Issue No. 826

Europe's Tepid Summer

The Summer Isn't All That European Airlines Hope For

Pushing Back: Inside the Issue

Second-quarter and first-half earnings for European airlines have proved to be a mixed bag. While their U.S. counterparts pop open champagne and say the worst of the crisis is over, European airline CEOs are more measured. Some markets, like Spain, are coming back quickly, fueled by leisure travel and helped by the country's relatively faster reopening, while others remain moribund. CEOs express very cautious optimism about the second half of the year but admit that the real recovery may not start until early next year. And here's yet another sobering statistic: IAG reported that business travel across its system is 5-10 percent of pre-pandemic levels. So no champagne, yet.

Meanwhile, airframers are optimistic that airlines will replace retired fleet types with next-generation aircraft. Airbus, in particular, is looking good. Boeing is emerging from more than two years of crises, starting with the 737 Max grounding, and although it still has some issues with its 787 and 777X programs, it thinks the most of its worst days are past. Interestingly, both airframers said they are planning new freighters: Airbus green lighted the A350 freighter variant, while Boeing said it could start work on a 777X freighter. Elsewhere in the issue, smaller U.S. airlines reported their earnings, and AerCap kicked off the lessors' reports. Next week, Lufthansa reports, as do several other lessors.


“A few years ago, O’Leary couldn’t even spare the word Wizz. I’m glad he’s spending half of his presentation on us though.”

Wizz Air CEO József Váradi

Weekly Skies

A year-and-a-half into the crisis, the airline industry still has little clarity on the structural changes expected from the Covid-19 pandemic. But Air France-KLM has found one: A permanent reduction in domestic French flying.

Sky Money

Air Canada has put the pieces together on a roughly $5.7 billion financing package. It includes a $2.8 billion private placement split between: $1.2 billion in senior secured notes due in 2026 with a 3.875 percent coupon, and C$2 billion…

Routes and Networks

American Airlines, the largest U.S. carrier in South America, has been without a local partner in much of the region since Latam Airlines shocked the industry with its pivot to Delta Air Lines two years ago. Now, American has a plan to…


Airbus will begin research and development work for a freighter variant of its A350 widebody, using the architecture of both the -900 and -1000s, the airframer said. The move aims to fill a hole the European airframer had in its…