Icelandic low-cost carrier Play expects to start turning in positive earnings in H2 this year, as its transatlantic network matures. The airline has disclosed a $22.5m net loss for 2021 – the carrier started services in June last year – on revenues of $16.4m. It says revenues were “lower than anticipated”, owing to the impact of the pandemic, but that operating expenditure was “in line with expectations”. Play’s management team was not forecasting profitability in its first year of operation, and its growth was impeded by the air transport crisis. “This trend has now been reversed, utilisation is growing and the outlook is positive for this year,” says the carrier, pointing out that “significant pent-up demand” has built up for travel. CE Birgir Jonsson says: “We were able to use our flexibility to minimise the negative impact as much as possible and are absolutely on track to realising our vision of building Play into a profitable airline operating a hub-and-spoke transatlantic network.” Play is cautious over the potential effects of the Ukrainian crisis, notably on fuel, expecting price increases to raise its costs by $10m this year. “This cost will be met with an even stronger emphasis on lowering operating costs as well as the introduction of a fuel surcharge,” says the airline. Fluctuation in the oil price has prompted it to defer a planned fuel-hedging strategy. But Play says that it has no plans to reinforce its cash position through extra fundraising.<br/>
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Spanish investigators are probing an incident in which a Ryanair Boeing 737-800 dipped below minimum height thresholds during a second approach to Malaga. The aircraft had been inbound to the Spanish resort on 6 March. According to investigation authority CIAIAC, the 737 was approaching runway 12 when its crew was instructed to execute a go-around in order to maintain separation with a preceding aircraft. “The go-around manoeuvre was conducted without mishap,” the preliminary information bulletin states. But during the second approach, it adds, the aircraft “lost the required separation from the ground”, although it has yet to confirm the degree of deviation or the jet’s height. “Once separation from the ground had been recovered, the captain requested priority for landing owing to the lack of fuel on board.” The aircraft landed without further incident, just before 10:00, and none of the 167 passengers and six crew members was injured. Weather conditions at the time were good, according to the airport’s data, with high visibility.<br/>
Channel Islands airline Aurigny's CEO has warned ticket prices could increase because of the global cost of oil. Nico Bezuidenhout said he "could see £2 to £4 increases in average ticket prices being quite realistically accepted". He told politicians his two biggest concerns for the company at the current time were "petrol prices" and peoples' "lack of disposable income". The States-owned airline is projected to make a GBP13.5m loss for 2021. Last year the States approved a strategy aimed at bringing the airline back into profitability. Bezuidenhout said while he did not expect to turn a profit in 2022 he was hopeful for a marginal profit in 2023. Bezuidenhout said: "We're seeing decade-high oil prices and you can see GBP2 to 4 increases in average ticket prices being quite realistically accepted". He told politicians and the media at an update on the airline's performance that a lot of the chances of future profits rely on simplifying the airline's fleet. In about two months a review of whether the airline should keep the Embraer jet will be complete and Bezuidenhout said he believed if it was removed from Aurigny's fleet it would save the company GBP700,000 a year. New interlinking - or code sharing agreements - are set to start with British Airways and Emirates soon, which Mr Bezuidenhout said would "help customers with onward travel".<br/>
The aviation sector can recover from the pandemic by pursuing international routes after more Asian countries eased travel curbs amid regional pent-up demand, according to the head of Thai AirAsia (TAA). "The most crucial factor is international services, which were halted for two years. Prior to the pandemic, Thai AirAsia had revenue from the international market at around 40% and we want to regain at least 60% of that traffic by the end of this year as more countries, including China, may consider border reopenings," said Santisuk Klongchaiya, CE of TAA. Santisuk said that if international routes continue to expand throughout the year, 2022 might be an excellent year for the aviation business. Even though TAA might not return to profit, he said, accumulative losses will not be as severe as in the previous two years. As a result of the pandemic, TAA has seen its workforce reduced from 5,000 to 4,500, of which 40% remain on furlough as it is using only 20 aircraft from a fleet of 53. With 18 international routes to seven countries in Asia planned for the first half of 2022, the airline expects to expand services with 30 jets and gradually increase to 50 by the end of this year. "We plan to remove the furlough policy to let all employees return to their posts, receiving regular wages by year-end," Santisuk said. "When more international routes can be opened in the second half, TAA can accelerate the growth faster than competitors as we have both the equipment and manpower in place." Santisuk said TAA aims to carry 12.3m passengers this year, with 30% from international markets. The average load factor for this year has been set at 78%<br/>