Issue No. 880
Florida Airport Expands as Travel Rebounds Strongly
Pushing Back: Inside the Issue
The third quarter is nearing its end, with demand still humming in most markets, excluding China and Japan. Better yet, fuel costs continue their downward march, albeit from extremely high levels this summer. West Texas Intermediate crude oil prices dropped below the $80 per gallon mark last week, offering much-needed cost relief for airlines. On the other hand, as the Federal Reserve progressively hiked interest rates, the U.S. dollar continued to gain in value versus most other world currencies — and that’s a problem for most airlines.
China is increasingly a problem for Boeing, rebuffed again last week as China Southern’s Xiamen Airlines unit opted for Airbus narrowbodies. Speaking of narrowbodies, they’re becoming more relevant to even intercontinental markets, as JetBlue's new Boston-London flights make clear — the airline is flying to Europe with long-range A321s. When extra-long-range versions (XLRs) start hitting the scene in a few years, intercontinental markets should witness additional disruption.
American is among the A321XLR enthusiasts, eyeing them for journeys deep into Europe and perhaps lower South America. They’ll feature the airline’s new international premium suites, unveiled last week. American’s rival Delta says demand is robust, and so are operations again after a rough summer. Demand looks good for Air New Zealand too, albeit amid heavy uncertainty about how trends will unfold in 2023.
The Caribbean has a new LCC called Arajet. Air Arabia has a new joint venture in Sudan. Airbus updated investors on the latest trends in aircraft markets. Transatlantic aspirant Norse Atlantic published early financial results. America’s securities regulator brought the hammer down on Boeing. And Airline Weekly learns that Newark airport — a major United hub — will open its new Terminal A in November.
Airline Weekly Lounge Podcast
The U.S. travel recovery is strong, and maybe nearly complete. If there is one airport that epitomizes that strength, it is Orlando where seemingly endless domestic demand before the pandemic has translated to much the same post-pandemic. Listen to Edward Russell discuss the state of the industry with moderator Racquel Asa, chief marketing officer at Beep, at a pre-opening event for the airport’s new $2.8 billion Terminal C. Listen to this week’s episode to find out. A full archive of the 'Lounge is here.