International market: JetBlue plans to launch first-class seats; Air Canada will provide free in-flight WiFi
portable light bulb,
telecom tower light,
inset helipad light,
Low Intensity Type A,
Low Intensity Type B.
Civil Aviation Resources Network, December 15, 2024: What are the latest developments in the international aviation market this week (12.7-12.13)? 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
IATA predicts that airline revenue will exceed US$1 trillion in 2025
According to the forecast released by the International Air Transport Association (IATA) on December 10, the total revenue of the aviation industry will exceed US$1 trillion for the first time in 2025, a year-on-year increase of 4.4%. IATA also predicts that airline expenses will increase by 4% to US$940 billion.
In addition, IATA expects airline passenger revenue to reach US$705 billion in 2025, and ancillary services will generate an additional US$145 billion in revenue. Despite this, passenger revenue is expected to decline by 3.4% year-on-year, while unit revenue is expected to decline by 2.5%. IATA predicts that airline net profit will reach US$36.6 billion in 2025, higher than the forecast of US$31.5 billion in 2024.
DOT: US flight volume increased in September, flight cancellation rate decreased
According to the latest Air Travel Consumer Report from the US Department of Transportation (DOT), in September 2024, the total number of US passenger flights increased by 3.5% year-on-year to nearly 618,000 flights, but decreased by 4.5% from August 2024.
In September, airlines canceled about 3,670 scheduled flights, accounting for about 0.6%, lower than the 1.2% cancellation rate in September 2023 and the 2% cancellation rate in August 2024. Airlines handled 37.5 million bags in September, and the baggage mishandling rate was 0.42%, lower than 0.53% in September 2023 and 0.64% in August 2024.
Policy Management
Incoming US Senate Commerce Committee Chairman Says FAA Must Improve Air Traffic System
The incoming US Senate Commerce Committee Chairman said on December 12 that the Federal Aviation Administration (FAA) must take action to modernize the air traffic control system.
Senator Ted Cruz said at a hearing on air traffic issues that he plans to pay "high attention" to the state of U.S. airspace after he takes office next year. "The current state of the FAA's air traffic control modernization process is unacceptable. We are stuck with technologies that become obsolete almost as soon as they are introduced into the airspace," Cruz said.
Airline Airport
Alaska Airlines to Open Tokyo, Seoul Routes
Alaska Air Group announced on December 10 that it will open two international routes from Seattle-Tacoma International Airport for the first time after its merger with Hawaiian Airlines. Alaska Airlines said the two routes will fly to Tokyo and Seoul respectively. The Seattle-Tokyo route and the Seattle-Seoul route will be launched in May and October next year.
Alaska Airlines plans to operate at least 12 international routes from Seattle-Tacoma International Airport by 2030. As a major hub and headquarters of Alaska Airlines, Seattle will become "a global gateway" for long-haul international flights.
Air Canada executive says carry-on fees introduced to stay competitive
Air Canada's decision to introduce carry-on fees for some customers is to stay competitive in the country's changing market, Mark Galardo, executive vice president of revenue and network planning at Air Canada, told a parliamentary committee on Dec. 13. Earlier this month, Air Canada said it would charge passengers for larger carry-on bags starting Jan. 3 if they choose the lowest fare on North American and Caribbean routes.
Canadian and U.S. lawmakers have criticized airlines in recent weeks for charging extra for baggage and seat selection, as travelers took to social media to air their frustrations.
EasyJet to boost presence at Italian airports after Lufthansa-ITA deal
EasyJet will boost its presence at Milan Linate and Rome Fiumicino airports, thanks to a remedy package required by the European Union for its approval of Lufthansa Group's takeover of ITA.
EasyJet said at a press conference in Milan that from March 2025 it will deploy five additional aircraft at Linate and three at Fiumicino, bringing its total in Italy to 38, making it its second-largest market after the UK.
