The carrier posted a significant increase in its operating income, which went from $321 million in 2024 to $428 million in 2025, up 33.3%. 

Net income actually decreased by 5.2%, from $465 to $465 million, due to lower interest income. This can be attributed to the carrier engaging in an aggressive share buyback program, which saw it allocate nearly $3 billion in cash to repurchase its own shares. 

However, this is one of the factors that has contributed to the dramatic boost in expected earnings per share for 2026, to nearly $4 per share from $0.93 in 2025. 

These results, plus the related guidance for 2026, have mostly been interpreted by the market as an endorsement of the business transformation plan which Southwest Airlines is currently going through. 

After a period of lackluster performance, and at the behest of activist investment fund Eliott (one of the carrier’s largest shareholders), Southwest Airlines embarked on the largest internal shakeup since 1978, when it pioneered the low-cost airline model. 

Southwest Airlines is revamping its IT systems and business proposition, introducing new ancillary fees for factors including baggage, as other carriers do, and ending long-established practices such as first-come-first-served seat assignments. The carrier has also been diversifying its income by boosting its credit card program, launching a vacation packages business and establishing partnerships with other airlines.

Under the terms of the extension announced in January 2025, Emirates has been given the option by Dr. Peters Group to purchase the Airbus A380s at the end of each extension period.

The leases are held by two open-ended investment funds, Flight Invest 50 and Flight Invest 51, that Dr. Peters Group acquired from Hannover Leasing at the end of 2021.

“Thanks to DS Aviation’s excellent contacts with Emirates, both parties reached an agreement in recent weeks to extend the lease agreements for the two aircraft in the Flight Invest 50 and 51 funds by five years each, until December 2030 and August 2031, respectively,” said a spokesperson for Dr. Peters Group.

The extension signals Emirates commitment to the A380 with the option to purchase meaning that the airline can continue to operate the superjumbo well into the next decade.

Dr. Peters Group also confirmed details surrounding an Airbus A380 previously operated by Singapore Airlines.

Just over a year and a half after the Dr. Peters Group acquired Flight Invest 49, investors decided to take back the aircraft, which the lessee had parked in Alice Springs, Australia, since the COVID-19 pandemic.

As part of the return, Singapore Airlines paid all outstanding lease payments due until the end of the lease agreement in late August 2025 in a single payment. The fund then sold the aircraft’s engines to Singapore Airlines.

The remaining aircraft parts were then sold to an Australian company at the end of 2025 following negotiations by DS Aviation.

“Thanks to the highly professional work of our experienced asset managers at DS Aviation, we have succeeded in achieving the best possible results for all three A380 funds that we acquired at the end of 2021. We are very pleased that, following Flight Invest 49, we will also achieve positive results for the investors of the Flight Invest 50 and 51 funds,” said Kristina Salamon, Managing Partner of the Dr. Peters Group.

As a result of the contract extension, investors in Flight Invest 50 received a payout of 16.8% in December 2025.

Investors in Flight Invest 51 received a payout of 15% in the summer of 2025 and a further payout of 12% was made in January 2026 in connection with the extension.

Investors in Flight Invest 49 are expected to achieve a total return of over 140%.

The US aerospace manufacturer posted on January 27, 2026, a net profit of $2.24 billion for 2025, compared with a net loss of $11.83 billion in 2024. Fourth-quarter net earnings reached $8.22 billion, a sharp reversal from a $3.86 billion loss recorded in the same period a year earlier. 

Asset sales drive bottom line 

The return to profitability was largely driven by a $9.6 billion gain from the partial sale of Boeing’s Digital Aviation Solutions business to Thoma Bravo, which significantly boosted fourth-quarter results.  

Revenue for the fourth quarter rose to $23.9 billion, up from $15.2 billion a year earlier, while full-year revenue increased 34% to $89.5 billion, thanks to improved delivery performance across commercial programs. 

Commercial aircraft deliveries rebound 

Boeing delivered 600 commercial aircraft in 2025, its highest annual total since 2018. Deliveries were led by the Boeing 737 MAX family, supported by a more stable production environment compared with previous years. 

The company said its total backlog stood at $682 billion at the end of 2025, including more than 6,100 commercial aircraft, underscoring sustained airline demand despite supply-chain bottlenecks and certification delays affecting parts of Boeing’s portfolio. 

Cash flow improves, challenges remain 

Operating cash flow turned positive, reaching $1.3 billion in the fourth quarter and approximately $1.1 billion for the full year. Boeing ended 2025 with $29.4 billion in cash and marketable securities, strengthened by proceeds from asset sales. 

While Boeing’s return to annual profitability marks an important symbolic milestone, the company’s recovery remains uneven on the operational and regulatory front. Certification of the 737 MAX 7 and MAX 10 variants remains pending due to unresolved technical issues. The 777X program continues to face delays as well, with certification now expected later than previously planned, extending a development timeline that has already stretched well beyond initial targets. 

At the same time, Boeing’s production ramp-up remains tightly managed under enhanced FAA oversight. Although the manufacturer is authorized to build up to 42 737 MAX aircraft per month, actual output increases have been gradual, reflecting quality controls, workforce stabilization, and persistent supply-chain bottlenecks. These constraints continue to limit delivery momentum, even as demand remains strong. 

According to Bloomberg, an unnamed source told the publication that Air India had hoped to break even in the year up to March 31, 2026, but plans had been scuppered by a series of events over preceding months.

Most significant was the Air India Boeing 787-8 Dreamliner crash on June 12, 2025, which killed 229 passengers and 12 crew members. While one passenger survived, around 19 people on the ground were also killed.

Following the crash Air India was forced to temporarily cut services and was instructed by the Directorate General of Civil Aviation (DGCA) to inspect its entire Dreamliner fleet.

Air India’s fortunes were also struck in April 2025 when Pakistan closed its airspace to Indian airlines after violence broke out between India and its neighbor.

After Pakistan announced that its airspace would immediately close to “Indian owned or Indian operated airlines” carriers such as Air India and IndiGo had to find more expensive alternative routes.

Rumors have also recently swelled that Tata Group, which along with Singapore Airlines owns Air India, is actively looking for the potential replacement of Air India CEO Campbell Wilson.

While Air India will be hoping for a better 2026, the impending final report into the Dreamliner crash is expected to be released later this year and may include criticisms of the carrier.

The completion of this transaction consolidates all AirAsia-branded airlines under a single airline platform, AirAsia Group, while Capital A pivots to grow its non-aviation portfolio.

On January 18, 2026, the CEO of Capital A, Tony Fernandes, described the conclusion of the process as “one of the most emotional moments” of his career.

“We are finally closing the most challenging chapter in our history. This represents the culmination of one of the most complex and rigorous restructuring exercises undertaken by an aviation group, since Covid brought aviation to a standstill six years ago,” said Fernandes.

He added: “Giving up was not an option, and we chose to rebuild the right way, step by step, approval by approval, and never taking ‘no’ for an answer. Now, the aviation disposal is finally complete.”

The transaction was settled via the allotment and issuance of 2,307,692,307 new ordinary shares in AirAsia X to Capital A and its entitled shareholders, together with Air Asia X’s assumption of $936 million (RM3.8 billion) previously owed by Capital A to AirAsia Berhad.

Concurrently, Air Asia X also allotted and issued 606,060,606 placement shares to investors. The consideration shares and the placement shares are scheduled to be listed and quoted on Bursa Malaysia on January 19, 2026.

“AirAsia will become one consolidated airline group to deliver better connections and value to our guests. At Capital A, our ecosystem – ADE, Teleport, AirAsia MOVE, AirAsia Next and Santan, will sharpen their strategic focus and accelerate growth, while ensuring long-term sustainability and value creation for our shareholders. I am excited for our next journey,” added Fernandes.

The consolidation is set to unlock operational and financial efficiencies, including improved fleet utilization, more integrated network planning and a more resilient operating platform. The group is also finalizing additional aircraft orders to increase its reach.

“This milestone marks a defining moment for the Group. With the consolidation now complete, we have established a stronger, more streamlined aviation platform that is well-positioned for sustainable growth, operational excellence and long-term value creation for all stakeholders,” said Dato’ Fam Lee Ee, AirAsia X Chairman.

The deal, which was announced on January 11, 2026, has already been approved by the boards of directors of both airlines and is expected to be completed by the end of 2026, provided it doesn’t meet any objection from the competition authorities. 

The 0.1557 shares of Allegiant common stock and $4.10 in cash that Allegiant is offering to Sun Country shareholders represents has an implied value of $18.89, a premium of nearly 20% over the $15.77 closing share price of the airline’s stock on January 9, 2026. 

The two airlines have similar business models and largely complementary route networks. 

Allegiant, known for its culture of cost consciousness, focuses on linking multiple secondary cities throughout the United States to warm-weather destinations in Florida and the Caribbean.  

‘Sun-and-sand’ destinations are also a core market for Sun Country Airlines, although the carrier serves also a broad range of destinations throughout the US from its base at Minneapolis-Saint Paul International Airport (MSP). 

Once the merger is completed, the combined entity, which is expected to operate under the Allegiant brand and be led by Allegiant’s current CEO, Gregory C. Anderson, is set to carry around 22 million passengers per year and operate a dual fleet of Boeing and Airbus aircraft.  

According to the ch-aviation database, all but 16 of Allegiant’s 131 aircraft are Airbus A320-family aircraft, while Sun Country Airlines has 68 Boeing 737 aircraft in its fleet. The Minnesotan airline has also significant charter and freight businesses. The latter is conducted in partnership with e-commerce giant Amazon, with Sun Country Airlines operating 20 converted B737 freighters for Amazon’s Prime Air. Both the charter and business units are expected to continue operating as usual after the acquisition. 

In the press release announcing the deal, the two airlines stated that they expect to realize an estimated $140 million in annual synergies to result from the combination of their respective operations.  

The report published on December 28, 2025, includes a matrix listing 22 potential risks with respect to their likelihood of occurrence and the extent of their possible negative impact on the global economy.

According to IATA, climate change and its associated physical risks and costs pose the highest negative impact alongside being the most likely to occur.

“Climate change is and will continue to disrupt lives, livelihoods, and productivity around the globe. Extreme weather, commodity price swings, supply chain stresses, etc., can affect agriculture, infrastructure, global trade, and investment flows,” said the report.

It added: “A successful energy transition requires stable policies and reliable financing. In an unstable environment, assets can be left stranded, and opportunities can be missed, slowing progress and harming growth in some regions.”

Policy fragmentation is also an area of concern for IATA, after decades of trade liberalization now being replaced with a more fragmented trade order.

“In global civil aviation we can see an increase in national and regional policy initiatives that depart from ICAO’s 80 years of global harmonization,” said the report.

IATA highlights “competing frameworks for addressing CO2 emissions from air transport limit progress in this area and fragmented taxation”.

The IATA report also lists the US mid-term election on November 3, 2026, which could give the Democrats a majority in the House of Representatives. IATA says this would curtail the legislative capacity of the President Donald Trump’s administration.

“The risk of turmoil around the election and it possibly being contested is present,” said IATA.

IATA points out that this could lead to further instability surrounding the need to extend the debt ceiling, likely to be necessary in November 2026.

“Failure to extend the debt ceiling would risk the US defaulting on its debt payments, which low likelihood scenario would have catastrophic consequences and trigger a global financial crisis,” said the report.

Among the other largest risks likely to occur are geo-political tensions, higher military spending, cyber threats and AI, trade wars, inflation, supply chain disruptions and China’s property crisis.

To read the full report briefing, you can visit IATA’s website.

In a statement on December 22, 2025, the two companies announced that the all-cash purchase is valued at approximately $1.8 billion with the transaction expected to close in the first half of 2026.

CAM provides critical fasteners, fittings, and other engineered components for the aerospace and defense industries while Howmet is primarily focused on jet engine components, aerospace fastening systems, and airframe structural components.

“The acquisition of CAM is a major step in our strategy to build out our differentiated fastener portfolio,” said John C. Plant, CEO of Howmet Aerospace. “CAM’s established brands, engineering prowess, and deep customer relationships are a perfect complement to our existing business. This transaction will allow us to better serve our aerospace and defense customers with a broader offering of mission-critical fastening solutions and represents a compelling use of capital to drive value for our shareholders.”

Howmet said it expects CAM to generate revenue of around $485 to $495 million in 2026 with adjusted EBITDA margin in excess of 20% before synergies.

Stanley Black & Decker is expected to generate revenue of approximately $405 to $415 million in 2025 and will utilize the net cash proceeds of the CAM transaction to reduce debt.

“Divesting CAM reflects our ongoing dedication to enhancing shareholder value and focusing on growing our biggest brands and businesses. The proceeds from this transaction are expected to significantly reduce our debt, positioning us to achieve our target leverage ratio of 2.5 times net debt to adjusted EBITDA. After achieving this critical financial goal, we will have greater flexibility to pursue additional value-creation opportunities through a more agile capital allocation strategy,” said Chris Nelson, Stanley Black & Decker’s CEO.

He added: “I am confident that CAM, along with its talented team, will thrive as part of Howmet Aerospace. I would also like to express my appreciation to all CAM employees for their exceptional dedication and remarkable contributions, which have been instrumental to CAM’s success.”

The British-US technology firm announced in May 2025, that it was working towards raising $150 million in Series D funding to continue progression towards certification of its hydrogen-electric engines.

On December 22, 2025, ZeroAvia said that the latest round of investment had been led by Barclays Climate Ventures, Breakthrough Energy Ventures, Ecosystem Integrity Fund, Horizons Ventures, Summa Equity, and AP Ventures, with participation from the National Wealth Fund and the Scottish National Investment Bank.

“With additional investment secured, ZeroAvia has extended its cash runway for the next two years and will continue to fully industrialize its hydrogen power and propulsion technology for the aviation and defense markets,” said a spokesperson for ZeroAvia.

In September 2025, FlightGlobal reported that a delay to further funding could affect ongoing operations after the first quarter of 2026.

The support shown in this investment to power the next phase for the company is a great vote of confidence in the company’s technology and roadmap. With this latest financing we are able to progress at pace on the most immediate market opportunities – such as the SuperStack Flex – which will enable us to derisk later stages of our roadmap,” said Val Miftakhov, Founder and CEO, ZeroAvia.

As well as developing the full hydrogen-electric powertrains ZA600 and ZA2000, ZeroAvia is already supplying its SuperStack Flex modular fuel cell power generation system to the defense sector.

ZeroAvia is also in active customer discussions with eVTOL and fixed-wing commercial players in relation to deploying the system.

The SuperStack Flex is a core module of ZeroAvia’s ZA600, which is designed to power 10-20 seat commercial aircraft.

The developer has over 30 patents granted and more than 100 pending in hydrogen fuel cell systems, power electronics, and electric motor technology for aircraft.

On December 19, 2025, Volaris and Viva declared that, despite the merger, both airlines will still operate independently and maintain their own distinct brands.

The two airlines claim that the new group approach will drive down costs for passengers and strengthen connectivity in Mexico.

According to a press release, employees, passengers, communities, suppliers, and shareholders from both airlines will see significant benefits from the transaction.

It added that the merger will lead to lower fleet ownership costs, improved access to capital and a strengthened financial position.

“We expect the formation of the new airline group will allow us to realize significant growth opportunities for air travel in Mexico, in line with the low fare and point-to-point approach that revolutionized the industry over the last two decades,” said Enrique Beltranena, Volaris’ President and CEO.

He added: “The economies of scale and expanded distribution capacity will allow us to compete even more effectively in domestic and international markets by lowering fleet ownership costs. This way, we will be able to offer ultra-low-cost fares to even more passengers as we pursue sustainable growth, benefit from a more efficient fleet, and lower costs.”

The airlines also highlighted that recent supply chain setbacks and quality concerns with OEMs and engine manufacturers have had disproportionate impacts on the operating costs of ultra-low-cost and smaller carriers.

By combining their companies, Volaris and Viva believe that they will be “more resilient and competitive organizations, capable of thriving in dynamic regional markets while still maintaining their ultra-low-cost DNA to stimulate demand”.

Additionally, the carriers claim that the merger will create more positions, with every aircraft of new service added opening between 55 and 60 more jobs.

“We intend this transaction to enable both Viva and Volaris to provide ultra-low-cost fares and more point-to-point travel to even more cities across Mexico and internationally, benefiting not only passengers, but also local economies and communities,” said Juan Carlos Zuazua, CEO of Viva. “Both airlines, which share a similar low-cost DNA and mindset, have always believed in the importance of making travel more accessible for everyone.”

He added: “Our passengers choose Viva and Volaris for their point to- point networks, seamless customer service, and low fares, so maintaining our ultra-low-cost strategy is essential not only for sustaining growth, but also for deepening passenger loyalty. Together, we look forward to continuing to deliver more flights at low cost for our passengers.”

The transaction is still subject to conditions and regulatory approvals in Mexico and other jurisdictions where Viva and Volaris operate, but is expected to close in 2026.

On December 15, 2025, Spirit Aviation Holdings, the parent company of Spirit Airlines, confirmed that it had reached an agreement to amend its debtor-in-possession credit agreement.

The debtor-in-possession credit agreement allows for companies in bankruptcy proceedings under Chapter 11 to obtain funding for ongoing operations.

“The amendment provides for the previously agreed third funding round of an incremental $100 million to be fulfilled today,” said Spirit.

According to Spirit, $50 million is useable immediately while the other half is “subject to previously agreed conditions that relate to further progress on a standalone plan of reorganization or a strategic transaction”.

A strategic transaction could include a possible merger with another airline. Spirit said it is “currently in active negotiations on each of these possibilities”.

“We are grateful to our lenders for continuing to support Spirit’s transformation, recognizing all the significant progress our team has made in recent months,” said Davis. “We continue to provide high-value travel options, which benefit American consumers whether they fly with us or not, and look forward to welcoming our Guests aboard throughout this holiday season and into the future.”

Last week, Spirit announced that its pilot and flight attendant groups had ratified new agreements to support the airline’s future and that over the past 60 days, the company had “dramatically repositioned its fleet and improved its cost structure”.

“The airline continues to develop its product offerings, which range from economical to premium, but in all cases are designed to offer compelling value, while never deviating from delivering a top-tier operation,” said Spirit Airlines.

Spirit is being forced to make significant cuts and changes as part of its filing for Chapter 11 bankruptcy protection in August 2025.

Spirit emerged from its first round of Chapter 11 bankruptcy protection in March 2025 but with US demand remaining stagnant, cheap fares being offered by competitors and operating costs remaining high, the airline struggled to regain a stable footing.

On December 11, 2025, SMBC Aviation confirmed that the company and United Airlines had entered their “third major deal” together.

Previously, United Airlines and SMBC Aviation have reached agreements covering the lease of 20 Airbus A321neo aircraft and a previous purchase and leaseback transaction for 20 Boeing 737 MAX 8 jets.

“We appreciate the thoughtful approach SMBC Aviation Capital brought to structure a transaction that supports our fleet strategy and allows us to deliver even better experiences for our customers,” said Michael Leskinen, United’s Chief Financial Officer. “We value our strong, longstanding relationship with SMBC Aviation Capital and their role in our ongoing fleet modernization.”

Barry Flannery, Chief Commercial Officer at SMBC Aviation Capital, said: “We are delighted to expand our relationship with United Airlines. These aircraft will play an important role in advancing United’s fleet strategy with the latest fuel-efficient aircraft. This transaction reflects the deep trust and collaboration between our teams. We look forward to building on our relationship and supporting United’s fleet ambitions for many years to come.”

In July 2025, United Airlines also entered into a purchase and leaseback agreement with Dubai Aerospace Enterprise (DAE) for 10 new Boeing 737 MAX 9 aircraft.

Those jets were scheduled to join the airline between August 2025 and February 2026, according to DAE.

A purchase and leaseback (also known as sale and leaseback) arrangement allows an airline to sell new or used aircraft to financial organizations and immediately lease it back.

The agreement helps to generate funds for the airline and free up cash for other areas of the business.

On December 8, 2025, Pegasus announced that it taken a “major step toward its international growth goals” with an agreement to purchase Czech Airlines and its subsidiary Smartwings.

In 2024, Czech Airlines was absorbed into the Smartwings Group and ceased operating under its famous ‘OK’ code but was repurposed as a holding company.

In November 2025, the Polish flag carrier LOT appeared to be nearing the acquisition of Smartwings, the largest airline in the Czech Republic, but those attempts have now ultimately failed.

“At Pegasus Airlines, we set out in 2005 with a bold ambition – to make air travel accessible to everyone. Since then, we’ve expanded our fleet from 14 to 127 aircraft, becoming one of the world’s most efficient and profitable airlines,” said Pegasus Airlines CEO Güliz Öztürk.

A new chapter takes off!

Pegasus Airlines has signed an agreement to acquire Smartwings, and its shareholder Czech Airlines, of the Czech Republic – an exciting and momentous step forward in our continued global growth journey.

Together, we will offer our guests access to more… pic.twitter.com/OZ1DD9CqcR

— Pegasus Airlines (@flymepegasus) December 8, 2025

He added: “Now, by joining forces with Czech Airlines and Smartwings, which have a combined fleet size of 47, we’re opening a new chapter in our growth journey.”

The total transaction value of €154 million includes both Smartwings and Czech Airlines and related receivables.

Regulatory approval required

“The completion of the transaction is conditional upon obtaining the mandatory regulatory approvals and other transfer conditions,” said a spokesperson for Pegasus. “The strategic investment aims to strengthen the company’s presence in Europe and support its continued global expansion.”

According to Pegasus, the shareholders of Czech Airlines and founders of Smartwings felt the time was right to transfer ownership of the companies.

“We take great pride in having successfully established and grown Czech Airlines and Smartwings with limited financial resources and without the external support that most airlines typically receive from their respective governments,” said shareholder of Czech Airlines and co-founder of Smartwings, Jiří Šimáně.

He added: “We are confident that Pegasus Airlines represents the ideal shareholder for Czech Airlines and Smartwings, one that will bring millions of passengers across its network new benefits, enhanced connectivity, and a continued joy of travel.”

Established in 1990, Pegasus Airlines operates flights to 158 destinations across 55 countries. Smartwings and Czech Airlines hold a network of 80 destinations in 20 countries.

“A shared vision has emerged with Czech Airlines and Smartwings management: together, we aim to spread our wings across Europe with two distinctive brands, Smartwings and Pegasus Airlines,” said Šimáně.

On November 21, 2025, both Lufthansa and IAG announced that they had formally expressed their interest in participating as a bidder in the privatization process for TAP Air Portugal. 

The rival Air France-KLM Group also formally expressed its intent to bid for a minority stake earlier in the week.  

All offers have to be submitted by 16:59 on November 22, 2025, to be considered further in the bidding process. 

Portugal’s leader, President Marcelo Rebelo de Sousa, approved a government decree in August 2025 that cleared the way for the long-awaited privatization of the country’s national airline. 

Through the proposed privatization process, the government is aiming to sell a non-controlling stake of 49.9% in the carrier.    

According to Lufthansa, which also owns SWISS, Brussels Airways and ITA Airways, it is looking to “establish a long-term partnership with TAP Air Portugal in order to secure the successful future of Portugal’s national airline”. 

Lufthansa Group highlighted that its airlines currently offer more than 280 weekly flights to and from Portugal and employ over 400 skilled workers in the country.   

Carsten Spohr, CEO of Deutsche Lufthansa AG, said: “The Lufthansa Group welcomes the Portuguese government’s privatization process. Our goal is to strengthen Portugal’s global connectivity, preserve TAP’s Portuguese identity, and ensure the airline’s sustainable growth. TAP Air Portugal is of great strategic importance to the European aviation industry.”  

He added: “As a long-standing partner in the Star Alliance and with our extensive investments in Portugal, we continue to see the Lufthansa Group as the best partner for TAP and for Portugal.” 

IAG, which owns British Airways, Iberia and Aer Lingus, confirmed that a letter of interest had been sent to TAP Air Portugal owner, Parpública. 

IAG said that, despite its interest, “several terms would need to be addressed before IAG could propose an investment”. 

A spokesperson for IAG added: “We believe TAP has significant potential within IAG. Our proven, decentralised model delivers industry leading margins and aligns with the Portuguese government’s ambition to protect TAP. Our track record shows how we invest to strengthen our airlines, benefiting customers, employees, local economies and shareholders.”  

