CAPA News Briefs

United Airlines announced (24-Apr-2025) an investment in JetZero, including a path to order up to 100 aircraft and an option for an additional 100. The conditional purchase agreement is based on JetZero achieving development goals, including flight of a full scale demonstrator in 2027, and that the aircraft meet United's safety, business and operating requirements. [more - original PR]

AviAlliance announced (23-Apr-2025) plans to invest GBP350 million in the growth and decarbonisation of AGS Airports over the next five years, marking the largest capital investment in AGS since its formation in 2014. AviAlliance acquired AGS in Jan-2025 for an enterprise value of GBP1.5 billion. The investment includes a transformation of Glasgow Airport's main terminal building, redevelopment of the terminal at Southampton Airport and airfield infrastructure works at Aberdeen International Airport. AviAlliance also confirmed the appointment of Charles Hammond as the new chair of AGS. Mr Hammond stepped down as CEO of Forth Ports in 2024, having held the position for 23 years. [more - original PR]

European Travel Commission (ETC), in its 'Monitoring Sentiment for Intra-European Travel - Wave 21' report, stated (23-Apr-2025) that while Europeans' overall travel intention for spring/summer 2025 is 3% lower year-on-year at 72%, travellers across Europe are planning longer stays, spending more and diversifying where they go. Report highlights include:

• Poland is recording the strongest travel intention (80%), followed by the UK (79%), the Netherlands (75%), Spain (75%) and Italy (73%);
• France is recording the weakest travel intention (65%), followed Belgium (68%), Austria (69%), Switzerland (69%) and Germany (70%);
• Travel preferences are shifting, with less interest in Mediterranean hotspots (-8% year-on-year) and growing demand for alternative destinations such as Eastern Europe (+3%) and event based trips;
• Travel confidence is growing despite a slight drop in overall intent. Between Apr-2025 and Sep-2025, 27% of Europeans plan to take three or more trips (+6%), and 42% will take holidays of seven to 12 nights (+11%);
• Budgets are rising, with 30% planning to spend between EUR1501 and EUR2500 per trip (+7%), and 17% expecting to spend over EUR2500;
• Financial concerns are easing, but remain the leading barriers to travel. Worries over travel costs decreased 6pp to 17%, and personal finance concerns dropped 3pp to 14%;
• Accommodation tops spending priorities (27%), followed by food (20%) and activities (16%). Travellers aged 18 to 24 are more inclined to spend on shopping (15%) and luxury (11%), while travellers over 55 travellers prioritise comfort, spending more on accommodation (33%) and food (24%);
• Southern and Mediterranean Europe remains the top pick for 41% of travellers, though interest has dipped slightly. Meanwhile, destinations like Austria, Bosnia and Herzegovina, Albania, Belgium and Bulgaria are seeing a modest 1% rise in popularity;
• Major cities and resorts remain the most popular destinations (53%), but 35% are opting for less common spots, and 13% plan to explore off-the-beaten-path areas within their chosen country;
• Travellers choosing less popular locations tend to stay longer (38% plan trips over 10 days, compared to 21% of those choosing traditional destinations) and spend more, with many budgeting over EUR2500 per trip;
• Climate concerns are shaping travel choices, with 81% of Europeans now influenced by climate change (+7%). Travellers are also adapting their habits, with 17% monitoring weather more closely, 15% seeking milder climates and 14% avoiding heat-prone destinations, helping drive interest in cooler or alternative regions. [more - original PR]

Wizz Air launched (23-Apr-2025) the 'Flying Towards Net Zero' roadmap and outlined the following details:

• Focus areas:
  • Flights: 30% emission reductions from new aircraft technology and fleet renewal;
  • Fuel: 53% emission reductions from sustainable aviation fuel (SAF);
  • Footprint: 4% emission reductions from air traffic management modernisation;
• Fundamental pillars:
  • 53% decarbonisation through the increased use of SAF;
  • 21% decarbonisation through technological advancements in aircraft and engine technology;
  • 7% decarbonisation through fleet renewal;
  • 4% decarbonisation through air traffic reform;
  • 2% decarbonisation through operational efficiencies.

