International market: Lufthansa provides air-rail transport in Korea; aircraft sale and leaseback is popular
China slope precision light,
Cheap slope precision light,
slope precision light price,
airport flash light factory,
LED siderow light suppliers.
Civil Aviation Resources Network, June 2, 2024: What are the latest developments in the international aviation market this week (5.25-5.31)? 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: Air passenger traffic growth in April was driven by international demand
According to the latest report from the International Air Transport Association (IATA), air passenger traffic growth in April was once again driven by the growth of international demand. International demand (in terms of revenue passenger kilometers) in April increased by 15.8% year-on-year, and capacity (in terms of available seat kilometers) increased by 14.8% year-on-year. Domestic demand in April increased by 4% year-on-year, and domestic capacity increased by 2.1% year-on-year.
Total global air demand increased 11% year-on-year in April, and capacity increased 9.6% year-on-year. The load factor was 82.4%, an increase of 1 percentage point year-on-year. All regions had high single-digit or double-digit total demand growth, except North America, which only increased 4.2% year-on-year. The load factor in North America was 83%, the second highest, second only to Europe's 83.8%.
US flight volume soared in March
According to the latest Air Travel Consumer Report from the U.S. Department of Transportation (DOT), U.S. airlines performed more than 623,400 flights in March 2024, an increase of nearly 2.5% year-on-year and 13.5% month-on-month.
However, the flight cancellation rate rose slightly in March, from 0.6% in February to 0.9%. But this rate is still lower than the 1.3% reported in March 2023. In March, U.S. airlines handled a total of 43.1 million bags, and the baggage mishandling rate was 0.52%, higher than 0.48% in February, but lower than 0.58% in March 2023.
2.95 million passengers! The U.S. sets a new single-day record for air passenger screenings
The Transportation Security Administration (TSA) said it screened 2.95 million air passengers on May 24, setting a single-day record. The record travel volume happened to coincide with the Memorial Day weekend, which marks the beginning of the U.S. summer travel season. The TSA said the travel volume on the 24th broke the security record of nearly 2.91 million air passengers set in November last year. Five of the 10 busiest travel days in history have occurred since May 16.
The Airlines for America (A4A) said that U.S. airlines plan to operate more than 26,000 flights per day this summer, an increase of nearly 1,400 flights from 2023, an increase of 5.6%. Last summer, U.S. airlines carried a total of 255 million passengers.
Policy Management
FAA will not immediately allow Boeing to increase 737 MAX production
Mike Whitaker, the head of the Federal Aviation Administration (FAA), said on May 30 that the FAA will not immediately allow Boeing to increase 737 MAX production while the company addresses ongoing safety issues. This statement was made after he met with outgoing Boeing CEO Dave Calhoun and other executives.
In the coming months, the FAA will continue to strengthen its supervision of Boeing, and the two sides will hold weekly meetings and quarterly exchanges. Whitaker said he does not expect Boeing to be allowed to increase MAX production in the "next few months" and said that no discussions have been held with Boeing on this issue.
FAA: United Airlines can receive new aircraft
Mike Whitaker, the head of the Federal Aviation Administration (FAA), said on May 30 that United Airlines can receive new aircraft while regulators are reviewing United Airlines.
"We've allowed them to take aircraft. Most of them are replacements for missing aircraft, and some are for expansion. They've provided us with an expansion plan, and we're working with them to move forward on that plan," Whitaker told reporters at a news conference.
Canada's competition watchdog to review airline industry
Canada's Competition Bureau is set to launch a major review of the country's airline industry. "Recent events have raised questions about competition in the airline industry," the bureau said on May 27. It noted that Canada's domestic airline market is dominated by two major airlines, Air Canada and WestJet. It is estimated that the two airlines account for almost 95% of Canada's airline industry revenue.
Official data shows that air passenger complaints have risen in recent years. The competition bureau also stressed that new entrants to the airline industry "appear to be facing challenges."