The Portuguese government is privatizing TAP in order to recover €3.2 billion in state aid it provided to the carrier to keep it afloat during the COVID-19 crisis. The process is expected to be concluded by early 2026. 

On November 14, 2025, visitors to Blue Islands’ website were welcomed with the news that all future flights had been scrapped, resulting in many passengers being left stranded.  

Blue Islands operated regional flights between UK airports and the Channel Islands, a British archipelago located off the French coast of Normandy. 

At the end of October 2025, British regional carrier Eastern Airways also suspended all flights and formally entered insolvency administration on November 6, 2025. 

Blue Islands launched under its name in 2006, although its history stretches back to 1999 as cargo carrier Le Cocq’s Airlink and 2003 as passenger airline Rockhopper. 

From the Channel Islands, Blue Islands also flew to Bruges, Paris and Dublin and operated a fleet of five ATR 72 turboprops. 

In a statement on its website, Blue Islands said: “We regret to inform you that Blue Islands has suspended trading effective on 14 November 2025.  All future flights operated by Blue Islands have been cancelled.  Please do not travel to the airport unless you have made alternative travel arrangements.”   

The airline advised passengers with bookings to contact their bank or payment card provider.  

Those who made booking through the carrier’s codeshare partner Aurigny but travelling on a Blue Islands’ flight, were asked to contact Aurigny directly.  

“We deeply regret the inconvenience that this will bring to your travel plans,” the airline added. 

On November 15, 2025, the UK Civil Aviation Authority (CAA) announced that Loganair and Aurigny will provide services to support affected Blue Islands customers. 

The CAA said Loganair will have special rescue fares available to purchase on routes between Jersey-Guernsey, Jersey-Exeter, Jersey-Bristol, Jersey-Southampton and Guernsey-Southampton. 

While Aurigny will operate additional flights on the Guernsey-Southampton route and on the Guernsey-Jersey route until November 19, 2025. 

Commenting on Blue Islands’ collpapse the CAA said: “We urge passengers planning to fly with this airline not to go to the airport as all Blue Islands flights are cancelled. Blue Islands customers should visit the Civil Aviation Authority’s website for the latest information.” 

Singapore Airlines began accounting for Air India’s earnings in December 2024 after the integration of joint venture Vistara into Air India. The Singapore airline has a 25.1% stake in the Indian carrier. Passenger demand remained strong and fuel costs fell, even as competition in key markets squeezed yields.

Group revenue rose by $178 million (+1.9%) from the year before to a first-half record of $9,675 million. The demand for air travel remained strong, with both Singapore Airlines and Scoot carrying 20.8 million passengers, an 8.0% increase year-over-year. Group passenger load factor (PLF) increased by 1.3 percentage points to 87.7%, as traffic growth of 4.6% exceeded capacity expansion of 3.0%.

Passenger yields, however, declined 2.9% to 7.4 US cents per revenue passenger-kilometre, driven by increased competition.

The Group said that expenditure rose by $170 million (+2.0%) to $8,872 million, as the increase in non-fuel expenditure (+$353 million; +5.9%) outpaced the reduction in net fuel cost (-$183 million; -6.7%). The higher non-fuel expenditure reflected the 2.9% expansion in overall capacity and inflationary pressure on several cost components.

Net fuel cost fell 6.7% (-$183 million) largely due to the 12.7% contraction in fuel prices (-$370 million) and partially offset by higher volumes uplifted (+$130 million) and a fuel hedging loss this year compared to a gain last year (+$143 million). Consequently, the Group recorded an operating profit of $803 million in the first half of FY2025/26, marginally higher versus 2024 (+$7 million; +0.9%). The Group’s net profit for the first half fell by $503 million (-67.8%) to $239 million.

Interest income fell $103 million from lower cash balances and interest rate cuts, while the Group’s share of results of associated companies was $417 million lower year-on-year, notably reflecting Air India’s losses, which were not included in the previous year.

The Group began equity accounting for Air India’s financial performance from December 2024, following the full integration of Vistara into Air India. The Indian airline is also reportedly seeking financial aid from the Group after a plane crash that killed 240 people in June 2025.

SIA’s earnings, or net profit, fell 67.8% year on year to $239 million in the first half of its financial year ending on 30 September 2025, due to lower interest income and its share of Air India’s losses.

The airline’s revenue rose in the six months to Sept 30 by 1.9% from the year before, reaching a first-half record of $9.7 billion as demand for air travel continued to stay resilient despite challenges from shifting trade policies. The first interim special dividend of three cents per share will be paid on 23 December 2025 to shareholders.

“Barring unforeseen circumstances and subject to the requisite shareholder approval, the company expects to pay special dividends amounting to 10 cents per share in each of the subsequent two financial years,” Singapore Airlines Group said in a statement.

Revenue from SIA’s cargo arm dropped in the first half. While cargo loads grew by 1.2%, it was less than the capacity expansion of 2.8%. “The cargo business remains uncertain, with yields under pressure as airlines shift capacity away from the United States to other routes despite rising volumes,” the airline said.

As of 30 September 2025, the Group’s operating fleet comprised 208 passenger and freighter aircraft with an average age of seven years and eight months. In the second quarter, Singapore Airlines added three Boeing 737-8s, bringing its operating fleet to 145 passenger aircraft and seven freighters. It also retired its last 737-800 from service.

Scoot took delivery of two Airbus A320neos, one Boeing 787-8, and one Embraer E190-E2, bringing its fleet to 56 passenger aircraft. The Group has a further 67 aircraft on order.

For the Northern Winter 2025/26 operating season (26 October 2025 to 28 March 2026), Singapore Airlines plans to increase frequencies to destinations such as Auckland, Busan, Da Nang, Kathmandu, Kochi, Phuket, Siem Reap, and Tokyo (Haneda), to meet the higher demand for air travel during the year-end peak.

The airline will also operate supplementary services to Chitose (Sapporo) (November 2025 to January 2026), Christchurch (November 2025 to February 2026), and Taipei (February 2026 to March 2026).

According to József Váradi, CEO of Wizz Air, between April and September 2025, the airline “made a number of significant business decisions” to support its longer-term strategic objectives. 

These included closing the Wizz Air Abu Dhabi base on September 1, 2025, and initiating the closure of its Vienna base, which is expected to be completed by March 2026. 

“These actions reflect our pivot away from high-cost locations to the opening of new bases at lower cost airports, including at Bratislava, Tuzla, Podgorica, Yerevan and Warsaw (Modlin), which will deliver operational cost savings going forward,” explained Váradi on November 13, 2025. 

Perhaps more significantly, Wizz Air also optimized its “aircraft delivery stream in order to target medium-term capacity growth at a more sustainable 10-12 per cent per annum”. 

In June 2025, Wizz Air predicted capacity growth of around 20% for financial year 2026.  

“This encompasses the deferment of 88 Airbus deliveries from this decade to the next, while we have also sold 3 A321neos this year. Our order book, which now extends to 2033, remains a strategic asset, differentiating Wizz Air by securing stable and competitively priced capacity growth for years to come,” said Váradi. 

He added: “Our first half financial results reflect the increased capacity year-on-year deployed over the summer season. During the period both operational and commercial improvements were made, with further actions planned in the months ahead.” 

While the company reported total revenue of €3.3 billion, up 9% over last year, the full year outlook suggested Wizz Air expects a small percent year-over-year drop in revenue per seat kilometer for both the second half and the whole fiscal 2026. 

Net profit in the first six months saw a 2.6% increase from €315.2 million ($366.2 million) last year to €323.5 million ($375.9 million) in 2025.  

According to Reuters, Wizz Air shares rose 16% following publication of its latest financial results.

Engines and aircraft deliveries  

As of September 30, 2025, Wizz Air had 35 aircraft grounded due to GTF engine-related inspections – an improvement over this summer when the grounded fleet was comprised of 41 aircraft. 

“For the next fiscal year, we expect GTF engine-related aircraft groundings to reduce to a range of 25-30 aircraft,” added Váradi. 

Wizz Air is expecting a further 16 engines to be delivered in the next six months, providing a total spare engine fleet of around 100 engines to support operations for the start of summer 2026. 

In the six months of the financial year, Wizz Air took delivery of 16 new A321neo aircraft, three new A321neo XLRs and redelivered seven A320ceo aircraft,  

The period ended with a total fleet of 243 aircraft including 30 A320ceo, 41 A321ceo, 6 A320neo, 163 A321neo and 3 A321XLR. 

Despite the uncertainties brought by trade disruptions, geopolitical tensions, and the ongoing challenges with Pratt & Whitney and Rolls-Royce aircraft engines, the airline carried 27.2 million passengers during the quarter, marking the highest third-quarter figure in its history. Sustaining growth for 18 consecutive quarters, Turkish Airlines increased its passenger capacity by 8.2% overall, compared to the same period in 2024, pushing it a staggering 43% above pre-pandemic levels.

During the July to September 2025 period, Turkish Airlines’ total revenues rose by 4.9% year-over-year to approximately $7 billion, thanks said the carrier to “strong contributions from passenger operations.” Passenger revenues climbed by 6.1% with favorable demand in response to higher capacity. Despite the growth in total revenues, the softening in yields and ongoing cost pressures in the third quarter led to a 21.3% year-on-year decrease in profit from mainline operations to a record $1.1 billion.

Commenting on the 2025 third quarter results, Turkish Airlines Chairman of the Board and the Executive Committee, Prof. Ahmet Bolat, stated, “The profit we achieved in the third quarter of 2025 once again underscored Turkish Airlines’ adaptability under a wide range of operational conditions through its diversified revenue structure.”

“As Turkey’s most valuable brand on the international stage and a global leader in the worldwide aviation sector, we will continue to grow and invest in line with our 2033 strategy. Our focus goes beyond profitability – we are committed to achieving long-term and sustainable success.”

In the third quarter of 2025 (3Q25), earnings before interest, tax, depreciation, amortization, and rent (EBITDAR), which indicate a company’s operational cash generation capacity, were recorded at $2.1 billion with a margin of 29.6%. Reflecting the strong forward bookings, the carrier said that the full-year 2025 EBITDAR margin is expected to remain within the company’s long-term target range of 22% to 24%.

During 3Q25, Turkish Airlines continued its efforts to expand its commercial partnerships without interruption. In addition to several new codeshare agreements signed with various airlines around the world, the airline reached an agreement with one of Spain’s leading airlines, Air Europa, for the acquisition of a minority stake.

Through this agreement, Turkish Airlines said it will aim to strengthen its global connectivity while enhancing passenger and cargo network between Turkey and Spain, increasing the number of tourists visiting Turkey, and contributing further to the country’s economy by opening new tourism markets in Latin America.

Aiming to expand its fleet to over 800 aircraft by 2033, the national flag carrier of Turkey increased its number of aircraft by 8.4% year-on-year as of September 2025. The current aircraft fleet total stands at 506. This is despite the ongoing supply chain bottlenecks in aircraft production. During the period, Turkish Airlines also concluded negotiations with Boeing for 50 firm and 25 option orders of B787-9/10 Dreamliner widebodied aircraft, along with 100 firm and 50 option orders of B737-8/10 MAX narrowbodied aircraft.

According to ch-aviation, Turkish Airlines currently operates on 397 routes serving 293 destinations across 125 countries.  

After accounting for income tax charges, the Group’s profit after tax is AED 10.6 billion ($2.9 billion), up 13% over the same period in 2024/25. Highlighting the Group’s strong half-yearly performance, it returned earnings before tax (EBITDA) of AED21.1 billion ($5.7 billion), 3% higher than the AED20.4 billion ($5.6 billion) reported for the same period the previous year.

Group revenue was AED75.4 billion ($20.6 billion) for the first six months of 2025-26, up 4% from AED70.8 billion ($19.3 billion) in FY2024/25. The Group closed the first half of 2025-26 with a record cash position of AED56.0 billion ($15.2 billion) on September 30, 2025, compared to AED53.4 billion ($14.6 billion) on March 31, 2025.

According to the company, the Group has been able to tap into its own strong cash reserves to support business needs, including funding for new aircraft deliveries and servicing existing debt obligations. The Group also paid the remaining AED2 billion ($545 million) in dividends to its owner, of the AED6 billion ($1.6 billion) declared during the financial year 2024/25.

To support increased operations and business activities, the Emirates Group’s employee base, compared to March 31, 2025, grew 3% to an overall count of 124,927 on September 30, 2025. The Emirates Group has ongoing recruitment drives to support its future requirements.

The views of the Chairman

Sheikh Ahmed bin Saeed Al Maktoum, Chairman and Chief Executive, Emirates Airline and Group, said: “The Group has once again delivered an outstanding performance, surpassing our half-year results of last year to achieve a new record profit for H1 2025-26. I’m delighted to note that Emirates maintains its position as the world’s most profitable airline for this half-year reporting period.”

“This performance was primarily driven by the unflagging demand and growing customer preference for our product and services, which drove revenue growth and profitability.”

“The Emirates Group has invested billions to continually enhance our products and services, to bring new products to market, to improve our operations through innovation and technology, and to look after our employees who ensure our customers’ safety and satisfaction. These are core to our DNA.” 

“The Group’s strong profitability enables us to continue making these investments, and to scale up our proven business models in concert with Dubai’s growth as a global city of choice for talent, for businesses, and for tourists.”

Sheikh Ahmed added: “Global demand for air transport and travel services has been buoyant, despite geopolitical events and economic concerns in some markets. We expect this demand resilience to continue for the rest of 2025-26 and look forward to increasing our capacity to grow revenues as new A350 aircraft join the Emirates fleet, and new facilities come online at dnata.”

Rounding up Emirates’ latest performance  

For the airline business, overall capacity during the first six months of the year increased by 5% to 31.3 billion Available Tonne Kilometres (ATKs) due to expanded flight operations. Capacity measured in Available Seat Kilometres (ASKs), increased by 5%, whilst passenger traffic carried measured in Revenue Passenger Kilometres (RPKs) was up by 4% with an average load factor of 79.5%, compared with 80.0% during the same period last year.

Emirates carried 27.8 million passengers between April 1 and September 30, 2025, up 4% from the same period the previous year. In its statement, Emirates said that the airline continued to enhance its network and connectivity options through its Dubai hub during the period.

During the first half of 2025/26, Emirates launched new flight services to Danang, Siem Reap, Shenzhen, and Hangzhou. As of September 30, the Emirates passenger and cargo network spanned 153 airports in 81 countries and territories. The airline strengthened its network connectivity by deploying 28 additional weekly scheduled flights to Antananarivo, Johannesburg, Muscat, Rome, Riyadh, and Taipei.

Additionally, providing even more connection options for customers, during the first six months of 2025/26, Emirates entered agreements with three codeshare and interline partners, which included Air Seychelles, Condor, and Aurigny.

Between April 1 and September 30, 2025, Emirates received delivery of five more Airbus A350 aircraft. During this period, 23 more aircraft (six A380s and 17 Boeing 777s) with fully refreshed interiors rolled out of the airline’s $5 billion retrofit program

“This enabled Emirates to bring its latest cabin products to even more markets, including the industry-leading Emirates Premium Economy,” said the airline. “By September 30, 2025, Emirates Premium Economy was available to customers flying between Dubai and 61 cities.”

What about Emirates Cargo?

Emirates SkyCargo transported 1.25 million tonnes in the first six months of the year, up by 4% compared to the same period last year. Customer demand for Emirates SkyCargo’s specialised products and excellent network of freighter and bellyhold cargo operations remained steady.

However, cargo yields decreased by 6% due to softening demand in some market segments amidst tariff concerns.

Emirates SkyCargo added capacity from three new Boeing 777 freighters during the period.

The Brazilian manufacturer delivered 62 aircraft during the quarter (20 commercial jets, 41 executive jets, and one KC-390 Millennium), marking a 5% year-on-year increase. The company’s firm order backlog reached $31.3 billion, an all-time high and up 38% compared with Q3 2024. 

Commercial and Defense divisions lead growth 

Commercial Aviation revenue climbed to $618 million, an increase of 31% compared to the same period last year, supported by higher volumes and improved pricing. Defense & Security posted $278 million, up 27% year-on-year, reflecting higher KC-390 deliveries and a one-off contract adjustment. 

Executive Aviation revenues reached $583 million (+4% year-on-year), while Services & Support totaled $493 million (+16%), benefiting from expanded maintenance capacity and the ramp-up of OGMA’s new GTF engine shop in Portugal. 

Profit and cash flow 

Embraer’s adjusted EBIT was $172 million with an 8.6% margin, compared to $297 million (17.6%) a year ago, when results had been boosted by a one-time $150 million Boeing arbitration gain. 

Adjusted net income stood at $54 million, while adjusted free cash flow (excluding Eve) reached $300 million, driven by higher deliveries and lower accounts receivable. 

Balance sheet and credit outlook 

Embraer ended the quarter with $1.67 billion in cash and a net cash position of -$439 million, improving by $249 million compared with the previous quarter. 

Credit rating agencies have shown renewed confidence in the company, with S&P Global upgrading Embraer to BBB, while Fitch Ratings and Moody’s have revised their outlooks to positive. 

During the quarter, Embraer also issued a $1 billion, 12-year bond at a 5.40% coupon, using proceeds to repurchase part of its 2028 and 2030 bonds as part of a broader debt management initiative. 

2025 guidance reaffirmed 

Embraer reaffirmed its 2025 full-year guidance, targeting: 

• 77 to 85 commercial jets and 145 to 155 executive jets delivered; 

• Revenue between $7 and $7.5 billion; 

• Adjusted EBIT margin between 7.5% and 8.3%; 

Free cash flow of US$200 million or higher. 

On the financial front, H126 profits after tax rose by 42% to €2.54bn ($2.92bn) as traffic grew 3% to 119m passengers, up from 115.3 million in 1H25. Simultaneously reporting the results for the second quarter of 2025/25, profits at the airline group rose by 20%, reaching €1.72bn ($1.98bn), up 20% from €1.43bn ($1.64bn).   

For the period, overall revenues rose by 13% to €9.82bn ($11.29bn) while revenue per passenger increased by 9%, with average fares rising by 13% and ancillary revenue up by 3%. Scheduled revenue increased 16% to €6.91bn ($7.95bn), which, according to the airline, was due to a strong easter 2025 period.

Operating costs rose by 4% to €6.96bn, driven by higher air traffic control fees (up 14%) and environmental costs, but this figure was limited by the airline’s fuel hedging policy, said an airline statement. As of September 30, 2025, gross cash reached €3bn ($3.45bn). Net cash rose to over €1.5bn ($1.72bn) from €1.3bn ($1.49bn) as of March 31, 2025. The fleet figure stood at 636 aircraft as of the same date.

Speaking about the latest financial figures,  Ryanair Group CEO Michael O’Leary commented, “This financial strength widens the cost gap between Ryanair and our competitors, many of whom remain exposed to expensive long-term finance and rising aircraft lease costs.

“In May 2025, we launched a €750m ($862.5m) share buyback. On September 30, 2025, we had purchased and cancelled over 7m shares (approx. 25% of programme) for €188m ($2.16.2m). Today, the Board (in line with Ryanair’s dividend policy) declared an interim dividend of €0.193 ($0.22) per share, which will be payable in late February 2026.”

An improved aircraft delivery outlook

“Ryanair benefited from Boeing’s improved delivery schedule throughout 2025, enabling our Group to carry extra passengers in 1h26 and selectively add capacity over the peak October mid-term school holidays and into the Christmas/New Year peak travel period,” said O’Leary. “Ryanair operated 204 Boeing 737-8200 “Gamechangers” in its 641-fleet at the end of October 2025, and we are confident that the last six remaining aircraft of an orderbook of 210 will be delivered well ahead of 2026, facilitating 4% traffic growth to 215m in 2026 (FY27).”

“Boeing expects MAX-10 certification in mid-2026, and they expect to meet our contract delivery dates for our first 15 MAX-10s in Spring 2027, with 300 of these fuel-efficient aircraft due to deliver by March 2034. As part of our preparations for the MAX-10s, we need to accelerate cadet and first officer (“FO”) recruitment for the next 3 years. While this investment in training and growth (approx. €25m per annum) will increase FO crewing ratios for up to 3 years, it will provide a strong pool of home-grown FOs ready for promotion to Captains when MAX-10 deliveries ramp up in the fiscal year 2029/30.”

“We have also taken advantage of recent US$ weakness and hedged approximately. 35% of our MAX 10 firm order for 150 aircraft, an average €/$ rate of 1.24, locking in further capex savings on these low-cost aircraft.”

“For winter 2025/26, we have allocated Ryanair’s scarce capacity to those regions and airports actively cutting aviation taxes and incentivising traffic growth, such as Sweden, Slovakia, Italy, Albania, and Morocco by switching flights and routes away from high-cost, uncompetitive markets like Germany, Austria, and regional Spain.”

This trend will continue into 2026 with over 2,500 routes now on sale (including new bases in Tirana and Trapani, adding 91 additional routes). We expect European short-haul capacity to remain constrained to at least 2030 as the big two manufacturers remain behind on aircraft production. Pratt & Whitney engine repairs continue to be an issue for many Airbus operators, while EU airline consolidation accelerates (including Air Europa, SAS & TAP) and unprofitable airlines withdraw capacity from markets where they are unable to compete with Ryanair’s lower costs.”

“Industry capacity constraints, combined with our widening cost advantage, strong balance sheet, low-cost aircraft orderbook, and industry-leading operational resilience, will, we believe, facilitate Ryanair’s controlled profitable growth to 300 million passengers per year by fiscal year 2034.

According to the Anadolu Agency, the finance deal is worth 2.9 billion Chinese yuan ($408.5 million) and has been facilitated by Bank of China Turkey, with the Macau branch acting as the lender.  

On October 30, 2025, it was announced that the loan would be put towards more aircraft, new facility investments, infrastructure projects at Istanbul Airport (IST), and further growth plans. 

Murat Seker, Chief Financial Officer at Turkish Airlines, said: “As Turkish Airlines, we see our trust-based partnerships with leading international institutions such as the Bank of China as a great asset in line with our sustainable growth and global expansion goals. This financing not only strengthens our financial structure but also contributes to the development of economic and cultural ties between Türkiye and China.”  

According to Turkish Airlines, the loan marks a new milestone in its strategic plans to diversify financing sources.  

The Turkish flag carrier aims to double its fleet to 800 aircraft by 2033. Between 2006 and 2025, its fleet expanded from 100 to 500 aircraft.  

In the eight years leading up to 2033, an additional 300 aircraft are expected to join its fleet.   

This will allow Capital A to shift all its airline businesses under the umbrella of AirAsia X, which, until now, was the group’s low-cost long-haul subsidiary. 

With this announcement, AirAsia is close to closing a chapter that began nearly six years ago, when the COVID-19 pandemic forced the group into PN17 status. In Malaysian financial regulation, this designates companies under severe financial distress. 

As part of its restructuring, in December 2025 all of AirAsia’s short and medium haul airlines in Malaysia, Thailand, Indonesia, the Philippines, and Cambodia will finally be consolidated under one single entity.

This plan has long been in the making and was initially expected to be completed by January 2025, only to face an obstacle in the shareholding structure of the group’s Thai subsidiary. Capital A only has a 40.71% stake in Thai AirAsia, with the rest belonging to a publicly listed local partner called AAV. In order to execute this move without having to launch a complex public share offering, as per Thai’s financial regulations, Capital A had to be granted a waiver from the country’s regulators. 

This waiver was obtained on October 17, 2025, and now Capital A is free to file a request to lift its PN17 status, a necessary step to unlock the group’s ambitious investment plans. 

In January 2024, during a public event at AirAsia’s HQ in Kuala Lumpur, which was attended by AeroTime, CEO of Capital A, Tony Fernandes outlined his vision for the future of the AirAsia group of airlines. The Malaysian entrepreneur expressed his wish to seamlessly combine the long-haul and short-haul operations of Air Asia around several regional hubs throughout the region.  

What remains of the Capital A group will focus on its portfolio of other businesses. These are structured around five core areas, each with a strong digital and technology component: Asia Digital Engineering (maintenance and repair), Teleport (logistics), AirAsia MOVE (digital travel platform), Santan (food and beverage), and AirAsia NEXT (brand licensing).  

