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☆ Reasons Plane Travel, Airline Customer Service, Airports Are so Terrible
▼ + stars: | 2023-02-20 | by ( Bartie Scott | Juliana Kaplan | ) www.businessinsider.com time to read: +15 min

It's almost impossible to imagine a time when air travel was pleasant, much less enjoyable. Lost baggage, overbooked flights, outdated equipment, hidden fees, and disorganized staffing have fliers at their wits' end; consumer complaints about airline service have risen by 300% from pre-pandemic levels. Many of these measures had been put in place to improve safety following some rattling accidents in the early days of commercial air travel. So in 1978, at the urging of the economist and "inflation czar" Alfred Kahn, President Jimmy Carter enacted the Airline Deregulation Act. He added that "airline service, by any standard, has become unacceptable."

☆ Travel demand is hot, but some prices may cool: These are the stocks for spring break and beyond
▼ + stars: | 2023-02-18 | by ( Michelle Fox | ) www.cnbc.com time to read: +9 min

Last week, Hilton Worldwide CEO Chris Nassetta said, "The demand trends here and now are really strong." In the home-rental space, Airbnb also said it was seeing continued strong demand at the start of 2023. China's reopening from its Covid lockdown is also helping propel travel demand, as well as the tick up in business travel, she said. "The trends have been really strong since January," he said. Airlines like Delta, American Airlines and United Airlines cited strong travel demand and higher fares for fueling their strong fourth-quarter earnings — as well as for forecasts for this year.

☆ Cheaper hotels, shorter trips: Trivago CEO on how inflation is reshaping travel
▼ + stars: | 2023-02-14 | by ( Julia Horowitz | ) edition.cnn.com time to read: +3 min

But as inflation has jumped, many tourists are hunting for ways to keep costs down, from opting for shorter trips to steering clear of higher-end hotels. “You have real wage contractions in quite a lot of markets,” Axel Hefer, CEO of search platform Trivago, told CNN. Meanwhile, domestic travel remains strong in countries like the United Kingdom, which has seen big swings in the pound in recent months. “People still do want to travel and do travel, but they’re still trying to compensate for the increase in prices,” Hefer said. For now, bookings for air travel still lag pre-pandemic levels.

☆ U.S. 5G airplane upgrade rules may cost industry $637 million -IATA
▼ + stars: | 2023-02-09 | by ( ) www.reuters.com time to read: 1 min

WASHINGTON, Feb 9 (Reuters) - Proposed U.S. requirements to retrofit airplane altimeters to ensure they are not susceptible to 5G wireless interference may cost the industry at least $637 million, the world's biggest airline trade body said on Thursday. The International Air Transport Association (IATA) said in comments filed with the Federal Aviation Administration (FAA) that the costs would be far higher than the $26 million estimated by the agency. The group warned last week many airlines are at risk of not meeting the deadlines and said Thursday "one can expect flight disruptions post the March and July deadlines unless the FAA and the U.S. government take a different approach to this interference issue." Reporting by David Shepardson Editing by Chris ReeseOur Standards: The Thomson Reuters Trust Principles.

☆ Exclusive: Many airlines will not meet U.S. 5G upgrade deadline -IATA
▼ + stars: | 2023-02-06 | by ( David Shepardson | ) www.reuters.com time to read: +2 min

WASHINGTON, Feb 6 (Reuters) - The world's biggest airline trade body warned many airlines will be unable to meet looming U.S. deadlines to retrofit airplane altimeters to ensure they are not susceptible to 5G wireless interference and warned it could impact the summer international travel season. The FAA last month said it was proposing a requirement that passenger and cargo aircraft in the United States have 5G C-Band-tolerant radio altimeters or approved filters by early 2024. The Transportation Department did not comment while the FAA said in response to request for comment on the letter "the FAA has made its position clear." The FAA, Verizon and AT&T are now negotiating to reach a new agreement that seeks to extend some voluntary mitigations beyond July 1, sources told Reuters. Reporting by David Shepardson; Editing by Lisa ShumakerOur Standards: The Thomson Reuters Trust Principles.

One of Amazon 's key air cargo operators said Monday that the e-commerce giant is scaling back on flights this year, citing lower demand and slower economic growth. Air cargo rates, which surged in recent years due to port congestion and high demand for fast deliveries, have slumped. The International Air Transport Association said last month that air cargo demand in November was down nearly 14% from the year-ago period, while capacity fell 1.9%. Through Amazon Air, the company has built up a burgeoning air network to control more aspects of the delivery process and ensure faster delivery. WATCH: How the pandemic shifted how Boeing and airlines think about air cargo

☆ Aviation's best bet for cutting emissions is a new kind of fuel — but there's nowhere near enough of it
▼ + stars: | 2023-01-27 | by ( Bianca Giacobone | ) www.businessinsider.com time to read: +4 min

Sustainable aviation fuel can be up to 80% less carbon intensive than conventional jet fuel. The US wants 3 billion gallons of sustainable aviation fuel by 2030. Sustainable aviation fuel, or SAF, is similar to conventional jet fuel, but it's much less carbon-intensive during its full lifecycle. From production to combustion, it releases up to 80% less carbon dioxide than conventional jet fuel, according to data from the International Air Transport Association. "There are very few that have seen the vision" of converting to SAF production.