Wizz Air stated the plan "comes at a critical juncture for the aviation industry, as efforts to achieve net-zero emissions by 2050 are sliding off course, and the competitiveness of European aviation faces headwinds due to rising costs from regulatory compliance". Wizz Air stated it places greater emphasis than its competitors on SAF and new aircraft technologies as critical decarbonisation levers, rather than "unproven technologies" and offsetting. Wizz Air corporate and ESG officer Yvonne Moynihan said: "The current pace of change is not enough, and without radical intervention, aviation will fail to meet its commitments". Ms Moynihan added: "We're calling on governments, regulators, and the fuel industry to wake up to the reality of aviation's transition and start delivering the changes that will make net zero possible. Aviation needs a policy and investment revolution". [more - original PR]

Port Authority of New York and New Jersey (PANYNJ) partnered (23-Apr-2025) with Realterm and Worldwide Flight Services (WFS) to open a USD270 million consolidated cargo handling centre at New York John F Kennedy International Airport, the first new cargo facility at the airport in 25 years. The centre will consolidate operations from four cargo zones into a single location, which is expected to reduce congestion, streamline operations and unlock space for future development. The 350,000sqft facility will be operated by WFS and spans 26 acres, replacing two older facilities. It marks the first step in PANYNJ's plans for the airport's north cargo area to accommodate recent and future cargo growth. The centre features a new truck dock management system designed to optimise the flow of goods and 3000sqft of cooler space, making it New York JFK's first dedicated on-airport facility for temperature sensitive pharmaceuticals and perishables. [more - original PR]

Saudia Group signed (23-Apr-2025) an agreement with Airbus to acquire up to 20 A330neo aircraft. The transaction includes a firm order of 10 A330-900s to be operated by flyadeal, marking the LCCs first widebody order. Aircraft deliveries are scheduled to begin in 2027 with the final aircraft to arrive in 2029. Director general Ibrahim Al-Omar stated: "This deal supports Saudia Group's plans to grow and improve its operations. It adds to the modernization of our fleet, improves aircraft maintenance, and makes our overall operations more efficient". Saudia Group currently operates a fleet of 194 aircraft, with 191 new aircraft scheduled to be delivered in the coming years. [more - original PR - Saudia] [more - original PR - Airbus]

Cargolux Group stated (23-Apr-2025) the outlook for 2025 remains uncertain due to geopolitical and regulatory pressures. The imposition of import tariffs by the US on trading partners is expected to negatively impact air cargo demand and disrupt traditional trade lanes. Combined with the ongoing war in Ukraine and conflicts in the Middle East, these developments are also weighing on operational efficiency and customer confidence. The group further noted that new sustainability regulations, particularly within the EU, will increase operational costs and may create competitive imbalances with non-EU carriers not subject to the same rules. Cargolux emphasised the need for cooperation between authorities and industry players to develop viable, long term solutions that support a sustainable future for aviation. The group will continue to monitor the situation closely to enable informed decision making in a volatile market environment. [more - original PR]

Boeing CEO Kelly Ortberg, on the company's 1Q2025 earnings call, stated (23-Apr-2025) "We do have suppliers in countries subject to the new US tariffs, most notably in Japan and Italy where our suppliers do significant structures work on our widebody airplanes". Mr Ortberg said: "We are currently paying the 10% tariff on those components, but we should recover tariff costs for those aircraft that are subsequently exported, which is a large portion of our widebody". He added: "I hope over time that these tariffs can be resolved through negotiated agreements but until that happens, we will have to manage our way through these increased input costs".

Boeing CEO Kelly Ortberg, on the company's 1Q2025 earnings call, stated (23-Apr-2025) "The only region that we have an issue with aircraft delivery today is China and due to the tariffs many of our customers in China have indicated they will not take delivery". Mr Ortberg said: "We have approximately 50 China deliveries in our plan for the balance of the year. We're in close communication with our China customers and we're actively assessing options for remarketing already built or in-process airplanes". He continued: "And for the nine airplanes not yet in the production system, we're engaged with our customers to understand their intentions for taking delivery and if necessary, we have the ability to assign those positions to other customers". Mr Ortberg added: "It's an unfortunate situation but we have many customers who want near term deliveries so we plan to redirect the supply to the stable demand and we're not going to continue to build aircraft for customers who will not take them".

