International market: Belgium plans to increase air departure tax; TAP Portugal plans to sell a small stake
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What are the latest developments in the international aviation market this week (2.15-2.21)? The Civil Aviation Resources Network takes you through the relevant news of the past week, so that you can have a clear view of the important information.
[Market Dynamics]
1. DOT: The number of flights and cancellation rates in the United States declined in November
According to the latest "Air Travel Consumer Report" released by the U.S. Department of Transportation (DOT), the total number of flights operated in the United States in November 2024 increased by 2.1% year-on-year to nearly 611,800, but decreased by 5.9% month-on-month. In November 2024, airlines canceled 0.5% of their scheduled flights, an increase from the 0.1% cancellation rate in November 2023, but lower than 1% in October 2024.
In addition, airlines handled 37.6 million pieces of baggage in November, and the baggage mishandling rate was 0.39%, slightly higher than 0.38% in October 2024, and the same as 0.39% in November 2023.
2. ARC: Strong momentum in US air ticket sales in January, corporate travel volume declines
According to data from the American Aviation Reporting Company (ARC), total ticket sales by US agencies in January 2025 were close to $9.4 billion, up 4.9% year-on-year. The total passenger volume settled by ARC in January increased by 4% year-on-year to more than 26.7 million. Domestic passenger volume increased by about 3% from January 2024 to more than 16.4 million. International passenger volume increased by 5.8% year-on-year to nearly 10.3 million.
After growing by more than 11% in December 2024, the number of tickets sold by US corporate agencies (agencies that report at least 70% of their business is corporate and government) in January fell by 0.44% year-on-year. The average price of a domestic round-trip ticket in the United States in January was $557, up from $546 in January 2024 and down from $561 in December 2024.
【Policy Management】
3. The Belgian government proposes to increase departure taxes
The newly formed Belgian coalition government has proposed to increase departure taxes for airlines, and it hopes to increase the charges for the federal flight tax introduced in 2022.
Currently, each passenger on short-haul flights (less than 500 kilometers) pays a "boarding tax" of 10 euros. Long-haul flights within the EU pay 2 euros per passenger, and long-haul flights outside the EU pay 4 euros per passenger. But the Belgian government hopes to increase the latter two fees to 5 euros per passenger, while the 10 euro fee for short-haul flights remains unchanged.
4. Australia supports Virgin Australia's cooperation with Qatar Airways
Australia's competition regulator expressed support for Virgin Australia's alliance plan with Qatar Airways on February 18, saying it would provide better services and products for air passengers. Before the Australian Competition and Consumer Commission (ACCC) made this draft decision, it temporarily approved Virgin Australia in November last year to market and sell 28 scheduled round-trip flights per week between Doha and Brisbane, Melbourne, Perth and Sydney.
The flights, which will use Qatar Airways aircraft and crew, a so-called wet lease, will begin as early as June as the airline awaits government approval to buy a 25 percent stake in Virgin Australia from U.S. private equity firm Bain Capital.
【Airline Airport】
5. Spirit Airlines will exit bankruptcy through a privatization transaction
Spirit Airlines has received court approval to exit bankruptcy through a privatization transaction supported by creditors. Previously, Spirit Airlines rejected a takeover offer from rival Frontier Group. U.S. Judge Sean Lane said on February 20 that he would approve Spirit Airlines' restructuring plan, which would transfer control of Spirit Airlines to major creditors.
Spirit Airlines sought court protection in November last year to restructure about $1.6 billion in debt. Spirit Airlines said the restructuring would give it time to boost its business through new high-end services, including more spacious seats and free alcoholic beverages for passengers holding certain tickets.
6. Etihad Airways' profit more than tripled to nearly $500 million
Etihad Airways said on February 19 that its net profit more than tripled to $476 million last year. Sources said Etihad Airways expects to conduct an initial public offering this quarter. Etihad Airways said earnings grew, thanks to $5.7 billion in passenger revenue and $1.1 billion in cargo revenue, and cited "significant improvements in operational efficiency."
Etihad Airways did not mention plans for a listing in its earnings report, but sources told Reuters last month that Etihad had sought advice from investors ahead of a potential offering. The source said Etihad Airways is considering selling about 20% of its shares to local and international investors.
