International market: Spirit Airlines rejects acquisition offer again; Air France-KLM mileage points can be used to purchase high-speed rail tickets
low A obstacle light price,
PAPI Slope Light suppliers,
low price PAPI Slope Light,
low price Heliport H Light,
China Low Intensity Twin B.
Civil Aviation Resources Network, February 16, 2025: What are the latest developments in the international aviation market this week (2.8-2.14)? 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
Rising airfares boost airline profit forecasts
Airlines are gaining pricing power as limited capacity and strong consumer demand reduce the pressure to cut prices to fill planes. Rising fares have boosted profit forecasts for airlines on both sides of the Atlantic, with major U.S. airlines including Delta Air Lines, Alaska Airlines and United Airlines all expected to make strong profits this year. Most European airlines are also expected to see improved earnings.
Data from the U.S. Department of Labor showed that in December 2024, U.S. airfares rose at the fastest year-on-year rate in 21 months. According to data from travel research group ForwardKeys, European airfares rose 6% year-on-year in 2024. The International Air Transport Association (IATA) predicts that North American airlines will see net profit per passenger increase by around 15% year-on-year in 2025, while European airlines are also expected to see 12% annual growth in net profit per passenger.
Increased business travel spending by European companies in 2024
According to AirPlus, a specialist in corporate travel payments, European companies are seeing increased business travel spending in 2024, despite "economic weakness" experienced by some countries. European companies will spend an average of 1.3% more on air travel in 2024 compared to the previous year.
In AirPlus' core European markets (Austria, Belgium, France, Germany, Italy, the Netherlands, Switzerland and the UK), business travel spending varied, with the Netherlands and Switzerland seeing notable increases of 8.1% and 4.9% respectively. Meanwhile, spending in Germany fell by 1.5%, while the UK performed "above average" with an increase of 2.6%.
Policy Management
FAA Resumes Using "Notice to Airmen" Pilot Information Name
The Federal Aviation Administration (FAA) said on February 10 that it would reverse its decision four years ago to rename pilot safety information and revert to the previous term "Notice to Airmen".
In December 2021, the FAA renamed these information "Notices to Air Missions" (commonly known as NOTAM) under former President Biden, saying that they "cover all pilots and missions." The FAA mentioned that the previous name change notice did not explain the basis for the name change, so it was questioned.
Airline Airport
Spirit Airlines Rejects Frontier Group's Revised Takeover Offer
Spirit Airlines rejected Frontier Group's revised acquisition offer of approximately $2.16 billion on February 11, saying that Frontier Group's proposal was less beneficial to shareholders than its ongoing restructuring plan. Frontier Group's latest offer reiterated a proposal earlier this month that Spirit Airlines shareholders would receive $400 million in debt and 19% of Frontier Group's shares.
However, the latest offer dropped a requirement that Spirit complete a $350 million equity financing and use the proceeds to pay down debt. It also asked for a waiver of a $35 million termination fee approved by the bankruptcy court.
Air Canada expects favorable booking trends to continue into 2025, but U.S. bookings may be weak
Air Canada expects encouraging booking trends and revenue signals for the second and third quarters of 2025, but plans to adjust some capacity if U.S. ticket bookings are likely to slow in the near term. However, Air Canada has not seen any signs of this yet.
Airlines with international routes are benefiting greatly from growing global travel demand as consumers shift their focus from physical goods to experiences. However, expensive labor agreements and rising aircraft maintenance costs are squeezing airlines' profit margins.
LATAM to add new route between Lisbon and Brazil
LATAM will launch a new route between Lisbon and Fortaleza in northern Brazil this summer. From April 7 to October 20, LATAM will operate a weekly flight on the route - the first direct flight between northeastern Brazil and Europe since 2009.
LATAM plans to use Boeing 787 Dreamliners on the route, with three cabin classes: Economy (213 seats), Premium Economy (57 seats) and Business (30 seats).
