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Oman Air orders jets to transform into profit
Oman Air will order 'jets' to replace its aging planes, and to serve more routes, according to CEO Con Korfiatis. Korfiatis did not reveal a timeline for the deal or the number of aircraft, but he said that he was interested in narrowbody jets equipped with lay-flat mattresses, which appeal to premium travelers and are able to carry fewer passengers on long-haul flights, such as Kuala Lumpur, and Istanbul. He said, "We've been doing long-haul flights on narrowbody aircraft in the past couple of years that we didn't do before." "We see a market opportunity with this product." In March, Oman and Saudi Arabia 'offered alternate travel routes for tens thousands of Gulf residents trying to flee Iranian airstrikes after the U.S./Israeli war against Iran. Oman Air had to accommodate four to five time the usual number of passengers in the event of a crisis. The carrier is expecting to fly at least as many flights in 2026 compared to last year. Korfiatis stated that "having so many people cross the border to fly was a challenge in ways we have never seen before." "We've not seen our airport this full." He explained that in certain cases, customers would need to buy their tickets before crossing the border. He said that some people at the border didn't own a vehicle, so he set up bussing services. The airline's plan to transform from a losing airline may allow passengers who waited in Oman before departing the Gulf to return. He said that "generally, people who come to Oman come back." (Reporting by Allison Lampert, Rio de Janeiro; editing by Manuela andreoni and Chris Reese).
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Cathay Pacific CEO: More aircraft to be ordered across the fleet
Ronald Lam, the Chief Executive Officer of Cathay Pacific, said that it is looking at placing additional orders for widebody aircraft, 'narrowbody aircraft and freighter planes as part of its plans to expand rapidly in the next decade. Lam said this could include new orders as well as exercising options to expand previous orders. Cathay has already ordered more than 100 'new aircraft, including the long-delayed Boeing 777X, Airbus A350 cargo planes?and smaller Airbus A320neo passengers jets for HK Express, its low-cost subsidiary. Lam told reporters at an aviation summit held in Rio de Janeiro that "there will be more orders." Lam said that the next 10 years are a 'golden opportunity' for Cathay Group to expand, citing an increase in flights on Hong 'Kong's third runway. Lam stated that HK Express 'would only maintain an Airbus fleet,' excluding the purchase of rival Boeing short-haul aircraft. He said that Cathay Pacific will not cut flight capacity further despite the soaring fuel prices caused by the 'Iran war' and that the airline is on track to reach 10% capacity growth in this year. (Reporting and editing by Manuela Andréoni).
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Embraer, Brazil's Embraer, sees China as the ultimate breakthrough for E2 jets
A senior executive at Brazilian planemaker Embraer said on Sunday that the company expects its E2 'jets' to be brought into China eventually, as the aircraft will play a part in the development of domestic models. Arjan Meijer, CEO of Embraer Commercial Aviation, said that the team is working day-to-day in China. He was speaking on the sidelines a global meeting of top airline executives held in Rio de Janeiro. He added, "We think the E2 family will be the perfect complement to the indigenous products from China." Meijer stated that the E190E2 and E195E2 jets could 'fit between China’s smaller C909 aircraft and the larger C919 aircraft, giving airlines the flexibility to connect cities throughout the country. The executive stated that Embraer was in talks with potential customers. He also noted that the E2 family had been certified by local authorities. Since the closure of an executive jet joint-venture in Harbin in 2016, Embraer has had difficulty finding new business in China. It announced in 2023 a deal in Lanzhou to convert passenger planes into freighters, disappointing those in the industry hoping for a sale to an airline. "China faces its own challenges. So we're in discussions. We do believe that we will be able to find the right moment to introduce the E2 to China. But we need to wait. Meijer stated that we are not yet there. Meijer also said that Embraer is not yet ready to develop a larger aircraft, despite the growing interest from customers. He said that the firm is still focused on its core jet segment, which seats up to 150 passengers. It competes with Airbus’?A220 Family, but it falls below Airbus and Boeing’s most popular A320 and A737 families. It's no secret that our customers want a larger aircraft. But that's a huge?decision, especially for a company such as Embraer. We are not there. Meijer stated that they are "very satisfied" with the segment of 150 seats and up. (Reporting by Gabriel Araujo in Rio de Janeiro, editing by Manuela Andreoni)
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Copa Airlines maintains its no-hedge policy as fuel shock tests airlines
Copa Airlines does not plan to hedge fuel despite recent price spikes linked to the war with 'Iran. CEO Pedro Heilbron said that the airline is confident its strong 'balance sheet' and pricing adjustments can absorb the shock. He said that the Panamanian airline hasn't hedged fuel for over a decade, and doesn't intend to change its course. Heilbron explained, "We are just covering the costs." "Yields were adjusted, but not 100%. "It's only a partial effect." The global airline industry has raised fares to compensate for higher fuel costs, but the increases have been constrained by demand and competition. The executive stated that the industry is relying on fuel prices to gradually ease. Heilbron said Copa's conservative balance sheet and strong liquidity provide flexibility to weather volatility. He said that this gave Copa?room to maneuver, and also to be resilient. The demand in Latin America is still strong, Heilbron reported, thanks to the stronger currencies on key markets like Brazil. Copa, a hub-model airline that operates from Panama and flies Boeing 737s, continues to grow along with the planemaker's deliveries. The airline recently agreed to purchase up to 60 737 MAX aircraft, which will allow for both fleet renewal and expansion. "There is a high demand for new aircraft from both Boeing and Airbus. If you don't place your order early enough then you will be left without delivery. This 'new order' is for 2030-2034", he explained. The order includes flexibility for MAX variants as well as options for the MAX 10 which is yet to be certified. Copa is reviewing its fleet mix and hasn't made a final decision yet. Boeing's CEO stated that the company has been delivering on schedule or slightly earlier than expected. Gabriel Araujo in Rio de Janeiro and Luciana Magnalhaes, editor Manuela Andreoni.
