International market: Emirates Airlines President says the aviation industry has entered "unknown territory"; US tariff policy hits global travel demand
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Civil Aviation Resources Network, April 13, 2025: What are the latest developments in the European and American aviation markets this week (4.5-4.11)? 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.
Airline Airport
Delta Airways CEO issues an alarm on tariffs: "Growth is almost stagnant"
As one of the most profitable airlines in the United States, Delta Air Lines recently failed to provide a full-year performance forecast for 2025 due to economic uncertainty. Delta CEO Ed Bastian said: "Growth is almost stagnant in the face of widespread economic uncertainty in global trade. In this low-growth environment, we protect profits and cash flow by focusing on factors that can be controlled. This includes reducing the planned capacity growth rate in the second half of the year to the same level as last year, while actively managing costs and capital expenditures."
However, Bastian also said that he believes that the advantages of Delta Air Lines' products, low fuel prices and "active action" will help the company "achieve stable profitability." Delta Air Lines' first-quarter profit increased compared to the same period last year, with net income of $240 million and total revenue of $13 billion, up 3.3% year-on-year.
Trump's trade war hits travel demand, Frontier Airlines cancels performance forecast
Frontier Group, the parent company of Frontier Airlines, withdrew its full-year performance forecast on April 10 and warned of a loss in the first quarter as US President Trump's trade war hit travel demand. Frontier Airlines said that travel demand has weakened, leading to fare discounts and promotions in the aviation industry.
Given the uncertain environment, Frontier Airlines said it could not reaffirm its full-year performance outlook for 2025. Frontier Airlines is the second major US airline to cancel its performance forecast after Delta Air Lines withdrew its full-year performance guidance on April 9.
Mesa Airlines and Republic Airlines, two major regional airlines in the United States, have reached a merger agreement
Mesa Airlines and Republic Airlines announced on April 7 that they have reached an agreement to merge in the form of an all-stock transaction, which will give them a larger fleet and improve the efficiency of regional flights and crew management. The merged company will operate under the name "Republic Airlines Holdings" with a single fleet size of approximately 310 Embraer 170/175 aircraft.
The specific terms of the merger agreement were not disclosed, and the transaction is expected to be completed in the late third quarter or early fourth quarter of 2025. Republic Airlines shareholders will own 88% of the combined company, while Mesa Airlines will hold a minimum of 6% and a maximum of 12% if certain pre-closing criteria are met.
Air France-KLM reduces economy class fares to promote transatlantic travel
Air France-KLM CEO Ben Smith told Bloomberg News on April 9 that the company is slashing ticket prices to fill the economy class of its transatlantic flights. Currently, Air France-KLM is facing challenges from weakening demand for international travel.
Smith said on Bloomberg TV that Air France-KLM has noticed "slight softening" in economy class fares, while its premium cabins have remained "relatively stable." He added that while Air France-KLM has not yet adjusted its flight capacity in response to these trends, a recession could bring new challenges. Smith said travel is one of the first industries to be hit during a recession. "This is uncharted territory for us."
Tariffs hit hard, Emirates President warns that the aviation industry is entering "uncharted territory"
Emirates President Tim Clark warned that the aviation industry is in "uncharted territory" as President Trump's extensive tariffs and trade disputes weigh on global growth and could lead to higher costs for airlines. "Right now, we are in turbulent times," Clark said in an interview with CNBC.
"It's uncharted because it involves a global economic reset to levels that have probably not been seen since the 2008-2009 financial crisis," Clark said, noting the increasing pressure on airlines and the knock-on effects on the aviation supply chain.
Heathrow Airport's passenger throughput in March fell 7.5% due to the fire incident, but it is still expected to set a record in 2025
Data recently released by Heathrow Airport in the UK showed that the passenger throughput in March was 6.22 million, nearly 500,000 less than the same month in 2024, a year-on-year decrease of 7.5%. But Heathrow Airport still expects a record passenger throughput for the whole year of 2025. In March, Heathrow Airport was closed for nearly a day due to a substation fire incident.
The decline in passenger throughput at Heathrow Airport in March led to a 1.5% drop in its overall passenger throughput in the first quarter of 2025. In addition, the number of flight takeoffs and landings at Heathrow Airport that month also fell by 3%, which is roughly equivalent to a full day's flight volume. Heathrow CEO Thomas Woldbye said: "We remain on track and expect another record year in 2025. Our staff are currently working hard to prepare for the busy Easter and May bank holiday travel."
Products and Services
American Airlines and U.S. Customs and Border Protection Pilot Remote International Baggage Screening
American Airlines and U.S. Customs and Border Protection (CBP) announced on April 8 that under a new initiative piloted by the two parties, passengers arriving in the United States from certain international airports will no longer need to collect their checked bags and recheck them in the CBP customs hall. American Airlines, CBP and Sydney Airport Authority will launch the measure on April 9, which will apply to American Airlines' daily flights from Sydney Kingsford Smith International Airport to Los Angeles International Airport.
Passengers on this flight will no longer need to collect their checked bags and recheck them in the CBP customs hall unless CBP requires further inspection. Instead, passengers will go directly to the U.S. Transportation Security Administration (TSA) security checkpoint after passing CBP passport control and then continue to their connecting flights. CBP said CBP officers will be able to view X-ray images of checked baggage taken at foreign international airports and conduct remote audits before the plane lands.