US traffic surge pushes Heathrow to new monthly record
Thanks to a surge in transatlantic traffic in January, London Heathrow set another passenger record in the month, with 6.3 million passengers, the busiest January in its history, up 5.4% from the same month in 2024. The total number of flights at Heathrow also increased by 4.6% to 38,699 flights in the month.
Heathrow's traffic was driven by an 8% year-on-year increase in passengers between the UK and the US, reaching 1.2 million passengers in the month. Heathrow's passenger traffic to Latin America grew 11.7% year-on-year to 217,000. Traffic to and from the Middle East also increased significantly, up 9.3% year-on-year to 774,000. Traffic to the Asia-Pacific region grew 8.9% to 985,000.
Heathrow Airport in the UK advances new runway plan
Heathrow will submit a proposal for a third runway this summer, London Heathrow Airport CEO Thomas Woldbye said on February 11. A few weeks ago, the British government expressed support for the project, saying it has the potential to promote trade and economic growth.
In order to gain support from all over the UK, Woldbye said the third runway will benefit the wider economy by using domestic steel and local manufacturers wherever possible. Heathrow will consult with stakeholders including airlines and local communities before finalizing the plan, and it also said the project will only be implemented after meeting regulations on noise, air quality and emissions.
Products and Services
Lufthansa Adds Allegris Class to More US Routes
Lufthansa will offer its new Allegris class on more transatlantic routes this summer. The new long-haul class will be available on flights from Munich to San Diego from March 30, and will also be available on flights to New York Newark from mid-April, and to Charlotte from the beginning of August.
The class is already available on Lufthansa flights from Munich to San Francisco, Chicago, San Diego, Shanghai and Bangalore. Lufthansa currently has nine A350-900s equipped with Allegris Economy, Premium Economy and Business Class, six of which also feature the new First Class cabin.
Iberia Follows British Airways in Loyalty Changes
Spain's Iberia has announced changes to its Iberia Plus frequent flyer program, where members will earn points based on spending rather than miles flown. The changes follow similar changes made by British Airways to its Executive Club loyalty program late last year, which it has partially reversed following widespread criticism.
Changes to the Iberia Plus frequent flyer program will take effect on April 1. The changes include a name change – now called "Club Iberia Plus" – and members will earn 1 point for every €1 spent on tickets, ancillary products and other brands associated with the program. Some fare types (Optimal, Comfort and Flexible fares) will also earn additional points per segment, depending on route and cabin type.
Air France and SNCF extend intermodal partnership to loyalty program
Air France-KLM and SNCF have announced that members of Air France-KLM's Flying Blue loyalty program can now use miles to pay for high-speed rail tickets on the SNCF TGV InOui network. Air France-KLM loyalty program members can redeem miles for SNCF passenger vouchers that can be used across the TGV InOui network, including train tickets to Italy, Spain, Austria and Belgium.
Members can use their miles to buy vouchers worth between €25 and €100 in the Flying Blue online store. The vouchers can then be used to book train tickets "through approved SNCF agents" and SNCF direct sales channels.
Aircraft manufacturing and fleet
Boeing delivers 45 aircraft in January, the highest since 2023
Boeing said on February 11 that it delivered 45 aircraft in January, up from 30 deliveries in the previous month, which is also the highest monthly delivery volume for Boeing since 2023. January deliveries included 40 737 MAX aircraft, up from 25 deliveries in the same month last year.
This is also the highest number of deliveries in January since 2019. It is also the first full production month for Boeing since a seven-week strike last fall that halted production of most commercial aircraft. Boeing said it delivered seven 737 MAX to United Airlines, five to Southwest Airlines, and seven to unnamed Chinese airlines.
Major customer Avolon calls Boeing's production progress after the strike "impressive"
Andy Cronin, CEO of Boeing's major customer Avolon, said on February 13 that he was very encouraged by Boeing's progress in stabilizing production after the seven-week strike at the end of last year. Cronin visited Boeing's Seattle factory last month.
Boeing delivered 45 aircraft in January, its highest monthly delivery since 2023. Avolon is the world's second-largest aircraft leasing company, and the aircraft leasing industry accounts for about half of Boeing and Airbus aircraft orders.
