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Several airlines have criticized Boeing for delivery delays. Ryanair CEO Michael O'Leary told Reuters Wednesday that the airline is likely to cut its traffic growth expectations for next year as it predicts delivery delays. Also on Wednesday, at an Irish think tank event, the head of the world's foremost airline trade group spoke out about delivery delays. AdvertisementLast Friday, Boeing announced further delays to its 777X jet, with its first delivery pushed from 2025 to 2026. AdvertisementThe Boeing 777X was delayed again last week, leading to sharp criticism from the boss of Emirates, one of Boeing's biggest customers.
Persons: Michael O'Leary, , O'Leary, Willie Walsh, Walsh, Tim Clark, GIUSEPPE CACACE, I've, Carsten Spohr, Spohr Organizations: Boeing, Service, Ryanair, Reuters, International Air Transport Association, Guardian, Airbus . Supply, Alaska Airlines, Emirates, Business, Getty, Lufthansa, Airlines, Europe, Financial Times, BI Locations: Irish, AFP, Emirates
Dubai’s millionaires are fueling a private jet boom
  + stars: | 2024-09-26 | by ( Lucy Cormack | ) edition.cnn.com   time to read: +9 min
Dubai, UAE CNN —It’s 3am at the VIP airport terminal of Dubai’s Mohammed Bin Rashid Aerospace Hub and an ultra-long range aircraft is readying for take-off. The luxury, 14-seat private jet is headed for Europe, just as soon as its main passenger and his entourage arrive. It’s an elite club that enjoys private jet travel, which can cost anywhere from $50,000 to $200,000-plus for a single leg. Mouallem said the private aviation industry was accustomed to “different kinds of shifts across the world with banning private aviation,” insisting that the focus should be not on banning flights but ensuring greater adoption of sustainable aviation fuel (SAF). So that’s really an operator decision and a supplier decision,” Avetkiyan said, adding that her customers shouldn’t feel guilty about the environmental impact of private aviation.
Persons: UAE CNN —, Mohammed Bin Rashid, it’s, , Lilit Avetikyan, Lilit, Voyex, Vanessa Budah, , Knight Frank, they’ve, Faisal Durrani, Knight Frank Middle, Durrani, Youssef Mouallem, “ You’ve, ” Mouallem, they’re, you’re, ” Youssef Mouallem, Vistajet Mouallem, Mouallem, Avetkiyan, that’s, ” Avetkiyan, “ I’m Organizations: CNN, UAE CNN, Hub, McDonald’s, KFC, United Arab Emirates, Communications, Henley, Partners, US, Knight, Resorts, Resorts Tech, Resorts Dubai, Creative, International, Sharjah —, Gama Aviation, Sharjah International, European Federation for Transport, Sustainable, Emirates, Airbus, SAF, International Air Transport Association, Emirates SAF Locations: Dubai, UAE, Europe, Voyex, India, East, Russia, Africa, Gulf, Saudi Arabia, Sharjah, Netherlands
Bloomberg | Bloomberg | Getty ImagesThe aviation industry still sees so-called "sustainable aviation fuel" (SAF) as the only viable way to meet its decarbonization targets, even as opposition and the potential for higher costs for passengers pose obstacles to the fast-growing sector. SAF is a broad term describing fuel that is burned by an aircraft engine, but instead of using kerosene is derived from more sustainable sources. The planemaker said it is collaborating with producer HIF Global on the development of methane-based fuels, and investing in alcohol-to-jet fuel producer LanzaJet. But IATA's own forecast for SAF production to triple in 2024 to 1.9 billion liters would cover just 0.53% of aviation fuel demand for the year. "The truth is, it's going to be more expensive, you can't really sugarcoat that," said HIF Global's Clara Bowman.
