CAPA News Briefs

CAPA publishes more than 400 global News Briefs every weekday, covering all aspects of the aviation and travel industry. It’s the most comprehensive source of market intelligence in the world, with around 50 per cent of content translated from non-English sources. The breadth of our coverage means you won’t need any other news sources to monitor competitors and stay informed about the latest developments in the wider aviation sector.

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Below is a sample of the latest news headlines. 509 news briefs have been published for CAPA Members in the past 2 days.

Air Mauritius reported (14-Feb-2019) operating performance for Q3FY2019 and the period Apr-2018 to Dec-2018 was impacted by competition and rising costs. The carrier had to "modulate" capacity in Q3FY2019, resulting in a decrease in the number of seats offered and passenger numbers. Revenue remained stable overall, with a decrease in Q3FY2019 and an increase over the nine months ended Dec-2018. The carrier noted the following factors which impacted results for the nine months ended Dec-2018:

  • A 38% year-on-year increase in the price of brent crude oil to USD74 per barrel;
  • A 16.3% increase in operating costs to EUR404 million:
    • Fuel costs increased 29% to EUR126 million (31% of total costs);
    • Aircraft costs increased 21% to EUR110.6 million (27%) due to fleet modernisation, greater leasing and maintenance costs and increased depreciation;
    • Staff costs increased 15% to EUR64.3 million (16%) due to the settlement of MoUs outstanding since 2014;
  • Competition was "unprecedented", with a 29% increase in foreign airline capacity to 2.88 million seats over the three years from FY2015/16 to FY2018/19. The airline reported competition from "mega carriers" and charter/seasonal operators during peak seasons.

The airline said the results also reflect "crucial investments... to secure the company's long term economic sustainability in an environment that is becoming increasingly competitive". [more - original PR]

Aeromexico Group CEO Andrés Conesa, via the carrier's 4Q2018 financial results call, commented (14-Feb-2019) on the cancellation of New Mexico City International Airport (NMCIA) stating: "Given our business model, we need to operate from a single airport. We would never be operating some from airport A and some from airport B". Mr Conesa added that the Mexican Government has "a very aggressive plan to strengthen the infrastructure of Mexico City Juarez International Airport". He added: "They are investing a significant amount of resources in enhancing terminal 2", constructing new facilities expected to add "seven or eight" new gates.

Groupe ADP reported (14-Feb-2019) the following FY2019 guidance:

  • Traffic growth assumption for Paris Aéroport between 2% and 2.5% year-on-year;
  • Consolidated EBITDA: Decrease between 8% and 13%, taking into account the closure of Ataturk Airport;
  • Consolidated EBITDA restated of Ataturk Airport contribution in 2018 (proforma) and in 2019: Increase of between 1% and 5%;
  • EBITDA excluding full consolidation of TAV Airports and AIG: increase between 1% and 2%;
  • Maintained pay out of 60% of NRAG 2019. [more - original PR]

Copa Holdings CEO Pedro Heilbron, via the carrier's 4Q2018 financial results call, commented (14-Feb-2019) on future sales for 2H2019 stating that "sales coming in now for future travels are coming at a better year-on-year yield, but we have sold a good percentage of 2Q2019 at lower yields". He added: "We're seeing positive trends for 2H2019".

Airbus reported (14-Feb-2019) the following outlook for 2019:

  • Target of 880 to 890 commercial aircraft deliveries for the full year;
  • Airbus expects to deliver an increase in adjusted EBIT of approximately 15% compared to 2018;
  • Free cash flow before mergers and acquisitions and customer financing of approximately EUR4 billion. [more - original PR]

Singapore Airlines Group reported (14-Feb-2019) the following financial highlights for the three months ended 31-Dec-2018:

  • Revenue: SGD4342 million (USD3156 million), +6.5% year-on-year;
  • Costs: SGD3954 million (USD2874 million), +9.1%;
    • Fuel: SGD1252 million (USD910.2 million), +22.2%;
    • Labour: SGD743.3 million (USD540.4 million), +10.8%;
  • Operating profit: SGD387.6 million (USD281.8 million), -14.6%;
    • Singapore Airlines: SGD369 million (USD268 million), +0.8%;
    • SilkAir: SGD7 million (USD5 million), -63.2%;
    • Scoot: SGD1 million (USD0.7 million), -97.7%;
    • SIA Engineering: SGD16 million (USD12 million), -15.8%;
  • Net profit: SGD292.8 million (USD212.9 million), -27.3%;
  • Passenger yield: SGD 9.5 cents (USD 6.9 cents), stable;
    • Singapore Airlines: SGD 10.4 cents (USD 7.6 cents), -stable;
    • SilkAir: SGD 11.2 cents (USD 8.1 cents), -1.8%;
    • Scoot: SGD 5.9 cents (USD 4.3 cents), -1.7%;
  • Cargo yield: SGD 33.3 cents (USD 24.2 cents), +3.4%;
  • Total assets: SGD27,511 million (USD19,999 million);
  • Cash and bank balances: SGD1325 million (USD963 million);
  • Total liabilities: SGD14,857 million (USD10,801 million). [more - original PR]

