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IATA reported (31-Aug-2026) global demand in RPKs increased 0.2% year-on-year in Jul-2026. Excluding the Middle East, demand grew 1.2% and capacity in ASKs increased 0.3%. The passenger load factor was 85.2%, down 0.1pp. International demand fell 0.1%, but grew 1.5% excluding the Middle East. International capacity was up 0.3% and the passenger load factor was 85.2%, down 0.3pp. Domestic demand grew 0.6% and capacity increased 0.2%. Domestic load factor was 85.3%, up 0.3pp. IATA SVP sustainability and chief economist Marie Owens Thomsen stated: "The peak Northern summer travel season is a mostly positive story for air travel", noting overall growth of 0.2% was achieved "despite year-on-year collective declines by carriers in North America and the Middle East". Ms Thomsen continued: "Notably, traffic through the Gulf hubs continues its recovery trajectory. Although high fuel costs, economic uncertainty and geopolitical tensions continue, carriers are expressing confidence in demand for the last part of the year with an almost 3% expansion of seat capacity in September". [more - original PR]

Riyadh Air established (27-Aug-2026) a connection with Saudia's passenger service system (PSS), enabling the airlines to commence codesharing. Riyadh Air will codeshare on Saudia services connecting Riyadh to Abha, Qassim, Dammam, Jeddah, Madinah and Tabuk. Saudia plans to codeshare on Riyadh Air services "to destinations that offer additional connectivity and schedule option choices for Saudia's guests". In the coming months, the airlines plan to introduce reciprocal accrual and redemption opportunities for Sfeer and Alfursan loyalty programme members, and a lounge access agreement for eligible guests at key airports in Saudi Arabia. [more - original PR]

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31-Aug-2026 12:20 PM

TAP Air Portugal appoints new COO

TAP Air Portugal announced (30-Aug-2026) the appointment of José Eduardo Moreira as chief operating officer (COO), effective 01-Sep-2026. Mr Moreira previously served as general manager of maintenance and engineering, and succeeds Mário Chaves, who resigned from the role. TAP's board also includes chairman Carlos Nuno Alves de Oliveira, CEO Luis Manuel da Silva Rodrigues, Ana Teresa Cunha de Pinho Tavares Lehmann, João Pedro da Conceição Duarte, José Eduardo Russo Moreira, José Mario Cruz Henriquez, Maria João Santos Gomes Cardoso, Patrício Ramos Castro, Renato Teobaldo Rodrigues Inácio and Sofia Norton dos Reis Lufinha de Mello Franco. [more - original PR] [more - original PR - Portuguese]

Flughafen Zurich AG reported (28-Aug-2026) investments of CHF268.7 million (EUR286.65 million) in property, equipment, projects in progress, investment property and airport operator projects in 1H2026. The company allocated CHF202.3 million (EUR215.82 million) to Zurich Airport for infrastructure projects, including Dock A development, landside passenger zone enhancements and baggage sorting system refurbishment and expansion. Zurich Airport expects to handle 33 million passengers in 2026, up 3% year-on-year. Investments at the Zurich site are expected to reach approximately CHF400 million (EUR426.73 million) in 2026, with CHF100 million (EUR106.68 million) expected at subsidiaries abroad. Flughafen Zurich aims to generate revenues of over CHF3 billion (EUR3.20 billion) by 2040, corresponding to a compound annual growth rate of over 5%. [more - original PR]

Saudia and Garuda Indonesia signed (27-Aug-2026) a joint business framework agreement, expanding a MoU signed in Jul-2026. The planned joint business will create a broader travel corridor connecting Indonesia and Australia with Saudi Arabia, the Middle East, Europe and Africa. The airlines' networks currently provide access to more than 120 destinations across these markets, with potential to expand connectivity through new routes and direct services to additional destinations. The partnership is expected to include full fare combinability, joint commercial initiatives, and closer cooperation across frequent flyer programmes, technology and airport services. The partnership will also prioritise Hajj and Umrah travel from Indonesia. The airlines will commence the regulatory approval process and proceed with the development of the remaining agreements required ahead of the planned launch of the joint business in 2027. [more - original PR]

Background

Saudia and Garuda Indonesia previously signed an MoU to progress a joint business, building on existing codeshare cooperation and SkyTeam membership, and covering single-ticket travel, coordination of schedules and wider collaboration across loyalty, technology, airport services and Hajj/Umrah travel.1 Garuda also entered new and expanded partnership arrangements, including a codeshare with SAS from winter 2026/27 with reciprocal frequent flyer earning and redemption.2

IATA stated (28-Aug-2026) global jet fuel prices rose by 121% between Apr-2025 and Apr-2026, but not all airlines faced the same increase in their fuel costs. Details include:

  • Jet fuel is priced predominantly in US dollars, while many airlines earn most their revenue in a range of other currencies, so exchange rate movements "either amplified or mitigated the impact". Differences in regional jet fuel benchmarks meant that fuel prices did not rise by the same amount everywhere. As a result, the same global jet fuel shock translated into different outcomes across airline markets;
  • The largest jet fuel cost increases were recorded in markets where the regional jet fuel prices rose strongly, and where currencies weakened against the US dollar. Japan was among the most severely impacted, with an increase of 173% in the local currency price of jet fuel, driven by a 148% rise in the regional jet fuel price and a 10% depreciation of the yen. The local jet fuel price jumped by 170% in India, also due to an above average local jet fuel price and currency depreciation;
  • Several markets were partially shielded from the shock due to currency appreciation. The Brazilian real and the Mexican peso appreciated by approximately 15% against the US dollar, which, together with a "less severe" increase in the regional jet fuel price, limited the rise in the local currency price of jet fuel to 86%;
  • In the euro area, the stronger euro helped reduce the increase to 118%;
  • China was an exception, despite a stronger renminbi against the dollar, above average regional fuel price increases left airlines facing a local currency fuel price increase of 132%. [more - original PR]

Most Read News Headlines

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Qantas Group reported (27-Aug-2026) an underlying profit before tax of AUD2.1 billion (USD1.5 billion) for the 12 months ended 30-Jun-2026, a decline of AUD330 million (USD237 million) year-on-year. Statutory profit after tax declined AUD316 million (USD226.9 million) to AUD1.3 billion (USD933.6 million), with the net impact of conflict in the Middle East rising to AUD420 million (USD301.6 million). Additional highlights include:

  • Group Domestic:
    • Qantas Airways and Jetstar Airways continued to see "strong travel demand and strong revenue across the domestic market for the majority" of FY2026, with Group Domestic recording AUD1.4 billion (USD1 billion) in underlying EBIT despite "impact of significantly higher fuel costs";
    • Qantas Domestic revenue increased 5%, supported by a 3% increase in capacity;
    • Fleet renewal accelerated with the A321XLR entering into service and seven of the aircraft in operation. The A220 fleet grew to 12 aircraft. The new aircraft, alongside almost all of Qantas' existing Boeing 737s, have been fitted with Qantas Economy Plus seating, which will be introduced to the A330 in Sep-2026. QantasLink is also refurbishing its existing A320 and A319 fleets, with mid-life Embraer E190 aircraft arriving "in the coming months" to replace the Fokker F100 fleet;
    • Jetstar Domestic increased earnings by 15%, supported by an 11% increase in revenue from a 4% increase in capacity. "Record" passenger numbers helped drive "strong load factors, ancillary revenue and yield". The fleet grew to 25 A321LRs and five A320neo aircraft through Jun-2026, with these next generation aircraft now making up almost half of narrowbody fleet capacity;
  • Group International:
    • Strong demand for international travel continued, with Qantas and Jetstar adding capacity and increasing unit revenue. "Significantly" higher fuel costs saw Group international underlying EBIT decline to AUD650 million (USD466.8 million);
    • Qantas International revenue increased 8%, supported by a 7% increase in capacity. Demand for services to Europe surged, with the carrier adding nearly 16,000 seats in Q4FY2026 through redeploying aircraft from other parts of its network. The result was underpinned by "strong premium cabin demand" and the performance of the 787 fleet on long haul routes which "continues to provide confidence ahead of the launch of Project Sunrise". Premium cabin revenue increased 15% - twice the rate of economy;
    • Jetstar International "continued to perform strongly" with 11% capacity growth driving "record passenger numbers" and increasing revenue by 14%. The arrival of additional narrowbody aircraft enabled the launch of nine new international routes and the redeployment of 787s, including on the carrier's recently launched Melbourne Tullamarine-Colombo service;
    • Jetstar Asia ceased operations in Jul-2025, with the Group to also divest its minority shareholding in Jetstar Japan. The transaction is expected to be completed by the end of Jun-2027;
    • Fleet renewal continues with the first A350-1000ULR scheduled to arrive in Apr-2027 and the first nonstop Sydney-London flight to operate in Oct-2027. In addition to 12 Project Sunrise aircraft, the Group has firm orders for 12 A350s and 12 787s. The first of the additional 787s are scheduled to begin arriving in FY2028 with the next evolution of the airline's business seats including more space, sliding privacy doors and larger entertainment screens;
    • The Group confirmed discussions with Airbus and Boeing regarding converting approximately 20 of its existing purchase right options to firm orders from 2030. The A380 will "now be gradually phased out of the fleet from calendar year 2028".

Qantas Group CEO Vanessa Hudson stated: "In the first half, Qantas and Jetstar were both performing strongly, with demand growing across the domestic and international networks. Our new aircraft allowed us to add capacity and open new routes, which helped us to increase revenue", continuing: "Qantas continued to see growth at the premium end of the market while Jetstar went from strength to strength and continued to deliver value... [highlighting] the benefits of our dual brand strategy". Ms Hudson added: "The final four months of the year saw business and consumer confidence fall as the conflict and economic headwinds created uncertainty... In response to the surge in fuel prices, we quickly adjusted fares and capacity and redeployed aircraft to give customers more options to fly to Europe. These actions, along with other mitigations, limited the net impact on earnings to AUD420 million, despite a AUD610 million (USD438.1 million) increase in our fuel bill". [more - original PR]

Turkish Airlines chairman Murat Şeker said the carrier plans to increase Asia Pacific frequencies 15% to 20% in the coming years (Nikkei Asia/Anadolu Agency/airporthaber2.com, 21-Aug-2026). Plans include additional China and Japan frequencies, and nonstop services to Melbourne and Sydney. Mr Şeker said Turkish Airlines aims to establish a second corridor between Asia, Australia, and Europe via Istanbul.

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