Air Europa implements AI system to locate forgotten items by passengers
Continuing to innovate to improve the customer experience, Spain's Air Europa has signed an agreement with Spanish company Foundspot to digitize and streamline the process of finding items left on board. This technological solution makes the process faster and more efficient, providing passengers with a quick and practical way to retrieve their belongings.
The system uses a unique algorithm based on artificial intelligence (AI). When a passenger realizes that something is missing, they can visit a dedicated page on Air Europa and Foundspot, where they provide details of the item, where they think they left it, and the approximate time. The technology cross-references this information with items found by the Air Europa team, which are stored and recorded on the platform. If a match is successful, the team will confirm the identity. Once verified, the passenger will receive an email with a form to request the return of the item, and the item will be delivered anywhere in the world.
Aircraft Manufacturing and Fleet
Boeing delivered 41 aircraft in March, up 41% year-on-year
Boeing announced on April 8 that it delivered 41 aircraft in March, up from 29 in the same period last year, but still slightly lower than the 45 in January and 44 in February.
In the first three months of this year, Boeing delivered a total of 130 aircraft, including 104 of Boeing's best-selling 737 MAX aircraft. This figure is higher than the 83 aircraft delivered in the first quarter of 2024 (including 66 MAX aircraft).
Airbus delivered 136 aircraft in the first quarter
Airbus delivered 136 commercial aircraft in the first quarter, thanks to its accelerated aircraft deliveries in March.
Airbus said in a statement on April 9 that the total number of deliveries in March was 71, with customers including China Eastern Airlines and United Airlines. This figure is higher than the 63 aircraft delivered in the same period last year and exceeds the total of 65 aircraft delivered by Airbus in the first two months of this year.
Delta won't pay tariffs on any aircraft
Delta Airways is refusing to pay tariffs on Airbus-made aircraft, a potential tension point for global airlines as President Trump's trade war brings new volatility to the aircraft market. Delta CEO Ed Bastian said he has communicated "very clearly" with Airbus and will delay any aircraft deliveries that come with additional costs. Delta is currently working with Airbus to minimize the impact.
"We will not pay tariffs on any aircraft deliveries," Bastian said on Delta's quarterly earnings call on April 9. "This is a very uncertain time, and if you start adding 20% additional costs to aircraft, the math becomes very difficult."
Trump's chaotic tariff policy could leave aircraft deliveries in limbo
Cars, consumer goods and industrial equipment have been stranded at ports, on railroad trucks and sitting idle in warehouses over the past few months due to the White House's erratic tariff policy.
Sources told Reuters that U.S. buyers typically order aircraft and their engines in advance, and confusing tariff policies could delay deliveries of both, even if the industry is not directly targeted by the tariffs. Frequent policy changes and increased costs are weighing on the aviation supply chain, which has been facing shortages of parts and labor.
Embraer says new U.S. tariffs will add complexity and aircraft costs
Embraer CEO Francisco Gomes Neto said on April 8 that U.S. President Trump's tariffs will add complexity and costs to its business and to U.S. customers. This month, Trump imposed a minimum 10% tariff on all U.S. imports and set a target rate of up to 50% to help the United States recapture an industrial base that he said had eroded during decades of trade liberalization.
The tariffs have caused aerospace suppliers and aircraft manufacturers to check contracts to verify the risks they face. "We have to be realistic about these tariffs," Gomes Neto said at an event in Sao Paulo. "If it continues like this, it will create more complexity and costs for companies including Embraer."
Airbus plans to buy $2 billion worth of parts from India every year
As Airbus aims to expand its sales in the booming Indian aviation market, it plans to increase its purchases from India to $2 billion a year by 2030, almost 43% higher than current levels.
"We have a target that this volume will be achieved before 2030," said Remi Maillard, president and managing director of Airbus India and South Asia. Airbus purchased $1.4 billion worth of products from India in 2024, up 40% from the previous year. Airbus purchased $500 million from India in 2019.
Others
U.S. Transportation Secretary still in discussions with White House on air traffic control reform plan
U.S. Transportation Secretary Sean Duffy said on April 8 that he is still in discussions with the White House on his plan to upgrade the aging and understaffed U.S. air traffic control system. A series of high-profile aviation safety incidents have raised alarms.
Duffy told reporters that he was working with the White House Office of Management and Budget (OMB), which is reviewing his estimates. "OMB is stress testing these numbers," he said. Duffy said last month that he plans to ask Congress for tens of billions of dollars for a multi-year FAA air traffic control infrastructure overhaul and hiring push.
FAA air traffic control chief to resign after 40 years of service
After 40 years of service in the federal government, Tim Arel, chief operating officer of the Federal Aviation Administration's (FAA) air traffic organization, will resign. A spokesman for the agency said on April 8 that Arel will participate in the U.S. Department of Transportation's voluntary deferred retirement program.
"Arel has committed to stay for the next few months to ensure a smooth transition," the spokesman said. He originally planned to retire by the end of 2025.
Spirit Airlines CEO resigns weeks after company exits bankruptcy
U.S. low-cost airline Spirit Airlines said on April 7 that CEO Ted Christie has resigned with immediate effect as part of the company's restructuring. The move comes just weeks after Spirit Airlines exited bankruptcy and reorganized its board of directors. Chief Commercial Officer Matt Klein will also leave and be replaced by insider Rana Ghosh.
The personnel changes come as Spirit Airlines works to shed its budget airline image and reshape itself as a premium airline. An interim CEO office consisting of Chief Financial Officer Fred Cromer, Chief Operating Officer John Bendoraitis and General Counsel Thomas Canfield will lead Spirit Airlines until a new CEO is appointed.