Airline Airport
American Airlines lowers second-quarter earnings forecast, chief commercial officer to leave
American Airlines lowered some of its second-quarter financial data forecasts and announced that its chief commercial officer will leave. American Airlines said in a regulatory filing with the U.S. Securities and Exchange Commission that it now expects adjusted earnings per share in the second quarter to be between $1 and $1.15, compared with a previous forecast range of $1.15 to $1.45.
American Airlines also said that total revenue per available seat kilometer is expected to fall by about 5% to 6%, compared with a previous forecast of a decline of about 1% to 3%. American Airlines also disclosed in the filing that Chief Commercial Officer Vasu Raja will leave in June.
Scandinavian Airlines' Q2 losses worsened and it plans to complete restructuring this summer
Scandinavian Airlines reported a second-quarter pre-tax loss on May 30, more than doubling from the same period last year. However, it promised to complete the restructuring this summer. Scandinavian Airlines' Chapter 11 restructuring plan was approved in March. After years of being mired in high costs and low customer demand, coupled with the impact of the new crown epidemic, Scandinavian Airlines filed for U.S. bankruptcy protection in 2022.
Scandinavian Airlines recorded a pre-tax loss of 3.07 billion Swedish kronor ($287.43 million) in the February-April period, compared with a loss of 1.41 billion kronor in the same period last year, as operating costs soared.
Faced with merger speculation, Brazil's GOL parent and rival Azul said on May 27 that the two companies have begun exploring "cooperation opportunities." Earlier this year, there were media reports that the two companies may merge.
Azul added in a securities filing that it has not signed or formalized any new agreement for a potential business combination with GOL, which is controlled by Latin American airline holding company Abra Group. Last week, GOL and Azul announced a code-sharing agreement to connect the two routes and frequent flyer programs, which once again sparked speculation about a possible merger.
El Al's profit surges, CEO calls on foreign airlines to resume flights to Israel
El Al announced a profit in the first quarter on May 29 thanks to strong demand. Currently, foreign airlines have suspended or reduced flights to Israel due to the conflict in the region.
El Al said it had a net profit of $80.5 million in the first quarter, compared with a loss of $34.4 million in the same period last year. Revenue rose 48% to $738 million, and passenger load factor rose from 85% to 93%. El Al CEO called on foreign airlines to resume flights to Israel and increase the number of flights to ease pressure on El Al.
Products and Services
Lufthansa Group strengthens intermodal services in South Korea
Lufthansa Group now offers flight check-in services at Seoul Station City Terminal to enhance intermodal services for passengers in South Korea.
The service will allow passengers to check in for flights, check in luggage and complete immigration formalities at Seoul's main railway station before arriving at the airport. The German aviation group is the only foreign airline group to offer such services to passengers in South Korea.
Aircraft Manufacturing and Fleet
Sources: Airbus faces new production delays due to parts shortages
Airbus's plans to increase passenger aircraft production are facing new pressures as it struggles to overcome ongoing parts and labor shortages, industry sources said on May 30.
It is not clear whether the production slowdown will affect Airbus' overall delivery target for 2024, as deliveries are several months behind capacity decisions, but sources said assembly of dozens of aircraft in the second half of the year could be delayed. The source also revealed that several airlines' individual aircraft deliveries (which are already an average of 1.5 months behind the original delivery plan) may be further delayed.
Boeing: Progress on 737MAX anti-icing system problem
Boeing said on May 29 that it was making progress in developing a permanent solution to solve the anti-icing system problem of the 737 MAX engine. The problem has delayed the certification of the Boeing MAX 7 (the smallest model) and the MAX 10 (the largest model). The anti-icing system problem may cause overheating and possible engine failure.
Boeing plans to flight test the solution to the anti-icing system problem later this year, the source told Reuters, and he also said that MAX 7 certification may be delayed until mid-2025.
El Al to select new aircraft in weeks
El Al expects to make a long-awaited decision on an order of about 30 short-haul aircraft "in a few weeks," Chief Financial Officer Yancale Shahar said on May 29.