☆ Japan has the No. 1 most powerful passport in the world for 2023—see where the U.S. lands on the list
▼ + stars: | 2023-01-19 | by ( Celia Fernandez | ) www.cnbc.com time to read: 1 min

This month, the International Air Transport Association released the 2023 Henley Passport Index, which reveals the world's most powerful passports. The Henley Passport Index measures visa-free access to 227 destinations across the world. A key finding from the index is what they call the "direct link between passport strength and access to the global economy." For example, the Japanese passport gives visa-free access to 193 destinations, which accounts for a whopping 98% of the global economy. On the other end, citizens of the index's lowest-ranking countries such as Afghanistan, Iraq (visa-free score of 29), and Syria (visa-free score of 30) are effectively shut out of various opportunities for economic mobility and growth.

☆ Global air traffic may return to pre-Covid levels in June, with China leading the way
▼ + stars: | 2023-01-16 | by ( Michelle Toh | ) edition.cnn.com time to read: +2 min

Hong Kong CNN —Global air traffic will boom this year, returning to pre-pandemic levels in June, according to a new report. On Monday, international aircraft leasing company Avolon said it expected a full recovery in passenger traffic over the coming months, led by the reopening of markets in Asia, especially China. The news has further brightened the outlook for the aviation sector, which already experienced “a 70% recovery in passenger traffic last year led by recovery in Europe and North America,” Avolon noted. Currently, global air traffic has resumed to approximately 75% of November 2019 levels, IATA said last week. “Demand for travel is no longer the constraint to recovery, but airlines’ capacity to put planes in the air,” Avolon said in its statement.

The International Air Transport Association, which represents global airlines, is predicting full recovery in 2024. The crippling impact of COVID-19 saw dozens of airlines go out of business and wiped billions of dollars off balance sheets. In public, airlines and leasing firms have deplored delivery delays and are seen likely to press aircraft makers for compensation. Inflation is driving up aircraft parts and prices, while raising questions over the resilience of travel demand. Overall, more than half of the world's airline fleet is controlled by global leasing companies rather than owned directly by airlines.

☆ Freight Forwarder Flexport Is Laying Off 20% of Its Workforce
▼ + stars: | 2023-01-12 | by ( Liz Young | ) www.wsj.com time to read: +4 min

Freight forwarder Flexport Inc. is cutting about 20% of its global workforce, or more than 600 workers, as the digital-focused business copes with falling shipping demand and repositions its operations to offer more supply-chain services. Mr. Petersen in June had estimated gross revenue of nearly $5 billion in 2022. The layoffs come amid a broader pullback in freight demand since the middle of last year as inflation has taken a toll on consumer demand and retailers have pulled back from earlier inventory restocking efforts. Mr. Clark, who led Amazon.com Inc.’s logistics expansion over his 20-plus years with the company, started as co-CEO at Flexport in September alongside the freight forwarder’s founder, Mr. Petersen. Mr. Clark is scheduled to fully take over the day-to-day leadership role on March 1, the company has said, and Mr. Petersen will then become executive chairman.

Although international travel may not return immediately to pre-pandemic levels, companies, industries and countries that rely on Chinese tourists will get a boost in 2023, according to analysts. Elsewhere in the world, Cambodia, Mauritius, Malaysia, Taiwan, Myanmar, Sri Lanka, South Korea and Philippines are also likely to benefit from the return of Chinese tourists, according to research by Capital Economics. Saxon said he expected China’s outbound international travel to fully recover by the year end. “Generally, individuals are pragmatic and countries will welcome Chinese tourists due to their spending power,” he said, adding that countries may remove restrictions quickly when the Covid situation improves in China. “It will take time for international tourism to get going, but it will come rushing back, when it happens.”

☆ A weak economy will test consumers' wanderlust, but these stocks could prove resilient in 2023
▼ + stars: | 2022-12-20 | by ( Michelle Fox | ) www.cnbc.com time to read: +8 min

The U.S. Travel Association anticipates domestic leisure travel demand will hold up, although growth may be a bit slower in 2023. The stock has an average analyst rating of buy and 47% upside to the average price target, according to FactSet. Marriott has an average analyst rating of overweight and 13.5% upside to the average analyst price target, per FactSet. Norwegian has an average analyst rating of overweight and nearly 27% upside to the average analyst price target, while Royal Caribbean has an average analyst rating of overweight and about 24% upside to its average price target. However, Carnival has an average analyst rating of hold and 24% upside to the average price target.

