International market: ITA launches intermodal transport in Germany; the company makes profit for the first time in 11 years
What are the latest developments in the international aviation market this week (10.7-10.13)? The Civil Aviation Resource Network takes you through the relevant news of the past week, allowing you to have a clear overview of important information.
【Market dynamics】
1. Data from Transport Canada: About half of flight delays in 2022 will be the responsibility of airlines
According to the latest data from Transport Canada, almost half of flight delays in 2022 were determined to be the fault of airlines. Of the nearly 199,000 delays that occurred last year, more than 87,500 (44%) were deemed to be at the control of the airline rather than due to safety issues.
Passengers still remember the chaotic travel season caused by widespread flight delays and cancellations in the summer and December of 2022. Transport Canada (CTA) has uncovered hundreds of violations and fined major Canadian airlines.
【Policy Management】
2. Vueling faces antitrust investigation in Italy over carry-on baggage fees
The Italian Competition Authority (AGCM) said on October 11 that Spanish low-cost airline Vueling faced an antitrust investigation over carry-on baggage fees and online profiling. The regulator said Vueling did not provide customers with clear information that the price of hand luggage varied depending on how the ticket was purchased, depending on whether it was purchased through its website or its mobile app.
Additionally, AGCM said in a statement that "devices used by consumers also appear to be used as parameters for profiling customers to differentiate the purchase price of air tickets." The agency said this practice, if proven, could be damaging. Consumers because the information provided to them about how Vueling determined baggage prices was "incomplete, opaque and omitted".
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【Airport Airport】
3. Delta Air Lines profits soar nearly 60% thanks to strong summer performance
Delta Air Lines' profits rose nearly 60% in the third quarter as strong travel demand, particularly internationally, continued into the summer, although it forecast full-year earnings near the low end of earlier estimates due to higher fuel prices.
In its quarterly report on Oct. 12, Delta said it expected full-year adjusted earnings of $6 to $6.25 a share, compared with a July forecast of $6 to $7 a share. Delta lowered its full-year free cash flow forecast to $2 billion from a summer forecast of $3 billion. Delta Air Lines said it expects strong travel demand in the final three months of the year and expects revenue to grow 9% to 12% over the same period in 2022, with earnings per share of $1.05 to $1.30, in line with market expectations.
4. Surging travel demand pushes Virgin Australia to profit for first time in 11 years
Virgin Australia, owned by Bain Capital, said on October 11 that it achieved its first profit in 11 years in fiscal 2023, supported by a strong recovery in travel demand after the new crown epidemic.
The airline reported statutory net profit after tax of A$129 million ($82.93 million) for the full year to June 30, 2023, compared with a loss of A$565.5 million in 2022. Group revenue more than doubled to A$5 billion. Virgin Australia is optimistic about its capital position, reporting total debt including leases of A$2.3 billion and holding more than A$1 billion in cash.
5. Polish Airlines and JetBlue Airways will codeshare
LOT Polish Airlines and JetBlue Airways will expand their interline agreement to include code sharing, the airline has announced. LOT Polish Airlines said that this winter all passengers on both airlines can book the entire itinerary on the same ticket and enjoy unified baggage policies and fare conditions.
LOT Polish Airlines and JetBlue did not specify a start date for the codeshare.
6. Heathrow Airport releases record passenger traffic figures for September
Heathrow Airport has announced its highest ever September traffic figures, with more than 7 million passengers traveling through the London hub last month.
This latest figure surpasses the previous record in September 2019, when there were around 6.8 million passengers, and is 22% higher than the number of passengers in September 2022. It is also the first time monthly passenger numbers have exceeded 2019 levels since COVID-19 travel restrictions were introduced in February 2020.
【product service】
7. ITA Airlines cooperates with Deutsche Bahn to launch multimodal transport products
ITA Aviation has partnered with travel technology and ticketing experts W2 by GO7 to offer a combined air and rail ticketing service through the German rail network, covering multiple destinations in Germany and Switzerland.