He said El Al will choose between the Boeing 737Max and the Airbus A320 series in a deal that could be worth $2 billion. "We are in the final stages of making a decision," Shahar told Reuters after El Al held a press conference on its first-quarter financial results.
Aircraft shortages are becoming a money-making opportunity for some airlines, as the lack of supply allows airlines to sell new aircraft to leasing companies at much higher prices than they would have otherwise paid. Airlines such as Frontier Airlines in the United States and Wizz Air in Hungary have earned hundreds of millions of dollars by selling aircraft after receiving them and then leasing them back for their own use.
These sale-and-leaseback transactions have long been a way for airlines around the world to create liquidity and ease pressure on their balance sheets. The tight aircraft market has greatly increased the appeal of such deals, with U.S. airlines accounting for 24% of global sale-and-leaseback transactions this year, up from 10% in 2022, according to Cirium Ascend Consultancy.
Distribution Technology
American Airlines "regrets" NDC execution, plans to adjust strategy
American Airlines CEO Robert Isom admitted at an investor conference on May 29 that American Airlines made mistakes when launching its new distribution capability (NDC) strategy, and he promised to make some adjustments to the strategy.
Isom said: "American Airlines is taking actions to address our capacity issues and adjust our distribution strategy, and we will monitor the market closely in the future. Although we all know that selling our products in the modern retail channel of Internet-based NDC is the future of airline distribution, we have moved too fast and executed poorly. We regret this and the difficulties we have caused to our agents and corporate customers."
Mexican low-cost airline Viva Aerobus gains real-time pricing capabilities
Mexican low-cost airline Viva Aerobus will implement a generative artificial intelligence pricing engine (GPE) through a partnership with Israeli startup Fetcherr. Fetcherr will help Viva Aerobus achieve "real-time pricing and direct fare publishing," according to a statement from both companies.
The statement also said Fetcherr's big market model "understands market dynamics" and can predict demand, improving airline pricing decisions. Fetcherr said its latest improvements mean its GPE will work when it receives a search engine query, helping airlines convert sales on the website and increase revenue.
Others
European and Asian travelers want to save money, and airfares are peaking
Airfares in Europe and Asia are beginning to stabilize or fall, indicating that the long-lasting post-epidemic travel boom is waning, bringing another blow to airlines struggling to cope with rising costs and limited aircraft supply.
Previously, as air travel was liberalized after the pandemic, the global imbalance between flight supply and pent-up travel demand pushed up airfares and passenger yields, the average fare paid per passenger mile. However, industry executives, investors and analysts said the trend of "travel at all costs" is balancing, and some customers are becoming more price sensitive in response to inflation that pushes up the cost of living.
Boeing promises to improve training and eliminate defects in FAA plan
Boeing has promised federal regulators that it will improve manufacturing safety and quality through training, streamlining processes and eliminating defects. Boeing CEO Dave Calhoun met with FAA Administrator Mike Whitaker on May 30 to present the improvement plan to the latter.
Boeing faces multiple investigations since a door plug fell off a 737 Max aircraft in the air in January. Boeing and Airbus will track six performance indicators to determine whether Boeing has improved its processes.
U.S. Treasury sets $492 million floor for airline warrant auction
The U.S. Treasury has set a floor price of $492 million for the total amount of warrants to be auctioned next week to buy U.S. airline stocks. The warrants were obtained by the U.S. government when it provided aid to airlines during the COVID-19 pandemic. Congress approved $54 billion for airline pandemic aid in 2020 and 2021. Airlines were required to repay $14 billion of that, and the Treasury Department obtained warrants to buy shares at the stock price when the bailout was issued.
Among U.S. airlines, American Airlines received $12.6 billion in government aid, Delta Airlines received $11.9 billion, United Airlines received $10.9 billion, and Southwest Airlines received $7.2 billion.
(Source: Hefei Hanglian Culture Communication Co., Ltd.)