☆ Global airlines see return to profitability in 2023
▼ + stars: | 2022-12-06 | by ( Emma Farge | ) www.reuters.com time to read: +4 min

[1/2] Global airline industry body International Air Transport Association (IATA) Director General Willie Walsh attends an interview with Reuters in Doha, Qatar, June 19, 2022. Airlines lost tens of billions of dollars in 2020 and 2021 due to the pandemic, but air travel has partially recovered and some airports have struggled to cope. DOWNSIDE RISKIATA believes global air traffic levels will return to pre-COVID or 2019 levels by 2024, led by the United States and with Asia-Pacific "notably lagging." If China does not loosen restrictions, airlines' profitability would be affected. Walsh said airlines had survived the worst of the downturns, though Europe's fragmented market remained an area to watch.

☆ Airlines to return to profitability in 2023 - IATA
▼ + stars: | 2022-12-06 | by ( Emma Farge | ) www.reuters.com time to read: +1 min

Airlines lost tens of billions of dollars in 2020 and 2021 due to the pandemic but air travel has partially recovered and some airports have struggled to cope. The International Air Transport Association (IATA) now expects a net profit of $4.7 billion for the industry next year, with more than 4 billion passengers set to fly. For 2022, IATA narrowed its forecast for industry-wide losses to $6.9 billion from $9.7 billion. "That is a great achievement considering the scale of the financial and economic damage caused by government imposed pandemic restrictions," said IATA Director General Willie Walsh, commenting on the projected return to profit in 2023. IATA said that its forecast is based on a gradual reopening of China to international traffic and the easing of domestic zero-COVID restrictions.

☆ Airlines warn of higher fares from green transition
▼ + stars: | 2022-12-06 | by ( Emma Farge | ) www.reuters.com time to read: +2 min

Willie Walsh, Director General of the International Air Transport Association, which includes most of the world's major airlines, called for swifter action in Europe to drive up scarce production of greener Sustainable Aviation Fuel (SAF). Air fares have already jumped this year as a result of higher prices for conventional fossil-based jet fuel. Environmental groups argue that air higher travel costs will help to rein in emissions by curbing growth in traffic. In July, the European Parliament backed rules on aviation fuel that set binding targets for the replacement of kerosene with less polluting sources, while extending the definition of what a green fuel could be. This year's U.S. Inflation Reduction Act includes significant subsidies to the SAF industry in the form of tax credits, but European industry leaders including the head of planemaker Airbus (AIR.PA) have said the legislation is unfair.

London CNN Business —The global airline industry is expected to return to profitability in 2023 for the first time in four years. In a forecast released Tuesday, the International Air Transport Association predicted that airlines will earn a net profit of $4.7 billion, despite fears of a global recession. Consumer demand for air travel has been boosted by the reopening of borders closed by the pandemic, as well as a strong US dollar that’s encouraged more Americans to travel overseas. “While we are mindful of macroeconomic headwinds, the travel industry is experiencing a counter-cyclical recovery,” Delta Air Lines CEO Ed Bastian said when delivering the company’s earnings results in October. “Global demand is continuing to ramp [up] as consumers shift spend to experiences, businesses return to travel and international markets continue to reopen.”— Chris Isidore contributed reporting.

☆ Airlines will return to profitability in 2023 after three-year slump, industry body says
▼ + stars: | 2022-12-06 | by ( Karen Gilchrist | ) www.cnbc.com time to read: +1 min

The global airline industry is set to return to profitability again next year following a near-three year downturn fueled by the Covid-19 pandemic, an industry body said Tuesday. The International Air Transport Association (IATA) said it expects the industry to post a "small" net profit of $4.7 billion in 2023, with more than 4 billion passengers set to take to the skies. Director General Willie Walsh told CNBC the predictions marked a "step in the right direction" for an industry clobbered by pandemic-induced travel restrictions and resultant staff shortages. "The recovery is going well," Walsh told CNBC's Julianna Tatelbaum. For 2022, IATA also reduced its forecast for industry-wide losses to $6.9 billion from $9.7 billion in June's outlook.

☆ Why the world’s top chip maker is doubling down on American manufacturing
▼ + stars: | 2022-12-06 | by ( Allison Morrow | ) edition.cnn.com time to read: +5 min

That measure invests more than $200 billion to encourage companies to bring chip production back onto American soil. Raising the debt limit, the bank wrote, will be “necessary but hard to achieve.”For the uninitiated: The “debt ceiling” is simply the federal government’s borrowing limit. Senator John Thune told Bloomberg last week the debt ceiling could be a way to push through budget cuts. Goldman Sachs noted that the political environment next year will have “echoes of 1995 and 2011” — the two most tense standoffs over the debt limit in recent history. (OK, most nights — we believe in a four-day work week around here.)

