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Latest News Headlines

Harbour Air and Pacific Coastal Airlines (PCA) entered (15-Sep-2026) an agreement under which Harbour Air will acquire PCA and form a new regional airline group. Details include:

  • Harbour Air's and PCA's brands will be maintained and supported by a single loyalty offering;
  • The new group will have a fleet of 59 aircraft;
  • Vancouver will become a key hub for the new group, with expanded service for British Columbia residents and new connections across Canada and globally via Vancouver International Airport;
  • Continued investment in infrastructure, fleet renewal, maintenance capacity and modernised systems;
  • The transaction is subject to regulatory approval. The carriers will confirm the expected close date and time frame. In the interim, Harbour Air and PCA will continue to operate as separate and independent airlines. [more - original PR]

Background

Harbour Air expanded its seaplane network in 2024-2026, including resuming Vancouver Coal Harbour-Seattle Lake Union and launching Victoria Inner Harbour-Seattle, plus new Vancouver links to Ucluelet and Campbell River Harbour.1 2 3 4 5 Pacific Coastal Airlines grew British Columbia regional capacity in winter 2024/25, adding Kelowna-Prince George and upgauging multiple routes with Saab 340B aircraft.6 7 8 Pacific Coastal also partnered with WestJet via an interline and operated WestJet Link under a capacity purchase agreement.9

Emirates reported (14-Sep-2026) the following fleet highlights for 2026:

  • Took delivery of 18 aircraft, comprising 11 new A350s and seven Boeing 777Fs;
  • Expects to take delivery of six additional A350s by the end of 2026;
  • Completed installation of Starlink inflight connectivity on "close to" 50 aircraft;
  • Progressed with USD5 billion fleet retrofit programme. 104 aircraft have been retrofitted to date, comprising 53 777s and 51 A380s;
  • A350 equipment deployed from Dubai to 30 destinations, increasing to 36 by the end of 2026. The airline will deploy A350s to Larnaca, Malta, Nairobi and Hamburg from late Oct-2026, and to Mauritius from Nov-2026;
  • Premium economy now available on services to 90 destinations, with six additional destinations to receive the product by the end of 2026, including Paris, Delhi and Stockholm;
  • 137 aircraft configured with premium economy seats, which will increase to 155 by the end of 2026. [more - original PR]

Background

Emirates' A350 roll-out continued through 2026, including an additional daily A350 frequency on Dubai-Colombo from 08-Aug-2026 and planned A350 deployment on one of three daily Dubai-Kuala Lumpur services from 01-Sep-2026.1 2 The USD5 billion retrofit programme reached 100 refurbished aircraft (53 777s and 47 A380s), with approximately 20 expected by the end of Dec-2026 and a new phase slated from Oct-2026.3

Spain's Council of Ministers approved (15-Sep-2026) the Airport Regulation Document for the period 2027 to 2031, which includes an investment of approximately EUR13 billion across the network of Spanish airports managed by Aena. Details include:

  • EUR9.991 billion corresponds to regulated investment directly linked to aeronautical activity. The plan is the "largest volume of airport investments in recent decades", with an average of approximately EUR2 billion p/a. This is in addition to the approximately EUR3 billion in investment made by Aena outside the regulated sphere, typically related to commercial activities;
  • The additional investment effort will enable the government to continue modernising and improving the infrastructure and services that complement airport activity;
  • A portion of the investment is earmarked for expanding, modernising and transforming airport infrastructure. Specifically, EUR2.851 billion is allocated to terminal buildings and EUR937 million to airfields;
  • Over EUR1.65 billion is earmarked for strengthening security, nearly EUR660 million will be used to enhance inter-modality and advance decarbonisation and promote the sustainability of the airport system. Around EUR400 million will be used to improve baggage handling systems;
  • The territorial distribution of the investment will be as follows:
  • The EUR13 billion will not be financed from the General State Budget, but from the revenue of the Spanish airport system managed by Aena, which reports to the Ministry of Transport and Sustainable Mobility. [more - original PR - Spanish]

Air Arabia announced (15-Sep-2026) plans to launch a new LCC based at Dammam King Fahd International Airport on 20-Sep-2026 after receiving an air operator's certificate (AOC) from Saudi Arabia's General Authority of Civil Aviation (GACA). The LCC will initially operate twice daily Dammam-Riyadh, twice daily Dammam-Jeddah and daily Dammam-Madinah services. As previously reported by CAPA, the start up LCC aims to serve 24 domestic and 57 international destinations with 45 aircraft by 2030, handle approximately 10 million passengers p/a and create more than 2400 direct jobs in Saudi Arabia. [more - original PR]