7. Air New Zealand expects profit to fall in the first half of 2025
Air New Zealand warned on February 20 that up to 11 aircraft may be grounded at some point in the second half of fiscal 2025, which will affect its full-year earnings. Air New Zealand said that due to global engine maintenance issues affecting its Airbus neo and Boeing 787 Dreamliner fleets, these aircraft are expected to be grounded at some point in the second half of 2025.
Air New Zealand's net profit after tax was NZ$106 million ($60.43 million) in the six months to December 31, down 17.8% from last year.
8. JetBlue is in talks with "multiple airlines" about new partnerships
JetBlue President Marty St. George said on Feb. 19 that JetBlue is in talks with "multiple airlines" about potential new partnerships after a federal judge rejected two previous deals. "If we find a deal that adds value, we'll absolutely do it," George said at a Barclays industry conference.
In 2023, a federal judge ruled that JetBlue's partnership with American Airlines in the Northeast was anti-competitive, and last year another judge blocked JetBlue's plan to acquire Spirit Airlines. JetBlue has been looking for partners and deals to grow, claiming that it must do so to better compete with larger airlines such as Delta, American Airlines and United Airlines.
9. Virgin Atlantic expands code-sharing with WestJet
Before restarting flights between London Heathrow and Toronto Pearson International Airport, Virgin Atlantic announced plans to expand code-sharing with WestJet Airlines of Canada. Virgin Atlantic plans to restart daily flights from London to Toronto on March 30, its first route to Canada in more than a decade.
Starting March 30, Virgin Atlantic will codeshare with WestJet on routes from Toronto Pearson to 13 Canadian destinations, including Calgary, Edmonton, Vancouver, Winnipeg and Ottawa. The two airlines will also co-locate at Toronto Pearson's Terminal 3.
10. Portugal plans to sell a minority stake in TAP Air Portugal
The Portuguese government is considering selling a minority stake in state-owned TAP Air Portugal. Infrastructure Minister Miguel Pinto Luz said last week that the government is considering selling up to 49% of TAP Air Portugal. The current Portuguese government wants to sell 100% of TAP Air Portugal but has failed to gain enough support from the opposition in parliament to make that happen.
European major airlines including Lufthansa Group, Air France-KLM and British Airways parent IAG have previously expressed interest in acquiring TAP Air Portugal. Reports suggest that the privatization process for TAP Air Portugal could start in March - one of the airline's main assets is its extensive transatlantic flights from Lisbon to Brazil.
11. Despite flight restrictions, Schiphol Airport expects traffic to grow
Despite the Dutch government's plan to reduce the allowed flight capacity, Amsterdam Schiphol Airport expects an increase in passengers and flights in 2025. Starting this year, the airport's total capacity will be limited to 478,000 flights per year - down from 500,000 flights previously, as part of the Dutch government's efforts to reduce noise pollution.
Data for 2024 show that Schiphol Airport's passenger throughput increased by 8% year-on-year to 66.8 million, but it is still 7% lower than the 2019 level. Flight volume increased by 7% year-on-year to nearly 474,000, about 4,000 lower than the planned new annual cap.
[Products and Services]
12. Lufthansa launches new baggage collection service in Frankfurt
In partnership with AirPortr, Lufthansa has launched a new baggage collection and check-in service in Frankfurt. Lufthansa will offer this service to passengers departing from Frankfurt Airport, and the baggage collection service covers the Frankfurt region, Mannheim, Heidelberg, Hanau, Aschaffenburg, Wiesbaden, Mainz, Darmstadt and Bensheim.
Lufthansa said that once the luggage is collected, passengers using the service will receive "real-time" updates through a personalized tracking link and digital baggage tag receipt, which means "they only need to collect their luggage again at their destination." Passengers can book this new "premium" service through Lufthansa's official website within 36 hours before departure, and the price range for two pieces of luggage departing or arriving from a central location is 25 to 35 euros.
13. American Airlines integrates Apple AirTags to track lost luggage
American Airlines has launched a new feature that allows customers to place Apple AirTags in their luggage to help airlines track lost luggage. An American Airlines spokesperson said that passengers can generate a link through the Apple Share Project feature provided by iOS 18.2 or later and share the link with the airline when the luggage is delayed.
The spokesperson said that customers "usually reunite with their luggage in a little over a day," and the integration of Apple AirTags is intended to reduce that time. The service is currently available for trips ending in the United States, Puerto Rico and the U.S. Virgin Islands.