Alaska Air Group reported (23-Apr-2025) the following updates on the integration of Hawaiian Airlines:

• Integrated loyalty programme on track to launch in 2H2025;
• Single air operating certificate (AOC) expected in 4Q2025;
• Unified passenger service system to roll out in 2Q2026, with vendor selection and preparatory work underway to bring both carriers onto one reservation system;
• Joint collective bargaining agreements expected to be finalised from 2025 through to 2027. [more - original PR]

Boeing reported (23-Apr-2025) the following financial and operational highlights for 1Q2025:

• 737 production "gradually increased" and is still expected to reach 38 aircraft per month in 2025;
• Revenue increased to USD19.5 billion, primarily reflecting 130 commercial deliveries, up 57% from 83 deliveries in 1Q2024;
• Backlog included over 5600 commercial aircraft valued at USD460 billion;
• Boeing Commercial Airplanes revenue of USD8.1 billion and operating margin of 6.6% primarily reflected higher deliveries;
• The 787 programme continued to stabilise production at five aircraft per month. Boeing still expects to increase to seven per month in 2025;
• The 777X programme began expanded US FAA certification flight testing and the company still anticipates first delivery of the 777-9 in 2026;
• Boeing Commercial Airplanes booked 221 net orders, including 20 777-9 and 20 787-10 aircraft for Korean Air and 50 737 MAX 8 aircraft for BOC Aviation;
• Backlog at 31-Mar-2025 was USD545 billion. Boeing expects approximately 24% to be converted to revenue through 2026 and approximately 71% through 2029, with the remainder thereafter. The company noted there is "significant uncertainty" regarding the timing of when backlog will convert into revenue. It stated: "We may experience reductions to backlog and/or significant order cancellations due to various factors including delivery delays, production disruptions and delays to entry into service of the 777X, 737 MAX 7 and/or 737 MAX 10";
• Boeing continues to work through the certification process of 737 MAX 7 and 737 MAX 10, which have been delayed, while the company works through the engineering solution for the engine anti-ice system;
• As of 31-Mar-2025, Boeing had approximately 35 737 MAX 7 and 737 MAX 10 aircraft in inventory. Boeing stated: "We are following the lead of the FAA as we work through the certification process and the ultimate timing will be determined by the regulators. If we are unable to deliver aircraft and/or increase future production rates, or certify the 737 MAX 7 and 737 MAX 10 models consistent with our assumptions, our financial position, results of operations and cash flows will be adversely affected".

Boeing president and CEO Kelly Ortberg stated: "Our company is moving in the right direction as we start to see improved operational performance across our businesses from our ongoing focus on safety and quality". Mr Ortberg added: "We continue to execute our plan, are seeing early positive results and remain committed to making the fundamental changes needed to fully recover the company's performance while navigating the current environment". [more - original PR]

Flight Centre Corporate global COO Melissa Elf stated (23-Apr-2025) "International airline capacity out of Australia is currently sitting at 101% of pre-pandemic levels, and it has been hovering around this level since late 2024, when Australia reached full international capacity for the first time since the pandemic". Ms Elf added: "We can expect to see the trend continue this year, with levels expected to reach a high of 106% of pre-pandemic capacity by mid-year, but as always, levels will fluctuate to meet seasonal demand". She noted Perth Airport has become a "real leader" as an origin point for international capacity, offering 121% of pre-pandemic international seats. Perth Airport is followed by Melbourne Tullamarine Airport (102%), Brisbane Airport (101%) and Sydney Kingsford Smith Airport (98%). Ms Elf said: "Destinations across Asia and the Middle East are leading the way with capacity, with the likes of Singapore Airlines and [Qatar Airways] really investing into adding capacity in and out of Australia". She stated: "Fiji Airways is the quiet achiever that has been growing its fleet and opening up new routes for Aussies travellers, and as a result, has seen Fiji reach pre-pandemic capacity of 134%". [more - original PR]