On October 22, 2025, WestJet’s majority shareholder Onex Partners confirmed that the sale had been completed after first being announced in May 2025.

“Our new partners are widely regarded as among the best-performing and most innovative airlines in the world,” said Tawfiq Popatia, Head of Onex Partners and Board Director at WestJet. “This investment has created a terrific amount of value for Onex Partners and its investors to date, including through the unprecedented headwinds posed by the pandemic. We look forward to building on this track record for all of WestJet’s investors, both new and continuing.”

Under the terms of agreement Delta purchased a 15% minority equity stake but sold and transferred a 2.3% stake to Air France-KLM, while Korean Air acquired 10%.

In May 2025, it was announced that Delta would pay around $330 million for 15% and Korean Air around $220 million in exchange for 10%.

Delta has made equity investments with several international partners, including Air France-KLM, LATAM, Aeromexico, Virgin Atlantic, China Eastern and Korean Air’s parent company, Hanjin KAL.

The Onex Group, which includes Onex Partners, will continue to own and control WestJet, retaining 75% of its original investment.

“This closing marks a milestone in our airline partnerships, building on existing relationships and reflecting confidence in WestJet’s strategy, performance, and people,” said Alexis von Hoensbroech, CEO of WestJet. “We are proud to welcome our new airline shareholders and look forward to further strengthening our partnerships with their airlines to create long-term value for guests.”

The airline’s administrator, EY Australia, announced on October 21, 2025, that a deal had been reached with the US-based aviation firm Air T that will see the carrier exit the administration process after 15 months. Under the proposed acquisition, Air  T is expected to assume control of Rex’s entire operation as well as its aircraft maintenance functions.

NASDAQ-listed Air T is a major aviation holding company in the United States with operations in several areas of aviation services. It operates services as Mountain Air Cargo on behalf of FedEx Express from the courier company’s worldwide hub at Memphis International Airport (MEM). It also has interests in aircraft leasing, maintenance, and the trading of aircraft parts.

Additionally, the company also owns a large aircraft storage facility at Kingman Airport (IGM) in Arizona, where numerous Saab 340s are in long-term storage. This was reportedly seen as a crucial part of the deal, as Rex has an aging fleet of 57 Saab 340 turboprops that have an average age of 31.2 years. The carrier has suffered two engine failures in recent weeks, which commentators put down to the age of the fleet and the engines themselves.  

Since going into administration in June 2024, the administrators have been seeking an investor for Rex. The administration period has already been extended three times to allow a deal to be completed. The latest administration period expires on 5th December 2025.

While in administration, Rex has continued to operate its regional network under Australian federal government support, following a AUD130 million (US$84.4 million) bailout and additional funding to maintain vital services from remote communities to major population centres. Rex’s survival is seen as essential for the air mobility of rural Australia, especially on routes within the outback.

“As outlined in Rex’s ASX release on June 17, 2025, the Administrators have received several offers from interested parties in connection with the process for the sale and/or recapitalisation of the Group,” EY Australia said in a statement.

“Having considered several offers as part of the sales process, the administrators are pleased to confirm they have now entered into a Sale and Implementation Deed with Air T, Inc., which will result in the sale and recapitalisation of the business operations conducted by the Group,” said the EY Australia statement.  

“No return to shareholders is anticipated. An update will be provided ahead of the second meeting of creditors of the Group, which is currently anticipated to be held within the current convening period of the administration.”

As reported by Australian Aviation, in a statement, a spokesperson for Federal Transport Minister Catherine King said the announcement is a “positive step towards bringing Rex out of voluntary administration. The Australian Government has also agreed with Air T in relation to restructuring Rex’s financing arrangements in connection with the acquisition,” the spokesperson said.

“This will allow Rex to keep flying and maintain critical aviation links for regional communities. “As the sale process led by the Administrators is still underway, the Australian Government will not comment further at this time.”

On its own website, Air T, the business arms of which include aircraft trading, aircraft leasing, parts, and freight operations, bills itself as “an industrious American company with a networked portfolio of powerful businesses, each of which operates independently yet interrelatedly”.

“We seek to invest in dynamic, talented individuals and teams; insightful doers in their business domains. We apply corporate resources to activate growth and overcome challenges, ultimately building great enterprises that flourish by ‘win-win’ over the long term,” the website reads.

A brief history of Rex Airlines

Rex Airlines’ first flight was on August 2, 2002, when the company commenced operations, created through the merger of two regional carriers, Hazelton Airlines and Kendell Airlines. The airline developed a specialism for operating between smaller regional airports across south and east Australia and built up a fleet of almost 60 Saab SF340 turboprops.

However, in March 2021, the carrier diversified into operating flights between the Australian state capitals to take on Qantas and Virgin Australia with a fleet of ten Boeing 737-800s.

Against stiff competition and unable to match the proposition or frequencies offered by its stronger competitors, the move quickly backfired and drained Rex of crucial financial resources, leaving it in such a vulnerable position that administrators had to be called in to secure the company’s future.

According to an airline statement, the quarter was characterized by several important milestones for the airline group, including the first-ever dividend, paid in August 2025, and the exercise of a purchase option to acquire 30 additional new Boeing aircraft.

During the third quarter, the Norwegian Group (which includes Norwegian Air Shuttle and regional carrier Widerøe) recorded an operating margin of 25.1%. The liquidity position decreased to NOK 10.5 billion ($1.05 billion) at the end of the quarter.

“We are very pleased to once again report a record quarter,” said Geir Karlsen, CEO of Norwegian. “In August 2025, we paid our first-ever dividend of NOK 0.90 ($0.09) per share to approximately 75,000 shareholders. It has been a strong quarter overall, and I would like to thank all my colleagues in both Widerøe and Norwegian for their outstanding efforts during the busiest months of the year.”

“Widerøe’s record-breaking passenger numbers also deserve recognition, which in September reached an all-time high in the company’s more than 90-year-long history,” added Karlsen.

In the third quarter, the Norwegian Group had 8.41 million passengers, of which 7.28 million were passengers carried by Norwegian and 1.12 million by Widerøe. The quarterly load factor for Norwegian was 88.3 percent, up 0.3 percentage points from last year, while Widerøe had a load factor of 77.5 percent, down 0.6 percentage points.

Capacity increased by 2% and 3% for Norwegian and Widerøe, respectively. The quarter also held solid operational performance from both airlines. Widerøe performed best in the Group with 98.2% percent of scheduled flights taking place and a punctuality of 91.8%. Norwegian, meanwhile, had a punctuality of 77.8%, up 3.6 percentage points from 3Q24, and 99.3% of scheduled flights took place.

Fleet renewal and Denmark on the rise

During the quarter, Norwegian expanded the existing Boeing order by exercising an option to purchase 30 additional Boeing 737 MAX 8 aircraft, increasing the Group’s total firm orderbook to 80 aircraft.

“By exercising the Boeing purchase option, we maintain flexibility while reinforcing our commitment to operating one of Europe’s most modern and fuel-efficient fleets. This is an important step in our ongoing fleet renewal programme, and we are very pleased to further strengthen our long-term partnership with Boeing,” said Karlsen.

October 2025 was a particularly important month in Denmark, said the airline, marked by several positive developments. The month began with the announcement of ten new international routes from Billund Airport. On the same day, Norwegian was named “Best European Airline” at the Danish Travel Awards.

A few days later, Norwegian won the Danish government’s tender for a domestic route aimed at reducing climate impact. Under this agreement, 93% of Norwegian’s flights between Aalborg and Copenhagen will operate using at least 40% sustainable aviation fuel (SAF) from March 2026. The airline added that the project is expected to save approximately 6,700 tonnes of carbon dioxide on a life-cycle basis.

Looking ahead to winter 2025/26

During the upcoming winter months, Norwegian said it will be reducing its monthly capacity by between 25% to 40%, compared to the October 2025 capacity. This action, said the airline, is to “better align supply with demand during winter and optimise performance in the low season.”

“We have an attractive route network in the winter season, well-tailored to our customers’ needs,” commented Karlsen. “Booking trends are looking encouraging, and our customers are booking their flights further in advance in 2025 compared to previous years. We have therefore sold more tickets this year, compared to the same time in 2024, with reduced capacity. This bodes well for a busy 2025/26 winter season with high load factors.”

Upon the completion of a major investigation, the FBI has charged Miami-based 777 Partners’ co-founder Joshua Wander (aged 44) and Chief Financial Officer Damien Alfalla with stealing more than US$500 million from the company’s lenders and investors. Investigators say Wander and Alfalla siphoned money away from the company’s accounts and lied to investors over several years, describing the operation as a “house of cards”. 

As reported by ABC News in Australia, FBI assistant director Christopher G Raia said in a statement, the theft occurred “through fabricated lies of success and doctored financial records”.  

Mr Wander allegedly used 777 Partners “to cheat private lenders and investors out of hundreds of millions of dollars by pledging assets that his firm did not own, falsifying bank statements, and making other material misrepresentations about 777’s financial condition”, Southern District of New York attorney Jay Clayton said.

“The defendants put forth an illusion of stability that was a years-long house of cards,” Homeland Security special agent Ricky J Patel said in a statement. “This alleged scheme was self-serving, siphoning funds meant for victims and leaving investors and lenders holding the bag.”

As reported by the BBC, as early as 2018, Wander began investing in “new sectors with less certain cash-flow profiles, including streaming platforms, airlines, and professional sports teams such as Sevilla FC and Genoa CFC”. Investigators said he did this knowing that the Miami-based group either did not have the funds or had already pledged it to other lenders and attempted to conceal this.

Wander, along with Alfalla, has consequently been charged with one count of conspiracy to commit wire fraud, one count of wire fraud, and one count of securities fraud, each of which carries a maximum sentence of 20 years in prison. Wandser has also been charged with one count of conspiracy to commit securities fraud, which carries a maximum sentence of five years in prison.

US investigators have said that Alfalla is cooperating with the government and its ongoing inquiries. Wander’s lawyer, Jordan Estes, said Wander denies all the charges, telling Bloomberg, “This is a business dispute dressed up as a criminal case. We look forward to setting the record straight.”

What happened to Bonza?

Bonza launched from Australia’s Sunshine Coast Airport (MCY) in early 2023, offering cheap flights between regional destinations, deliberately avoiding going head-to-head with Australian major carriers Qantas, Jetstar, and Virgin Australia on its core route network.

The airline was not yet profitable when it collapsed in April 2024, instead relying solely on 777 Partners for ongoing funding to keep its small fleet of Boeing 737s in the air. However, Bonza’s management team, including CEO Tim Jordan, was left blindsided when creditors suddenly seized the aircraft in April 2024 as 777’s woes worsened, effectively bringing the airline down. 

When Bonza collapsed, hundreds of employees were left unpaid, while thousands of passengers lost money from future flights they had booked. However, some passengers received refunds through bank charge-back schemes or replacement flights offered by Qantas and Virgin following Bonza’s failure. The Australian taxpayer picked up the bill for the employee’s unpaid wages through the Australian federal government’s Fair Entitlements Guarantee. 

In April 2025, the Australian Securities and Investments Commission (ASIC) said that it would not be bringing any charges against any of the airline’s former directors. The regulator has said that despite the arrests in the US, it stands by this decision.   

Founded by Greek Cypriot Stelios Haji-Ioannou in 1995 and about to celebrate the 30th anniversary of its first flight in November 2025, easyJet has expanded over the past three decades to become Europe’s second-largest low-cost airline after the Ryanair Group of companies and placed ahead of Wizz Air.

As reported by the Italian newspaper Corriere Della Sera on October 14, 2025, sources close to the negotiations said that MSC was evaluating a potential takeover of easyJet. The MSC Group of companies is a multinational conglomerate with offices in 155 countries. Geneva-based MSC Group denied “any involvement in this matter”, while easyJet has declined to comment on speculation.

The Group is a privately owned company controlled by the wealthy Italian Aponte family and has a fleet of 600 cargo and passenger vessels and employs around 100,000 people across the Group. MSC is probably best known in the public eye through its MSC Cruise division.

MSC has a previous history with airlines

If the stories surrounding the Group’s interest in easyJet are true, then it would not be the first time that MSC has shown an interest in an airline. In 2022, MSC entered into discussions with Germany’s Lufthansa Group to propose buying Italy’s national carrier ITA Airways, the reborn airline from the ashes of the defunct Alitalia. However, MSC pulled out of the bidding process, leaving the Lufthansa Group to complete the takeover deal on its own after a lengthy EU scrutiny.

The Corriere Della Sera report suggested MSC could jointly bid with an investment fund for either a stake or full control of the airline, but that evaluations were preliminary.

While easyJet has become a formidable force in the low-cost arena, some analysts have raised concerns about its long-term profitability and potential for future growth in the increasingly crowded European budget airline scene.

Following the report in Corriere Della Sera, shares in EasyJet jumped on the London Stock Exchange, where the airline company has its shares listed. The rise boosted trading volume and raised the airline’s market value to around £3.6 billion (US$4.8 billion).

Despite this, MSC was quick to distance itself from the rumors that a potential takeover bid was being worked on. According to a statement sent to news sites in Europe, there are no plans to integrate air operations into the group’s transportation portfolio, despite recent initiatives in other logistical sectors.

However, it was the same Italian publication that first announced the MSC/Lufthansa Group tie-up for ITA Airways before that deal fell apart.

Could easyJet really be for sale?

It was the same Italian newspaper that recently ran an interview with the Chairman of Ryanair, Michael O’Leary, in which the boss of the Irish carrier publicly questioned EasyJet’s long-term viability. O’Leary suggested that easyJet was struggling to grow, which would eventually lead to it being broken up into chunks, with different airline groups acquiring operations in the various countries it serves.

Analysts have speculated in the past that easyJet could become a takeover target in the past, with slot constraints restricting growth at Europe’s primary airports. It has been speculated that British Airways might one day acquire EasyJet’s operations at London Gatwick, while the Air France-KLM Group would take over EasyJet’s businesses in France and Switzerland.

As for what might happen to easyJet’s significant operations in Italy, O’Leary did not comment, although that might be where MSC comes into play. Experts emphasize that any acquisition would require regulatory compensation in multiple markets, given easyJet’s relevance on strategic routes and airports. This issue is expected to remain on the radar of European investors and regulators going forward.

EasyJet told investors in May 2025 it was on track to achieve more than £1bn in pre-tax profit over the medium term. In 2024, the airline made £602m in pre-tax profit on £9.3bn in revenue.

On September 25, 2025, the Franco-Dutch airline group announced it would submit an “expression of interest” for the 44.99% stake in TAP. The move comes after Portugal’s leader, President Marcelo Rebelo de Sousa, approved a government decree in August 2025 that cleared the way for the long-awaited privatization of the country’s national airline.

The Portuguese government is privatizing TAP to recover €3.2 billion in state aid it provided to the carrier to keep it afloat during the COVID-19 crisis. The process is expected to be concluded by early 2026.

Through the proposed privatization process, the government is aiming to sell a non-controlling stake of 49.9% in the carrier.  This will be broken into two constituent parts, with a 44.9% stake (estimated to be valued at approximately $817.7 million) being divested to one or more major investors, and the remaining 5% stake being allocated to TAP employees.

The expression of interest from Air France-KLM Group coming in first puts the consortium in the driving seat, at least for now. The German Lufthansa Group, as well as International Airlines Group, owner of British Airways, Iberia, and Aer Lingus, is also widely expected to bid. All offers have to be submitted by 16:59 on November 22, 2025, to be considered further in the bidding process.

In a brief response sent to the Portuguese authorities handling the sale process, the Franco-Dutch company stated that it “took note of the publication of the Terms of Reference and the consequent official start of the privatisation process of TAP Air Portugal. “We are carefully analysing the conditions defined by the Government and intend to submit our expression of interest within the indicated deadline,” it added.

TAP Air Portugal would potentially be of key strategic value to the Air France-KLM Group. The carrier’s hub at Lisbon-Humberto Delgado Airport (LIS) would provide the group not only a network hub in Southwest Europe, but also additional connection options for passengers in TAP’s stronghold markets, principally from Portugal to Brazil, Portuguese-speaking African nations, and the various markets in the US. The addition of these routes could strengthen an enlarged Air France-KLM Group in markets where there is currently a smaller presence.

Additionally, should Air France-KLM come out of the contest as the successful bidder, such a result would likely mean that TAP would switch its global alliance membership from Star Alliance to SkyTeam, of which Air France-KLM is a founding member. TAP’s shift from Star Alliance to SkyTeam could reshape the relative balance between airline partnerships, boosting SkyTeam’s coverage and exposure in markets across South America and Africa.

Long-term interest in TAP

Air France-KLM had first expressed an interest in TAP in early 2025. In January, during French President Emmanuel Macron’s visit to Portugal, CEO Ben Smith signalled interest, emphasizing sustainable aviation fuel partnerships.

Then, in March 2025, when questioned on the matter, Smith announced that the Group would guarantee to preserve the TAP brand, its fleet and employees, and continue to build on the carrier’s Lisbon hub. These pledges coincide with the Portuguese government’s preconditions for the sale, which include prioritizing maintaining TAP’s identity and the airline’s economic contributions.

The move would also align with Air France-KLM’s broader growth plans going forward, which include a 10% annual increase in capacity.

European consolidation on the cards

Should any of the three airline groups that have expressed an interest in the carrier supply the winning bid, then the result is likely to consolidate the European airline market further.

Lufthansa Group remains a strong contender, having been active in hoovering up stakes in several other European carriers in recent years. Brussels Airlines,  Austrian, SWISS International, and most recently ITA Airways all now fall under the Lufthansa Group banner, with the Group reportedly having held preliminary talks with the Portuguese government about a possible stake in TAP earlier in 2025.

Meanwhile, the IAG group is also in the process of evaluating the privatization of TAP. The latter welcomed the progress in the privatisation of TAP when the Portuguese Government published the full terms of the sale on September 23, 2025. A spokesperson on behalf of IAG said that it was “carefully analyzing the details.”

Any successful bid is also likely to come under scrutiny from the European Commission on competition grounds, just as was the Lufthansa Group with its takeover of ITA Airways. Indeed, the whole process could be delayed beyond the targeted completion date of early 2026 by any request for further information being filed by any party, any involvement from the European competition authorities over any sale, and any further prevarication or unforeseen events during the whole process.

As reported by the Irish Times, in a statement to shareholders issued on September 5, 2025, the airline said it had earned operating profits of €135 million ($149 million)  in the three months to the end of June 2025. This figure represents an increase of over 43% over the same period in 2024.

The airline’s CEO, Lynne Embleton, told investors on an earnings call that, despite the impact and hangover of a pilot strike at the airline in mid-2024, first-half profits for the financial year were €20 million ahead, showing there was “real momentum” in the business. The airline described its financial results as a “significant improvement” on the corresponding quarter in 2024, when it earned operating profits of €91 million ($101 million). Aer Lingus’ operating profit for the first half of 2025 reached €80 million ($88 million) compared with just €9 million for 2024.

Aer Lingus said its performance was largely down to capacity growth, as well as a “robust revenue performance”. The company said it also benefited from favourable fuel pricing. There was a 10.9% growth in overall capacity and a 4.3% increase in passenger numbers compared with the same period in 2024. Ms Embleton said the airline’s performance built upon momentum from the previous two quarters.

The carrier has already taken delivery of three Airbus A321XLRs in 2025, allowing it to open up new transatlantic routes such as Dublin to Nashville and Dublin to Indianapolis. The carrier is also due to take delivery of three more of the long-range twinjets by the end of 2025. She also announced that, given the early success of the A321XLRs, the airline was evaluating the addition of further US services in 2026.

Dublin caps becoming a legal issue

Despite the good news, frustration is growing at the Irish carrier in relation to the restriction of midnight flights at Dublin Airport (DUB), the airline’s primary operating base. Planners have proposed limiting night flights at the airport (defined as those flights taking off or landing between 23:00 and 07:00) to a cap of 35,672 a year. The airline’s CEO said that the company is lining up a legal challenge to this ruling, stating that the limitation would be detrimental to both economic growth, expansion of the airport, and the local jobs market.

The airline is also to overturn a previous ruling that limits overall annual passenger movements at the airport to 32 million. The Irish government ruling also provides for a noise quota system, which takes into account how much noise each type of aircraft makes. However, planners decided that this was not enough on its own to deal with locals’ concerns over noise, hence the further restrictions.

Embleton warned that both limitations could “impede both future growth of north Atlantic traffic and the basing of additional short-haul aircraft in Dublin”. Embleton confirmed that Aer Lingus was considering filing a legal claim to request that the Irish courts overturn the ruling.

“The way in which most airports deal with this is through a noise quota system,” she said, dubbing the flight limit “completely unnecessary”.

Airlines have branded the planning commission ruling, issued in August 2025,  limiting Dublin night flights to 35,672 a year, a “second passenger cap”. Ryanair’s Chief Executive, Michael O’Leary, who has been a long-standing and vociferous opponent to any form of capping at Dublin Airport, has also recently confirmed that his airline was also considering a challenge to the commission’s ruling.

Air Lease Corporation shareholders will receive $65 per share, in an all-cash $7.4 billion transaction. The new entity will also assume ALC’s debt, bringing the total value of the transaction to $28.2 billion. 

A consortium of banks which includes SMBC, Citi, and Goldman Sachs, is financing the deal to the tune of $12.1 billion. 

In order to execute this transaction, the purchasing consortium has set up a new entity, incorporated in Ireland, called newly Sumisho Air Lease Corporation (Ireland) DAC, which is expected to obtain an investment grade rating from the major global rating agencies. 

Upon completion of the acquisition, which has already been approved by its board, Air Lease Corporation will be rebranded as Sumisho Air Lease and transfer its entire order book to SMBC Aviation Capital.  

In the press release announcing the acquisition, both Takao Kusaka, Group CEO, Transportation & Construction Systems Group of Sumitomo Corporation, and Peter Barrett, Chief Executive Officer of SMBC Aviation Capital, highlighted that this acquisition boosts the competitive position of SMBC Aviation Capital by leveraging the benefits of scale. 

Air Lease Corporation was founded in 2010 by Steven Udvar-Házy. Hungary-born Udvar-Házy was instrumental in the development of the modern aircraft leasing industry with the foundation in the early 1970s of the International Lease Finance Corporation (ILFC), which was sold two decades later to American International Group (AIG). 

In March 2025, ALC announced that Udvar-Házy was retiring from his executive role at the firm after a decade and a half in which he had overseen its growth to become one of the largest players in the sector, with a fleet of around 500 aircraft and $17 billion committed to future acquisitions. 

This development was not totally unexpected in the industry, since the ultra-low-cost carrier (ULCC) has been struggling financially for a prolonged period of time.  

This is actually the second time in less than a year that Spirit Airlines has sought to restructure its debts through this measure. In November 2024, the carrier already filed for Chapter 11, becoming the first major US airline to do so in more than a decade.  

Spirit Airlines subsequently exited Chapter 11 on March 2025 after restructuring parts of its debts, securing a $350 equity investment from one of its existing shareholders and appointing a new CEO. These measures, however, appear to have been insufficient to secure some degree of financial respite for the airline. 

In Q2 2025, Spirit Airlines posted an operational loss of $184 million and a net loss of $245 million, a deterioration over the figures corresponding same period the preceding year, $152 million and $192 million, respectively. 

The airline’s new management team is looking for ways to cut costs, such as the furlough or demotion to first officer of some 400 of its pilots, all while competitors are closing in, threatening a further erosion of its revenue.  

In July 2025, for example, Frontier Airlines, another low-cost airline which had tried unsuccessfully to acquire Spirit Airlines just a few months earlier, announced the launch of 20 new routes targeting key Spirit Airlines’ markets.  

On August 11, 2025, the airline raised the alarm about its dwindling cash reserves and said, in a Securities and Exchanges Commission (SEC) filing, that its continuity as a going concern was in question unless its cash position could be redressed. 

In the meantime, Spirit Airlines has set up a dedicated website to share information about the restructuring process in a bid to reassure its customers and investors. In a public statement it has posted online, the carrier has stated that it will continue to operate with normality while it works with its lessors, bondholders and other stakeholders to address the underlying cost structure issues, redesign its network and resize its fleet.  

