Europe's Summer of Hope

Not This Past Summer. Europe's Airlines Are Ever More Optimistic About Summer 2022

Pushing Back: Inside The Issue

Will there be too much capacity in Europe next summer or not enough? The answer depends on whom you ask. IAG is champing at the bit to add as much as it can next summer and expects to be almost fully back. As is Lufthansa. But Wizz Air's CEO said there may be too many flights. Pent-up demand is a thing. Would-be travelers have spent much of the last 20 months saving money and are eager to spend it, now that travel restrictions have fallen. Corporate travel is starting to resume. But as every airline CEO warns (however quickly they read through that part of their prepared remarks), much depends on the trajectory of the disease, the continued efficacy of vaccines, and even the larger, yet unknowable question, of whether people's travel habits have permanently changed — due to fear of the disease, concerns over the environment, or just a desire to stick closer to home.

Elsewhere in this issue, Azul signaled that it may want to acquire all of Latam. Will the legacy carrier play ball, or will it resist the Brazilian airline's advances? Or will Azul attempt a hostile takeover through the bankruptcy process? Air Lease Corp. had a banner quarter, even if Boeing's 787 problems are throwing its plans off. Demand for narrowbodies remains high. And Air Canada is coming out of hibernation and resuming international routes.

The Airline Weekly Lounge Podcast

This week in the Lounge, Ned Russell and Madhu Unnikrishnan make the water jump across the Atlantic this week, where Air France-KLM, Lufthansa, and Ryanair reported results. Optimism abounds for 2022, and competition is heating up, with Ryanair playing offense and Lufthansa defense. And in South America, Azul has its eyes on a big prize: Latam Airlines Group. A full archive of the podcast is here.

Skift Aviation Forum, November 17

Join us at the Skift Aviation Forum, which is coming online on November 17. Airline Weekly members can register for free now. Speakers include Air Lease Corp.'s Steven Udvar-Hazy, American's Doug Parker, KLM's Pieter Elbers, and more. Sign in and join us. 

Verbulence

"I want to make it clear that in no way did I mean to show disrespect for Quebecers and francophones across the country ... I pledge today to improve my French, an official language of Canada and the common language of Québec, while tackling the serious commercial challenges facing Air Canada."

Air Canada CEO Michael Rousseau