Persons: Neste, HIF, Buzz, Lauren Riley, Riley, Rick Nagel, You've, Clara Bowman, Bowman, United's Lauren Riley, HIF Global's Clara Bowman Organizations: SAF, Bloomberg, Getty, United Airlines, Chicago O'Hare International, Labour, Airbus, Farnborough Air, CNBC, International Air Transport Association, Acorn Capital Management, Porsche, HIF, Union's Renewable Energy Directive, Biden, Boeing, Google, Embraer Locations: Singapore, Chile, Texas, U.S, America
It means that, in aggregate, the average prices of goods and services are rising, just more slowly. Where prices have deflatedFor example, prices have declined by about 5% for furniture and bedding and 3% for appliances since August 2023, according to CPI data. Outside of supply-demand dynamics, the U.S. dollar's strength relative to other global currencies has also helped rein in prices for goods, economists said. Airline fares have declined about 1% over the past year, according to CPI data. Grocery prices have fallen for items such as apples, potatoes, ham, coffee, rice, seafood and bananas, according to CPI data.
Persons: Stephen Brown, it's, Sarah House, They've, women's outerwear, Brown Organizations: North, Capital Economics, Finance, Social Security, Wells, Wells Fargo Economics, U.S, International Air Transport Association Locations: U.S, North America, Wells Fargo, China
Global Jets ETF , whose largest holdings are Southwest Airlines , United Airlines , American Airlines and Delta Air , is off 7.5% just since the end of June. GE Aerospace GE Aerospace is a pure play on the rise of global air travel, according to John Belton, portfolio manager at Gabelli Funds. Just about all 18 analysts polled by LSEG consider GE Aerospace a buy, with five rating it a strong buy. Central to the investment thesis for GE Aerospace is its market leadership. "The air travel industry is a growth industry," Galluccio said.
Persons: Richard Branson, John Belton, Belton, Nicholas Galluccio, Galluccio, Morningstar, that's, Tony Bancroft, Bancroft, there's, wanderlust Organizations: Virgin Group, U.S . Global Jets ETF, Southwest Airlines, United Airlines, American Airlines, Delta Air, Transportation, Boeing, Airbus, Gabelli, International Air Transport Association, AAR Corp, Teton Advisors, Westwood, Equity, GE Aerospace GE Aerospace, Gabelli Funds, New York Stock Exchange, General Electric, GE Aerospace, LSEG, GE, Airlines, Morningstar, Growth, Max, Federal Aviation Administration, Aerospace & Defense ETF, Heico Corporation, Triumph, TransDigm Locations: U.S, Eastern Europe
As the aviation industry scrambles for ways to reduce its carbon footprint, hydrogen has emerged as a high-potential solution to its problems. In 2022, aviation accounted for 2% of global energy-related CO2 emissions, according to the International Energy Agency. The International Air Transport Association, the trade association for the world's airlines, has committed to achieving net zero by 2050. IATA's 330 member airlines will rely on sustainable aviation fuel, offsets and carbon capture, and new technology to reach the goal. So, how would hydrogen fuel and planes work?
Organizations: International Energy Agency, International Air Transport Association
However, the rule “likely exceeds DOT’s authority and will irreparably harm airlines,” a three-judge panel of the Fifth U.S. American Airlines, Delta Air Lines, United Airlines, JetBlue, Alaska Airlines were among the airlines, joined by trade group Airlines for America and the International Air Transport Association, which sued in May to block the rules. The industry said the rule would require airlines to “spend millions” to re-engineer their websites, diverting resources from other projects. Many large US airlines boosted fees this year for checked baggage. U.S. airlines collected $7.1 billion in baggage fees in 2023, up from $6.8 billion in 2022.
Persons: Biden, Pete Buttigieg, Organizations: Reuters, Transportation, Fifth U.S, Circuit, Appeals, American Airlines, Delta Air Lines, United Airlines, JetBlue, Alaska Airlines, Airlines for, International Air Transport Association, , Microsoft Locations: Airlines for America
Airlines face numerous problems, including higher costs, such as fuel, wages and interest rates. And problems at Boeing mean airlines have too few planes to expand routes to support a record numbers of flyers. Labor costs and jet fuel prices, the airlines’ two largest costs, are both sharply higher this year. Jet fuel prices are climbing because of higher demand in the summer. Southwest announced in April that it would stop serving four airports to trim costs — Bellingham International Airport in Washington state, Cozumel International Airport in Mexico, Syracuse Hancock International Airport in New York and Houston’s George Bush Intercontinental Airport.