The latest investors in the budget airline include Premji Invest – a leading global investment firm whose returns primarily support the work of Azim Premji Foundation, funds managed by 360 ONE Asset – a leading asset management firm and Claypond Capital – the investment office of Dr Ranjan Pai, alongside an additional capital infusion from the Jhunjhunwala family, who are already existing investors in Akasa Air.

According to the airline, “The funds will accelerate Akasa Air’s strategic roadmap to rank among the top 30 airlines in the world by the end of this decade, enabling the airline to further contribute to India’s emergence as a global aviation hub. These investments will be directed towards expanding operations, enhancing customer experience, and investing in safety, reliability, and advanced technology.”

Commenting on the successful transaction closure, Vinay Dube, Founder and CEO, Akasa Air, said, “We warmly welcome our new investors to the Akasian family and deeply appreciate their confidence in our team. Their support affirms our vision and strengthens our ability to scale sustainably while keeping customers and employees at the heart of our operations. We remain especially grateful to the Jhunjhunwala family for not just helping us take flight but for their continued belief in our dream to redefine air travel in India. We are also thankful for the support extended to us by the Ministry of Civil Aviation.”

He added, “In just three years, Akasa Air has demonstrated that rapid growth is possible with discipline, purpose, and heart. With over 20 million passengers flown and a proven record of operational excellence, we are building an airline that India can be proud of and is poised to set new standards in global aviation.”

Manoj Jaiswal, Partner – Industrials & Buyouts, Premji Invest, commented, “We are excited to partner with Akasa, India’s fastest growing airline, in its next phase of growth. We believe the Indian aviation industry has strong growth potential, domestically and beyond. Team Akasa is brilliantly positioned to execute on this opportunity.”

Umesh Agrawal, Fund Manager, 360 ONE Asset, added, “We are elated to partner with Akasa Air at a time when India’s aviation sector is poised for tremendous growth. This investment will support Akasa Air’s mission to build a customer-centric airline.”

Lastly, Shyam Powar, Chief Investment Officer at Claypond Capital, commented, “What excites us is not just the scale of the opportunity, but the passion and purpose with which the team is building this airline. We are proud to back Akasa and look forward to supporting them in their journey to build a world-class airline from India.”

Three years of growth

Earlier in August 2025, the airline celebrated the third anniversary of operating regular scheduled passenger flights. In a statement issued to mark the occasion, the company stated that the milestone “celebrates three successful years of operations, a journey illuminated by its historical growth momentum since inception.”

Akasa Air operated its first passenger flight on August 7, 2022, operated by a Boeing 737 MAX 8 between Mumbai and Ahmedabad. Over the past 36 months, Akasa Air has flown over 19 million passengers, including eight million passengers carried in the most recent 12-month period to August 2025, indicating an acceleration in the carrier’s growth rate. According to the airline, it recorded an impressive network-wide load factor of “over 87%”, which says the airline says, “reflects the strengthening trust of travellers in India and beyond.”

In the three decades since its inaugural flight on 7 August 2022, Akasa has achieved robust operational and financial momentum and has carried over 20 million passengers, growing the fleet to 30 aircraft, and delivering robust load factors and punctuality. In the current financial year, the airline recorded “strong revenue growth and margin improvement driven by disciplined cost management, higher unit profitability, and strategic network expansion,” added the airline statement.

Akasa Air recently announced accelerating its international network with a foray into Southeast Asia, with Phuket (Thailand) strengthening its presence in the region and laying the groundwork for further expansion across SAARC and ASEAN markets. “This combination of operational strength, financial resilience, and targeted international growth positions Akasa to scale sustainably and advance its long-term ambition of becoming one of the top 30 airlines globally,” concluded the carrier.

Mango Airlines is a wholly-owned budget subsidiary of flag carrier South African Airways that was primarily set up in October 2006 to compete against local low-cost rivals Comair and FlySafair on routes from Johannesburg OR Tambo International Airport (JNB) on the ‘golden triangle’ routes to Durban and Cape Town, as well as other domestic and cross-border destinations. At the height of its operations, the carrier operated a fleet of 16 Boeing 737-800s.

However, having faced stiff competition as well as a financial storm created by the pandemic, Mango effectively ran out of operating cash in July 2021 and was subsequently placed in voluntary business rescue in the same month. BRP was appointed in August of that same year to take control of the carrier’s remaining assets and seek a suitable buyer for the business. Since then, that process has been severely hamstrung and has been frustrated by complicated dealings with the government, several outstanding legal claims against Mango from its creditors, and uncertainty around future funding, making it increasingly difficult to find an investor willing to take the company on.

As South African Airways (SAA) was the only owner of Mango at the time the BRP was appointed, it had been initially hoped that the carrier would bail out its smaller subsidiary. However, beset with its own financial woes for years, SAA was unable to provide further financial support to either the airline itself or the state to help Mango out. Mango’s business rescue, therefore, relied on the airline finding financing from a third-party investor.

“Regrettably, on July 31, 2025, the Investor [Ubuntu Air] reverted that it had second thoughts about the transaction and would not be proceeding,” the BRP said. “Part of the reason was that the delays have made scheduling of a resumption of operations unrealistic, and the commitment of the other funding partner could not be secured.”

Under the business rescue plan, Ubuntu Air would have acquired the remaining shares owned by South African Airways (SAA), making Mango a privately-owned airline. It had been proposed that under the takeover scheme, it would have then recapitalized the business and injected enough capital to bring the airline back into full operational status.

Preconditions applied

One of the preconditions imposed by Ubuntu Air for the transaction to proceed was that the creditors of Mango would have to waive their rights to a significant proportion of the debts owed by Mango, accept a non-guaranteed ‘top-up’ after the sale, and then cede all their rights to claim later. This aspect was challenged in court, and, in July 2025, the rescue plan was halted once more, forcing Ubuntu Air to walk away.

With any realistic chance of Mangio being saved now largely over, the BRP has stated that the best option it sees left for what remains of Mango is a structured winding-down process to be carried out rather than immediately liquidating the company. A winding-down process is still part of a business rescue process, which is not contingent simply on whether a business goes back into operation or not.

“The projected payment to concurrent creditors in a business rescue scenario is substantially higher than in a liquidation scenario,” the BRP said. “This is primarily because in the liquidation scenario, [the South African Government] will, as a statutory preferent creditor, enjoy priority over concurrent creditors, resulting in minimal recoveries for the latter.”

The BRP will now propose that the Business Rescue Plan be amended to move forward with a structured winding down. In terms of this option, the BRP anticipates being in a position to pay an initial dividend (70% of the projected dividend) to creditors within 30 days of the adoption of the amended Plan, with the balance to be paid within three to five months thereafter.

According to the latest financial review of the company, the airline has no current assets but a cash balance of about R383 million ($21.7 million).

The headline figures for the scheduled carrier that more recently has begun leasing out its aircraft to other carriers under wet-lease, or ACMI (aircraft, crew, maintenance, insurance) agreements, show that there was a 27% increase in passenger revenue in 2Q25, with earnings before interest and tax reaching $4 million. Second-quarter net losses have been trimmed down to $6 million from almost $32 million in the same period in 2024 as part of “a focus on operational efficiencies”. This came as passenger revenue rose to $187 million from $147.3 million in the same period in 2024.

Available revenue seat kilometers (a measure of total capacity) rose by 18% year-on-year, with the carrier ending the quarter with a net loss of $6 million, while cash reserves ended the quarter at $24 million.

Speaking about the airline’s latest performance figures, CEO, Founder and major shareholder, Bjørn Tore Larsen, said, ” The positive momentum from the start of the year has continued into the summer with record load factor and strong passenger growth, yielding a 27% increase in passenger revenue and our first-ever second-quarter operating profit. The progress reflects the successful execution of Norse Atlantic Airways’ commercial strategy implemented in 2024 and its focus on operational efficiencies.”

“We consistently deliver a world-leading load factor of 97% in the second quarter, up 15 percentage points from last year, and 96% for the first half. This shows the impact of our data-driven commercial model in an industry where a load factor above 90% is a strong result. While we continue to reduce unit costs year-over-year, there was a slight decline in average passenger revenue in the quarter, which is mainly related to airfare bundle adjustments.”

“Our fleet of 12 modern, efficient Boeing 787-9 Dreamliners forms a strong base for further improvements as Norse Atlantic transitions to the dual leg model with ACMI charters, reducing our market risk and complementing our own scheduled network. In the second quarter, we operated 11 aircraft in our own network and one on a long-term ACMI with Indigo. In the coming months, five additional aircraft will be transferred to Indigo, India’s leading and one of the world’s largest airlines, for ACMI operations, subject to regulatory approvals.”

Looking ahead to 2026

Looking ahead into 2026 and beyond, Larson added that the airline will continue to focus on pricing scheduled services from the UK and Scandinavia to North America, South Africa and the Far East, buit will also be capitalizing on its successful ACMI strategy, and in particular building on its burgeoning relationship with Indigo Airlines serving European destinations from Mumbai and Delhi.

“From early 2026, the fleet in our own scheduled network will comprise six aircraft. This will strengthen our strategic and financial position with predictable ACMI revenue and cash flow in a volatile market while optimizing our network, flying routes with maximum passenger and fare potential. Going into the 2025 summer season, there has been some softness in the Transatlantic market. At the same time, we see strong demand for our Asia and Africa fall/winter program.”

In addition to these types of flights, the carrier has also just announced that it has renewed a contract with international cruise line P&O Cruises to fly passengers to ships in the Caribbean over the next two winters.

“Momentum into the third-quarter high season is good with bookings to date confirming the positive trend in load factor and passenger revenues. We are pleased to have renewed the charter agreement with P&O Cruises for the next two winter seasons, flying cruise passengers from the UK to the Caribbean in the November to March period. To round off, since the start of operations, Norse has carried 3.6 million passengers as of end-June 2025, delivering affordable, value-for-money air travel to customers worldwide since our inaugural flight three years ago.”

The Brazilian firm has issued 47,422,680 shares of common stock at $4.85 per share, which have been subscribed by BNDESPAR, a subsidiary of the Brazilian Development Bank (BNDES), its parent company, Embraer, and other unspecified, institutional investors. 

Another aspect of this corporate deal is that Eve, which was already listed on the Nasdaq, will also be listed on the Sao Paulo Stock Exchange. 

This dual listing in the US and Brazil will be possible through the subscription by BNDES of Brazilian Depositary Receipts (BDRs), which will trade locally in Brazil under the EVEB31 ticker. Each of these BDRs represent one share of common stock valued at R$26.21 (US$4.85). 

In addition to having access to fresh capital to continue on its path towards certification, with this share placement the eVTOL developer aims to further diversify its investor base going forward. 

The proceeds of this share offering will be used by Eve to pay for services performed in Brazil, and to cover other general corporate expenses, including financing operations. The company has not ruled out using part of this capital to engage in potential strategic acquisitions or repay debts.  

Under the terms, interested investors have 60 days to complete the prequalification process, followed by 90 days to submit non-binding offers for the 44.9% share in the airline. Three major European aviation groups have already expressed an interest in the offering, which includes Lufthansa Group, Air France-KLM, and International Airlines Group (IAG). The primary purpose of the sale is for the Portuguese government to recoup approximately €3.2 billion ($3.7 billion) that it invested in the carrier to support it financially during the COVID-19 pandemic.

This latest move represents a significant change in direction by the Portuguese government over the sale. Back in October 2023, President de Sousa vetoed the proposed sale of at least 51% of TAP. Citing concerns over the transparency of the privatization process, how the government would maintain oversight of a company of such national importance, the process stagnated. However, a seismic change in policy came in May 2025 when national elections were held. After those elections, the incoming administration vowed to complete the privatization process, which would see the government ultimately retain a controlling 51% stake in the airline.

Once the process is underway, the Portuguese government has set out the criteria by which it will evaluate the contending bids. The selected partner must maintain the TAP brand, while also developing the airline, its route structure, and its fleet to continue linking Portugal to key destinations, including those in Portuguese-speaking countries. Developing the airline’s main hub at Humberto Delgado Airport in Lisbon (LIS) as well as the airline’s secondary bases at Porto (OPO) and Faro (FAO are also said to be key elements.

About the likely bidders

Should any of the three airline groups that have expressed an interest in the carrier supply the winning bid, then the result is likely to consolidate the European airline market further. Germany’s Lufthansa Group remains a strong contender, having been active in hoovering up stakes in several other European carriers in recent years. Brussels Airlines,  Austrian, SWISS International, and most recently ITA Airways all now fall under the Lufthansa Group banner, with the Group reportedly having held preliminary talks with the Portuguese government about a possible stake in TAP earlier in 2025.

The other leading contenders include IAG, which controls British Airways, Iberia, and Aer Lingus, while the Air France-KLM Group has also publicly stated an interest should a stake in TAP come up for sale. According to Reuters, Air France-KLM reiterated its interest recently, saying in a statement it “will fully participate in this process once all details are released”.

However, IAG has been more reserved with stating its intentions in the public domain, stating, “As we have previously stated, IAG looks forward to reviewing the terms of the potential sale of TAP and will carefully consider all details and conditions of the process as soon as they are made available”.

More about TAP

TAP is currently enjoying one of the strongest trading periods in its history, with passenger loads and profitability both up, while the carrier is actively expanding its route network, particularly to long-haul destinations such as those in North and South America. In 2024, the airline recorded a net income of €53.7 million ($58.4m), returning a positive result for the third consecutive year. Compared to 2019, the last year before the pandemic, the results register an increase of €149.4 million ($164.3m).

Additionally, in 2024, TAP’s operating revenues totaled a new all-time high of €4,242.4 million ($4,666.6m), an increase of 0.7% compared to 2023 and 28.6% above 2019 levels. Flown passengers’ revenue also remained positive in 2024, driven by the increase in overall network capacity of 1.6% and a corresponding improvement in the airline’s load factor of 1.5%.

During 2024, TAP carried a total of 16.1 million passengers, an increase of 1.6% compared to 2023, reaching 94% of the values achieved in 2019. The total number of flights operated decreased by 1.5% compared to 2023, reaching 86% of pre-crisis levels. The company expects to improve on this during 2025.

According to ch-aviation, the airline currently operates an all-Airbus fleet of 83 aircraft in its mainline fleet while its regional subsidiary, TAP Express, operates a further 19 Embraer regional jets. The mainline carrier operates 105 routes to 88 destinations across 31 countries from its main base at Lisbon’s Humberto Delgado Airport (LIS). The airline’s main strengths lie in its extensive network to several points in Brazil, Portuguese-speaking African countries, and the United States from its Lisbon hub.

Next steps

With the Portuguese president having now approved the sale of TAP, the privatization process can now formally proceed at pace, with a targeted completion date of mid-2026 for the winning bidder to be revealed. The sale process is set to consist of four major stages.

In the first stage, known as ‘Pre-qualification’, all interested parties have 60 days to lodge a formal intention to proceed with purchasing a stake in TAP and qualify themselves for the second stage, whereby full proposal submissions are to be filed. This is likely to take place in 4Q24, with the emphasis being on how the bidder will engage with the aims of the Portuguese government for the future of TAP.

The third stage will see binding offers being submitted to the Portuguese government following a process of ‘due diligence’ on each of the submitted bids, with final negotiations with any party left in the process after that.

However, the whole process could be delayed further by any request for further information being filed by any party, any involvement from the European competition authorities over any sale, and any further prevarication or unforeseen events during the whole process.

In the company’s latest report filed with the US Securities and Exchange Commission (SEC) on August 11, 2025, the airline warned that without building up the necessary cash reserves to keep operating, the airline could run out of cash “within the next 12 months” and may not be able to continue operatimng “as a going concern.” The airline’s latest filing with the SEC stated that:  

“Because of the uncertainty of successfully completing the initiatives to comply with the minimum liquidity covenants and of the outcome of discussions with our stakeholders, management has concluded there is substantial doubt as to our ability to continue as a going concern within 12 months from the date these financial statements are issued.”

The warning could not be clearer. Effectively, Spirit Airlines is not managing to raise nearly enough revenue to cover its daily operating costs, and along with ongoing market challenges, is running out of liquidity. According to the filing with the SEC, a failure to maintain adequate cash reserves could lead creditors to declare the airline in breach of its debt agreements. Such an eventuality could then trigger a series of loan defaults, potentially jeopardising the airline’s future.

Hopes for recovery dashed

Despite a successful emergence from bankruptcy in March 2025 after a significant debt reduction of approximately $US795 million, the airline quickly fell back into deep water. It has been furloughing pilots and selling airplanes in the months since, scaling back operations and taking other steps to cut costs. The moves come as the airline struggles to find its place in the US air travel sector, where ultra-low cost travel has fallen out of favour against airlines that offer frills and extra benefits, regardless of whether this is on a paid-for basis or otherwise. The lack of a credible loyalty scheme against those offered by its competitors is also seen as a major weakness in the Spirit business plan.

Additionally, the airline is being hit hard and has been struggling to recover from a decline in travel demand after the imposition of tariffs in February 2025. US-based airlines, including Spirit, have all reported a decline in US travel after demand collapsed in early February 2025 with US President Donald Trump’s imposition of initial tariffs. Concerns over the fallout from the levies alongside rising inflation in the US caused US travelers to either cancel or hold off booking future trips, spurring most airlines to pull their full-year financial guidance.

Even the US majors, including American Airlines and Delta Air Lines, have publicly announced that they expect profits for 2025 to be flat against 2024, as the uncertainty bites and demand for air travel stagnates. According to reports, Spirit has also been considering selling spare engines or gate rights at key US airports (or both) to raise cash in the short to medium term until demand bounces back.

How has it come to this?

The ultra-low-cost carrier filed for Chapter 11 bankruptcy protection in November 2024, citing high losses, increased competition, and growing debt. Some of those issues were linked to legacy effects of the COVID-19 pandemic, ongoing aircraft supply chain difficulties, and a mass recall of Pratt & Whitney-made geared turbofan engines, some of which were susceptible to cracking due to metal contamination. This issue alone saw dozens of Spirit aircraft grounded, with a lack of spare engines rendering these aircraft unserviceable.    

Even before the Chapter 11 filing, Spirit had been dealing with the fallout of a failed $3.8 billion acquisition by JetBlue. The US Justice Department’s antitrust division sued to block the buyout, arguing it would harm competition, and after a trial in 2023, a federal judge ruled against the JetBlue-Spirit partnership. Spirit’s stock price fell by 47% the day the decision was announced.

Then, in February 2025, Spirit Airlines rejected Frontier Airlines’ latest merger offer, stating that it was less beneficial to shareholders compared to the airline’s Chapter 11 restructuring plan. Frontier’s latest offer repeated its proposal from February 4, 2025, which included $400 million principal amount of second-lien debt for Spirit’s stakeholders and 19% of Frontier’s common equity. The proposal would have eliminated the need for Spirit to complete its previously announced $350 million equity rights offer and required a waiver of the Bankruptcy Court-approved $35 million termination fee. 

Subsequently, the airline emerged from bankruptcy on March 13, 2025, after finalizing a debt restructuring plan, with company officials saying they wanted to move away from the airline’s no-frills reputation and rebrand as a premium option among budget carriers. As part of its bankruptcy exit strategy, the company projected a consolidated net profit of $252 million in 2025 to a federal judge.

Survival still possible?

However, it would appear that the world has changed again in just a few short months, and having spent five months rebuilding the airline and its finances, little has changed behind the scenes at Spirit. Only time will tell whether the airline can weather this latest financial storm, and whether the decision to reject the Frontier Airlines bid in February 2025 was such a shrewd one.    

On August 8, 2025, the Competition and Markets Authority (CMA) said it had cleared the $4.7 billion merger with a full explanation of the decisions set to follow soon.  

The competition regulator announced on June 30, 2025, that it had officially launched a merger enquiry to ensure the proposed deal met the requirements of the Enterprise Act 2002. 

An additional concern was whether the Boeing buy-out of Spirit AeroSystems would “result in a substantial lessening of competition within any market or markets in the UK for goods or services”.  

Commenting on the news Boeing said: “We’re pleased with the outcome and continue to work through the remaining regulatory processes.” 

Details regarding the Boeing-Spirit merger were first made public in summer 2024. 

Boeing made the takeover of Spirit AeroSystems a top priority in its attempts to regain industry confidence of its production infrastructure following the incident on January 5, 2024, when a door plug separated from an Alaska Airlines 737-9 shortly after takeoff.    

In July 2024, Spirit AeroSystems CEO Pat Shanahan said that the merger would lead to Boeing becoming a “faster and more nimble” organization.    

Boeing are still awaiting clearance from the European Commission and the US Federal Trade Commission. 

On August 5, 2025, Embraer said that its performance was “not materially impacted” by US tariffs, despite during a conference call Embraer CEO Francisco Gomes Neto telling listeners they were a “cause for concern”.  

Embraer recently escaped an increase from 10% to 50% in US import tariffs after US President Donald Trump carved out an exemption for aircraft and parts. 

The company reiterated guidance that it is on course to deliver between 77 and 85 commercial aircraft this year and between 145 and 155 executive aircraft.  

Total company revenues in 2025 are predicted to amount to between $7 and $7.5 billion and adjusted EBIT margin of between 7.5% and 8.3%.  

In respect to its second quarter results, Embraer posted revenues of $1.8 billion (record Q2 high), a 22% increase on the same period last year.  

Specifically, commercial aircraft revenues were $577 million (+4% higher YOY) and executive aviation totaled $549 million.  

Embraer explained that the 64% rise in executive aviation revenues resulted from “price discipline, higher volumes and better product mix”. 

Adjusted EBIT across the entire company reached $191.8 million with a +10.5% margin in the second quarter (+9.3% in 2Q24). 

Embraer delivered 61 aircraft during the second quarter of which 19 were commercial jets (10 E2s and nine E1s), 38 were executive jets (21 light and 17 medium) and four were defense related aircraft (A-29 Super Tucano). 

Embraer highlighted that the company’s backlog reached $29.7 billion in the second quarter surpassing the previous historical all-time high. The rise reflected the strong demand for both commercial and executive aircraft.  

In 2025 alone, Flexjet ordered $7 billion worth of Embraer executive jets and SkyWest Airlines purchased up to 110 Embraer E175s at the Paris Air Show.  

The European manufacturer published its half-year results on July 30, 2025, restating its ambition to deliver around 820 commercial aircraft this year.

Commenting on the latest round of results the CEO of Airbus Guillaume Faury confirmed that 60 aircraft were complete and awaiting engines outside the factory.

In April 2025, Faury said that there were 17 aircraft that had been parked while awaiting engines and in June 2025, there were around 40, according to Reuters.

On reaching the 820-delivery target by the end of the year, Faury admitted that “it won’t be a walk in the park” and it will be “more back-loaded than we would like”.

Initially the problems were “specific supply chain challenges” with deliveries from CFM International but, according to reports, there are now also difficulties with Pratt & Whitney engines.

Financial results

In the first half of 2025, Airbus saw its profits rise 85% to $1.7 billion (€1.5 billion) from the same period last year.

Revenues rose 3% from $31 billion (€28 billion) to $33 billion (€29 billion) and EBIT Adjusted increased by 58% from $1.7 billion (€1.5 billion) to $2.5 billion (€2.2 billion).

Airbus secured net orders for 402 aircraft from January to June 2025, up from only 327 in the same period last year. Airbus Helicopters registered net orders totaling 171 units (H1 2024: 233 units).

“Our H1 financials reflect transformation progress in our Defence and Space division and the lower commercial aircraft deliveries compared to a year ago. We are producing aircraft in line with our plans but deliveries are backloaded as we face persistent engine supply issues on the A320 programme,” stated Faury.

He added: “The operating environment is complex and fast-changing. On tariffs, the recent political agreement between the EU and the US to revert to a zero-tariff approach for civil aircraft is a welcome development for our industry. Our 2025 guidance, which continues to exclude the impact of tariffs, remains unchanged.”

Other highlights

• The A330 program is currently stabilizing at a monthly production rate of four aircraft and in order to meet customer demand (targets rate five in 2029). 
• The A320 family program continues to ramp up towards a rate of 75 aircraft per month in 2027. 

• Specific supply chain challenges, notably with Spirit AeroSystems, are putting pressure on the ramp up of the A350 and the A220. 