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Italy's ITA Airways considers a lawsuit against Pratt & Whitney over engine defects
The CEO of ITA 'Airways' said on Sunday that the airline will decide in the next 'eight weeks' whether to sue RTX's Pratt & Whitney for engine problems which have grounded 20% of its 80 'aircraft'. Globally, hundreds of A320neo jets - the latest version?of Airbus' single-aisle aircraft - have been grounded. The 'long waiting times for engine inspections, repairs and maintenance and a manufacturing issue at Pratt & Whitney have all contributed to this. Joerg Eberhart said, "It is imminent" on the sidelines of a 'global gathering' of top airline executives at Rio de Janeiro. "We'll have to?decide within the next 6-8 weeks." RTX 'didn't immediately?respond to a?"request for comment. (Reporting by Allison Lampert in Rio de Janeiro, editing by Manuela Andreoni)
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Fuel shock in Iran War slashes 2026 profit forecast for global airlines
On Sunday, the global airline industry almost halved their 2026 profit projection, citing conflict in the Middle East, which has?driven fuel prices up, disrupted important air corridors, and exposed?the 'fragility of an industry operating on thin margins. In its annual report, the International Air Transport Association (IATA), which represents over 370 airlines and accounts for about 85% global air traffic said that it expects to see a combined profit of $23 Billion in 2026. This is well below an earlier projection of $41 Billion, down from $45 Billion in 2025. Even though passenger demand is resilient, planes are flying fuller, and revenues will rise to over $1.1 trillion, the downgrade highlights airlines' vulnerability to geopolitical events and fuel volatility. Willie Walsh, IATA's Director General, said that the two main factors have led to a reduction in the forecast. "The first is the significant rise in jet fuel prices which has been higher than I thought anyone would have anticipated, and the second factor has been the disruption of the airlines in Gulf region," Walsh said at the annual meeting of the IATA group in Rio de Janeiro. Walsh predicted that some smaller airlines would go bankrupt this year or next due to higher fuel prices. Spirit Airlines, the U.S.'s low-cost airline, shut down in December. It was dubbed "the first airline victim of the Iran war". Walsh stated that airlines are expected to cut routes which are not profitable to protect their margins. Fares, however, are unlikely to drop soon since they have risen dramatically since the beginning of the Iran War. Walsh explained that fares would likely remain high in an environment where the demand is still strong, but the capacity has decreased. A FUEL COST SHOCKS OUT HIGHER REVENUES Airline reroutes flights to avoid restricted or closed airspace due to the Middle East conflict triggered by U.S. airstrikes against Iran. This adds hours?to some trips, increases fuel consumption and puts strain on already limited capacity. Oil prices are surging on the back of fears about supply disruptions. This has pushed jet fuel prices higher, and widened refinery margins. Airlines have seen a sharp increase in their largest cost. Gulf airlines like Emirates, Qatar Airways, and Etihad Airways are facing the most operational uncertainty following a near-complete closure of regional airspace? at the start of the conflict. Walsh said that most regions would remain profitable but at a lower level, whereas Middle East airlines will likely slip into the negative due to conflict and weaker demand. IATA expects the fuel bill for airlines to rise to $350 billion by this year, from about $252 billion last year. Fuel accounts for?nearly a third? of operating costs. This is reducing the profitability of airlines per passenger. Airlines are now expected to earn $4.50, or roughly half what they earned last year. IATA anticipates that industry revenues will rise 9.4% this year to $1.16 trillion, driven by a steady travel demand and higher fares. They also expect to see a growing income from extras like seat upgrades and onboard service. The sector is also being squeezed by aircraft shortages. Airline delays in Boeing and Airbus deliveries force airlines to use older, less fuel efficient planes for longer. This increases maintenance costs and stifles efforts to improve margins.