Persons: that’s, Houston’s George Organizations: New, New York CNN, Boeing, Labor, Airline, Jet, International Air Transport, Airbus, Alaska Airlines Boeing, Max, Federal Aviation Administration, Southwest, Bellingham International Airport, Cozumel International, Syracuse Hancock International, Houston’s George Bush Intercontinental Locations: New York, Southwest, United, Washington state, Cozumel, Mexico, Syracuse
Expensive fuel, maintenance, and labor don't help, nor do unpredictable setbacks outside the airline's control, like pandemic travel bans and production slowdowns at planemaker Boeing. But across the industry, many airlines are struggling to turn profits thanks to issues like overcapacity, unrelenting competition, and unexpectedly high costs, according to experts. Boeing delivery delays have eaten into profitsHarteveldt said Boeing's ongoing delivery delays have cost airlines like American, Southwest, and United millions of dollars. Airlines are plagued by high costs in an extremely competitive industryNearly everything is more expensive than it was before the pandemic, and airlines are no exception. For low-cost carriers like Frontier and Spirit, these high costs make it challenging to make money, Kraemer said.
Persons: , Henry Harteveldt, Scott Olson, Robert Isom, Bob Jordan, Harry Kraemer, Kraemer, You've, you've, Harteveldt, Joe Raedle, they've, Stephen Brashear, Eric Glenn, Shutterstock Harteveldt Organizations: Service, planemaker Boeing, Business, International Air Transport Association, , Airlines, Getty, Reuters, Southwest, Elliott Investment Management, Baxter International, Corporations, Google, Spirit, Frontier, Boeing, JetBlue Airways, Airbus, Bureau of Labor Statistics Locations: Delta, United
Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailIATA forecasts about $30 billion in net profit for the aviation industry in 2024Willie Walsh, director general of the International Air Transport Association, says "this year we're looking at record revenues, close to $1 trillion, but also record costs."
Persons: Willie Walsh Organizations: International Air Transport Association
The recent Singapore Airlines turbulence incident and how the aftermath was handled offers a lesson to all in the industry, Emirates President Timothy Clark said. A Singapore Airlines flight encountered severe turbulence on its way from London to Singapore last month, leaving one person dead and several injured. The flight was forced to land in Thailand and preliminary investigation showed that the plane dropped 54 meters (178 feet) in less than five seconds. "No airline could have done more to try and - one, address the issue, and two, deal with the consequences than Singapore did," he said. Pilots engaged controls in an attempt to stabilize the aircraft while gravitational forces were fluctuating, according to the investigation report, which also noted that seat belt-fastening signals were switched on as the incident unfolded.
Persons: Timothy Clark, Clark, CNBC's Dan Murphy Organizations: Emirates, Singapore Airlines, International Air Transport, Pilots Locations: Singapore, London, Thailand, Dubai
The International Air Transport Association (IATA) raised its profit forecast for the airline industry in 2024 and predicts a record revenue of $996 billion. "With a record five billion air travelers expected in 2024, the human need to fly has never been stronger. DUBAI, United Arab Emirates — The International Air Transport Association raised its profit forecast for the airline industry in 2024 and predicts revenue of $996 billion — a record high and a 9.7% jump on the previous year. But while revenues and profits are enjoying tailwinds, expenses are also soaring, leaving profit margins thin, the IATA report said. Total expenses for global airlines are expected to reach $936 billion, according to the industry body's projections — a 9.4% annual increase and a record high.
Persons: Willie Walsh, Walsh Organizations: International Air Transport Association, United Arab Emirates, Airlines Locations: Dubai, DUBAI, United Arab
The airline topped the American Customer Satisfaction Index, despite its infamous panel blowout in January. Overall, US air travel customers were happier than last year with their experiences. The airline comfortably topped the annual American Customer Satisfaction Index with a score of 82, a one-point improvement compared to 2023. Allegiant registered a four-point rise in overall customer satisfaction, making it one of the fastest climbers this year. By collating this information, the American Customer Satisfaction Index says it provides a "definitive measure of passenger satisfaction."