[Aircraft Manufacturing and Fleet]
14. Airbus expects to deliver 820 commercial aircraft this year
Airbus expects to deliver 820 commercial aircraft this year, an increase from 766 deliveries in 2024. Last year's increase in deliveries boosted Airbus' commercial aircraft division revenue by 6% to 50.6 billion euros. Airbus delivered 57 A350s and 32 A330s, as well as 602 A320neo series aircraft and 75 A220s.
Adjusted earnings for Airbus' commercial aircraft business reached 5.09 billion euros, up 5.7%. Airbus' net orders totaled 826, bringing the backlog to 8,658 at the end of the year.
15. Airbus delays A350F service time due to supply chain challenges
Due to ongoing supply chain challenges, particularly those involving Spirit AeroSystems, Airbus announced that the service time of the A350 freighter (A350F) will be delayed. The aircraft, which was originally expected to be delivered earlier, is now scheduled to debut in the second half of 2027.
The A350F has received orders from multiple airlines. However, supply chain constraints are affecting the production plans of Airbus' various aircraft projects. Despite these obstacles, Airbus remains optimistic, mentioning that the total orders for A330 and A350 models in 2024 reached 224, reflecting strong demand for its wide-body aircraft.
16. Alaska Airlines expects further delays in Boeing aircraft deliveries
Alaska Air Group (the parent company of Alaska Airlines, Hawaiian Airlines and Horizon Air) announced that Boeing notified it that the delivery of certain 737 MAX and 787-9 aircraft will be delayed this year. According to its annual report, Alaska Air Group expects to add 28 aircraft in 2025 while retiring six 737-900s.
Alaska Airlines expects to receive nine 737-8s and eight 787-9s, Hawaiian Airlines will add four A330-300s (P2F) and three 787-9s, and Horizon Air will receive three E175s, as well as one aircraft operated by a third party. By the end of 2025, Alaska Air Group expects to have 414 aircraft, including 248 for Alaska Airlines, 76 for Hawaiian Airlines and 90 for Horizon Air.
[Distribution Technology]
17. Amadeus will provide "Quote & Order" solution for Air France-KLM
Air France-KLM announced on February 18 that it has partnered with Amadeus to deploy a "Quote & Order" system using Amadeus' Nevio technology.
Air France-KLM said that based on the "One Order" standard of the International Air Transport Association (IATA), Nevio will consolidate purchases into a single order instead of providing multiple documents for each booking, such as passenger name records, electronic tickets and electronic miscellaneous documents. Once the system is operational, customers will have a unified travel record and an "order" containing all travel details (including services provided by third parties).
[Others]
18. The US aviation industry calls on Congress to provide emergency funds for air traffic control technology and personnel
After a series of crashes triggered alarms, the US aviation industry called on Congress on February 19 to provide "strong emergency funds" for air traffic control technology and personnel.
The American Airlines Association, the Aerospace Industries Association, the International Air Transport Association and other organizations jointly wrote to Congress, urging it to take action, and pointed out that the Federal Aviation Administration faces serious technical needs and there is a gap of about 3,500 air traffic controllers. The continued shortage of controllers has caused flight delays, and in many air traffic control facilities, controllers are forced to work overtime and six days a week to cover shifts.
19. U.S. airlines challenge Biden administration's wheelchair passenger protection rules
Major U.S. airlines and industry group Airlines for America challenged a rule issued by the Biden administration in December that calls for new consumer protections for disabled passengers who use wheelchairs.
The rule sets stricter protection standards for passengers who use wheelchairs and requires airlines to compensate for damage to wheelchairs. Then-Transportation Secretary Pete Buttigieg said last year that the rule was the biggest move to expand rights for wheelchair users since 2008 and made it easier for the Department of Transportation to hold airlines accountable for damage to or delayed return of wheelchairs.
20. Southwest Airlines to cut 15% of its workforce to cut costs by cutting management
Southwest Airlines announced on February 17 that it plans to reduce its corporate workforce by about 15% (about 1,750 people). Southwest Airlines said the layoffs were "almost entirely" aimed at company management and leadership positions. As part of the reorganization, 11 senior positions (vice presidents and above) and 15% of Southwest Airlines' senior management committee will be eliminated.
Southwest Airlines CEO Bob Jordan said: "This decision is unprecedented in our 53-year history. Change requires us to make difficult decisions. We are at a critical moment in our transformation of Southwest Airlines into a leaner, faster and more flexible organization."