On Friday, American’s CEO and COO sent a letter to employees outlining another round of capacity cuts on top of those announced earlier in the week. Many of the new reductions involve continental Europe, in reaction to the Schengen Area...
Read MoreBoth the European Union and the FAA have relaxed use-it-or-lose-it slot rules at restricted airports. The EU has suspended its requirement that airlines use 80% of their slots until June, a move IATA lauded but said was not long enough....
Read MoreThe long-simmering negotiations between Qantas and its pilot union has taken a new turn, due to the Covid-19 pandemic. Pilots were due to vote on a new deal, which the union had previously said was not satisfactory. The wrinkle is...
Read MoreSomehow, Hong Kong’s Cathay Pacific managed to earn a profit during the second half of 2019, despite ongoing cargo weakness and a severe demand shock caused by political unrest. It wasn’t a big profit; operating margin was less than 2%....
Read MoreIt wasn’t just airlines participating in last week’s JPMorgan conference. The aircraft leasing giant AerCap presented its thoughts on the current crisis, expressing confidence that the industry will bounce back. Speaking about China, it said the number of flights in...
Read MoreIt was supposed to be a routine JPMorgan investor conference. U.S. airline executives would assemble in New York City, describing a world of strong demand, constrained supply, falling oil prices, and a healthy U.S. economy. Then along came Covid-19. On...
Read MoreNeedless to say, the spreading Covid-19 outbreak was the dominant topic of discussion at the ISTAT Americas conference in Austin, Texas, last week. The more pessimistic attendees pointed to China’s massive demand destruction in February, severe traffic declines in markets...
Read MoreA blessing in disguise? Throughout 2019, airlines struggled mightily with an aircraft shortage. Now, with worldwide traffic demand in freefall, not having all those additional aircraft might be a good thing. The Covid-19 demand shock of 2020, which started in...
Read MoreAs late as Jan. 17, IATA expected worldwide airline profits to top $29b this year, with an operating margin close to 6%. The optimism extended even to Asian carriers, which IATA thought would benefit from easing trade tensions between the...
Read MoreAustralia’s Jetstar ended a simmering labor dispute with ground workers by reaching a new deal, which the union says members were “blackmailed” into taking. It provides 12% pay raises over four years and changes to scheduling and work hours. But...
Read MoreThrough the first nine months of 2019, Turkish Airlines displayed its usual seasonality: Terrible Q1 losses, followed by a decent spring and robust summertime profits. Yet all throughout, its results were sharply down versus prior-year levels. The reasons: Turkey’s troubled...
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