Persons: , Allegiant, Max, Kyle Rinker, Jonathan W Organizations: Alaska Airlines, Service, American Airlines, Allegiant Air, Delta, United Airlines, Boeing, Portland International, Johnson, International Air Transport Association Locations: Alaska
Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailIATA chief Willie Walsh says he's confident Boeing will address culture issuesWillie Walsh, director general of the International Air Transport Association, discusses his confidence in Boeing, China's entry into aircraft manufacturing, and travel demand.
Persons: Willie Walsh, he's Organizations: Boeing, International Air Transport Association
Others, however, said they are still confident in flight safety, pointing out that commercial air travel remains one of the safest modes of transportation. Cara and Erin Ashcraft survived the crash of American Airlines Flight 1420, operated on a McDonnell Douglas MD-82, during a landing at Little Rock National Airport on June 1, 1999. “I’ve never had concerns (about air travel safety) before. This is the hole left behind when the plug door of an Alaska Airlines flight blew off midflight on January 5, 2024. Pierson is wary of attitudes around the apparent safety of American air travel, he said.
Persons: Barb Handley, , ” Handley, Handley, , , Mary Handley, Alice, Barb Handley Miller, Pat Gabrielse, Dan Handley, Beth Handley McMall, Kathleen Handley Salemi, Cara, Erin Ashcraft, , I’m, ” Cara, ” Cara Ashcraft, , McDonnell Douglas, Andy Scott, “ I’m, ” Erin Ashcraft, ” ‘ I’ve, Trey Smith, “ I’ve, ” Smith, Smith, Scott Kirby, United, Boeing Aubrey, Max, Aubrey, they’re, ” Anthony Brickhouse, Florida’s Embry, Brickhouse, Ed Pierson, Pierson, That’s, ” CNN’s Chris Isidore, Jacopo Prisco Organizations: CNN, Alaska Airlines, United Airlines Boeing, Boeing, , National Transportation, NTSB, Federal Aviation Administration, United Airlines, American Airlines, McDonnell, Little Rock National Airport, Dallas Morning News, International Air Transport, United, Reuters United, Airbus, “ Airlines, Delta Air Lines, Hawaiian Airlines, Florida’s, Riddle Aeronautical University, Alaska Airlines Max, US Federal Aviation Administration, National Transportation Safety Board, Foundation for Aviation Safety, Air Canada, San Francisco International Airport Locations: Alaska, Little Rock , Arkansas, United States, Virginia, Los Angeles, East, Southwest
UPS will become the primary air cargo provider for the United States Postal Service. The Atlanta shipping company said Monday that it had received an air cargo contract from the U.S. UPS will move the majority of air cargo in the U.S. for the postal service following a transition period, according to UPS. USPS’s current air cargo contract with FedEx Corp. is set to expire in late September. Last month the International Air Transport Association said that total demand for air cargo, which is measured in cargo ton-kilometers, climbed 18.4% in January compared with the prior-year period.
Persons: Brie Carere, Louis DeJoy Organizations: United States Postal Service, U.S . Postal Service, UPS, FedEx Corp, FedEx, USPS, FedEx Express, U.S . Mail, International Air Transport Association, United Parcel Service Inc Locations: Atlanta, U.S, Puerto Rico, airfreight
2023 was the safest year for flying, IATA found. On average, you would have to fly every day for over 100,000 years to experience a fatal incident. AdvertisementLast year was the "best ever" for flying safety, the International Air Transport Association said. It found that on average, a person would have to fly every day for 103,239 years before experiencing a fatal incident. There was only one fatal incident in 2023, a crash involving a domestic flight in Nepal in which 68 passengers and four crew died, according to IATA.