Air France suspends aviation tax increase
Air France has announced it will suspend a proposed threefold increase in France's civil aviation tax. The French parliament had previously rejected the tax increase. The current French government, which is about to end its term, had planned to significantly increase the civil aviation tax for departing passengers in 2025, the so-called air ticket solidarity tax (TSBA).
Air France had already started charging the increased TSBA on October 24 for passengers departing on or after January 1, 2025, but it has now suspended this policy from December 7. Air France said in a statement that tickets sold from December 7 for travel in 2025 will only include the 2024 TSBA, and those who bought tickets for 2025 and have been charged the increased TSBA will be refunded the difference in taxes.
Heathrow prepares for its busiest Christmas ever
This past November was the busiest November ever for Heathrow Airport, with 6.5 million passengers passing through its four terminals. North America alone accounted for nearly 1.5 million customers, highlighting the importance of the transatlantic market to London.
December is expected to add another record to Heathrow's history books, and Heathrow expects the high passenger traffic momentum in November to continue. While holiday traffic is nothing new, the number of passengers traveling on Christmas Day this year will be 21% higher than in 2023. On December 25 last year, nearly 800 flights transported 142,000 passengers, which was a record high for Heathrow Airport.
Products and Services
JetBlue will launch first-class seats in 2026
JetBlue confirmed on December 11 that it will launch domestic first-class seats in 2026 as part of its turnaround strategy. "Customer demand for premium products is stronger than ever, and domestic first class will ensure we have the premium options that leisure customers need," JetBlue said in a statement.
According to JetBlue, the new first-class seats will be set in a two-by-two configuration at the front of all domestic flights that do not offer the JetBlue Mint product, including three rows of seats on the Airbus A321neo, A321ceo and A320, and two rows of seats on the A220.
Air Canada to offer free Wi-Fi
Air Canada announced on December 12 that it will offer free Wi-Fi on North American flights starting in May 2025, with long-haul international routes to follow in 2026.
Sponsored by Bell, the "streaming-grade premium Wi-Fi" will be available to Aeroplan loyalty program members on Air Canada aircraft equipped with Wi-Fi. According to Air Canada, "more than 85% of aircraft will be connected on day one, with installation on the remaining aircraft prioritized in 2025."
United Airlines launches contactless ID service at Las Vegas airport
United Airlines announced on December 12 that it has launched the Transportation Security Administration (TSA) Precheck contactless ID service at Harry Reid International Airport in Las Vegas. The TSA's Precheck contactless ID service allows customers to pass through security using facial recognition technology without showing a physical ID.
United Airlines said that customers who use this service must register for TSA Precheck, upload their passport to a MileagePlus account, and be on a single passenger reservation, after which travelers can opt-in in the United app.
Aircraft manufacturing and fleet
IATA: Aircraft backlog reaches record 17,000
The International Air Transport Association (IATA) said on December 10 that the mismatch between airlines' demand for fleet expansion and aircraft manufacturers' limited production capacity due to post-COVID-19 supply chain issues has caused the backlog of new aircraft to surge to a record 17,000, which is expected to take 14 years to deliver.
According to IATA's estimates, aircraft deliveries in 2024 fell to 1,254. This figure is a sharp drop from the peak of 1,813 delivered in 2018, and 30% less than the forecast at the beginning of the year. Deliveries in 2025 are expected to rise to 1,802, far below the previous expectation of 2,293 deliveries. At the same time, airlines are also facing the problem of aging fleets, resulting in higher maintenance costs and increased fuel consumption. The average age of the global fleet in 2024 increased from 13.6 years in the period 1990-2024 to 14.8 years.
Air India confirms order for 100 more Airbus planes
Tata Group-owned Air India and Airbus said on December 9 that Air India has confirmed an order for 100 Airbus aircraft as part of its multi-billion dollar plan to build a world-leading airline. In October, Airbus announced an order for 75 A320s and 10 A350s from an unnamed customer, which sources said was likely Air India.