Air India CEO says no more Boeing aircraft orders for the time being
Air India CEO Campbell Wilson told Reuters on February 12 that Air India will suspend exercising its option to buy more Boeing aircraft until Boeing's backlog is delivered. "We don't want to make commitments without certainty of delivery time. Similarly, they (Boeing) don't want to provide something without certainty of delivery time," Wilson said in an interview in London.
Air India has ordered 250 new aircraft from Airbus and 220 from Boeing in 2023, trying to restore its appeal with a brand-new fleet. It has also signed options for 70 additional Boeing aircraft, including 50 737 MAX and 20 787 Dreamliners. In October last year, Air India also ordered 85 more Airbus aircraft.
Air Lease expects aircraft shortage to push up rents
John Plueger, CEO of Air Lease, said on February 13 that he expects lease rates and aircraft valuations to rise due to the shortage of commercial aircraft. Aircraft lessors are benefiting from high rental income due to supply chain problems, reduced Boeing 737 MAX production and engine problems that have led to a shortage of aircraft.
But lessors and airlines are still struggling with delivery delays from Boeing and Airbus. Air Lease expects to receive aircraft worth $3 billion to $3.5 billion in 2025, 80% of which will come from Boeing. As low-rent leases signed during the COVID-19 pandemic expire, U.S. air leasing companies are expected to sign new leases at higher rents.
Distribution Technology
Amadeus to Provide Icelandair NDC Content
Amadeus announced on February 12 that Icelandair has selected Amadeus Altea NDC as the airline's New Distribution Capability (NDC) API provider.
The deal expands the partnership between the two companies and enables all Icelandair content and fares, including web fares and NDC-based content, to be distributed to Amadeus-connected agents. According to Amadeus, implementation of the agreement is planned to begin in the first quarter of 2025.
Travelport Launches Finnair NDC Content
Travelport and Finnair announced on February 13 that Finnair's New Distribution Capability (NDC) content is now available to agents connected to the Travelport+ platform.
The distribution agreement, first announced in July last year, includes all of Finnair's NDC content, ancillary products, and Finnair's PrioFlex fare types (which are targeted at corporate travelers and feature priority check-in, priority security and priority boarding).
Others
Major U.S. airlines urge Trump administration to abandon passenger compensation review
Several major U.S. airlines asked the U.S. Department of Transportation on February 11 to abandon a review previously initiated by the Biden administration on whether airlines should pay compensation to passengers for flight disruptions.
Airlines for America, which represents airlines such as American Airlines, Delta Air Lines and United Airlines, urged the Trump administration to end the review launched in December last year to seek public comments on whether U.S. airlines should provide cash compensation for airline-caused flight disruptions, like airlines in the European Union and Canada.
U.S. Transportation Secretary requests meeting with Boeing CEO to discuss safety issues
U.S. Transportation Secretary Sean Duffy said on February 13 that he had asked Boeing CEO to travel to Washington as soon as possible to discuss Boeing's quality and safety issues. Duffy also said that he would "personally visit Boeing to evaluate the measures being taken to ensure that its aircraft meet the highest safety standards."
Boeing has been under close scrutiny after a series of crises involving safety, including the mid-air door plug detachment of a new Alaska Airlines 737 MAX 9 aircraft last year.
U.S. Senators Call for Increased Air Traffic Control Funding and Staffing
Two U.S. senators on February 12 called for increased funding and staffing for the Federal Aviation Administration (FAA) for air traffic control. Last month, a fatal mid-air collision in Washington, D.C., highlighted the continued shortage of aviation safety personnel.
Democratic Senator Jeanne Shaheen and Republican Senator John Hoeven urged the FAA to work with Congress and air traffic controllers to increase operating funding, modernize facilities and equipment, and expand the capacity of the FAA training academy. The senators pointed out that the FAA currently has a shortage of more than 3,500 air traffic controllers, and almost all air traffic control towers are short of staff.