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Etihad Airways purchases widebody aircraft, returns to pre-war capacity by June
In an interview, CEO Antonoaldo Neves stated that Etihad Airways will be ordering more widebody aircraft to meet its 8% increase in flights over the previous year by June 15. On Saturday, he said that Abu Dhabi's airline is purchasing widebody planes in the "double digits" but declined to provide any further details. Neves stated that Etihad has restored flights following the cuts made in March, as the U.S. and Israeli war against?Iran shifted regionally, increasing fuel prices. Etihad, he said, "doesn't plan to reduce?costs? by cutting flights for the time being." He said, "The largest cost we have is an empty plane." "So I cut costs by not having empty planes."
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Ethiopia Airlines to make decision on regional jets in the next three weeks
Ethiopian Airways will likely decide in the next three months on an order of 25 smaller commercial 'jets' to expand its local network. This was announced by CEO Mesfin TasewBekele late Saturday night during a meeting of airline executives held in Brazil. Africa's largest airline, with 147 aircraft in its fleet, is considering the Airbus A220 and Embraer E-2, as well as the Boeing 737 -MAX 7 which will be certified this year by the U.S. faa. The planes will be used for both domestic routes as well as around neighbouring countries. Bekele stated that there are some issues but a decision would be made in a matter of a few months. Bekele didn't specify what the issues were. The A220 program is still in the red, and it faces stiff competition from Brazilian competitor Embraer. Ethiopian Airlines, like other carriers, has struggled with rising fuel prices because of the "war in Iran". It has also cut Middle East flights due to lower passenger demand. For example, it reduced frequency to Dubai, from three flights per day to two, he explained. The airline is spending 60% more per plane on jet fuel than it did in the past, despite resolving concerns about shortages. "We have resolved the supply problem." He added, "It is fine now" on the sidelines of?the International?Air Transport Association (IATA's) annual summit this weekend in Rio de Janeiro. "But the pricing issue is a very serious issue."
United Airlines CEO: Big merger unlikely following American's rejection, but asset purchases are possible
United Airlines is open to purchasing airport slots, gates, or other assets, if higher fuel prices place weaker competitors under pressure. However, it will not pursue a large consolidation 'deal' after its failed approach to American Airlines.
Kirby stated in April that American refused to engage with him after he approached them about a merger. This was an idea he reportedly raised in February with U.S. president Donald Trump. Robert Isom, the CEO of American, rejected a merger as being anti-competitive for customers and unprofitable.
Kirby stated in an interview conducted on the sidelines the International Air Transport Association annual meeting held in Rio de Janeiro, "I don't think United will consolidate." "That does not mean that we will not still be in the marketplace to buy assets. But consolidation is a very low probability."
Merger Needs Management Support
Kirby said he thought the deal with American would have been beneficial to consumers. He said that a deal so large and unusual could not have been completed without the support of?American's Management.
United's chief executive said that he thought labor groups, shareholders and clients would have supported this deal. He said that the public opposition of American management made it impossible to complete the deal. Kirby stated that the management team could not publicly state it was anticompetitive.
When asked if United had abandoned American or if it could come back to the idea in the future, Kirby said that any deal would need "a willing partner."
He denied that United and the Trump administration had discussed giving the U.S. Government a golden stake as part of any merger proposals.
Fuel prices are increasing and putting pressure on airline margins. This is causing a widening gap between the larger airlines with better brands and their weaker competitors with lower pricing power.
Kirby stated that United believes it will be able to recover the full cost of fuel surging prices by the end of the year, despite the rising ticket price. This shows the carrier's faith in the demand for tickets despite the increasing prices. He said that demand has remained strong, but United expects the higher fares to eventually have an impact.
BRAND-LOYAL AIRLINES PULL AHEAD
Fuel shock has been cited by several airline executives as a factor in separating the stronger from the weaker carriers. Kirby described the division as being between airlines that have a loyal customer base and those who compete primarily on price.
Willie Walsh of the International Air Transport Association criticized him for saying that large U.S. Carriers are eliminating 'competition. Kirby stated that United and Delta Air Lines have won because they invested in brands and services that travelers value.
Kirby stated that "customers are concerned about technology, service, reliability and the product." "They want a great experience." They want more than a seat. Kirby said United’s advantage was less about its balance sheets than?its operating profits, which allowed the airline to continue investing while other similar sized competitors are barely breaking even.
Kirby was asked if JetBlue Airways' cash and assets would make it more attractive to United in the event that JetBlue entered Chapter?11 - a financial restructuring procedure. He said, "that scenario is unlikely", citing JetBlue’s unencumbered funds.
He also dismissed fuel hedging, claiming that it was "ineffective" if the company lost money.
Kirby acknowledged that Delta's refinery helps it to survive in the current market, but he said United was not interested in buying a refinery like its U.S. competitor. (Reporting and editing by Edmund Klamann, Rajesh Kumar Singh, Joe Brock)
(source: Reuters)