Background

Saudi Arabia's General Authority of Civil Aviation previously granted an air operator's certificate to the Air Arabia, Nesma Group and KUN Holding consortium for a Dammam-based LCC, with long term targets including 45 aircraft by 2030 and more than 2400 direct jobs.1 Air Arabia Group CEO Adel Ali also said the airline sought GACA approval to increase frequencies to and from Saudi destinations, noting it already served 15 Saudi cities.2

Canada's Prime Minister Mark Carney announced (15-Sep-2026) the government will seek private investment through long term concessions to operate Toronto Pearson International Airport, Vancouver International Airport, Montreal Pierre Elliott Trudeau International Airport and YYC Calgary International Airport. Mr Carney stated the Government will retain ownership of the underlying land and assets, "bringing in new capital and expertise into their operations and growth". He added: "The tens of billions of dollars of capital raised would then be reinvested into building the infrastructure that Canada needs", including regional airports, new local transportation infrastructure and new nation building infrastructure. [more - original PR] [more - original PR - II]

Australian Competition and Consumer Commission (ACCC) reported (15-Sep-2026) the following highlights from its latest Domestic Airline Competition report:

  • Qantas Group and Virgin Australia recorded "substantial earnings" in FY2026 despite increased fuel costs, with Qantas' underlying earnings before interest and tax declining 11% year-on-year to AUD2.4 billion (USD1.7 billion) and Virgin's underlying earnings increasing 13.4% to AUD753 million (USD536.7 million). Jet fuel prices were nearly 50% higher in late Aug-2026 than in Feb-2026;
  • Both airline groups' strong financial performance was supported by resilient passenger demand, higher fares, capacity adjustments and arrangements which locked in some fuel costs in advance to reduce the short-term impact of higher costs;
  • Average airfares were 3.5% higher in May-2026 and 4% higher in Jun-2026, before moderating in Jul-2026. Airfares may increase further as passenger demand remains stable;
  • Both groups expect fuel costs to remain elevated and have forecast further capacity reductions, as well as higher revenue per seat;
  • Domestic passenger volumes remained stable in Q4FY2026, although slightly lower than Q4FY2025. Leisure travel, supported by the winter school holidays, remained an important source of demand;
  • Following increases in capacity prior to the Middle East conflict, seat capacity fell by 2.3% in both May-2026 and Jun-2026, with Jun-2026 recording the lowest capacity level for June since 2022. As passenger demand remained relatively stable and fewer flights were offered, airlines were able to fill more than 80% of seats;
  • Industry-wide on time performance declined from 82.1% in May-2026 to 78.4% in Jul-2026, falling below the long-term average of 80.5%. Qantas (81.4%) was the only airline with an on time arrival rate above the long-term industry average and has been the strongest performer for on time arrivals for six consecutive months. Rex Airlines (76.9%), Virgin Australia (76.3%) and Jetstar Airways (72.5%) all recorded on time arrival rates below the long-term industry average. However, Rex's on-time arrivals were its highest since Jan-2026;
  • Overall, there was a sustained improvement in airline cancellations, with 1.5% of flights cancelled in each of May/Jun/Jul-2026. This is the longest consecutive period that cancellation rates have been below the long-term industry average of 2.2% since 2018.

ACCC chair Gina Cass-Gottlieb stated: "These results highlight the financial resilience of the two largest operators in Australia's highly concentrated domestic aviation market", adding: "With resilient demand and high load factors, the announced capacity reductions may place upward pressure on airfares, depending on airlines' commercial decisions and fuel prices". She also commented on the impact of Western Sydney International (Nancy-Bird Walton) Airport, continuing: "The new airport is an exciting development for Australian aviation and in particular for people in the wider Sydney catchment, who will benefit from new services and greater choice. Over time, the airport's 24-hour operations and greater access to take-off and landing slots may make it easier for new airlines to enter the market and offer more competition". [more - original PR]

Most Read News Headlines

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Portugal's Council of Ministers approved (04-Sep-2026) a resolution for the start of the negotiation phase with Air France-KLM Group and Deutsche Lufthansa for the purchase of 44.9% of TAP Air Portugal. The council requested Deutsche Lufthansa and Air France-KLM to submit their final and improved proposals, ensuring the necessary conditions for the selection of the investor and the completion of the final stages of the operation. [more - original PR]

Background

Parpública submitted its assessment of Lufthansa and Air France-KLM's binding offers for 44.9% of TAP Air Portugal to Portugal's Government on 01-Sep-2026, with the Ministry of Finance saying it would analyse the report and opine "in due course"1. Portugal's Infrastructure Minister Miguel Pinto Luz said selection was a "strategic decision" beyond price, requiring commitments to strengthen TAP's network at Lisbon and across Portugal's nine other airports2.

Boeing reported (09-Sep-2026) the following commercial aircraft orders and deliveries for Aug-2026:

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