• Airbus continues to target rate 12 for the A350 in 2028 and a monthly A220 production rate of 14 aircraft in 2026. 
• Airbus is targeting EBIT Adjusted of around $7.9 billion (€7 billion) in 2025. 

On July 30, 2025, President Trump announced a US emergency citing recent “policies, practices, and actions” by Brazil that “constitute an unusual and extraordinary threat to the national security, foreign policy, and economy”. 

An Executive Order confirmed the US was implementing an additional 40% tariff against Brazil, bringing the total tariff amount to 50%. However, an exemption was laid out for civil aircraft, parts and components within the Executive Order. 

Pneumatic tires, helicopters, propellers, planes and unmanned aircraft were among the exempt aircraft and parts mentioned in the order. The exemptions did not include military hardware. 

In a statement following the Trump announcement, Embraer said: “The news confirms the positive impact and strategic importance of Embraer’s activities for the Brazilian and U.S. economies.”   

Still facing a 10% tariff, Embraer said that it “believes in and advocates firmly for a return to the zero-tariff rule for the global aerospace industry”. 

Embraer CEO Francisco Gomes Neto took a lead role in negotiations after revealing anxieties that a large hike in US tariffs could be as damaging for the aircraft manufacturer as COVID-19. 

At the Paris Air Show on June 18, 2025, Embraer and SkyWest announced that the US airline had ordered 60 E175s aircraft with purchase rights on 50 extra planes in the future.    

SkyWest’s CCO Wade Steel had recently voiced concerns that an increase in tariffs by the US on Brazil could delay deliveries. 

SkyWest provides regional operations in the US for Alaska Airlines, American Airlines, Delta Air Lines, and United Airlines.   

President Trump has taken a particularly hardline against Brazil and its leader Luiz Inácio Lula da Silva. 

In his Executive Order, President Trump accused Brazil of politically motivated persecution of former Brazilian President Jair Bolsonaro and thousands of his supporters. 

During President Trump’s first term in office Bolsonaro was seen a staunch ally who aligned with the MAGA movement in Brazil. 

Combat air and space drive performance 

The Air segment posted £4.3 billion (approx. $5.6 billion) in sales and £500 million (approx. $650 million) in EBIT. Growth was supported by Typhoon sustainment, strong MBDA missile activity, and GCAP development work. 

Electronic Systems recorded £3.6 billion (approx. $4.7 billion) in sales and £541 million (approx. $703 million) in EBIT. Key wins included a $1.2 billion US Space Force contract for missile-tracking satellites and strong performance in electronic warfare and flight control systems. 

The Maritime segment generated £3.2 billion (approx. $4.2 billion) in sales, with BAE supporting the Royal Navy’s Indo-Pacific deployment. Its Malloy T-150 uncrewed drones were used at sea for logistics support during carrier operations—a first for the service. Submarine work also advanced, including Dreadnought and Astute programs. 

Cyber & Intelligence remained stable, posting £1.2 billion (approx. $1.6 billion) in sales. 

GCAP accelerates, but Typhoon line stands still 

The Global Combat Air Programme (GCAP) remains a key growth driver. BAE secured £1 billion (approx. $1.3 billion) in new UK funding and launched Edgewing, a joint venture with Italy and Japan to design the future fighter. 

Yet on the industrial side, cracks are emerging. Production of the Eurofighter Typhoon at BAE’s Warton site came to a halt in July 2025 due to a lack of new orders. Workers were redeployed, prompting warnings from union Unite and the UK Parliament’s Defence Committee over the risk of losing critical skills before GCAP enters production. 

Unite called the government’s failure to place a fourth tranche Typhoon order “an act of national self-harm,” accusing the UK Ministry of Defence of undermining the very workforce needed for the UK’s future air power. 

A potential reprieve came later in July, when Turkey and the UK signed a memorandum of understanding on a possible Typhoon sale. Germany, which had previously blocked the deal, has now approved export clearance for 40 aircraft. BAE welcomed the MoU and said it will continue working with both governments to finalize an agreement. 

While no contract has been signed, the deal could temporarily revive Warton’s final assembly line and help sustain the supply chain until GCAP ramps up. 

Guidance raised, but transition risk remains 

BAE now expects full-year sales to grow 8–10%, with EBIT rising 9–11%. EPS guidance remains unchanged at 8–10%. The group reaffirmed its free cash flow target above £1.1 billion. 

With rising defense budgets across NATO and Asia-Pacific, BAE’s long-term outlook remains strong. But the halt in Typhoon production highlights the fragility of the industrial bridge between fourth- and sixth-generation airpower in Europe. 

Boeing released its latest financial results on July 29, 2025, indicating that commercial aircraft revenue had risen to $10.9 billion during the second quarter from $6 billion in the same period last year. 

While only 93 commercial aircraft were delivered in the period last year, this had increased to 150 in Q2 2025. Despite the more positive news Boeing still recorded a loss of $557 million in the quarter. 

In 2025 aircraft delivery efforts were hampered following the fall out when a door plug separated from an Alaska Airlines 737 MAX 9 shortly after takeoff on January 5, 2024. 

The Boeing 737 program increased the production rate to 38 per month in Q2 2025 and maintains plans to stabilize at that rate before requesting approval to increase to 42 per month later this year.

In part thanks to US President Donald Trump, Boeing logged 455 net orders in the quarter, including 120 787 and 30 777-9 planes for Qatar Airways and 32 787-10 airplanes for British Airways. 

Overall, Boeing reported a reduced second quarter loss across all its business segments. The net loss was reported as $621 million in Q2 2025 compared to $1.4 billion in Q2 2024.  

“Our fundamental changes to strengthen safety and quality are producing improved results as we stabilize our operations and deliver higher quality airplanes, products and services to our customers,” said Kelly Ortberg, Boeing President and CEO.  

He added: “As we look to the second half of the year, we remain focused on restoring trust and making continued progress in our recovery while operating in a dynamic global environment.” 

Overall revenue in the second quarter increased to $22.7 billion from 16.8 billion over the same period in 2024.  

Defense, Space and Security second quarter revenue was $6.6 billion. A $913 million loss in Q2 2024 moved to a $110 million profit in Q2 2024.  

During the quarter, Defense, Space and Security secured an award from the US Air Force to build four T-7A Red Hawk production representative aircraft and began ground testing on the first MQ-25 Stingray for the US Navy. 

Net earnings rose to $1.17 billion from $940 million, while diluted EPS climbed to $8.15, including a $1.04 gain from the divestiture. Operating income jumped 31% to $1.43 billion, with margins improving to 13.8%. Segment operating income rose 11% to $1.22 billion, driven by Mission Systems, Defense Systems and Aeronautics Systems.

During the earnings call, Kathy Warden, chair, CEO and president of Northrop Grumman, highlighted strong international momentum, with sales up 18% in the quarter and 14% year to date.

“The US and our allies are making significant investments into [their capabilities], and we continue to see growing demand and opportunity for our broad range of product offerings, whether in the space, air, land, cyber, or undersea domains,” Warden said.

Mission Systems sees double-digit growth, Space division drops

Mission Systems was the top performer, with sales rising 14% to $3.16 billion thanks to restricted program awards and growing demand for radar systems and advanced technologies. Defense Systems followed with a 7% increase to $1.99 billion, driven by strong progress on the Sentinel intercontinental ballistic missile program and ammunition contracts.

Aeronautics Systems posted a modest 2% growth to $3.11 billion supported by continued progress on the B-21 Raider bomber and development work on the E-130J TACAMO aircraft.

Space Systems, however, fell 12% to $2.65 billion as the company wound down restricted space projects and the Next Generation Interceptor program, which was won by Lockheed Martin.

Despite strong operating results, free cash flow dropped 42% year-on-year to $637 million due to higher tax payments. Northrop Grumman ended the quarter with a backlog of $89.7 billion, underlining sustained demand across its portfolio. Key awards included $1.8 billion in classified programs, $500 million tied to the F-35 program and $200 million for the MQ-4C Triton unmanned system.

Global demand and strategic programs push backlog to $89.7B

International momentum remains a major growth driver, with overseas sales up 18% in the quarter and 14% year-to-date. The U.S. and allied investments in air, land, sea, space and cyber capabilities are translating into opportunities for integrated air and missile defense systems, radars and autonomy solutions. Programs like IBCS and next-generation interceptors are gaining traction globally, while new initiatives such as the Beacon autonomous platform aim to accelerate mission capability.

Domestically, the company is seeing strong funding support for strategic programs. The recent reconciliation bill and FY26 budget request include a combined 22% increase in procurement and R&D over FY25, adding billions for programs such as Sentinel and B-21. The stealth bomber received an additional $4.5 billion to accelerate production capacity, with discussions underway to ramp up output faster. Warden said any agreement would need to ensure “a fair and equitable business arrangement” as Northrop invests further in manufacturing infrastructure.

Northrop Grumman closed the quarter with a $89.7 billion backlog, underscoring long-term demand. Key Q2 awards included $1.8 billion in classified programs, $500 million for the F-35 and $200 million for the MQ-4C Triton high-altitude unmanned system.

Northrop Grumman raises full-year 2025 guidance 

The company raised its full-year outlook, projecting sales of $42.05–$42.25 billion, MTM-adjusted EPS of $25.00–$25.40, free cash flow of up to $3.35 billion and segment operating income as high as $4.38 billion.

With a record backlog, growing international orders and major U.S. programs entering production ramps, Northrop Grumman signaled confidence in sustaining growth while accelerating capability delivery for its customers.

Back in April 2025, a more subdued Bastion described the start of the year as “largely stalled” following a drop in US domestic traffic.  

At the time, there was uncertainty surrounding the Trump administration’s aggressive tariff stance, with Delta and many other airlines choosing not to provide an updated full-year outlook. 

On July 10, 2025, though, the forecast for the year was back, and in response to the latest results, shares in Delta rose over 10%. 

Bastion said that the carrier delivered “record revenue” in the second quarter, with pre-tax income of $2.6 billion and operating revenue of $16.6 billion. 

“This strong performance is a direct reflection of the outstanding contributions of our people, who continue to set the bar for industry performance,” Bastian said. 

He added: “As we look to the second half of our centennial year, we remain focused on executing our strategic priorities and managing the levers within our control to deliver strong earnings and cash flow.” 

The airline took delivery of 10 aircraft during the second quarter, bringing the total year-to-date to 19, including the A350-900, A330-900, A321neo and A220-300. 

Premium revenue continued to outpace main cabin, growing 5% on a year-over-year basis. Loyalty revenue was up 8%, driven by co-brand spend growth and card acquisitions.   

International revenue grew 2% during the quarter, helped by strong demand for transatlantic travel as Delta expanded its service to European destinations for the peak summer period. 

“Reflecting our confidence in the business, we are restoring financial guidance with an expectation for earnings per share of $5.25 to $6.25 and free cash flow of $3 to $4 billion, consistent with our long-term free cash flow targets,” Bastion added. 

Looking forward, Delta President Glen Hauenstein said: “For the September quarter, we expect total revenue to be flat to up 4% compared to the prior year, with unit revenue trends expected to improve through the second half of the year as we continue to adjust capacity and the industry further rationalizes supply.” 

The airline also said that it expects the third quarter will be its best non-fuel unit cost performance of the year, with non-fuel unit costs flat to down compared to 2024.   

“For the full year, we remain on track to deliver non-fuel unit cost growth in the low-single digits year-over-year, consistent with our long-term target,” said Dan Janki, Delta’s Chief Financial Officer.   

Delta plans to pay $3 billion of debt this year and return cash to shareholders, including a 25% increase to its quarterly dividend beginning in the third quarter. 

“On balance it’s going to be a good summer,” Bastian told The Wall Street Journal. “Again, not as great a summer as we were hoping, but it will still be good.”  

Announced on July 10, 2025, the government said that it would aim to sell a 49.9% stake in the airline “within the next year,” with the possibility of selling off even more capital if market conditions and demand favor such a move. Prime Minister Luis Montenegro said he was “convinced that there will be many interested parties” in the planned partial sale that includes a 5% stake to be offered to employees.

So far, three airline groups have expressed an interest in the carrier, which, should one of them supply a winning bid, is likely to consolidate the European airline market further. Germany’s Lufthansa Group remains a strong contender, having been active in hoovering up stakes in several other European carriers in recent years. Brussels Airlines,  Austrian, SWISS International, and most recently ITA Airways all now fall under the Lufthansa Group banner, with the Group reportedly having held preliminary talks with the Portuguese government about a possible stake in TAP Air Portugal earlier in 2025.

The other leading contenders include the International Airlines Group (IAG), which controls British Airways, Iberia, and Aer Lingus, while the Air France-KLM Group has also publicly stated an interest should a stake in TAP come up for sale. According to Reuters, Air France-KLM reiterated its interest recently, saying in a statement it “will participate in this process once all details are released”.

However, IAG has been more reserved with stating its intentions in the public domain, stating, “As we have previously stated, IAG looks forward to reviewing the terms of the potential sale of TAP and will carefully consider all details and conditions of the process as soon as they are made available”.

TAP is currently enjoying one of the strongest trading periods in its history, with passenger loads and profitability both up, while the carrier is actively expanding its route network, particularly to long-haul destinations such as those in North and South America. In 2024, the airline recorded a net income of €53.7 million ($58.4m), returning a positive result for the third consecutive year. Compared to 2019, the last year before the pandemic, the results register an increase of €149.4 million ($164.3m).

Additionally, in 2024, TAP’s operating revenues totaled a new all-time high of €4,242.4 million ($4,666.6m), an increase of 0.7% compared to 2023 and 28.6% above 2019 levels. Flown passengers’ revenue also remained positive in 2024, driven by the increase in overall network capacity of 1.6% and a corresponding improvement in the airline’s load factor of 1.5%.

During the year, TAP carried a total of 16.1 million passengers, an increase of 1.6% compared to 2023, reaching 94% of the values achieved in 2019. The total number of flights operated decreased by 1.5% compared to 2023, reaching 86% of pre-crisis levels. The company expects to improve on this during 2025.

TAP to “foster synergies”

Portugal’s Infrastructure Minister Miguel Pinto Luz said the government sought to foster synergies between TAP and a strategic partner to be chosen, which will be given a key management role. “We believe we can complete the privatisation within a year,” Pinto Luz told reporters, adding that the privatisation model allowed offers from airlines from outside the European Union.

“We took this decision [to privatise] because we’ve already spent a lot of money … We don’t want to continue pouring money into a bottomless pit,” Montenegro said in a brief televised statement.

Next steps in the process

According to the Portuguese government, the next steps in the formal process to privatise TAP will be for interested parties to formally express an intention to proceed with their interest in the carrier and to qualify for the presale section of the process within 60 days of the sale receiving the presidential green light from the Portuguese president, Marcelo Nuno Duarte Rebelo de Sousa who has been in the top role in the country since 2016.

The privatization of TAP has been on the table since the pandemic, when, like many European airlines, it had to accept a bailout from the Portuguese government. However, having spent the four years since COVID-19 rebuilding itself, the Portuguese government now feels that the time is right for the privatization to go ahead.

The only hiccup to the process could be that, following the collapse of the centre-right minority government in March 2025, the new coalition government, which returned to office in May 2025, could still block the ultimate sale of any stake in TAP.

According to ch-aviation, the airline currently operates an all-Airbus fleet of 83 aircraft in its mainline fleet while its regional subsidiary, TAP Express, operates a further 19 Embraer regional jets. The mainline carrier operates 105 routes to 88 destinations across 31 countries from its main base at Lisbon’s Humberto Delgado Airport (LIS). The airline’s main strengths lie in its extensive network to several points in Brazil, Portuguese-speaking African countries, and the United States from its Lisbon hub.

For the period, passenger numbers grew by 12% to 19.77 million in the year, underpinned by a rise of 8% in package holidays and 18% in flight-only deals. Seat capacity was bolstered by 13% to 22.29 million to reflect the strong demand, backed by a cluster of the new Airbus A321neo narrowbodies entering the fleet during the year. On the back of the strong demand, the airline saw revenues rise by an impressive 15% to £7.17 billion ($9.75bn), leading to an overall pre-tax profit of £593.2 million ($806.7m), an increase of 12% and ahead of the expected £579 million ($787.4m).

This increase in profitability led to a 22% reduction of total debt and a net cash position of £2.02 billion ($2.74bn), a 17% increase from the corresponding period year-on-year. Operating profit edged up 4% to £446.5m ($607.24m), while profit before currency revaluation and tax increased 11% to £577.7m (785.6m). The company says that the improved financial position is also enabling the purchase of new aircraft and funding the continued investment in the group’s digital business.

Jet2 said it ended the year with total cash of £3.16bn ($4.3bn) and reduced its debt by 22%. Basic earnings per share rose 15% to 213.1p ($2.89). The board recommended a 13% increase in the total dividend to 16.5p ($22.44) per share, and the company has completed 35% of its previously announced £250 million ($340m) share buyback programme.

Jet2 said it was currently trading in line with market expectations. However, it noted that bookings for summer 2025 continued to come in closer to departure, with demand strong “provided pricing is attractive”. The group expanded its footprint with new bases at Bournemouth (BOH) and London-Luton (LTN) airports during the year, and says it now serves 85% of the UK population within a 90-minute drive of its 13 UK airport bases.

What the CEO says

Steve Heapy, Jet2 plc Chief Executive Officer, commented: “These results reaffirm the enduring appeal, resilience and differentiation of our product offering, founded on end-to-end customer care, all of which help to create cherished holiday memories for our customers. The strength of our proposition, delivered by Colleagues who are dedicated to providing award-winning Customer First service, will enable us to fulfil our long-term strategy: To be the UK’s leading and best leisure travel business.”

Jet2 is the third-largest airline in the UK, behind British Airways and easyJet. According to ch-aviation, the airline operates a fleet of 129 aircraft with ten of these wet-leased in for the summer 2025 season. The remainder are made up of eight Airbus A321-200s plus 16 A321neos. It also operates seven aging Boeing. 737-300s plus 98 737-800s. For future expansion, the carrier has a further 134 Airbus A321neos on order from the manufacturer. Currently, the company operates on 592 routes to 90 destinations across 24 countries.

From August 15, 2025, Boeing’s current CFO, Brian West, will become a senior advisor to the company president and CEO Kelly Ortberg, a year after he himself joined the firm. 

West, who served as Boeing CFO for the last four years, will continue working with the company in an advisory capacity, including assistance with the upcoming CFO leadership transition. 

“I want to personally thank Brian for his outstanding work navigating our recovery and positioning the company for the future,” said Ortberg. “These past few years have been some of the most consequential in Boeing’s history, and Brian successfully guided us through last year’s historic capital raise and ensured our team always had the resources to continue the critical work to strengthen safety and quality across our operations. I look forward to his continued counsel in his new role.” 

As well as becoming the new CFO as of August 15, 2025, new recruit Malave has also been appointed as an executive vice president.   

According to a Boeing spokesperson on June 30, 2025, Malave will “lead Boeing’s financial strategy, reporting, long-range business planning, investor relations, treasury, controller and audit operations, as well as Enterprise Services, which includes global real estate and facilities”. 

“Jay will become CFO at an important time in helping build Boeing’s next chapter as we continue to make progress on our recovery and implement fundamental changes rooted in safety and quality,” said Ortberg. “He is a well-respected financial and business leader and brings decades of experience developing people and teams across complex aerospace and manufacturing businesses.” 

Before his time at Lockheed Martin, Malave had previously been senior vice president and CFO at L3Harris Technologies.  

He spent more than 20 years at United Technologies Corporation, including serving as vice president and CFO of Carrier Corporation (when it was an operating unit of UTC), and vice president and CFO at UTC Aerospace Systems. 

President and CEO of Iberia, Marco Sansavini, explained, “Thanks to Iberia’s profound transformation over the last decade and the efforts of all our people, we are now delivering results that allow us to look to the future with confidence and invest €6 billion in our Flight Plan 2030. We want to grow from the current long-haul aircraft fleet and position Madrid Barajas Airport (MAD) as a major European hub and enhance Spain’s global connectivity.”

As part of its Flight Plan 2030, Iberia aims to expand its long-haul fleet from 47 to approximately 70 aircraft. The fleet is currently made up of 14 Airbus A330-200s, eight A330-300s, 22 A350-900s, and three A321XLRs. The growth will be driven by the incorporation of more new Airbus A350s, A321XLRs, and potentially A330neos,  drawn from a recently announced IAG group order, which will be allocated across its member airlines.

In parallel, Iberia states it will undertake a comprehensive renewal of its short- and medium-haul fleet. Nearly all older-generation aircraft will be replaced with more efficient and less polluting A320neos and A321neos, “reinforcing the airline’s commitment to achieving net-zero emissions by 2050,” said an Iberia statement. 

Along with fleet development, Flight Plan 2030 will also see new routes added to the carrier’s long-haul network, while frequencies will also be increased to other existing destinations. Among the upcoming additions to its route network will be Toronto in Canada, Philadelphia (USA), and Monterrey in Mexico, which join the recently announced routes to Recife and Fortaleza (Brazil), as well as to Orlando in the USA. Iberia states it will “also continue exploring new opportunities, particularly across the Atlantic.”

Improved Customer Experience

Elsewhere in the plan, Iberia plans to upgrade its overall customer service and experience under Flight Plan 2030. Iberia will work to improve the entire experience, with significant investments planned in the areas of Artificial Intelligence, digitalisation, and personalisation.

All long-haul cabins will also be renovated to make them more comfortable, more attractive, and offer improved connectivity. On narrow-body aircraft, carry-on baggage capacity will also be increased thanks to the addition of XL luggage compartments.

On the ground, Iberia is also upgrading its premium services. A new Premium Lounge is already in development at Terminal 4 of Madrid-Barajas Airport, offering customers more space and elevated comfort for its premium travellers.

Other projects under Flight Plan 2030

Away from flight operations and customer experience, Flight Plan 2030 calls for the development of ‘Ciudad Iberia’ in La Muñoza, S[Spain. The new facility, which will entail an expansion of the current infrastructure at the site, will see the transfer of Iberia’s corporate headquarters to the new site.  

“Ciudad Iberia will be defined by its strong focus on technology and innovation,” stated the airline. “The goal is to transform this large complex, located next to Madrid-Barajas Airport, into a cutting-edge aeronautical hub—one of the most advanced and important in Europe. “

The expansion of Iberia’s operations and the development of Ciudad Iberia will require a significant increase in staffing, said the carrier. “We expect to hire an average of 1,000 new employees per year throughout the duration of the Flight Plan 2030 strategy,” added Sansavini. “This will multiply the opportunities for professional improvement and development for everyone in the airline.”

According to calculations by international consulting firm PwC, by 2033, Iberia will contribute €19 billion annually to Spain’s GDP and support 250,000 direct, indirect, and induced jobs, representing a 42% increase in economic and employment impact compared to current levels. In 2024, Iberia’s contribution was estimated at €13.86 billion and 160,271 jobs. 

The company had filed for Chapter 11 at the end of 2024 with debts mounting and creditors circling. With the bankruptcy filing, Silver had been hoping to obtain more capital and undergo a financial restructuring to “strengthen” its position, the airline said in December 2024. However, fortunes had not turned around for the carrier, and only in March 2025, the airline cancelled all future operations at its Orlando International Airport (MCO) hub.      

Then, having failed to receive any bids at a recent bankruptcy auction held in early June 2025, the carrier planned to sell its remaining assets to a holding company. However, once the holding company declared that it did not intend to continue shielded flight operations, the immediate decision was taken to close the airline down. A notice was subsequently posted on the airline’s social media channels stating the following –

“We regret to inform you that we are ceasing operations as of today, June 11, 2025. In an attempt to restructure in bankruptcy, we entered into a transaction to sell its assets to another airline holding company, which has unfortunately determined not to continue Silver’s flight operations in Florida, the Bahamas, and the Caribbean. Please do not go to the airport. All credit card purchases should be refunded through your credit card company or travel agency.”

The move to shut down the airline entirely brought the curtain down on 14 years of passenger flight operations and grounded the airline’s fleet of three ATR42-600s and five ATR72-600s. According to ch-aviation, the carrier operated 18 routes to 16 destinations across seven countries. The airline was known for flying its aircraft in an eye-catching bright pink livery featuring an image of a flamingo on the tail.

