporate and ESG officer Yvonne Moynihan. “From ground to air, every decision we make will now be guided by the needs of our customers.” Part of the transformation – which is claims amounts to GBP12b ($15.7b) – is already embedded in the fleet-modernisation programme. Wizz Air is introducing large numbers of Airbus A321neo jets, and is shortly to take the A321XLR, which will extend its network. The airline is also taking measures to ensure that its fares are “transparent” to passengers, and taking a “digital-first” approach to make customer journeys “seamless”.<br/>
A fractured axle caused a passenger plane's wheel to fall off during take off from a Scottish airport, an investigation has found. The right nose wheel separated from the front landing gear of the Emerald Airlines flight - operated by Aer Lingus - between Edinburgh and Belfast City Airport on 31 October, 2023. Airport and flight crew failed to notice the detachment until the plane was being taxied to the terminal in the Northern Irish capital. The Air Accidents Investigation Branch (AAIB) said the fractured axle was probably caused by an overheated bearing, but it could not determine what caused it to overheat. No-one was injured in the incident and the flight landed without any issues. Emerald Airlines is the operator of the Aer Lingus Regional franchise and flies on short-haul routes between the island of Ireland and the United Kingdom. The AAIB report noted that the flight crew received "no indications" the nose wheel had detached. Investigators said it would "not have been easily detectable" by staff in Edinburgh as it "came to rest" away from the runway. Both airports carried out runway inspections after staff in Belfast noted the wheel was missing. It was later located near the runway in Edinburgh. An examination of the ATR 72-212 A aircraft, built in 2017, found evidence of heat damage on the axle.<br/>
Air Arabia Abu Dhabi, the capital’s first low-cost carrier, has announced the addition of a new non-stop route to Almaty in Kazakhstan from Zayed International Airport. Starting June 3rd, 2025, the new service will operate three times a week every Tuesday, Friday, and Sunday. Adel Al Ali, Group CEO of Air Arabia, said: “We are glad to launch our new service to Almaty, further expanding our international reach from Zayed International Airport. This new route reflects our commitment to offering passengers affordable and reliable travel options while enhancing connectivity from the UAE’s capital with key international markets.” He added:” As we aim to contribute to the city’s growth as a leading hub for tourism and business, we remain focused on meeting the growing demand for low-cost travel, offering our passengers even greater choice and convenience.” With the addition of Almaty, Air Arabia Abu Dhabi now connects 30 destinations directly from Zayed International Airport, offering travellers a broad range of options for both regional and international travel.<br/>
Philippine Airlines (PAL) is expanding its Cebu hub by increasing flight frequencies and seat capacity in anticipation of a surge in travel demand. Starting this month, Philippine Airlines will operate 287 weekly round-trip domestic flights between Mactan-Cebu International Airport (MCIA) and 18 destinations across the country, the airline said in a statement on Thursday. This will increase PAL’s flight frequency by 10%. “These additional flights and greater seat capacity reflect our flag carrier’s commitment to increasing connectivity, boosting the economy, and helping drive tourism across our interisland network from Cebu,” PAL Express President Rabbi Vincent L. Ang said. The flag carrier is also set to increase its seat capacity by deploying larger aircraft on several routes. These additional flights and aircraft upgrades are expected to raise its weekly seat capacity to and from Cebu by 39,000 seats, representing a 17% increase.<br/>
Jetstar has commenced the first non-stop service between Christchurch and Cairns. Flight JQ136 from Christchurch touched down in Cairns at around 10:40am on Wednesday aboard the A320-200 VH-VQL. The flights will operate three times per week, adding an estimated 70,000 trans-Tasman seats. “Jetstar’s direct flights from Christchurch to Cairns will slash hours and cost from the journey, giving passengers every reason to book the holiday they’ve been waiting for. This service is commencing at an ideal time, ahead of the lengthy Easter school holidays when families and friends are keen to reconnect,” Richard Baker, CE of Cairns Airport, said. According to Jenn Armor, executive manager, customer, at Jetstar, the route is part of the carrier’s efforts to add low-cost fares between Australia and New Zealand.<br/>