Persons: , Nobody, Willie Walsh Organizations: Japan Airlines, Boeing, Service, International Air Transport Association, Japan Airlines Airbus, Airport, Coast Guard, Alaska Airlines, Max, Portland International Airport, National Transportation Safety Locations: Nepal, Tokyo
Now in its 60th year, the IATA Annual Safety Report - compiled by the International Air Transport Association - has been tracking the evolution of commercial aviation safety since 1964. But despite this, 2023 had the lowest fatality risk and “all accident” rate on record. North America has maintained a fatality risk of zero since 2020, says IATA. Greg Lovett/The Palm Beach Post/USA Today Network/Sipa USAThe 2023 “all accident” rate was better than the year before in all regions except North America and Asia Pacific. Europe has maintained a fatality risk of zero since 2018.
Persons: hasn’t, , Willie Walsh, Greg Lovett, haven’t Organizations: CNN, Alaska Airlines, IATA, International Air Transport Association, Yeti Airlines, Regional, Palm Beach International, USA, Tokyo Haneda, Japan Airlines Locations: Nepal, Florida, North America, Asia, Europe, Africa, North Asia, Tokyo
CNBC Daily Open: Worries over rate cuts persist
  + stars: | 2024-02-22 | by ( Sumathi Bala | ) www.cnbc.com   time to read: +2 min
Traders work on the floor of the New York Stock Exchange during morning trading on July 06, 2023 in New York City. This report is from today's CNBC Daily Open, our international markets newsletter. CNBC Daily Open brings investors up to speed on everything they need to know, no matter where they are. Nikkei hits record highJapan's Nikkei hit a record high Thursday, while other markets in the region also advanced. AI and chip stocks rallyArtificial intelligence and semiconductor chip stocks rallied after Nvidia's quarterly earnings topped estimates.
Persons: Morgan Stanley, Jim Caron Organizations: New York Stock Exchange, CNBC, Nikkei, Wall, Dow, Nasdaq, Nvidia, Taiwan Semiconductor Manufacturing, Federal, International Air Transport Association, Morgan Stanley Investment Locations: New York City, . Federal, China, Asia
Vcg | Visual China Group | Getty ImagesAsia-Pacific's travel sector is seeing strong growth, with demand for flights set to match pre-pandemic levels this year — thanks to Chinese tourists. The region's travel demand in December 2023 improved to almost 83% of 2019 numbers compared with just 57% in January, according to the International Air Transport Association. Experts believe Chinese tourists will fuel this demand, particularly as they visit Southeast-Asian destinations within the wider region. watch nowTravel demand from Chinese tourists in Southeast Asia saw a notable rise in January, said James Sullivan, head of Asia-Pacific equity research at JPMorgan. Outside of Asia Pacific, the U.S., U.K., South Korea, Japan and Australia were popular holiday spots for Chinese travelers.
Persons: Willie Walsh, CNBC's, James Sullivan, Sullivan Organizations: Visual China, Getty, International Air Transport Association, JPMorgan, ASEAN, Research, Citi, Asia Pacific Locations: Yantai, Shandong Province, China, Southeast Asia, Asia, ASEAN, Thailand, Singapore, Malaysia, Vietnam, Indonesia, U.S, South Korea, Japan, Australia
Read previewAn easyJet passenger who appeared to be drunk was restrained and later escorted off the plane by police after he became aggressive and attempted to kiss another passenger. It is not known if the passenger was drinking or already intoxicated before he got on the flight. They added that the man became aggressive after he tried to kiss another male passenger who had previously ignored his request for a handshake. Perry Flint, spokesperson for the International Air Transport Association, told BI that it's "clear that post-pandemic behavior is different to that which took place before." Vance Hilderman, an aviation expert and CEO of aviation consulting firm AFuzion, told BI that bad behavior on flights is "unfortunately" the "new normal."
Persons: , Perry Flint, Jeffrey Price, Vance Hilderman, AFuzion Organizations: Service, Daily Mail, Business, Lisbon Police, International Air Transport Association Locations: Glasgow, Scotland, Lisbon
Travellers look at the flight departure schedule on the screen at Singapore Changi airport on December 7, 2022. Flights departing from Singapore will cost more from 2026 as the country pushes ahead with its aviation industry decarbonization goals. The initiative is part of a sustainable air hub blueprint which was unveiled by the Civil Aviation Authority of Singapore (CAAS) on the eve of the Singapore Airshow. To achieve the ambitious 1% target by 2026, travelers flying out of Singapore will have to be prepared to pay higher air fares. In 2021, the International Air Transport Association and member airlines committed to reaching net-zero carbon emissions by 2050.
