AIRLINE FUEL COSTS
In a first since Covid, Diwali flight numbers fall as high fares, disruptions take a toll
Airlines scheduled about 6% fewer flights across October and November than a year earlier, according to data from aviation analytics firm Cirium. That marks the first capacity decline since 2020, when carriers slashed service capacity by nearly 45% amid the pandemic-induced collapse in travel demand.
Air India shortlists former Singapore Airlines executive Balagopal Kunduvara for CFO role
Air India has shortlisted former Singapore Airlines executive Balagopal Kunduvara for the CFO role as the airline steps up efforts to cut costs and improve financial performance. Kunduvara, who recently left his position as finance chief at Garuda Indonesia, has over two decades of experience at Singapore Airlines. The carrier reported losses of more than Rs 22,000 crore in the last financial year.
Air India considers departed Garuda CFO for top finance position
Most recently, Kunduvara was finance chief for Garuda Indonesia, a position he recently left after holding the job for little more than a year. Prior to that, he spent more than two decades at Singapore Airlines, which is a partial owner of Air India alongside conglomerate Tata Group.
Don't let fare caps clip airlines' wings
Recently, airline price surges during festival seasons have raised concerns about imposing fare caps. While there is public demand for such measures, they may disrupt airlines' pricing flexibility. Regulations on airfares are more effective when they account for market demand and emergencies like natural disasters. Airlines might resort to add-on charges if their revenue is impacted by fare restrictions.
Soaring fares fail to ground year-end international travel plans
Despite a 25% increase in international airfares, bookings for year-end overseas holidays among Indians have risen by one-third. Many travelers are opting for more affordable destinations, especially in Southeast Asia and Japan. Airlines are reporting full flights, indicating high demand for international travel from India. Some international carriers are increasing their flight capacities in response to this demand.
Airlines go premium as demand for business-class seats outpaces economy
Since 2020, airlines have increased the number of premium seats significantly to meet growing consumer demand. Airlines are adopting strategies to enhance premium offerings, including gourmet meals and exclusive lounges. This focus has resulted in premium products generating substantial ticket revenue. Various airlines are implementing new options, such as Economy Plus and first-class services.
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British Airways parent profit drops on higher fuel costs
IAG, the owner of British Airways and Iberia, said Friday that its net profit dropped more than 12 percent in the third quarter on soaring fuel costs and flight disruptions caused by the Middle East conflict. The group said its overall flight capacity had been hit "by cancellations due to the conflict in the Middle East, together with aircraft availability linked to engine issues and disruption related to air traffic control disruption".
Iran war, doubling fuel prices knock 66% off Emirates' first-half profit
Emirates Group's first-half net profit plunged 66% to $1 billion as the Iran war disrupted flights across the Gulf and doubled jet fuel prices. Passenger numbers at Emirates airline fell 22%, while cargo revenue rose 52%. The Dubai-based group is relying on cash reserves as geopolitical uncertainty clouds its outlook.
Explainer: What do we know about the wave of bomb threats against flights in Europe?
Airlines in Europe have experienced a series of coordinated bomb threats this week, prompting security responses and flight diversions. Many threats were communicated via anonymous emails, but none have proved genuine so far. The risks associated with such threats can disrupt airline operations significantly and lead to financial costs. Aviation security officials emphasize the need to treat every threat seriously until proven otherwise.
Trump’s pain makes D-Street bulls gain! IndiGo, Asian Paints, other crude-sensitive stocks rally up to 8% as oil drops below $95
Paint makers, airlines, tyre companies and OMCs rallied as crude oil prices plunged nearly 10%, falling below $95 a barrel. Lower oil prices raised hopes of easing input and fuel costs, while Trump's midterm setback added to the positive market sentiment.
India proposes 1% mandatory blending of green jet fuel from January
India has introduced a draft policy for the mandatory blending of sustainable aviation fuel for international flights. The initial blending requirement is set at 1%, increasing to 5% by 2030, and 20% by 2040. Airlines must source approximately 90% of their aviation turbine fuel from international airports to curb economic tankering. Non-compliance may lead to penalties for airlines and oil marketing companies in this proposal.
Government prepares draft sustainable aviation fuels policy; moots mandatory blending in ATF from 2027
The civil aviation ministry has circulated the draft National Policy on Sustainable Aviation Fuels which mandates use of only indigenously manufactured SAF to be blended with Aviation Turbine Fuel (ATF).
Star Air cuts weekly flights on high fuel costs, says airline official
Star Air has reduced its weekly flights by 15-20%, largely due to soaring Aviation Turbine Fuel prices. The airline is calling for a special fuel pricing strategy to support regional operators. This change is in response to increasing operational expenses caused by volatile fuel costs amid geopolitical tensions. Although the government had previously set up a Price Stabilisation Fund for airlines, it has since expired.
FLY91 plans to expand fleet to 60 aircraft in five years, targets 350 weekly flights: CEO Manoj Chacko
Regional airline FLY91 plans to expand its fleet from six to around 60 aircraft over five years, backed by an order for 40 planes scheduled for delivery between 2027 and 2032. The airline also aims to operate nearly 350 weekly flights this winter, prioritising domestic expansion before exploring international routes.
Parliamentary panel raises concerns over high airfares; IndiGo, Air India flag rising fuel costs, Pakistan airspace closure
A parliamentary panel raised concerns over high airfares during discussions with IndiGo and Air India officials. Rising Aviation Turbine Fuel prices and the closure of Pakistan airspace were cited as major factors. IndiGo reported significant losses in the September quarter due to these issues, alongside challenges faced by Air India. The meeting also reviewed aircraft security and global aviation practices in India.