Air India has now confirmed that it has ordered 100 aircraft, including 90 A320 family aircraft and 10 A350 wide-body aircraft. Last year, Air India placed a large order for 470 Airbus and Boeing aircraft.
Boeing November aircraft deliveries fall to 13
Boeing announced data on December 10 that it delivered 13 commercial aircraft in November, less than a quarter of the 56 delivered in the same period last year. The figure was also lower than the 14 deliveries in October, when most of Boeing's aircraft production was halted due to a seven-week strike by 33,000 workers.
According to Boeing, the aircraft delivered in November included nine 737s, two 777 freighters and two 787-9s. United Airlines received two 737 MAXs and one 787. In November, Boeing received 49 aircraft orders, including 34 737s, and 14 aircraft orders were canceled.
Boeing restarts 737 MAX production after strike ends
Boeing has finally resumed production of its best-selling model, the 737 MAX, more than a month after the seven-week strike that disrupted Boeing's operations ended.
This marks a key step for Boeing, which is currently working to resolve a backlog of nearly 4,200 orders in the face of growing global air travel demand.
Distribution Technology
Lufthansa reduces GDS surcharges for Sabre's EDIFACT tickets
Lufthansa Group will reduce the GDS surcharge for EDIFACT tickets sold through Sabre by €2.5 from January 1, 2025. Lufthansa Group, which includes Austrian Airlines, Brussels Airlines, Lufthansa, Swiss and Air Dolomiti, said it will adjust its EDIFACT distribution cost charges (DCC) due to currency fluctuations.
From January 1, 2025 (ticketing date), the DCC for EDIFACT tickets sold through Sabre for all Lufthansa Group airlines will drop from €24.50 per ticket to €22. The surcharge for EDIFACT tickets sold through Amadeus and Travelport remains unchanged at €17.50 and €23 per ticket, respectively.
Amadeus to distribute Saudi Arabian Airlines' NDC content
Amadeus announced on December 9 that it will begin distributing Saudi Arabian Airlines' New Distribution Capability (NDC) content from the first quarter of 2025, enabling the airline to offer dynamically priced tickets and "super-personalization capabilities" through Amadeus.
Saudi Arabian Airlines already has a partnership with Amadeus, using its Altea passenger service system and being one of the first customers of Amadeus' Quote & Order system.
Others
IATA: SAF production growth is "disappointingly" low
According to the International Air Transport Association (IATA), sustainable aviation fuel (SAF) production reached 1 million tons in 2024, double the 500,000 tons produced in 2023, but still lower than the 1.5 million tons IATA had previously estimated.
IATA pointed out that one of the reasons for the production shortfall was that SAF production facilities in the United States postponed the increase in production to the first half of 2025. In 2024, SAF accounted for 0.3% of global aviation fuel production. IATA predicts that SAF production will reach 2.1 million tons in 2025, accounting for 0.7% of total aviation fuel production.
FAA Administrator to resign on Trump's inauguration day
Mike Whitaker, the head of the Federal Aviation Administration (FAA), said on December 12 that he would resign on January 20, 2025, which is also the day when US President-elect Trump will take office.
Whitaker did not give a reason for his resignation. Whitaker's five-year term was originally due to end in 2028. In a statement to FAA staff, Whitaker also stressed the need to continue to strengthen Boeing's oversight and improve the U.S. National Airspace System.
German states call for tax cuts to support the aviation industry
German federal state leaders said on December 12 that the new German government must reduce the financial burden on the aviation industry and ensure that the aviation industry remains competitive. They called for tax reduction as a priority.
German airport operator Fraport pointed out last month that although most European markets have overcome the crisis in recent years and set new records in recent months, high position fees mean that Germany lags behind other European markets in terms of air passenger traffic. Ryanair cut its flights at Berlin Brandenburg Airport by 20% in August, which was also related to high position fees.