Silver Airways operated its first passenger flights in 2011 when investment firm  Victory Park Capital acquired the assets of Gulfstream International Airlines, a Florida-based regional carrier that had filed for bankruptcy in 2010. The investment firm poured enough capital into the defunct carrier to breathe new life into it, resurrecting it as Silver Airways and initially employing a fleet of Beech 1900s and Saab SF340 turboprops on short-sector flights across Florida.

Over the years, these types were phased out of the fleet in favor of the more efficient ATR turboprop. Nassau, Bimini, St. Kitts, and St. Maarten in the Dutch Antilles were among just some of the tropical destinations served by Silver Airways, in addition to a handful of cities in Florida, including Key West, Pensacola, Tallahassee, and Tampa. The airline had its base in Fort Lauderdale, Florida.

Having developed as a niche player in a niche market, Silver Airways had been struggling to find its way back to health following the pandemic, a situation that was exacerbated by rising operating costs, crew shortages, and increasing competition from the US major carriers. According to data firm Cirium, the airline was due to operate almost 1,600 scheduled passenger flights in June 2025. It is understood that the eight aircraft of Silver Airways have all been, or are in the process of being repossessed by their leasing company owners.

On June 11, 2025, at the Commercial Court in London, Mr. Justice Butcher ruled that AerCap was entitled to recover its claim for an indemnity of approximately $1 billion from insurers for the lost aircraft.  

AerCap’s claim was brought in respect of 116 aircraft and 15 standalone engines. AerCap’s losses, net of settlement amounts already received, were $2 billion. 

Mr. Justice Butcher said AerCap could claim the awarded sum from insurers under the “War and Allied Perils” coverage section of its insurance policy.   

Mr. Justice Butcher also ruled that Dubai Aerospace Enterprise (DAE), Merx Aviation, KDAC Aviation Finance, Falcon and Genesis could “recover in respect of its lost Aircraft and engines under the Contingent Cover of its policies”. 

The court accepted that the aircraft had been “lost” by Russia seizing them before Western sanctions ordered lessors to cancel contracts with Russian operators by March 28, 2022.  

An export ban on aircraft and aircraft equipment from Russia was brought into effect by the Russian government on March 10, 2022. 

To conclude, Mr. Justice Butcher said: “I wish to thank the representatives of all parties for the degree of cooperation and expertise shown in the preparation and presentation of what, by any standards, was an unusually demanding piece of litigation.” 

In total the trial related to 147 aircraft and 16 standalone engines with the six lessors initially claiming over $4 billion in payments.  

“In 2022, we recognized a pre-tax net charge of $2.7 billion to our earnings, which included a total loss write-off with respect to the assets which remained in Russia and Ukraine and impairment losses with respect to the assets which we had recovered from Russia and Ukraine at that time,” AerCap said in a statement.   

The company added: “Following recoveries of $1.3 billion in 2023 and $195 million in 2024, this indemnity award will bring AerCap’s total pre-tax recoveries relating to the Ukraine conflict to approximately $2.5 billion.”    

Several claims against insurers by AerCap over other assets linked to Russian airlines remaining ongoing in the Commercial Court. 

“We intend to continue to vigorously pursue those claims,” said AerCap. 

You can read the judgement in full on the Courts and Tribunals Judiciary website.

The IPO is comprised of an offer of AUD236.2 million ($153.5 million) fully paid ordinary shares at an offer price of AUD$2.90 ($1.88) per share, raising A$685 million ($445 million) which will “allow certain existing equity holders the opportunity to realise part of their investment in the company,” said the airline in a statement. It is currently expected that trading of shares on the ASX will commence on June 24, 2025, initially on a conditional and deferred settlement basis.

On completion, investors participating in the offer are expected to hold 30.2% of shares on issue, with the remainder being held by existing investors, which include Bain Capital, Qatar Airways Group, the Virgin Group, and Queensland Investment Corporation. 

In advance of the IPO, the airline has also announced a raft of management changes and changes to its board, including the appointment of Peter Warne as its independent, non-executive chairman. Peter, who is a former chair of Macquarie Group Limited, became a non-executive director of Virgin Australia in April 2025. Virgin Australia CEO Dave Emerson has joined the board as managing director, while experienced company director Melinda Conrad has also been appointed as an Independent, non-executive director and chair of the Remuneration, Nomination, People and Culture Committee.

“After making significant progress in Virgin Australia’s transformation and with the backing of leading global airline Qatar Airways Group as a strategic investor, we believe it is now appropriate for the business to transition to a publicly listed company,” said the incoming Virgin Australia chairman, Peter Warne. “This provides an opportunity for new investors to share in the success of Virgin Australia as the airline enters its next phase. I commend all those involved in orchestrating Virgin Australia’s remarkable turnaround and setting the business up for long-term success.”

Virgin Australia’s CEO, Dave Emerson, added, “Virgin Australia is a simple, focused business with a transformed operational and commercial model. We have a clear strategy and an incredible team of people who deliver wonderful flying experiences to our customers every day. We are delivering on our ambition to be Australia’s most loved airline and continuing to expand our award-winning Velocity frequent flyer program.”

Virgin Australia is the country’s second-largest airline group, carrying approximately 20 million passengers annually. Revitalised and rescued from administration under the ownership of Bain Capital in 2021, Virgin Australia is a budget carrier which operates a fleet of more than 100 aircraft on 76 routes to 38 destinations across its domestic and short-haul international airline business.

Forwards with Qatar Airways

In February 2025, Qatar Airways’ long-awaited purchase of a 25% minority stake in Virgin Australia was finally given the green light by the Australian Government’s Foreign Investment Review Board (FIRB). The approval was granted by way of a Federal Treasurer’s announcement made on February 27, 2025, and followed a determination by the Australian Competition and Consumer Commission (ACCC) indicating its intention to permit the investment to go ahead earlier in the month.

The investment by Qatar Airways was given once all of the regulatory hurdles had been overcome. The carrier’s owners, Bain Capital, together with Virgin Group and the Queensland Investment Corporation, each retained their current shareholdings in Virgin Australia following the Qatar Airways investment. With the Qatar partnership now fully underway, the two airlines now partner to over 650 destinations globally, and from later June 2025, Virgin Australia will commence its own long-haul international services between Australia and Doha through a wet lease deal with Qatar Airways for Boeing 777-300ERs.

On May 27, 2025, around 3,000 machinists at Pratt & Whitney in Connecticut ratified a new four-year collective bargaining agreement, officially ending their three-week strike.  

Speaking at the Bernstein 41st Annual Strategic Decisions Conference 2025, held on May 28, 2025, Calio warned that the second quarter of 2025 would see a negative cash flow due to the strike.   

“There was an impact, of course, with the stoppage on our ability to ship all the GTF and F135 engines that were in our plan,” Calio said. “So that’s something we’re going to have to recover throughout the balance of the year.” 

Calio told the Bernstein Strategic Decisions Conference that the second quarter of 2025 will see a negative cash flow due to the strike.  

However, Calio also noted that RTX plans to “continue to get their people back ramped up, get engines back out the door,” and the company believes the impact of the strike is “recoverable within the full year”. 

“From an earnings perspective, I would just say probably neutral in the quarter given the mix of Net Energy Metering (NEM) avoidance on new engines and spare engines,” Calio said. “But again, good to have everyone aligned and back to delivering to our customers on the commercial and defense sides.” 

During the conference, Calio said that the company’s backlog is valued at $217 billion, with $125 billion coming from commercial sectors and the rest from defense. The company continues to project a free cash flow of $7 billion to $7.5 billion for the year.  

“Every day our employees get up with the mission to protect and connect the world, and they’re very passionate about that,” said Calio, adding that the demand for the company’s products “is exceptionally strong.” 

According to The Rio Times, the filing follows months of negotiations with creditors and investors, including prearranged commitments from United Airlines and American Airlines to inject between $100 to $150 million each once the Brazilian airline has successfully completed a financial restructuring process.

Azul’s overall debt situation is said to have risen rapidly in the past few months alone, coinciding with national currency volatility, rising US interest rates, and widespread operational disruptions from global supply-chain delays, all compounding the issues being faced by the carrier. Azul’s debt surged by 50.3% in the first quarter of 2025 versus the same period in 2024 as its cash reserves plummeted. These are reported to have fallen by 51% to $118 million in the first part of 2025, while lease payments and debt servicing reached $1.31 to $1.38 billion annually.

While Azul enacted the first stage of a major restructuring plan in January 2025, the move, which is reported to have eliminated $1.6 billion of debt through a process of equity swaps with aircraft lessors and bondholders, appears not to have been enough to avoid a Chapter 11 filing. The filing will allow the carrier some relief from creditors while it continues the process of reorganizing its finances to turn the company’s fortunes around.

As part of the bankruptcy process, it is understood that creditors have agreed to convert $784.6 million of debt into preferred shares and extend $780 million in maturities to 2029 to 2030, while a $525 million capital infusion aims to stabilize operations. Bondholders and lessors will collectively control 45% of equity post-restructuring, leaving existing shareholders with diluted stakes.

Fleet issues

One of the key issues that has affected Azul is the grounding of multiple aircraft that are powered by Pratt & Whitney engines, which have become the subject of additional maintenance checks, while a lack of spare parts is hampering attempts to get these aircraft back in the air. According to ch-aviation, the airline operates a fleet of 192 aircraft, which includes 59 Airbus A320 family narrowbodies and 12 A330 widebodied aircraft. Of these aircraft, six are currently shown as inactive.

The airline also has 35 Embraer E2s and 44 ERJ-190s on its books, although 27 are listed as parked. For regional operations, the carrier has a fleet of 42 ATR turboprops, although 15 are listed as parked.

Alongside the aircraft shortage caused by the grounding of its own aircraft, the airline has been forced to lease aircraft from other operators to cover its flying program. However, this too has caused issues with huge leasing costs being incurred alongside the use of foreign carriers, attracting the wrath of Brazilian labor unions. Likewise, the airline has prioritized fleet modernization by planning to integrate 15 fuel-efficient Embraer E195-E2 jets by late 2025.to help with its aircraft shortfall.

With court approval, Azul expects to see minimal additional disruptions to its operations while it undergoes its restructuring, taking a similar approach to that of GOL in 2024/25 and LATAM’s 2022 exit from bankruptcy. It is understood that the merger talks with GOL have been paused while the process of financial restructuring is undertaken.

Speaking about the agreement with the two US airlines, aircraft leasing companies, and other creditors and bondholders, John Rodgerson, Chief Executive Officer of Azul, said, “Azul continues to fly – today, tomorrow, and into the future. These Agreements mark a significant step forward in the transformation of our business – one that enables us to emerge as an industry leader in the main aspects of our business.”

“With a collaborative approach and the support of our stakeholders, we have made a strategic decision to pursue a voluntary financial restructuring as a proactive move to optimize our capital structure, which was burdened by the COVID-19 pandemic, macroeconomic headwinds, and aviation supply chain issues. Our strategy is not just about financial reorganization. By using this process, we believe that we are creating a robust, resilient, industry-leading airline – one that customers will continue to love flying, at which crewmembers will continue to love working, and that will create value for our stakeholders.”

The airline attributed the profit drop to pricing pressure, which has led to average fares being 7% lower compared to the preceding year. A modest increase in ancillary revenue (+1%) has not been enough to offset the lower ticket prices. 

Ryanair, however, has continued to grow, setting new records on the operational front. The Irish airline reached the 200 million passenger mark for the first time in its history, after registering a 9% increase in passenger numbers.  

However, the pricing pressure has translated into slower revenue growth. Total revenue increased by 4%, from €13.44 to €13.92 billion, not enough to outpace operational cost inflation of 9%. Ryanair did manage to keep its cost per passenger flat. 

In a note announcing the annual results, Ryanair also boasted about its financial health and the returns it is delivering to its shareholders. The low-cost carrier, which is holding a €4 billion gross cash position, bought back shares equivalent to 7% of its capital during the latest fiscal year and plans to distribute a €0.227 per share dividend in September 2025.   

When it comes to its future, Ryanair reiterated its plan to keep adding capacity to its fleet as soon as more 737 MAX aircraft roll out of Boeing’s factory.  

As of May 2025, Ryanair operates 181 B737-8200 aircraft (a specific version of the B737-8 MAX built to Ryanair’s specifications in order to be able to carry nearly 200 passengers), which make up almost a third of its 618-aircraft fleet. Ryanair expects to take delivery of another 29 within the next 12 months and it is also eagerly awaiting the certification and entry into service of the even larger B737-10. 

Although the expected pace of new aircraft induction will slightly slow capacity growth, the airline remains confident that this constant capacity expansion together with its low-cost base, will enable it to push ahead of its competitors in what is still a capacity-constrained market. Ryanair hopes to hit the 300 million passenger mark by 2034. 

The significant rise in net profits for the financial year 2024/25 (FY2024/25) was boosted substantially through the provision of a one-time non-cash accounting benefit from the Air India-Vistara merger, said the carrier.

Overall, the SIA Group (Which includes Singapore Airlines, Singapore Airlines Cargo, and Scoot), saw revenues increase by 2.8% year-on-year to US$19.54 billion, which according to the airline was driven by record passenger volumes and strong demand in both passenger and cargo markets. SIA and its budget sister airline Soot transported 39.4 million passengers, representing an increase of 8.1% over FY2023/24.

While net profits rose, however, passenger yields fell by 5.5% to 10.3 cents per revenue passenger-kilometer (RPK). This was largely due to the carrier’s overall network capacity growth surpassing forecast recovery in the market, with competition from local and international rivals driving fares down overall. Generated passenger revenue accounted for US$15.85 billion, showing just a slight rise of 1% over the previous year.

The SIA Group’s passenger load factor declined overall by 1.4% in FY2024/25, with the final figure for the year being recorded at 86.6%. While network capacity grew by 8.2% over the SIA operation, passenger numbers increased at a slower rate, at just 6.4 percentage points.

Group spending rose 9.5% to US$17.83 billion in FY2024/25, with non-fuel expenditures rising 11% due to capacity growth and inflationary pressures. Despite efforts taken by the company in terms of added cost control measures, as well as the introduction of more digitalized procedures, the increase in overall trading costs saw a drop in operating profits of US$1.71 billion, representing a 37.3% fall. The group also saw net fuel costs rise, primarily due to volume lift and fewer gains being achieved in its fuel hedging strategies.  

On the positive side. One of the SIA group’s biggest contributions to its success for FY2024/25 was an accounting gain of US$1.1 billion arising from the November 2024 consolidation of Air India with Indian rival carrier, Vistara. As part of the finalization of the agreement for the two airlines to merge, SIA bought 25.1% of the newly enlarged Air India, which, according to an SIA statement, “serves its multi-hub growth strategy and gains exposure to the rapidly expanding aviation space in India.”

The second half of FY2024/25 recorded net profit rising 65% to US$2.04 billion, with revenue hitting US$10.04 billion, a half-yearly high. This performance was driven by strong seasonal travel demand and one-off merger-related benefits.

On the cargo side

Cargo revenue from SIA Group operations rose by 4.4%, which, according to the airline, was fueled by increased demand for perishable goods and e-commerce, in addition to the impacts from challenges in sea freight logistics, particularly those surrounding issues in the Red Sea and the Suez Canal at the end of 2024.

Additionally, the SIA Group’s cargo load factor improved by 1.6% year-on-year, rising to 56.1%, while yields fell 7.8% due to an increased competitive environment in the air cargo industry in FY2024/25 and downward pressure on freight rates. However, SIA’s cargo business (which includes belly-hold cargo as well as on Singapore Airlines’ fleet of dedicated freighter aircraft) was “aided by network flexibility and the capacity to reroute capacity into high-demand trade lanes,” stated the company.

Looking ahead

SIA Group ended FY2024/25 with a fleet of 205 aircraft, with an overall average age of 7 years and 8 months. This breaks down as 136 for Singapore Airlines, 57 for Scoot, and 12 for Singapore Airlines Cargo. The parent company currently flies on 112 routes serving 83 destinations across 35 countries, while the ISA Group as a whole serves a global network covering 128 destinations. The Group ended FY2024/25 with US$8.3 billion in cash and bank balances, backed by US$3.3 billion of undrawn credit lines.

Shareholder equity was US$15.7 billion after accounting for bond redemptions and dividend payments. The board recommended a final dividend of 30 Singapore cents a share, bringing the total payout for the year to 40 cents a share, or US$1.2 billion.

The SIA Group ended its statement regarding its FY2024/25 figures by commenting on its prospects for the current year, stating that “As long as macroeconomic uncertainty and geopolitical tensions prevail, SIA anticipates sustained growth through its dual-brand strategy, strategic partnerships, and investments in fleet, lounges, and generative AI technologies. Scheduled capacity increases on critical routes, digital transformation efforts, and infrastructure upgrades, such as lounge refurbishments and new premium cabin products, will put the group in a competitive position.” “Through disciplined cost management and an Asia-Pacific anchored diversified network, SIA is well-positioned to capture future demand while protecting profitability,” the statement ended.

The results, announced on May 8, 2025, were buoyed by the start of new routes, a 3% lift in passenger numbers to 53.7 million, and a 4% increase in seat capacity. 

Emirates said the results cemented its position as “world’s most profitable airline” with profits before tax increasing by 20% to $5.8 billion. Emirates’ total revenue for the financial year also increased 6% to $34.9 billion. 

Emirates Group, which includes the airline, SkyCargo, dnata and several other companies, also posted record breaking results during the financial year up to March 31, 2025. 

Profits before tax rose 18% from last year to $6.2 billion and revenues increased by 18% to $39.2 billion. 

“We are the world’s most profitable aviation group, and Emirates is the world’s most profitable airline in the 2024-25 reporting period. dnata also delivered excellent results across its UAE and international businesses,” said Emirates Group CEO and Chairman Ahmed bin Saeed Al Maktoum.   

He added: “It is no accident that Dubai has produced hugely successful global aviation entities, including Emirates, the world’s largest international airline, and dnata, one of the world’s largest combined air services providers.” 

During the year, Emirates launched two new destinations, Bogotá and Madagascar, restarted flights to Phnom Penh, Lagos, Adelaide and Edinburgh and strengthened services to 21 other destinations to meet rising demand. 

The first Airbus A350 aircraft joined Emirates’ fleet this year and by March 31, 2025, the carrier had four A350s flying to Edinburgh, Ahmedabad, Bahrain, Colombo, Kuwait and Mumbai.    

Emirates also confirmed in its latest financial report that it expects 16 A350s and four Boeing 777 freighters to arrive in 2025-26, and that its refit program will continue across its A380, 777 and A350 fleet. 

Total operating costs increased by 4% from last financial year with fuel and employee costs the airline’s two biggest cost components in 2024-25. Fuel accounted for 31% of operating costs compared to 34% in 2023-24. 

“We enter the year ahead with excitement and optimism. Our excellent financial standing enables us to continue building on and scaling up from our successful business models. While some markets are jittery about trade and travel restrictions, volatility is not new in our industry. We simply adapt and navigate around these challenges,” said Ahmed. 

Through Air52, Koen assists airlines, airports and industry stakeholders with practical solutions for complex challenges, drawing on his extensive background in feasibility studies, fleet and network planning, and airline startups. He also contributes to IATA training courses and serves as faculty for Aviation MBA programs.     

The views and opinions expressed in this column are solely those of the author and do not necessarily reflect the official policy or position of AeroTime.     

Imagine being the CEO of an airline, staring at a financial report that shows your company earns just $7.00 per passenger. That’s right, in an industry with razor-thin margins, where a single route miscalculation can cost millions, the average airline makes less than the price of an airport sandwich on each traveler. Sound challenging? Welcome to the complex world of airline business models! 

For airline executives, this reality transforms routine decisions into high-stakes gambles. For industry professionals, understanding these models is crucial to navigating the competitive landscape. And for passengers? While most never think about it, these business models fundamentally shape everything from ticket prices to inflight service quality. 

But what exactly drives an airline’s strategic choices? Why do some carriers offer no-frills service at rock-bottom prices while others provide gourmet meals and lie-flat beds? Let’s decode the intricate business logic that keeps planes flying and explore why business models matter in this notoriously challenging industry. 

The $7.00 profit puzzle 

The strikingly low average profit per passenger ($7.00) isn’t a coincidence, it’s the culmination of several industry-wide challenges: 

• High operating costs: Fuel, labor, and aircraft maintenance consume enormous portions of revenue 

• Intense competition: Keeps fares low, especially with the rise of LCCs 

• Price sensitivity: Many passengers prioritize low fares above all other factors 

• Regulatory costs: Compliance with safety and security regulations is expensive 

• Cyclical nature: The industry is vulnerable to economic downturns and global events 

This economic environment explains why airlines constantly experiment with new revenue streams while seeking the delicate balance between competitive pricing and profitability. Have you ever wondered why that checked bag fee keeps creeping up? Now you know! 

Unpacking airline business models 

Before exploring specific models, it’s essential to understand what we mean by an “airline business model” and its role in broader airline management. 

An airline business model describes the means by which the airline derives profit from its business. It serves as a blueprint for the airline’s strategy and operations, providing a high-level view of how the airline creates, delivers, and captures value. 

Key components of an airline’s strategic framework include: 

• Business model: The overarching logic of how the airline generates revenue 

• Mission: Defines the core purpose of the airline – why it exists 

• Vision: Outlines the desired future state 

• Core values: Fundamental beliefs and principles guiding decisions 

• Goals: Specific, measurable targets 

• Strategy: Detailed plans to implement the business model 

The business model provides structure, while the mission, vision, and values create context. Goals quantify objectives, and strategy charts the path to success. 

The Business Model Canvas: A practical tool 

For aviation professionals, the Business Model Canvas offers a powerful framework for analysis. Developed by Alexander Osterwalder and Yves Pigneur, this tool encompasses nine key elements that help airlines visualize their entire business at a glance: 

• Customer segments: Who are you serving? (business travelers, leisure passengers, cargo shippers) 

• Value proposition: What value do you deliver to customers? (low fares, premium service, extensive network) 

• Channels: How do you reach customers? (booking platforms, travel agencies, mobile apps) 

• Revenue streams: How do you make money? (ticket sales, ancillary revenues, loyalty programs) 

• Key resources: What assets are essential? (aircraft, airport slots, skilled workforce) 

• Customer relationships: How do you interact with customers? (self-service, personalized service) 

• Key activities: What must you do well? (flight operations, maintenance, marketing) 

• Key partnerships: Who are your crucial partners? (alliances, airports, catering companies) 

• Cost structure: What are your major costs? (fuel, labor, aircraft leasing, airport fees) 

Next time you’re analyzing an airline’s strategy, try mapping it on this canvas – you might be surprised by the insights you uncover.  

Types of airline business models 

While each airline has unique characteristics, we can categorize airlines into several main business models based on their customer segments, value propositions, and cost structures: 

Network carriers 

Also known as full-service carriers, flag carriers, or major carriers, these airlines: 

• Serve all passenger market segments and often cargo 

• Utilize hub-and-spoke networks 

• Provide service with perceived uniqueness 

• Have a value-driven cost structure 

Think of Emirates, Lufthansa, and British Airways, carriers focused on network breadth and service quality rather than offering the lowest possible fares. 

Low-cost carriers (LCCs) 

These carriers focus on: 

• Serving price-sensitive business, leisure, and VFR (Visiting Friends and Relatives) passengers 

• Utilizing point-to-point networks 

• Making price their main differentiating feature 

• Maintaining a highly cost-driven operation 

Southwest Airlines pioneered this model, which has been widely adopted globally by carriers like easyJet and AirAsia. 

Ultra-low-cost carriers (ULCCs) 

Taking the LCC model further, ULCCs: 

• Target extremely price-sensitive leisure and VFR passengers 

• Operate point-to-point networks 

• Drive prices even lower as their primary competitive advantage 

• Maintain extremely cost-driven operations with minimal free amenities 

Frontier Airlines and Wizz Air exemplify this approach. Ever wondered why they charge for everything including water? It’s all part of the model.  