The agreement will allow ITA passengers flying from Rome Fiumicino Airport and Milan Linate Airport to Frankfurt Airport to continue their travel on Deutsche Bahn trains in Germany or Switzerland on a single ticket. Currently, intermodal ticketing services include Cologne, Dusseldorf, Stuttgart, Dresden, Bavaria Munich, Leipzig, Berlin, Hamburg, Hannover, Nuremberg, Münster and Bremen in Germany, as well as Basel in Switzerland.
【Aircraft Manufacturing and Fleet】
8. Airbus delivered 55 aircraft in September
Airbus confirmed on October 9 that it had delivered 55 aircraft in September, bringing the total number of deliveries in the first nine months of this year to 488. The deliveries include the first A350 to Air India, one of six originally sold to Aeroflot. Air India earlier this year ordered 470 Airbus and Boeing aircraft.
Airbus data showed that September deliveries were flat, but deliveries in the third quarter were up 23% year-on-year. Airbus expects to deliver 720 aircraft throughout the year. Airbus sold 23 aircraft in September, bringing the total number of orders in the first nine months of this year to 1,280 aircraft, or 1,241 aircraft after cancellations.
9. Boeing 737 MAX monthly deliveries drop to lowest level since 2021
Boeing said on September 10 that deliveries of its best-selling 737 MAX fell to the lowest level since August 2021 in September as the company continued to work to correct a manufacturing defect. Boeing is examining and fixing an issue with incorrectly drilled holes in the pressurized cabin at the rear of the 737 MAX fuselage. Although new orders have improved significantly, Boeing said it delivered only 15 737 MAX, 10 787 and 2 777 aircraft in September, for a total of 27 aircraft. Boeing secured new orders for 224 aircraft in September and reported 10 cancellations. The new orders include 50 787s for United Airlines and 18 787s for Air Canada.
10. Emirates will purchase two more A380 aircraft at a price of US$35 million each.
Emirates will purchase two more of its leased Airbus A380 aircraft later this year. The A6-EDP and A6-EDT will be purchased by Emirates before the end of the year, according to documents filed by the aircraft's current owner with the London Stock Exchange. Last year, Emirates purchased another aircraft from the same lessor.
Each aircraft is priced at £28.9 million ($35 million) and is expected to be sold between October and December this year. Emirates plans to keep these aircraft until the 2040s, suggesting the airline will continue to purchase A380s.
11. British airline easyJet has reached an agreement with Airbus to purchase 157 short-haul aircraft.
After posting record profits in the summer, easyJet has struck a deal to expand its fleet by buying more than 150 new planes and introduced plans to restart shareholder returns.
EasyJet announced on October 12 that it had reached an agreement with Airbus to purchase 157 new short-haul aircraft, with delivery starting in 2029, and acquired a further 100 in the $19.9 billion deal The right to purchase the aircraft. This brings EasyJet’s total aircraft orders by 2034 to 315 aircraft.
12. LOT Polish Airlines hopes to expand its fleet by 50% by 2028
LOT Polish Airlines plans to expand its fleet by 50%, aiming to have 110 aircraft by 2028, from its current fleet size of 75 aircraft. LOT LOT expects its passenger traffic to increase, aiming to carry up to 16.9 million passengers in 2028, compared with 10.3 million passengers expected in 2023.
LOT Polish Airlines plans to improve passenger experience by updating its flagship lounge and modifying the Boeing 787 cabin. The first modified aircraft is scheduled to be put into service in 2026.
13. Luxair and Aerolineas Argentinas will add Embraer E195-E2 aircraft to their fleets
Aerolíneas Argentinas and Luxair said on Oct. 11 they will buy Embraer E195-E2 aircraft for their fleets, news that could help ease investor concerns about the Brazilian planemaker's largest commercial aircraft. demand concerns.
Luxair has placed a firm order for four E195-E2 aircraft and secured delivery slots for an additional five aircraft, while Aerolineas Argentinas said it will add 12 E195-E2 aircraft to replace its E190 aircraft.
