CAPA Insights

Air France and Lufthansa have recently revealed new first class cabins, both emphasising luxury, privacy and advanced technology.

Air France's La Première cabin, set to debut in spring 2025, will offer spacious suites on Boeing 777-300ER aircraft, featuring modern amenities and a high level of personalisation.

Lufthansa's Allegris first class, already operating on select A350-900s, introduces exclusive suites with options for combined sleeping arrangements and enhanced comfort features.

Uganda Airlines' announcement that it plans to launch four times weekly Entebbe-London Gatwick service on 18-May-2025 is the latest installment in a trend of African carriers increasing capacity to the UK, home to a large diaspora from the continent.

According to Airports Council International Europe (ACI Europe), the worst performing country in Europe in 2024 for passenger traffic was Germany.

While the UK and France also fared badly, with -0.1% passengers compared to 2023 and -3.0% respectively - Germany slumped to -16.6%.

None of this is 'breaking news'. The German Aviation Association (BDL) has been warning for well over a year about how the burden on aviation is reaching a dangerous "tipping point" in Germany.

Ecuador's Directorate General of Civil Aviation (DGAC) recently adopted mutual recognition of air operators certificates (AOCs) for airlines from Andean countries whose regulatory frameworks comply with ICAO standards, namely Ecuador, Peru and Colombia.

In the words of Ecuador's Minister of Tourism Mateo Estrella, the initiative "would allow any airline holding an AOC in one Andean country to operate domestically in another". With Ecuador having set a maximum period of one month for AOC recognition, the measure is clearly designed to expedite the entry of new players into the country's aviation market, and is likely to benefit consumers if regional LCCs take up the offer.

In Nov-2024, CAPA - Centre of Aviation recognised Sun Country Airlines as Low Cost Carrier of the Year, acknowledging the airline's strategic agility in the extremely competitive US domestic market, cost-focused approach and consistent financial performance.

Sun Country proceeded to achieve a net profit of USD13.4 million in 4Q2024, up 138% from 4Q2023 and continuing a winning streak of profitability which began in 3Q2022.

While the survivability of the ULCC model in the highly competitive US market faces scrutiny following the collapse of the JetBlue Airways/Spirit Airlines merger and Spirit's subsequent Chapter 11 filing, Sun Country's performance tells a different story.

CAPA - Centre for Aviation recaps the some of the new route launches and new route announcements made by airlines for Continental and Nordic Europe in Feb-2025.

Energy giant bp announced a "fundamentally reset strategy" in late Feb-2025, outlining its prioritisation of shareholder returns and investment in oil and gas.

While expanding its oil and gas investment to USD10 billion p/a, the company will cut its investment in energy transition businesses by USD5 billion, compared to its previous guidance.

bp is now planning more "disciplined investment" in the energy transition, including "selective investment" in areas such as biofuels. The company stated its investment decisions will be driven by financial returns.

CAPA - Centre for Aviation's new SAF Contracts Database features extensive data on Air bp's sustainable aviation fuel (SAF) supply agreements, including significant deals involving Airbus, ATR, Air Transat, BRA - Braathens Regional Airlines, British Airways, DHL Global Forwarding, LATAM Airlines Group, Neste, NetJets, Pratt & Whitney, Qantas Airways, Rolls-Royce, Swedavia and World Energy.

IATA director general Willie Walsh has called into question the ability of the aviation industry to meet its target of net zero greenhouse gas emissions by 2050.

Mr Walsh said the industry will need to "revisit" its climate targets, adding: "There will be a re-evaluation".

He noted that progress on sustainable aviation fuels (SAF) has not been as strong as previously expected, and highlighted that certain airlines will not be able to meet their environmental targets, resulting in a "more fragmented" industry.

Air Lease Corporation CEO and president John L Plueger echoed Mr Walsh's comments, stating: "It is now almost impossible to see those goals of 2050 come to fruition", and adding: "I don't think we're going to make it".

As the first quarter of 2025 gets underway, some common themes are emerging from route activity across Africa in Jan-2025 and Feb-2025.

In Jan-2025, United Airlines received its 1000th aircraft, a Boeing 737 MAX 9. The carrier is the first airline worldwide to operate a mainline fleet of over 1,000 planes, with a total of 1,004 aircraft as of Feb-2025.

Over the coming years, United is scheduled to take delivery of almost 700 new aircraft including 152 Boeing 787 Dreamliners and more than 500 narrowbodies to support its 'United Next' strategy.