Regional and ACMI Carriers: A terminology note 

Here’s where terminology gets interesting. In North America, what are called “regional carriers” often function as ACMI (Aircraft, Crew, Maintenance, and Insurance) providers for larger airlines. These carriers typically: 

• Operate smaller aircraft on behalf of major airlines 

• Fly under the brand and flight codes of their major airline partners 

• Provide feeder traffic into major airline hubs 

• Have other airlines as customers 

Airlines like SkyWest, Republic Airways, and Mesa Airlines in the US operate under this model, even though they’re called “regional airlines” rather than ACMI providers. This differs from usage in other parts of the world, where “regional carrier” may refer to an independent airline serving a specific geographic region. 

Additional models 

The industry also includes specialized business models such as: 

• Charter airlines: Primarily serve tour operators with non-scheduled service 

• Dedicated ACMI/capacity providers: Outside North America, offering aircraft, crew, maintenance, and insurance to other airlines 

• Cargo airlines: Focusing exclusively on freight transportation 

• Hybrid airlines: Blending aspects of LCC and network carrier models such as JetBlue. This can also be done within an airline group (either within the same brand or using different brands). For example, the Singapore Airlines group comprises of the premium network carrier Singapore Airlines and the LCC Scoot.  

Global variations: How geography shapes business models 

Airline business models vary significantly by region, shaped by regulatory environments, geographic characteristics, and economic conditions: 

• North America: Dominated by network carriers and LCCs, with growing ULCC presence. Features extensive use of carriers operating as ACMI providers in the hub-and-spoke system. 

• Europe: Mix of network carriers, LCCs, and hybrid carriers, with stronger competition across models.   

• Asia-Pacific: Diverse landscape with network carriers, LCCs, and emerging ULCCs. Regional airlines play a significant role in connecting vast and diverse (island) territories. 

• Middle East: Prominence of global network carriers with growing LCC segment. The region’s geographic position enables global hub strategies. 

• Latin America: Increasing LCC market share alongside strong network carriers, with regional airlines connecting remote areas. 

• Africa: Mostly network carriers with a growing LCC presence, where regional airlines provide essential connectivity across the continent. 

Success stories: Business models in action 

Let’s look at how these models work in practice with some successful implementations: 

Southwest Airlines pioneered the LCC model, focusing on operational efficiency, consistent branding, and strong company culture. Its challenge? Maintaining the low-cost advantage as they grow larger than many competitors they originally disrupted. 

AirAsia successfully adapted the LCC model in Asia through a multi-country/multi-base strategy, strong ancillary revenue focus, and effective technology use. When you’re flying in Southeast Asia, notice how the airline has mastered cross-selling everything from hotels to activities. 

Lufthansa Group represents a sophisticated multi-brand strategy encompassing network, LCC, and regional carriers. The group’s diverse portfolio and strong hub network are strengths, while balancing different business models presents ongoing challenges. Just look at the tailfins within the group, each representing a different business model under one corporate umbrella. 

Challenges and future trends 

Each business model faces unique challenges, but several key trends are shaping the future for all: 

1. Sustainability-driven innovation: IATA’s “Fly Net Zero” commitment is driving significant changes across all airline business models. How will your favorite airline balance environmental responsibility with cost control? 

2. Personalization at scale: Airlines are moving toward hyper-personalization of services and offers. Next time you’re browsing airline offers and see eerily relevant suggestions, you’re seeing this trend in action. 

3. Multi-modal integration: Combining air travel with ground transportation for seamless journeys. Think about airlines selling train tickets as part of your journey – that’s already happening in Europe. 

4. Flexible capacity management: Adapting capacity to match volatile demand patterns, particularly relevant as we emerge from pandemic-era disruptions. 

5. Unbundling and rebundling: The continuing evolution of fare structures and product offerings that affects your booking experience regardless of which airline you choose. 

Looking ahead, while core business model categories will likely persist, we’ll see increasing hybridization and specialization as airlines adapt to changing market conditions and customer preferences. 

What does this mean for you? 

Understanding airline business models offers practical benefits whether you’re an industry professional or an informed traveler: 

• For airline managers: Guides strategic decision-making and resource allocation 

• For network planners: Informs route selection and capacity decisions 

• For marketing professionals: Shapes branding and customer segmentation strategies 

• For passengers: Helps you understand why airlines make the decisions they do 

The future of flight 

The fundamental question remains: How will these models adapt to balance the dual challenges of sustainability and profitability in an increasingly competitive global market? 

As aviation professionals, understanding and adapting these business models gives you the power to shape the future of air travel. The challenges are significant, but so are the opportunities for those who can innovate and adapt. 

The next time you book a flight, consider the complex business model working behind the scenes to make your journey possible. That $7.00 profit margin represents both the industry’s greatest challenge and its most remarkable achievement – bringing global connectivity to millions while navigating one of the world’s most demanding business environments. 

In February 2025, Bombardier posted its financial results for 2024, but unusually it did not include any guidance or objectives for the coming year.  However, this situation now appears to have changed.  

According to the Montreal Gazette, Martel said on a conference call: “We clearly have more clarity. If you go back to February when we came out to announce our 2024 results, we were right in the middle of a week where it was 25% on everything from Canada, so we didn’t understand exactly how things would work.”  

Bombardier relies on over 2,000 US suppliers to build its planes, and it is thought that these parts could be exempt from any tariffs the company faces.   

As part of its new outlook, published on May 1, 2025, Bombardier said that it anticipates delivering more than 150 aircraft this year, measured against 146 in 2024.  

The Canadian firm also projected that revenues should rise from $8.67 billion in 2024 to $9.25 billion in 2025, and that Adjusted EBIT will increase from $915 million last year to $1.55 billion this year. 

“As the world navigates through economic uncertainty, Bombardier has been diligent in its planning, developing multiple scenarios over the past few months,” Martel said. “We have come a long way by focusing on what we control and have everything in place to guide for a strong year in 2025 with an increase in revenues and free cash flow.” 

First quarter performance 

Bombardier reported revenues of $1.5 billion, an increase of 19% year-over-year in its first quarter update, which it said was driven in part by the delivery of 23 aircraft – three more than during the same quarter last year. 

Adjusted EBIT between January and March reached $177 million, a 25% year-over-year increase and Bombardier’s free cash flow usage of $304 million represented a 21% improvement year-over-year. 

“Bombardier’s strong start to the year demonstrates our great flexibility as well as the rock-solid fundamentals we have built our business on,” Martel said. “I am tremendously proud of our team who remained focused on executing at the highest level to deliver double-digit gains year-over-year on revenues, adjusted EBITDA, adjusted EBIT and free cash flow.”  

He added: “Over the last five years, we took proactive and necessary steps to address our balance sheet, our revenue streams, as well as supply chain pressure. The foundations we have laid allow us today not only to face uncertainty with calm and confidence, but also to consider the opportunities that may arise from it. Bombardier today is well positioned to carry forward our momentum.” 

That is because they are going to hike the costs for nearly every firm involved in flying passengers to their get aways. Aviation is far too much of a global business, reliant on intricate supply chains that criss cross borders for the impacts on margins not to be felt.

Consider the Boeing 787. Parts like wings, fuselage sections, and engines are sourced from countries such as Japan, Italy, the UK, and others. Any tariffs will just force the cost of this jet up. The same will be true of the Airbus A320 and Boeing 737, the workhorses of leisure travel, especially given by the proposed 25 per cent tariff on aluminium and steel as both materials are used in the manufacture of planes. 

Engine manufacturers will likewise be impacted. GE Aerospace’s chief Larry Culp is calling for the reintroduction of the tariff-free regime for the aerospace industry under the 1979 Agreement on Trade in Civil Aircraft.

Meanwhile, with Airbus and Boeing struggling to deliver new jets like the Neo and the Max for the last few years, the value of second-hand aircraft has gone up due to a supply/demand imbalance.

While there are reports that Trump is planning to spare carmakers from some of his most onerous tariffs, even if second hand aircraft are deemed exempt from tariffs – like used cars will potentially be – the value of these jets for operations or parts for maintenance will only increase more as airlines and other firms look to mitigate their tariff exposure as much as possible.

So, with costs rising, so will ticket prices. It’s basic economics.  Prices in 2024 were already at an all-time high in some markets and all the indications are that there is enough demand for travel for airlines to be able to hike prices and pass these costs on. For example, Eurocontrol, Europe’s air navigation safety body which manages its airspace, says it is forecast to see 5.2 per cent more flights this summer.

Equally, according to research this year by the European Travel Commission, most on the continent have been planning longer and higher-budget holidays despite a slight drop in overall intent to travel.

One third of Europeans plan to spend €1,501–€2,500 per trip, while nearly one in five are considering spending over €2,500, the European Travel Commission found.

So, there is clearly – at least this for summer – enough intent to spend for most if not all costs from tariffs to be passed on by carriers.

This summer had been anticipated as the one where the cost of a holiday was going to drop from their post-Covid highs. With a glut of new hotel rooms set to come onto the market, prices were set to tumble. But the planned tariff regime looks set to delay that.

There may be a silver lining on the horizon though. If transatlantic travel continues to decline, carriers like BA or Virgin Atlantic may pivot back towards more flights in Europe next year, increasing coemption and therefore starting a price war for summer 2026.

In February 2025, Airbus announced that it planned to deliver “around 820” commercial aircraft this year but between January and March only 136 were delivered – 17% of the annual target.  

On April 30, 2025, the CEO of Airbus, Guillaume Faury, said that the company was “ramping up production” in line with its plans “but the delivery profile will be backloaded”. 

In a statement, Faury said that this reflected the “specific supply chain challenges we are facing this year”. 

According to FlightGlobal, during a briefing Faury told the audience that 17 aircraft had been parked while awaiting engines from CFM International. 

In 2024, Airbus reported that it had made 142 aircraft deliveries in the first quarter to 45 airline customers. 

Airbus status updates

In other updates, Airbus announced that the company’s revenues increased 6% year-on-year to €13.5 billion ($15.2 billion) from €12.8 billion ($14.4 billion) in 2024. 

The company’s EBIT Adjusted also rose by 8% to €624 million ($706 million) in the first quarter from €577 million ($653) in the same period last year. 

Airbus Helicopters’ Adjusted EBIT increased to €78 million ($88 million) in this year’s first quarter from €71 million ($80 million) in 2024. Airbus Defense and Space amounted to €77 million ($87 million). 

“Our Q1 results demonstrate the progress we are making on our priorities across the business,” said Faury. 

Of the 136 commercial aircraft delivered, 17 were A220s, 106 A320 Family aircraft, four A330s and nine A350s. 

Gross commercial aircraft orders totaled 280 (Q1 2024: 170) with net orders of 204 aircraft after cancellations and as of March 31, 2025, the order backlog stands at 8,726. 

Airbus production targets

Airbus reaffirmed its ambitions to ramp up the A320 family program towards a rate of 75 aircraft per month in 2027.   

The planemaker also continues to target a rate of 12 per month for the A350 in 2028 and a monthly A220 production rate of 14 aircraft in 2026. 

However, Airbus did warn that “specific supply chain challenges, notably with Spirit AeroSystems, are currently putting pressure on the ramp up of the A350 and the A220”.   

In its outlook for the year, Airbus confirmed it is still targeting around 820 commercial aircraft deliveries but said this “excludes the impact of tariffs on its business”. 

“We maintain the guidance that excludes tariffs which are adding complexity and remain uncertain in terms of implementation, scope and duration. We are closely monitoring and assessing the situation, but it is too early to quantify the impact today,” added Faury. 

During the first quarter of 2025 (January to March), the airline recorded a net loss of US$208 million. Operating revenues reached $2.1 billion for the first quarter (1Q25), a decrease of 3.1% year-on-year. Meanwhile, operating expenses of $2.3 billion were logged for 1Q25, a decrease of 21% over 1Q24.

JetBlue’s operating expense per available seat mile (“CASM”) for 1Q25 decreased 17.4% year-on-year, while operating expense per available seat mile, excluding fuel, other non-airline operating expenses, and special items, for the first quarter of 2025 increased 8.3% versus 1Q24. Overall system capacity decreased by 4.3% year-on-year, while the airline’s completion factor for the 1Q25 period came in at 98.6%.

The carrier ended the quarter with US$3.8 billion in liquidity, which, according to the carrier, will allow it to continue executing the airline’s multi-year JetForward long-term restructuring and cost-cutting plan.

“During the first quarter, we delivered a strong operation and efficiently executed on costs. JetForward is ramping well, and we are focused on successfully managing what we can control,” said Joanna Geraghty, JetBlue’s chief executive officer. “We also acted urgently to manage near-term revenue uncertainty. We were the first carrier to make meaningful capacity adjustments, swiftly moving to better match supply with demand,” she added.

Geraghty commented that the airline will continue to monitor the evolving macroeconomic backdrop in the US and to evaluate all available levers to boost profitability and preserve cash. This includes additional capacity reductions, targeted cost savings, and further evaluation of the fleet retirement schedule. Given the uncertainty in the US market, with many analysts predicting a recession later in 2025, Geraghty added that JetBlue “will not be reaffirming our prior full-year guidance.”

In a statement to investors, the CEO said that there are early signs that various elements of the airline’s JetForward program are bearing fruit. Operational improvements made during 1Q25 were already noticeable, while other investments in fleet reliability, again tied to the JetForward strategy, have driven year-over-year improvements in on-time performance continuously over the previous three quarters. These improvements have driven significant increases in customer satisfaction and cost savings, said Geraghty.

“Thank you to our crewmembers for your commitment to running a safe and reliable operation and to your commitment to the JetForward strategy,” the CEO said. “Your dedication to offering the caring service JetBlue is known for makes a significant impact on the customer experience and is a core reason new and loyal customers keep coming back to fly JetBlue.”

Well-positioned for uncertainty

JetBlue said in a statement of its 1Q25 performance that it remains well-positioned to manage through a range of economic outcomes. Over the past 16 months, the company raised US$3.2 billion in strategic financing in 2024 and managed upcoming capital expenditures by approximately US$3 billion in aircraft deferrals. These savings were providing JetBlue with the funding to execute JetForward. In addition to its current liquidity levels, the company has over $5 billion in unencumbered assets, primarily consisting of aircraft, engines, slots, gates, and routes.

“We’ve already taken several steps to build a more resilient financial foundation, and we continue to evaluate all avenues to improve our financial results,” said Ursula Hurley, JetBlue’s Chief Financial Officer. “We remain confident JetForward will drive enduring structural changes on our path to sustained profitability, and we saw encouraging progress in the first quarter.”

Outlook for 2025

“In the first quarter, we saw booking strength from January deteriorate into February and worsen into March,” said Marty St. George, JetBlue’s president. “We expect softened demand for off-peak travel to continue into the second quarter, where the booking curve is more exposed to macro uncertainty and deteriorating consumer confidence. That said, we are committed to our JetForward plan and are encouraged by the resiliency of premium, international, and loyalty revenues – core components of our long-term strategy.”

Major tie-up with United looms

Since the failure of its Northeast Alliance (NEA) tie-up with American Airlines in 2023 on antitrust grounds, JetBlue has been seeking an alternative partner to bolster its position in the Northeast US, particularly in the Boston and New York corridors. According to a report by Reuters, citing sources close to the matter, the airline is all set to announce a major commercial agreement with another US legacy carrier, United Airlines, in the coming weeks.  

The partnership with United has allegedly been drawn up to work differently from that envisioned under the NEA with American Airlines, the sources said. While the alliance is expected to focus on providing greater connectivity to JetBlue and United customers, also allowing them to earn and burn frequent-flier miles on the other carrier’s flights, unlike the NEA the two carriers will not coordinate on schedules and pricing, the sources added – an issue that has led to legal action recently being launched by American against JetBlue. The latter has not officially confirmed that talks have taken place with United specifically, and the sources told Reuters that the two companies were yet to finalize the details of any potential agreement, adding that matters being discussed remained subject to further changes.

While refusing to be drawn on the identity and nature of any possible tie-up with another airline, the airline’s president, Marty St. George, commented on conference call with investors on April 28, 2025, that the company was negotiating with a domestic airline with a larger network and that an announcement was expected in the current quarter. He did not elaborate further. Likewise, refusing to be drawn into the matter, Chicago-based United said it does not comment on industry speculation.

As reported by Skift, in March 2025, United’s CEO, Scott Kirby said that while the company would like to have a greater presence in New York, it was not ready to deal with all the regulatory hurdles. “I would like to have a presence on the other side of the river at JFK Airport,” Kirby had said. “But man, all the headaches, all the brain damage of buying a whole airline to get there. That’s a lot to do.”

The Lufthansa Group increased its revenue in the first quarter of 2025 by 10% compared to the same period (January to March) in 2024. This translates as an increase to €8.1 billion in 1Q25 from €7.4 billion in 1Q24. The company posted an operating loss (adjusted EBIT) of €722 million, representing a significant improvement compared to the previous year, where it recorded a €849 million loss. The adjusted EBIT margin improved to -8.9% from -11.5% in 1Q24.

Revenue from the Group’s passenger airlines rose by 6% in the first quarter of 2025 to €5.9 billion, up from €5.6 billion the previous year. The operating result of the Lufthansa Group passenger airlines declined slightly with an adjusted EBIT loss of €934 million compared to the previous year, where an adjusted EBIT loss of €918 million was recorded.

Yields rose by 0.4% on average year-on-year, which the Group states was driven by “consistently high demand.” Unit revenues (RASK) were 2.7% higher than in the previous year, partly due to “significantly lower compensation payments to passengers compared with the strike-hit first quarter of the previous year.”

Unit costs (CASK), excluding fuel and emissions expenses, rose by 3.1% compared with the same quarter in 2024 due to general cost increases. The main cost drivers, said the Group, were fee increases at system partners such as air traffic control (up 19%) and airports, as well as high-cost inflation for maintenance services.

In addition, the seasonal shift of the usually strong Easter travel season, which fell in the first quarter of 2024, also had an impact on earnings development. “Without this shift, the passenger airlines would have significantly improved their earnings compared with the previous year,” added the airline group.

Operating cash flow rose to around €1.8 billion in the first quarter of 2025 versus €1.3 billion in 1Q24. The change, stated the airline, was mainly due to improved working capital concerning a seasonal increase in ticket sales. Including a decline in net capital expenditure, adjusted free cash flow improved to €835 million, up from €305 million in 1Q24. The Group further strengthened its balance sheet in the first quarter of 2025. Net debt decreased to €5.3 billion compared with the end of 2024 (€5.7 billion). Net pension obligations fell to €2.2 billion due to interest rates. At the end of March 2025, the company had total liquidity of €11.4 billion, up from €11 billion at the end of 2024.

Operation improvements

The Group’s airlines (which include Brussels Airlines, Austrian, SWISS, ITA Airways, and Discover Airlines), alongside Lufthansa and its subsidiaries, grew their capacity by almost 5% compared with the first quarter of 2024. Load factors declined slightly to 78.7%.

“Thanks to moderate growth compared with previous years, the operational stability and punctuality of the passenger airlines improved significantly despite the rising number of flights,” stated the Group. “In operational terms, the core brand Lufthansa had its best start to a year in ten years. At the Frankfurt hub alone, 20,000 fewer hotel beds had to be booked for guests in the first quarter than in the same period in 2024.”

Direct compensation payments for flight delays and cancellations fell groupwide by 52% to €47 million, down from €98 million in 1Q24 due to “significantly improved operational stability.”

“Global demand for air travel continues to grow,” said Carsten Spohr, Chairman of the Executive Board and CEO of Deutsche Lufthansa AG. “Despite all the geopolitical uncertainties, we therefore remain on course for growth, are optimistic about the summer, and are sticking to our positive outlook for 2025. In the first quarter, our airlines were able to sell their expanded capacity at higher yields in the market.”

Our revenue improved by 10% compared with the previous year, with Lufthansa Cargo and Lufthansa Technik also contributing with their strong performance. On the North Atlantic, the number of guests rose by more than 7% in the first quarter, with higher load factors and better yields. Demand continues to be robust for the second quarter. I am pleased that our guests are benefiting from significantly improved punctuality and stability, particularly with our core brand Lufthansa.”

“Operationally, we had our best start to the year in ten years. I would therefore like to express my special thanks to all crew members, technicians, and employees at the airports and in the operations centers of our airlines, who contributed to this success with their great commitment,” Spohr concluded.

2025 outlook remains positive

According to the Group, demand for air travel to and from North America remained strong in 1Q25. The overall number of passengers rose by 7.1% year-on-year. Load factors were also higher than in the previous year, with the seat load factor 0.7% above the 2024 figure. Average revenues for flights to and from North America also developed positively in the first quarter of 2025, rising by 6.7% compared with the first three months of the previous year.

Currently, demand in the US sales region continues to rise, says the Group. In March 2025, Lufthansa Group airlines carried around 25% more passengers from the US to Europe than in the same month in 2024. Global demand for air travel also remains strong, it stated, adding that the Lufthansa Group is expecting “another strong summer travel season overall.”

The most popular vacation destinations are Mediterranean destinations, especially Spain, Italy, and Greece, with demand for long-haul travel also remaining steady. Nevertheless, macroeconomic uncertainties, particularly the trade tensions between the US, the EU, and other regions, are making it difficult to forecast the coming quarters accurately, said the Group, with visibility for the third quarter remaining limited.

“We are in a period of high volatility,” said Till Streichert, Chief Financial Officer of Deutsche Lufthansa. “In this environment, it is good news that we are making progress as planned on issues within our control, such as our turnaround program at Lufthansa Airlines. At the same time, we are keeping an eye on market risks. We are well prepared to respond should these materialize.”

However, it is not just about risks, but also about positive factors that are already supporting our earnings performance today, such as favorable fuel prices and exchange rates. These can help to offset the financial effects of any changes in demand. Overall, we therefore remain confident that we will be able to achieve a full-year result significantly above the previous year’s level,” he added.

“The business is benefiting from strong growth in civil aftermarket,” CEO Olivier Andriès said. “Current performance and strong momentum in the civil aerospace and defense businesses reinforce our strong confidence in achieving our full-year outlook, excluding the potential impact of customs duties, which it would be premature to quantify at this stage.”

Safran stated that it is actively working to mitigate the potential economic impact of tariffs, deploying several initiatives to minimize disruptions. These include maintaining close dialogue with customers, adapting logistics flows, and making greater use of free zones and bonded warehouses. Where possible, the group also pursued customs duty rebates and exemptions under existing frameworks, such as the United States-Mexico-Canada Agreement (USMCA).

Revenue from propulsion rose 16.4%, supported by strong civil spare parts sales. LEAP engine deliveries fell 13% year-on-year to 319 units, but the drop was offset by a “favorable customer mix.” Equipment and Defense revenue grew 10.8%, with strong demand for nacelles, landing systems, avionics, and satellite communication systems. Aircraft Interiors revenue rose 13.8%, exceeding pre-pandemic levels, as demand for cabin equipment and business class seats remained strong.

Safran also advanced its acquisition of Collins Aerospace’s actuation and flight control businesses, receiving conditional approval from the European Commission. Regulatory approval in the UK is still pending.

For 2025, Safran expects revenue growth of around 10%, current operating income between €4.8 and €4.9 billion, and free cash flow between €3.0 and €3.2 billion. The outlook is based on assumptions including a 15–20% rise in LEAP deliveries and growth in civil spare parts and services revenue.

In 1Q25, Southwest Airlines‘ revenues reached $6.4 billion, a figure which includes passenger revenues of $5.8 billion. This figure represents a year-on-year increase in total revenues of 1.6%, which is a record for the airline. Consequently, the carrier’s operating losses were reported at $223 million, which, when excluding special items, reduced further to $128 million. The budget airline’s net losses also saw an improvement from $231 million in 1Q24 to $149 million in 1Q25.

Among the other headline figures, operating expenses also dropped by 1.1% versus 1Q24, despite the carrier having to spend $6.6 billion, which included severance-related costs of $62 million, to maintain operational integrity during the period. Southwest was forced to announce the first employee layoffs in its 57-year history in February 2025, which the company hopes will invoke savings of $210 million in 2025 and $300 million in 2026.

However, it was not all plain sailing for the low-cost megacarrier in the period, with its operational performance falling way short of the same quarter the previous year. This included carrying 29.9 million revenue passengers, a figure that is down 8.8% on 1Q24, and load factors dropping by 4.4% to 73.9%. The airline operated 331,886 revenue flights compared to 349,979 during the same quarter the previous year. At the end of 1Q25, the airline had a fleet of 800 exclusively Boeing 737 family aircraft, compared to 819 at the end of 1Q24, a drop of 2.3%.