☆ JPMorgan says these global travel stocks are poised to pop as China eases Covid restrictions
▼ + stars: | 2022-11-18 | by ( Charmaine Jacob | ) www.cnbc.com time to read: +3 min

It added that the uncertain economic outlook hasn't yet eaten into leisure travel spending — with the International Air Transport Association continuing to see strong forward international air travel bookings. The bank's key picks to play the sector are Beijing Capital International Airport and Shanghai Airport. Other airline stocks that are among JPMorgan's picks include Air China and Qantas Airways . Other stocks that could take flight Apart from airport and airline stocks, China's reopening would also benefit hotels, restaurants and leisure sectors , according to a Goldman Sachs note from Nov. 6. These stocks include casino operators Galaxy Entertainment and Sands China , food chain Yum China , as well as Trip.com .

☆ 'Airplane seats are far too small': Travelers are calling on the Federal Aviation Administration to implement larger seat size minimums
▼ + stars: | 2022-11-09 | by ( Jordan Hart | ) www.businessinsider.com time to read: +3 min

In August, the FAA opened its site to public comments regarding the safety of airplane seats. Thousands of travelers voiced their discomfort with current seat dimensions on planes. The FAA invited passengers to share their thoughts and concerns on the matter to help the agency decide whether to implement a rule on minimum seat dimensions. "The space between each seat already causes knees to be against the pockets of the next seat in front of you." In 2018, Congress passed the FAA Reauthorization Act, directing the agency to issue seat dimension rules regarding passenger safety.

☆ Taxation is a blunt instrument, IATA chief Willie Walsh says: 'The carrot is far more effective than the stick'
▼ + stars: | 2022-11-07 | by ( Anmar Frangoul | ) www.cnbc.com time to read: +3 min

watch nowThe aviation industry requires more carrot and less stick going forward to become more sustainable, according to the director general of the International Air Transport Association. "Quite honestly, all of the evidence that we have available shows that the carrot is far more effective than the stick," Walsh replied. Among other things, this would see both maritime and aviation fuels taxed. "So for us, the key to our goal is the use of sustainable aviation fuels — the science there is proven." "What we've got to do is turn what is very low levels of production of sustainable fuels into widespread availability."

☆ U.S. FAA should bar airlines from reducing leg room -6 Democratic senators
▼ + stars: | 2022-11-01 | by ( David Shepardson | ) www.reuters.com time to read: +3 min

REUTERS/Mary F. CalvertWASHINGTON, Nov 1 (Reuters) - Six Democratic U.S senators urged the Federal Aviation Administration on Tuesday to bar airlines from further shrinking the size and leg room of airplane seats. Last month, a U.S. appeals court heard arguments from a flyer advocacy group urging it to order the FAA to set minimum seat dimensions on passenger airplanes. There are no current minimum seat dimensions. Current rules say airlines must be able to evacuate passengers within 90 seconds but do not set seat size requirements. In July 2018 the FAA said it would not regulate seat size.

☆ A Bill Gates fund invested $50 million in a startup that's building a massive refinery to turn alcohol into jet fuel
▼ + stars: | 2022-10-21 | by ( Stephen Jones | ) www.businessinsider.com time to read: +3 min

A Bill Gates fund invested $50 million in a startup making sustainable aviation fuel from ethanol. Sustainable aviation fuel is being explored by airlines as a way of making the industry more environmentally friendly. The Soperton facility, known as the Freedom Pines Fuel Plant, is set to begin production in 2023. LanzaJet said the plant would produce nine million gallons of sustainable aviation fuel, and one million gallons of renewable diesel, per year when fully-operational. The company said it will lower emissions by at least 70% compared with conventional aviation fuel.

☆ Hong Kong Covid: Airlines race to add flights to the city, reviving hopes for its recovery as an aviation hub
▼ + stars: | 2022-09-26 | by ( Michelle Toh | ) edition.cnn.com time to read: +6 min

Hong Kong CNN Business —International airlines are scrambling to add more flights to Hong Kong as the city ends two and a half years of quarantine measures, leading to a surge in demand for travel. “As Hong Kong’s home airline, we are fully committed to rebuilding the connectivity of the Hong Kong aviation hub,” it said in a statement. This will absolutely increase the demand for travel to and from Hong Kong,” Christoph Meyer, Lufthansa’s general manager of sales for Hong Kong, Macao and South China, said in a statement. International Air Transport Association Director General Willie Walsh said last week that China’s zero-Covid policy had “devastated” Hong Kong. Friday’s news puts Hong Kong back on “the right track,” said Dr. Kam Hung Ng, assistant professor of aviation engineering at the Hong Kong Polytechnic University.

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