CAPA News Briefs

Ryanair published (24-Apr-2024) a report by York Aviation, stating the LCC contributes GBP14 billion p/a in gross value added (GVA) to the UK economy and supports 98,000 jobs. Ryanair Group CEO Michael O'Leary announced the following growth plan in the UK through to the end of the 2020s:

• Traffic to grow 22% to 65 million passengers by 2030;
• Over 1000 new jobs to be created for pilots, cabin crew and engineers by 2030;
• Opening of a new engineering training facility at Prestwick;
• 20 new Boeing 737 MAX 10 aircraft, for a total of 135.

Mr O'Leary added: "While halving [air passenger duty] on domestic flights from Apr-2023 allowed Ryanair to add more domestic routes (and bases) to our UK schedule, UK airports and passengers are still suffering an enormous penalty when UK APD imposes [a] GBP13 tax on all UK tickets for 2024. Ryanair can continue to grow UK traffic, jobs, and tourism but the Government must scrap this... tax for all travel and instead pursue air travel growth policies". [more - original PR]

Wizz Air announced (25-Apr-2024) it expects to expand operating margins, increase operational cash and further reduce net debt in FY2025. The forecast is based on improved operational metrics, current trading dynamics and continuing capacity constraints in the wider market. Wizz Air reiterated its expectation of roughly flat year-on-year capacity growth for H1FY2025 and full FY2025. It is trading positively into summer 2024 with selling load factors and pricing trending higher year-on-year in Q1FY2025 and Q2FY2025. [more - original PR]

Airbus reported (25-Apr-2024) the following commercial aircraft highlights for 1Q2024:

• Gross commercial orders: 170 aircraft, up from 156 in 1Q2023;
• Net orders after cancellations: 142 aircraft, no change from 1Q2023 due to no cancellations;
• Order backlog: 8626 aircraft at the end of Mar-2024;
• Deliveries: 142, up from 127 in 1Q2023, comprising:
  • A220: 12;
  • A320 Family: 116;
  • A330: Seven;
  • A350: Seven;
• Airbus is targeting approximately 800 commercial aircraft deliveries in 2024;
• Aircraft programmes:
  • A220: The production ramp up continues towards 14 aircraft per month in 2026, with a focus on the programme's industrial maturity and financial performance;
  • A320 Family: Production is progressing towards 75 aircraft per month in 2026. The first customer A321XLR entered the final assembly line in Dec-2023 and entry into service is expected in 3Q2024;
  • A330: Production continues towards four aircraft per month in 2024;
  • A350: Airbus plans to increase the production rate to 12 per month in 2028.

Airbus CEO Guillaume Faury stated: "We delivered first quarter 2024 results against the backdrop of an operating environment that shows no sign of improvement", noting: "Geopolitical and supply chain tensions continue". My Faury added: "The strong momentum on widebody aircraft underpins our decision to increase the production rate for the A350 to 12 aircraft a month in 2028". [more - original PR]

IndiGo placed (25-Apr-2024) a firm order for 30 A350-900s, to support its long haul international network expansion plans, with purchase rights for 70 additional A350 family aircraft "for possible future needs under certain conditions". The aircraft will be powered by Rolls-Royce Trent XWB engines and deliveries are expected to commence in 2027. IndiGo CEO Pieter Elbers said the order "marks a new chapter for IndiGo and will further shape the future of the airline and for Indian aviation at the same time". [more - original PR]

US FAA announced (25-Apr-2024) the award of USD76.1 million for 45 airport related infrastructure projects across 22 states under the FY2024 Airport Infrastructure Grants programme. Recipients include:

• Las Vegas Harry Reid International Airport: USD27.8 million for installation of runway edge drains and apron reconstruction works;
• Bangor International Airport: USD8.3 million for runway rehabilitation works;
• Sioux Falls Regional Airport: USD8.1 million for the design phase of a terminal building expansion project and terminal rehabilitation works;
• Colorado Springs Airport: USD6.4 million for rehabilitation of a terminal building to accommodate a 14,000sqft federal inspection service facility;
• Melbourne Orlando International Airport: USD3 million for terminal building rehabilitation, including the installation of a new baggage system;
• Grand Forks International Airport: USD2.9 million for runway reconstruction;
• South Bend International Airport: USD1.8 million for taxiway reconstruction;
• Dickinson Theodore Roosevelt Regional Airport: USD1 million for the design phase of a terminal building reconstruction project;
• Friday Harbor Airport: USD1 million to increase the capacity of an existing fuel farm by adding a supplemental tank for Jet A fuel and installation of a larger 12,500 gallon aviation gas fuel tank. [more - original PR]

Southwest Airlines CEO Bob Jordan announced (25-Apr-2024) the carrier plans to suspend operations at Bellingham International Airport, Cozumel Airport, Houston George Bush Intercontinental Airport and Syracuse Hancock International Airport on 04-Aug-2024. The carrier also plans to reduce capacity at Atlanta Hartsfield-Jackson International Airport and Chicago O'Hare International Airport. Mr Jordan stated: "To improve our financial performance, we have intensified our network optimization efforts to address underperforming markets". [more - original PR] [more - original PR - II]

Southwest Airlines CEO Bob Jordan reported (25-Apr-2024) the carrier is implementing cost control initiatives, including limiting hiring and offering voluntary time off programmes in 2024. As a result, Southwest now expects to end 2024 with approximately 2000 fewer employees compared to the end of 2023. [more - original PR]

Norwegian reported (25-Apr-2024) "current booking trends remain encouraging with many customers now booking their summer holidays and business travellers placing high value on Norwegian's strong operating performance". The carrier noted: "Air travel remains a key priority among Norwegian's customers". The duration of the booking curve has improved compared to the two previous years, giving the company more visibility on bookings. [more - original PR]

Norwegian Group CEO Geir Karlsen, in the group's 1Q2024 results press conference, stated (25-Apr-2024) aircraft delivery delays are an issue, and "going forward we are concerned over deliveries from Boeing". Mr Karlsen added: "The good thing is that we have a fleet that is leased and we have redeliveries over the next years, that we can extend". Mr Karlsen continued: "This is something we will absolutely continue to do over the next 2/3 years", as he believes "it will be at least two years until we see the production level at Boeing at the level they want it to be".

Norwegian Group CEO Geir Karlsen, in the group's 1Q2024 results press conference, stated (25-Apr-2024) issues with Pratt & Whitney GTF engines impacting some A320neos will take capacity out of the market for at least one year. Mr Karlsen said: "There will be a capacity constraint for a while", however noted: "It is not all bad in reality, as it just means there will be less capacity flowing into the market, which will support the performance on yields, that we are currently seeing".

Etihad Airways announced (24-Apr-2024) plans to deploy 485 seat A380 equipment on Abu Dhabi-Paris CDG service from 01-Nov-2024. According to OAG, the carrier currently operates the service daily using A350-1000 equipment. Air France also operates the route. [more - original PR]

Sweden's Government proposed (22-Apr-2024) halving the passenger flight tax that would have applied for 2025. Under the new proposal the flight tax will be reduced to between SEK39 (EUR3.36) and SEK259 (EUR22.31), depending on the final destination. The changes are proposed to enter into force on 01-Jan-2025. [more - original PR - Swedish]