IndiGo to consider hedging fuel as it ventures on long haul routes
IndiGo is evaluating the possibility of hedging fuel costs as it plans for long-haul international operations. The airline's planned introduction of the Airbus A350 aircraft will enhance its overseas expansion strategy. Despite previously avoiding fuel hedging, management is now reassessing this approach in light of market competition. IndiGo's dominant position in the domestic aviation market facilitates its long-term growth aspirations.
IndiGo to introduce business, premium economy and economy cabins on A350 aircraft from 2028
IndiGo Airlines will introduce business class, premium economy, and economy cabins with its Airbus A350-900 aircraft. The first A350-900s are expected to join IndiGo's fleet in the second quarter of 2028. This marks a significant expansion in IndiGo's long-haul international operations, offering passengers more travel options. The airline currently operates in the domestic market and aims to strengthen its international presence.
IndiGo expects first Airbus A350 delivery in second quarter of 2028, CEO Willie Walsh says
The anticipated delivery of IndiGo's first Airbus A350 wide-body aircraft is scheduled for the second quarter of 2028, according to CEO Willie Walsh. The airline is focused on expanding its long-haul routes despite the hurdles of increasing fuel costs and a falling rupee. To better manage its operations, IndiGo has cut back on its Saudi Arabia routes.
Government notifies new airfare rules, allows intervention in extraordinary situations
The government has notified new rules allowing it to intervene in airline ticket prices in extraordinary situations and in the public interest, amid concerns over high airfares in the backdrop of elevated crude oil and Aviation Turbine Fuel (ATF) prices.
Cordelia Cruises targets top-five global cruise market status for India by 2032
Cordelia Cruises intends to expand its fleet to enhance domestic cruise tourism and increase capacity. The company currently operates two ships and plans to introduce a third earlier than expected. It emphasizes the potential of the Indian market, noting significant opportunities due to the coastline. The impact of rising fuel prices has affected operating costs, yet the company remains profitable.
Commercial LPG price hiked by Rs 10; ATF rates up Rs 1.37 per litre from November 1
From November 1, the price of a 19-kg commercial LPG cylinder increased by Rs 10 to Rs 2,820. Aviation turbine fuel prices have also risen by Rs 1.37 per litre to Rs 138.50. These increases represent the fourth consecutive monthly rise in jet fuel prices, driven by international benchmarks. Commercial LPG price revisions impact hotels and restaurants, following a series of hikes earlier this year.
Alaska Air to cut 200 jobs, warns of potential $700 million annual loss
Alaska Air Group will eliminate approximately 200 non-contract positions due to significant financial pressures. Rising fuel prices and other challenges have led to concerns about potential losses this year. The company's chief executive warned of an anticipated $700 million annual loss under current conditions. Affected employees will receive pay and support until the end of December.
IndiGo shares rise 2% after Q2 losses narrow. What are Jefferies and other brokerages saying?
IndiGo shares gained 2% after the airline reported a narrower year-on-year Q2 loss of Rs 1,879 crore, although profitability remained under pressure from elevated fuel costs and rupee depreciation. Jefferies retained its Buy rating but cut its target price to Rs 5,650, while Nuvama maintained its Buy call with a revised target of Rs 5,435.
IndiGo posts Rs 1,879-crore loss as high fuel costs, geopolitical woes hit; capacity cuts & yield management offer only partial relief, says CEO Willie Walsh
IndiGo reported a net loss of Rs 1,879 crore in the September quarter as a sharp rise in jet fuel prices and foreign exchange costs offset strong revenue growth. While revenue increased 26% year-on-year to Rs 23,363.8 crore, fuel costs surged more than 67%. The airline plans to raise fares, rationalise flights and maintain its long-term expansion plans, including the introduction of Airbus A350 aircraft in 2028.
IndiGo may hike ticket prices to offset soaring fuel bills, says CEO Willie Walsh
Amidst escalating fuel prices that heavily strain profitability, IndiGo is looking at the possibility of raising ticket prices. The airline reported a significant net loss of Rs 1,879.1 crore for the September quarter, with fuel costs surging by 67.2% compared to last year. CEO Willie Walsh highlighted the challenges in reducing costs due to the airline's efficiency.
IndiGo Q2 Results: Loss narrows YoY to Rs 1,879 crore; revenue rises 26%
IndiGo Q2 Results: Budget airline IndiGo reported narrowing of its consolidated loss to Rs 1,879 crore in the second quarter of FY27, compared with Rs 2,582 crore in the year-ago quarter. However, the loss widened from Rs 237 crore posted in the preceding June quarter.
Airlines can't predict oil prices anymore. Travellers may be left footing the bill
Airlines globally face challenges in fuel cost hedging as prices remain elevated due to geopolitical tensions. Major airlines like AirAsia and Ryanair have halted new hedges, anticipating further fare increases. Higher fuel costs may push ticket prices up by 15% to 20%, straining consumer willingness to pay. Many US and European airlines have reduced hedging, exposing them to market fluctuations.
JetBlue shares surge 12% as airline seeks to calm financial concerns
JetBlue Airways shares surged over 12% after addressing financial concerns despite reporting a larger quarterly loss. The loss was influenced by soaring fuel prices resulting from the ongoing war in Iran. JetBlue ended the third quarter with significant liquidity and assets, which provided some stability. However, rising fuel costs continue to exert pressure on the airline's margins and profitability.
DGCA extends pilot rest rule deadline to March as airlines face cost pressures
The Directorate General of Civil Aviation has extended the deadline for revised pilot rest rules to March 31, 2027. This extension is a response to airlines facing challenges such as rising costs and crew availability issues. Previous relaxations were granted after major operational disruptions by IndiGo due to crew shortages. Airline associations argue that these extensions undermine safety regulations and hinder compliance.
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