Reading Time: < 1 minute The International Air Transport Association (IATA) announced that the airline industry would have to wait until 2022 to turn cash-positive. This prognosis differs from what IATA predicted previously and suggests carriers worldwide will be burning at least $75 billion in cash in 2021 compared to the original estimate of $48 billion. “With governments tightening border […]
Reading Time: < 1 minute According to Reuters, the Airlines for America (A4A) has sent a letter to the White House asking “to move ahead with recommendations to rescind current entry restrictions on travelers from Europe, the United Kingdom and Brazil as soon as possible … concurrently with the testing program.” “We believe a well-planned program focused on increasing testing […]
Reading Time: < 1 minute Vietravel is completing finishing touches and will soon operate its maiden flight, followed by commercial services launch in mid-January. A couple of days before the New Year, Vietravel Airlines was awarded the Aircraft Operator Certificate, which officially marked the startup carrier’s addition to the industry. “The first routes will be Hue – Hanoi and Hue […]
Reading Time: < 1 minute British Airways, a part of the International Airlines Group (IAG), to which Iberia and Aer Lingus belong, has received a £2 billion loan guaranteed by the state-backed credit agency UK Export Finance (UKEF). The agreement implies that BA will borrow the money from a syndicate of banks, but the Government will be partially liable if […]
Reading Time: < 1 minute The U.S. has reached an agreement on a $900bn coronavirus relief deal. It includes $16bn for the airline industry and a nearly $285bn extension of the Paycheck Protection Program. The bill, set for voting in the House and the Senate on Monday, will be the fifth piece of financial support passed in the U.S. since […]
Reading Time: < 1 minute As Finnair reported on Wednesday, it plans to receive an unsecured hybrid loan of up to 400€ million ($486 million). This financial aid, subject to EU Commission approval, should help the airline get through the challenging times of the pandemic. Tytti Tuppurainen, the minister responsible for state ownership policies, said, “The state is committed to […]
Reading Time: < 1 minute Financial aid and support to airlines is currently vitally important for the airlines, and the industry, to begin recovering after the pandemic. Airlines have received over $120 billion in financial assistance from governments. Nevertheless, there are two sides of the same coin. With a financial help also grows the airline industry’s global debt. According to […]
Reading Time: 2 minutes The International Air Transport Association (IATA) forecasts the global airline industry net profit to be $35.5 billion in 2019, slightly ahead of the $32.3 billion expected net profit in 2018 (revised down from $33.8 billion forecast in June). Lower oil prices and solid, albeit slower, economic growth (+3.1%) are extending the run of profits for […]
Reading Time: 4 minutes Between 2004 and 2015, the US airline industry saw 11 major air carriers merge into 4. This massive consolidation took place as a response to industry slowdowns and from the lack of ability on the airlines part to generate a profit. As the dust settled, the remaining airlines have learned from their past and are […]
Reading Time: 2 minutes United Airlines became the first North American carrier to operate the fuel efficient Boeing 737 MAX 9 aircraft. The brand new plane entered service as United flight 686 between United’s hub at Houston George Bush Intercontinental Airport and Orlando International Airport in Florida. The MAX is also scheduled to operate flights today between Houston and […]