【Distribution Technology】
14. Skyscanner launches ChatGPT discovery tool
Skyscanner has launched a search tool called Dream and discover with AI, which is powered by generative AI. The solution is initially being rolled out in trials in Australia, India and Singapore to assess traveler behavior when using AI for travel planning.
Dream and discover allows travelers to ask open-ended questions such as "The best city for a cultural trip" or "Europe's hidden treasures." It also includes tips like "Short-haul flights next weekend" and "Food City Tours." The technology then generates recommendations along with three destination suggestions with flight links for each recommended destination. Images and destination information are also included in the search tool, and once users have determined their destination, they will enter Skyscanner’s flight search process.
15. Travelport will distribute Air Canada’s NDC content
Air Canada and Travelport announced on October 11 that they have renewed and expanded their distribution agreement to include New Distribution Capabilities (NDC) content and services that will be provided to agents connected to Travelport. According to sources from both companies, Air Canada’s complete NDC solution is expected to be launched on Travelport Plus in the coming months.
Air Canada confirmed that once Travelport enables Air Canada's NDC content, these bookings will no longer be affected by the distribution cost recovery fee currently charged by Air Canada for EDIFACT bookings. Earlier this year, Air Canada signed an agreement with Sabre to distribute Air Canada NDC content.
16. Southwest Airlines and Spotnana collaborate on platform integration
Southwest Airlines recently announced a partnership with Spotnana to "deeply integrate" into the latter's platform and provide complete content and services through Spotnana. Both companies expect the integration to be online by the end of this month.
Spotnana founder and CEO Sarosh Waghmar said the integration connects Spotnana to Southwest’s partner services API, which provides the same content access as Southwest’s website and its Swabiz online business travel booking tool, including through global distribution Discounted fares that cannot be obtained by the system. Users can also access Southwest’s EarlyBird Check-In through Spotnana as well as self-service capabilities.
【other】
17. Aviation industry promises to make European skies “truly sustainable”
Europe's main aviation organizations have issued an industry statement pledging "joint action" to make flying greener, in line with the EU's Green Deal decarbonisation targets.
Aviation organizations such as the International Air Transport Association (IATA), the Association of European Airlines (A4E), the European Regional Airlines Association, Airports Council International Europe (ACI Europe) and the Civil Aviation Navigation Services Organization (CANSO) have signed the new statement. The overall intention is to transform the aviation industry through relevant measures, such as optimizing the European air traffic management (ATM) system, and "make Europe the most efficient and environmentally friendly flying sky in the world."
18. European Airlines: Sustainable aviation fuel targets may lead to fare increases and airline consolidation
To meet sustainability goals, the airline industry needs to make more money and may consolidate further, European airline CEOs said on Oct. 12, a trend that could lead to increased demand for air travel on top of growing demand for air travel. Passenger fares increased.
The CEO of British Airways parent company International Aviation Group (IAG) told reporters at a CEO roundtable that the risk of the aviation industry not meeting EU sustainable aviation fuel (SAF) supply requirements by 2025 is more than 90%. The EU has adopted regulations requiring flights departing from EU airports to gradually use increasing amounts of SAF, accounting for 2% of total fuel from 2025.
19. Alaska Airlines launches Airline Entrepreneurship Lab to address challenges
Alaska Airlines collaborated with UP.Labs, an entrepreneurial laboratory, to jointly establish the Airline Venture Lab. The partnership aims to build startups that will solve future challenges facing Alaska Airlines and the aviation industry.
The Airline Startup Lab plans to launch its first startup in 2024 and will focus on finding solutions to the "biggest friction points in the airline industry," which could include airline operational efficiency, passenger experience or other challenges.
20. Israel will provide $6 billion in war insurance coverage for Israeli airlines
The Israeli Finance Ministry said on October 12 that the Knesset Finance Committee approved a plan to provide Israeli airlines with a $6 billion state guarantee as a safeguard against the risk of war.
This guarantee framework will provide Israeli airlines with war risk insurance policies, thereby ensuring the continuation of aviation operations in Israel.