*Based on the average conversion rate at SGD1 = USD0.726968

Airbus reported (14-Feb-2019) the following highlights for its commercial aircraft families in 2018:

  • A220: Focus for the programme remains on "commercial momentum, the production ramp-up and cost reduction";
  • A320neo: 2018 deliveries increased to 386 aircraft (2017: 181 aircraft) and represented over 60% of overall A320 family deliveries during 2018. The first A321LR was delivered in 4Q2018. Deliveries of the Airbus Cabin Flex version of the A321 are expected to increase in 2019 although the ramp up will "remain challenging". Further upgrades of the Pratt & Whitney GTF engine for the A320neo are due to arrive in 2019. Airbus continues to monitor in-service engine performance. The A320 programme is on track to reach the monthly targeted production rate of 60 aircraft by mid 2019 with 63 per month targeted in 2021;
  • A330neo: The first A330-900s were delivered in 2018 and the A330-800 conducted its maiden flight in 4Q2018. A330neo deliveries are due to ramp up in 2019. Airbus is working closely with Rolls-Royce to "deliver on customer commitments";
  • A380: Following a review of its operations, Emirates is reducing its A380 orderbook by 39 aircraft with 14 A380s remaining in the backlog. As a consequence, and given the lack of order backlog with other airlines, deliveries of the A380 will cease in 2021. The recognition of the onerous contract provision as well as other specific provisions and the remeasurement of the liabilities have led to a negative impact on EBIT of EUR463 million and a positive impact on the other financial result of EUR177 million;
  • A350: Deliveries increased compared to 2017 and included 14 A350-1000s. The programme reached a production rate of 10 aircraft per month in 4Q2018. The backlog supports this rate going forward, including the latest commercial discussions with Etihad Airways to reduce its order by 42 A350-900s, leaving 20 A350-1000s for Etihad in the backlog. Airbus will continue to improve the A350 programme's performance to reach break even in 2019 and improve margins beyond this. [more - original PR]

Singapore Airlines Group stated (14-Feb-2019) overall passenger bookings for "the forward months" are tracking capacity growth, but noted: "Uncertainties surrounding US-China tariffs and their consequent effects on global trade flows, as well as Brexit, are clouding the overall demand outlook for both passenger and cargo". [more - original PR]

Emirates announced (14-Feb-2019) it ordered 40 A330-900 and 30 A350-900 aircraft from Airbus in a deal valued at USD21.4 billion. The A330neo and A350 aircraft are scheduled for delivery from 2021 and 2024 respectively. Emirates and Airbus also reached an agreement on outstanding A380 deliveries, in which the airline will receive 14 more A380s from 2019 until the end of 2021, taking its total A380 order to 123 units. Emirates Airline and Group chairman and chief executive Sheikh Ahmed bin Saeed Al Maktoum said the new A330neo and A350 aircraft will "complement Emirates' fleet mix", support its "network growth" and grant it "more flexibility to better serve seasonal or opportunistic demand". The airline plans to deploy the A330neo on regional destinations while the A350 will serve the carrier's long haul operations. [more - original PR]

Great Dane Airlines announced (14-Feb-2019) plans to commence the following weekly services from Jun-2019:

Additionally, Great Dane will operate charter services to the following destinations from Aalborg Airport for Bravo Tours and Nilles Travel:

The company applied for an operating licence with the Danish Transport Authority and has leased two Embraer E195s with capacity for 118 passengers (standbynordic.com, 14-Feb-2019). [more - original PR - Danish]

Bombardier reported (14-Feb-2019) the following financial highlights: 

  • Three months ended 31-Dec-2018:
    • Revenue: USD4303 million, -6.7% year-on-year;
      • Commercial Aircraft: USD421 million, -35.3%;
      • Aerostructures and Engineering Services: USD622 million, +46.0%;
    • Operating profit (loss): USD342 million, compared to a profit of USD73 million in p-c-p;
      • Commercial Aircraft: (USD18 million), compared to a loss of USD138 million in p-c-p;
    • Net profit: USD55 million, compared to a loss of USD188 million in p-c-p;
  • 12 months ended 31-Dec-2018:
    • Revenue: USD16,236 million, +0.2%;
      • Commercial aircraft: USD1756 million, -24.2%;
      • Aerostructures and Engineering Services: USD1953 million, +20.9%;
    • Operating profit (loss): USD1001 million, +235%;
      • Commercial aircraft: (USD755 million), compared to a loss of USD389 million in p-c-p;
    • Net profit: USD318 million, compared to a loss of USD525 million in p-c-p;
    • Total assets: USD24,958 million;
    • Cash and cash equivalents: USD3187 million;
    • Total liabilities: USD28,972 million. [more - original PR]

Deutsche Lufthansa AG CEO Carsten Spohr, via Lufthansa's official Twitter account, said (14-Feb-2019) the carrier is "delighted that we can continue to use the A380" and that its crew and passengers "love the aircraft". "The Airbus A380 is a fascinating and in many ways outstanding aircraft", he said, however profitable use of the aircraft "is only possible on the extremely popular routes". Lufthansa operates a fleet of 14 A380s, according to the CAPA Fleet Database.