Persons: Chee Hong Tat, CAAS, Chee Organizations: Changi Airport, Seletar, SAF, Transport, Civil Aviation Authority of Singapore, International Air Transport Association Locations: Singapore Changi, Singapore, Bangkok, Tokyo, London
Airfare fell 6.4% in January from a year earlier, the Labor Department said in its monthly consumer price index report on Tuesday. January is typically a slower month for travel as customers take fewer trips following the New Year's holiday. The drop comes even though carriers are facing capacity constraints this year, in part because of an engine recall from Pratt & Whitney , congested airspace and delayed aircraft deliveries. In 2023, airlines had been forced to discount flights, particularly in off-peak periods, after the industry added capacity. ...Those operating environment challenges led directly to industry capacity plans, including our own, coming down 3 points on average as carriers adapted to the new operating environment," Kirby said.
Persons: Airfare, TD Cowen, Helane Becker, Hopper, Ed Bastian, haven't, Bastian, Max, Scott Kirby, Kirby Organizations: Labor Department, Pratt & Whitney, Airlines, Delta, Boeing, Max, Federal Aviation Administration, Company, United Airlines, International Air Transport Association, CNBC PRO Locations: Southwest, Alaska, United
Levels of unrulinessIATA classifies unruly behavior incidents into four levels. The latest available IATA data, from 2022, indicates most disruptive passenger incidents involved non-compliance, verbal abuse and intoxication. Passengers refusing to wear masks was a contributing factor to the rise in unruly incidents during that period. Ronaldo Schemidt/AFP/Getty ImagesOf the 5,981 unruly passenger incidents reported to the FAA in 2021, 4,290 were face mask-related. “If you are a potentially unruly passenger, do you really not become unruly because you saw some zero tolerance unruly behavior video?” he questions.
Persons: Philip Baum, Baum, , ” Baum, stank, ‘ Philip, can’t, ’ ”, , Susannah Carr, , There’s, Liz Simmons, Simmons, Ronaldo Schemidt, It’s, Kris Major, Mizuki Urano, ” John Franklin, Franklin, EASA’s, there’s, Aleksandra Kapela, Kapela, ” Kapela, Sta Rosa, restaffing, “ We’re, ” There’s, Philip Baum’s, Polly Hilmarsdóttir, Daniela Modnesi, Modnesi, it’s, Jim Vondruska, they’re, we’ve, EASA’s Franklin, EASA, “ We’ve Organizations: CNN, CNN Travel, Transport Security International Magazine, Management, International Air Transport Association, European Aviation Safety Agency, Federal Aviation Authority, FAA, American, European Union Aviation Safety Agency, International Civil Aviation Organization, Japan Airlines, Staffing, Aviation, European Transport Workers ’ Federation, FBI, TSA, Airlines, Dutch, KLM, Nippon Airways, ANA, American Airlines Locations: Oceania, AFP, Icelandair, Tokyo, Montreal, Europe, Texas
A Porter Airlines captain denied a passenger from boarding due to his wheelchair's batteries, per CBC. AdvertisementAn airline captain mistakenly stopped a passenger from boarding due to his wheelchair's batteries, CBC News reported. Porter told CBC that the pilot made an error, wrongly believing the power chair's batteries needed to be removed under Transport Canada regulations. And then he said I am a dangerous threat, then he walked away and left us high and dry," Harrower told the outlet. The International Air Transport Association says that wheelchairs powered by gel batteries are "considered to be non-dangerous."
Persons: Ken Harrower's, Porter, , Ken Harrower, Harrower, Erin Brandenburg, Ken Organizations: Porter, CBC, Service, CBC News, Porter Airlines, Canadian, Transport, International Air Transport Association Locations: Canada, Calgary, Toronto, Transport Canada, Banff
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