The average passenger fare rose from $173.76 to $193.75, with passenger revenue yield per revenue passenger mile (RPM) rising to 18.97¢ over 17.26¢ in 1Q24. This metric was supported by significantly lower fuel costs compared to the same quarter in 2024, with its average fuel costs per gallon (including tax) rounding out at $2.49, a drop of 14.7% over 1Q25. While the company’s cost per available seat mile (CASM) was reported as 16.05¢, just 0.9% higher than in 1Q24, its CASM excluding fuel and oil costs (CASM-X) was 6.2% higher than in 1Q24, at 13.04¢.

First quarter 2025 capital expenditures were $501 million, driven primarily by aircraft-related capital spending, as well as technology, facilities, and operational investments. Capital expenditures for the quarter were offset by proceeds of $24 million from the sale-leaseback of one aircraft.

The carrier’s first quarter 2025 overall network capacity decreased 1.9% year-on-year which was in line with the company’s previous guidance. The company received 11 new Boeing 737 MAX 8 aircraft during the first quarter of 2025 and retired 14 older planes, including 12 Boeing 737-700 aircraft and two 737-800 aircraft.

At an investors’ meeting on April 23, 2025, the President and Chief Executive Officer (CEO) of Southwest Airlines, Bob Jordan, highlighted to those attending that the airline beat its previously adjusted guidance of operating expenses, adding that it was on track to achieve the increased cost-reduction plan targets that it announced earlier in March 2025.

“We ran a stellar operation in the first quarter, leading the industry in on-time performance and improving on almost every operating metric, year-over-year. We are seeing positive results on recently rolled out initiatives, including the launch of Expedia as a new distribution channel and the further optimization of our loyalty program. We expect to introduce basic economy and bag fees for most fare products next month and remain on track to begin selling assigned and extra legroom seats in the third quarter of 2025 for operations beginning in the first quarter of 2026.”

Evolving in an uncertain market

This latest set of results will come as some relief to the board and shareholders of Southwest after what has been a year of mixed fortunes for the carrier. The airline has been undergoing a period of substantial change over the past twelve months, including a proxy war with an activist shareholder. However, with the Trump administration instigating economic uncertainty in the US and talk of a recession in the country around the corner, Southwest is remaining cautious about the remainder of 2025 and beyond.

It is widely known that US domestic air travel has already dropped substantially during the first few months of 2025, with other US majors such as Delta Air Lines publicly warning of difficult times ahead. Consequently, Southwest was warned about the current uncertainty in the “macroeconomic environment,” which could potentially impact future travel demand further. The airline has therefore decided against reiterating its 2025 or 2026 guidance at the current time.

Elsewhere, Southwest has been instigating several other operational changes, which it says will increase its overall efficiency and financial position. In recent months, the carrier has controversially removed its one free checked bag policy for all passengers effective May 28, 2025, and has ended its long-standing fuel hedging policy. However, the carrier has rolled out a plan to refurbish its aircraft cabins with more premium seats and include popular amenities such as in-seat charging. It has also introduced assigned seating network-wide.

Jordan says that these initiatives being introduced by Southwest should improve its commercial and financial performance, which in turn will benefit customers and shareholders alike.

“We remain well-positioned with and committed to a strong and efficient investment-grade balance sheet and have a valuable contractual order book with Boeing that offers flexibility,” Jordan concludes.

There has been a sense that Boeing has recently turned a corner buoyed by 130 aircraft deliveries between January and March 2025, though there are new concerns over President Donald Trump’s tariffs.  

News that two Boeing 737 aircraft heading to Chinese customers had been returned after China paused deliveries of Boeing jets in a retaliatory step over US tariffs has caused apprehension in recent days. 

Ortberg appeared to acknowledge the difficulties on April 23, 2025, while commenting on the company’s latest financial results.  

“We continue to execute our plan, are seeing early positive results and remain committed to making the fundamental changes needed to fully recover the company’s performance while navigating the current environment,” Ortberg said.  

Revenues increased in the first quarter of 2025 by 18% to $19.5 billion compared to $16 billion last year, thanks to the increase from 83 deliveries over the same period in 2024.  

“Our company is moving in the right direction as we start to see improved operational performance across our businesses from our ongoing focus on safety and quality,” said Ortberg. 

Announcing its results, Boeing reaffirmed that its delivery target of 38 aircraft deliveries was expected to be achieved this year. 

Boeing faced one of its most challenging periods last year after a door plug separated from an Alaska Airline 737 MAX 9 shortly after takeoff on January 5, 2024. 

The incident led to the Federal Aviation Administration (FAA) capping production of 737 MAX aircraft at 38 a month resulting in a sharp decline in aircraft deliveries in 2024. 

On April 23, 2025, CNBC reported that Boeing is preparing to seek approval from the FAA to increase 737 MAX production to 42 jets a month.   

Boeing also announced that the 787 Dreamliner program continued to stabilize production at five per month in the quarter and still expects to increase to seven per month this year.  

The 777X program also began expanded FAA certification flight testing in the quarter, and Boeing still anticipates the first delivery of the 777-9 in 2026. 

Shares in Boeing jumped 5% following the publication of its latest financial results. 

In a statement, published on April 22, 2025, Embraer announced its financial results for the first quarter of 2025.  

In the last three months, the company reported a total backlog of $26.4 billion, which the planemaker said “surpassed the all-time historical high.” This is an increase of $5.3 billion from $21.1 billion in the same quarter of 2024, showing a 25% growth. 

In the first quarter of 2025, Embraer delivered 30 aircraft, making up 13% of its goal to deliver 231 aircraft for the year across both Executive and Commercial Aviation business units. The company’s target for 2025 was between 222 and 240 aircraft.  

In the Commercial Aviation division, the backlog fell by $1.1 billion to $10 billion in Q1 2025, which is a 2% decrease from the previous quarter. 

In Q1 of 2025, the Commercial Aviation division delivered seven new aircraft, representing 9% of the company’s annual target of 81 aircraft. This is slightly lower than the 12% average for the first quarter over the last five years. Embraer mentioned that this is due to “ongoing supply chain challenges.” 

“We should highlight we were unable to deliver two additional aircraft during the quarter because of commercial issues,” the planemaker said. 

Embraer reported that ANA Holdings, the parent company of All Nippon Airways in Japan, has ordered 15 E190-E2 aircraft with options for five more. However, this order is expected to be finalized in the second half of 2025. 

In the Executive Aviation division, the backlog reached $7.6 billion in Q1 2025, up 3% compared to the Q4 of 2024. This marks a $3 billion increase, representing a 66% growth. 

The unit delivered 23 jets in Q1 2025, including 14 light jets and nine midsize jets. This is a 28% increase from the 18 jets delivered in Q1 2024, accounting for 15% of the company’s annual goal of 150 aircraft. 

In February 2025, the Phenom 300 series was recognized as the world’s best-selling and most delivered light jet for the 13th consecutive year, according to the General Aviation Manufacturers Association (GAMA). In the same announcement, the institution confirmed the light jet as the most delivered twin-engine jet for the fifth year in a row in 2024. 

Embraer’s Defense & Security unit reported a backlog of $4.2 billion for Q1 2025. The planemaker said that the Uruguayan Air Force (FAU) and the Uruguayan Ministry of National Defense (MDN) confirmed their order for five A-29 Super Tucano aircraft during this time.  

This order follows a commitment made in August 2024, when the Uruguayan Air Force placed a firm order for one aircraft along with options for five more A-29 Super Tucano aircraft. The deal also covers mission equipment, logistics services, and a flight simulator. 

Embraer also reported that the Services & Support unit’s backlog stayed around $4.6 billion in Q1 of 2025. South Africa-based regional airline Airlink was the highlight of the period with a spare parts support agreement for its entire fleet of 68 Embraer aircraft.  

Embraer announced that the airline will be the first in Africa to use the tailored Embraer Collaborative Inventory Planning (ECIP) system, aimed at improving inventory management and lowering operational expenses for its fleet. 

The all-cash transaction is valued at $10.55 billion and includes Jeppesen, ForeFlight, AerData, and OzRunways. 

The agreement is part of Boeing’s effort to streamline operations, reduce debt, and maintain its investment-grade credit rating.  

“This transaction is an important component of our strategy to focus on core businesses, supplement the balance sheet and prioritize the investment grade credit rating,” said Kelly Ortberg, Boeing President and Chief Executive Officer. 

Boeing will retain digital services that support commercial and defense customers with fleet maintenance, diagnostics, and repair. These services will continue to provide predictive and prognostic maintenance insights. 

“This enables all parts of the digital portfolio to focus on their strengths,” said Chris Raymond, President and CEO of Boeing Global Services. “Our commitment to meeting our customers’ needs is unwavering as we move forward with our core products and services to support their fleets.” 

Approximately 3,900 employees work within Boeing’s Digital Aviation Solutions division, including staff from both the retained and divested parts of the business. Boeing and Thoma Bravo said they are coordinating to manage the transition for employees and fulfill customer obligations. 

Thoma Bravo, which manages over $179 billion in assets, stated that the acquired businesses have growth potential.  

“With a heritage dating back to the 1930s, Jeppesen has been at the forefront of technological innovation for nearly a century,” said Holden Spaht, Managing Partner at Thoma Bravo. 

The transaction is expected to close by the end of 2025, subject to regulatory approval and customary closing conditions. 

According to the report published on April 16, 2025, aviation contributed an 18.25% share of GDP (gross domestic product) for the region in 2023 and supported 992,000 jobs. 

In financial terms this meant the aviation sector and wider supply chain, employee spending, and tourism activities helped generate $92 billion in 2023, buoyed by cheaper tickets and interest in the region.  

Of the almost one million workers 74,500 are employed directly by airlines, with a further 132,300 employed elsewhere in aviation (airports, ANSPs, civil manufacturing) and 297,300 employed in aviation-related tourism. 

Alone the 206,800 people directly employed in aviation generated $26.6 billion of economic output, equal to 5.3% of total GDP. 

Willie Walsh, IATA’s Director General, described the UAE as a “critical hub for global connectivity” and said its position as a “super connector” was responsible for bringing trade, tourism, investment, and jobs to the region. 

“The leadership of the UAE has a strategic vision for aviation, supported by smart regulation and investment in world-class infrastructure. Supporting nearly a million jobs and 18.2% of GDP, aviation makes an enormous contribution to the UAE’s prosperity—both culturally and economically,” said Walsh.  

He added: “And we can be confident that this contribution will strengthen as the UAE continues to facilitate opportunities for aviation to thrive.” 

The report highlighted that over the past 50 years, flight costs have decreased by 70% globally making air transport more accessible. 

“The average real airfare in the UAE decreased by 35% between 2011 and 2023, with the local population now needing to work 1.9 days to afford a plane ticket. Overall, 3,668 flights per 1,000 population were taken in 2023,” said IATA. 

Asia Pacific was found to be the largest international market for passenger flows from the UAE, followed by Europe and the Middle East.  

Almost 14.1 million passengers departed from the UAE to Asia Pacific (40%), 8.5 million to Europe (24%), and 7.9 million to another country in the Middle East (23%). 

The most popular city destinations from the UAE were Riyadh, followed by London and then Jeddah. 

The report also said that 304 international airports were now directly connected with the UAE and 109 countries had direct flights available to the region.

“Growth has largely stalled,” Delta said Wednesday, as it became the first carrier to report first-quarter earnings for 2025. It cited “broad economic uncertainty around global trade” as the cause for the slowdown in the numbers of passengers taking the air. “Given the lack of economic clarity, it is premature at this time to provide an updated full-year outlook,” Delta said in a prepared statement, noting that it “will reduce planned capacity growth in the second half of [2025] to be the same as in 2024.

Delta’s CEO Ed Bastian said in an interview with US broadcaster CNBC that in President Trump’s first term, the administration had been “quite helpful” in addressing the problem caused by Mideast carriers Emirates, Etihad, and Qatar Airways in US markets. However, with the US on the verge of a predicted economic recession, the carrier is “taking second-half growth out of our plan. We had expected to grow 4%,” he said.

Referring to the ongoing international tit-for-tat over trade tariffs, Bastian said, “Trying to do it all at the same time has created chaos. Everything is a stall. There’s been a freeze. Our economy’s going to continue to lose steam.” For Delta, the biggest impact has been in the domestic market, where the carrier has seen its largest drop in passenger numbers over the first three months of 2025.  

For 1Q25, the airline reported an operating revenue figure of $14 billion, an operating income of $569 million, and an operating margin of 4%. Pre-tax income rounded out at $320 million with a pre-tax margin of 2.3% overall. The airline’s operating cash flow ended the quarter at $2.4 billion.

“While the first quarter unfolded differently than initially expected, we delivered solid profitability that was flat to [2024] and is expected to lead the industry. I would like to thank our people for their outstanding performance and hard work during the quarter,” said Bastian.

“With broad economic uncertainty around global trade, growth has largely stalled. In this slower-growth environment, we are protecting margins and cash flow by focusing on what we can control,” he added. “This includes reducing planned capacity growth in the second half of the year to flat over last year while actively managing costs and capital expenditures. We expect June quarter profitability of $1.5 to $2 billion.”

Looking ahead with caution

Looking ahead, Delta’s 2Q25 revenue figure is expected to be between down 2% and up 2%. 2025 is playing out differently than we expected at the start of the year,” said President Glen Hauenstein. “As a result, we are adapting to current conditions while staying true to our long-term strategy.”

“Given the lack of economic clarity, it is premature at this time to provide an updated full-year outlook,” added Bastian. Given our position of strength, our bias toward action, and the decline in fuel prices, Delta remains well-positioned to deliver solid profitability and free cash flow for the year. I expect that our financial results will continue to lead the industry and validate our strategy to create differentiation and greater financial durability.”

An airline statement advised that “Given the ongoing economic uncertainty across world markets, Delta elected not to reaffirm its full-year 2025 financial guidance and will provide an update later in the year as visibility improves.”

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Although the agreement was made public on April 7, 2025, two of these aircraft have already been delivered to the airline. The remaining six are scheduled to be delivered over the course of 2025. 

No further details have been disclosed about this transaction, other than the fact that the leasing agreements are for the long term.  

“These aircraft will support Turkish Airlines’ growth plans while contributing to their fleet modernisation strategy and sustainability goals,” stated AviLease’s Chief Executive Officer, Edward O’Byrne in a press release announcing the deal. 

AviLease, which is owned by Saudi Arabia’s Public Investment Fund (PIF), is one of the entities expected to play a major role in the Kingdom’s strategy to become a major player in the global commercial aerospace industry. 

Although relatively smaller than some leasing industry giants, since its foundation in 2022, AviLease has shown its determination to become one of the top 10 aircraft lessors in the world.  

In 2023, AviLease acquired the aircraft leasing business of international bank Standard Chartered for $3.6 billion. The deal boosted AviLease’s portfolio to 167 aircraft, a figure that has since continued to increase. As of April 2025, the lessor has a portfolio of 200 aircraft, which are placed with some 48 airlines around the world.  

Turkish Airlines has also been actively signing deals with lessors from all over the world, is attempting to expand capacity. The Turkish flag carrier aims to double its fleet to 800 aircraft by 2033.  

Some recent transactions include the signing of a deal for six A321neo aircraft with Singapore-based lessor BOC Aviation in November 2024, and a December 2024 agreement to lease five aircraft of the same type from SMBC Aviation Capital, the Dublin-based leasing arm of Japanese-owned financial corporation SMBC Group. 

On April 4, 2025, the Dublin-based lessor announced that across its vast portfolio the company had leased, purchased and sold 203 assets from aircraft to helicopters to jet engines.

According to AerCap, 112 lease agreements had been signed between January and March 2025, covering four widebody aircraft, 47 narrowbody aircraft, 42 engines and 19 helicopters.

The lessor also purchased 13 aircraft, including eight Airbus A320neo Family aircraft, three Boeing 737 MAXs, a Boeing 787-9 Dreamliner and a single Embraer E195-E2. Other major assets bought included 35 engines and a single helicopter.

AerCap also sold a total of 29 aircraft from its own portfolio, including 13 Airbus A320 Family aircraft, an Airbus A320neo Family aircraft, six Boeing 737NGs, a Boeing 737-800BCF, a Boeing 777-300ER, two Embraer E190s and three ATR72-600s.

Congratulations to @flyfrontier on the delivery of their latest @airbus A321neo. Named "Falkner the Roseate Tern", the aircraft joins Frontier's growing A321neo fleet, one of the most fuel-efficient in the U.S. AerCap is proud to support Frontier's commitment to Fly Greener. pic.twitter.com/cvtWlCud1X

— AerCap (@AerCapNV) April 3, 2025

Two further aircraft were sold in the first quarter from AerCap’s managed aircraft portfolio.

11 engines – six from AerCap’s owned engine portfolio and five from AerCap’s managed engine portfolio – plus two helicopters were also sold.

The company said that it had repurchased approximately 5.7 million shares, at an average price of $97.93 per share, for a total of approximately $558 million.

The Commercial Aviation Solutions unit will now trade as a standalone business under the name “Acron Aviation”. 

The spun-off business has two major areas of activity, one of which is the Avionics unit, which is perhaps the most well-known globally. The unit designs and produces avionics, communication, and navigation systems for both civilian and military aircraft. 

The deal also includes a Commercial Training Solutions unit, which, as the name implies, offers a suite of training solutions and services for aviation professionals. This includes flight simulators, the related courseware and integrated programs to facilitate type rating and other qualifications. 

The sale of Commercial Aviation Solutions to TJC was first announced in November 2023 and involved a $700 million upfront payment, and a $100 million add-on based on the achievement of certain business goals in 2024. 

The new name “Acron”, which is borrowed from the Greek language and means “peak”, aims to highlight the company’s global leadership in these two core business areas. 

Fuel hedging is an insurance policy of sorts, designed to save an airline millions of dollars by contracting with a provider to forward purchase aviation fuel at a fixed rate per gallon for a fixed term. If the published price of fuel rises in that time, the risk and liability rests with the fuel company, and the airline ‘wins’ the gamble. However, should the published price of aviation fuel drop below the fixed price at any time in that period, then the airline remains contractually obliged to pay the agreed fixed price and hence loses out.   

Airlines can structure their hedging in various ways, however, although schemes typically set a price ceiling on their fuel, thereby insulating themselves from potential spikes in fuel prices, often caused by world events. Hedging can provide companies with added certainty for financial planning and forecasting purposes when the price of fuel is relatively stable. However, when markets become destabilized, the airline can lose out and such schemes can also become unwieldy and expensive to manage, as in Southwest’s case.

Despite having run a fuel hedging policy for decades, the US low-cost carrier has decided that its fuel hedging policy has become too costly to sustain, blaming the volatility of aviation jet fuel prices in recent years making it increasingly difficult to predict future fluctuations in the published prices of oil and, therefore, jet fuel prices, say aviation analysts.

The move comes as the carrier, long seen to be a pioneer in budget air travel, has been ditching various policies as it controls its spiraling cost base and pursues a more frugal strategy toward overall cost control as demand for air travel falls and the US market becomes more competitive. Such policies that have been recent victims of this strategy (to widescale public consternation) have been the airline’s free seating policy and its rules over one checked bag for free – both of which were keystones of the airline’s passenger experience offering.

According to a recent report published in the Wall Street Journal, the fuel hedging policy has become too costly to manage and hasn’t paid off for much of the past decade. “With the exception of a couple of positive years, it’s not been beneficial to the company for the past 10 to 15 years,” said Southwest’s Chief Executive Officer Bob Jordan at an investor conference held on March 11, 2025. “Hedging premiums have also gotten more expensive,” he added.

According to the WSJ, other major US airlines dropped fuel hedging years ago, realizing that such schemes were no longer providing the company with the benefits they were set up for. Delta Air Lines, American Airlines, and United Airlines all exited the fuel hedging arena around ten years ago, a decision that was largely said to be driven by these carriers using their size and fuel consumption figures to negotiate more beneficial fuel prices with supplies through economies of scale. In the low-cost sector of the US market, both JetBlue and Frontier Airlines have also quit their fuel hedging policies.      

According to the WSJ report, Southwest paid $157 million in fuel-hedging premium costs in 2024, a figure that was an increase of 30% over the previous year. As of December 31, 2024, fuel hedging covered a maximum of 47% of Southwest’s expected fuel requirement for 2025, according to its annual report, and the company is still contracted under existing fuel hedging contracts until 2027.

 “The discontinuation of our fuel hedging program is another step along our path to transforming our business. This change will result in significant savings in hedge premiums as we move forward,” said Tom Doxey, the company’s Chief Financial Officer. “Southwest will respond to changes in fuel prices by making adjustments, for example, to its fleet and capacity plans,” he added.

In terms of revenue, 2024 was a record year for the UK-based long-haul carrier. Virgin Atlantic’s revenues went up by £183m (US$236.7 million) to a total of £3.3bn (US$4.27 billion). 

The carrier attributed this increase in revenue in great part to a 7.6% capacity increase, as well as to continued strong demand for business and premium leisure travel.  

The bulk of its revenue, £2.6 billion (US$3.36 billion), came from regular passenger traffic, although Virgin Atlantic Holidays, the group’s tour operator, also contributed to these figures, posting a revenue of £517 million (US$668.9 million), up 10% from 2023. 

Not unexpectedly, given the strong Transatlantic focus of Virgin Atlantic’s route network and capacity, the US market accounted for a significant share of the airline’s total revenue, at around £1 billion (US$1.29 billion). 

The airline has also managed to bolster its cash position to £443 million (US$573.1 million), despite having made significant payments (£174/U$225.1 million in 2024) towards returning debts it incurred to sustain the business during the COVID pandemic. 

Although relatively smaller as a percentage of the total, Virgin Atlantic’s cargo business also made a contribution to the stronger 2024 performance numbers, with £236m (US$305 million) of revenue, which compares favorably to the £196 million (US$253.5 million) of 2023. In this case, it was India that facilitate this boost, since the ongoing conflict in the Red Sea diverted some freight traffic from the sea to the air, according to the airline. 

On March 31, 2025, the leasing giant confirmed commitments for 70 new Airbus A320neo family aircraft, while Boeing has benefited too, with an order for 50 new Boeing 737 MAX 8 twin-engine jets.

Both orders also include conversion rights to other variants of the respective narrowbody aircraft, according to a BOC Aviation statement. The aircraft will be used to bolster the lessor’s short-haul fleet of aircraft that will be made available for lease to the company’s growing list of existing clients plus potential new customers.

In terms of the Airbus order, the new aircraft are scheduled for delivery through to 2032 and can be converted from the A320neo into other variants of the same family, which includes the various sub-types of the larger A321.

“This transaction will lift our remaining Airbus order book to around 200 aircraft and takes our total Airbus aircraft deliveries to over 700 since our first order in 1996,” said Steven Townend, Chief Executive Officer and Managing Director of BOC Aviation. “This order solidifies our position as one of the top five global aircraft operating lessors and provides us with a strong delivery pipeline into the next decade. We look forward to providing more airline customers with this popular fuel-efficient and technologically advanced aircraft.”

Benoit de Saint-Exupéry, Airbus EVP Sales of the Commercial Aircraft business added, “This new major order by BOC Aviation is a testament to its enduring confidence in the A320 family, the world’s most successful single-aisle aircraft. This significant investment makes BOC Aviation one of the largest Airbus customers and highlights the strong and continued market demand for our fuel-efficient aircraft and their long-term value. The A320 family delivers exceptional benefits to operators, and we look forward to continuing our collaboration with BOC Aviation, providing airlines with cutting-edge fleet solutions.”

Meanwhile, the oder placed by BOC for 50 737 MAX 8 aircraft also allows for conversion to the larger MAX 9 and MAX 10s and will see the new being scheduled for delivery through to 2031. BOC Aviation currently has 215 Boeing 737 MAX family aircraft in its portfolio which comprises the 737 MAX 8s and higher capacity 737 MAX 9.

“Our strong partnership with Boeing has led to this 50-aircraft order for the fuel-efficient Boeing 737-8 aircraft. With this transaction, we have commitments to purchase over 140 of these aircraft, which is the largest Boeing order book position in our history,” BOC’s Townend. “This order will enable us to continue providing our airline customers with technologically advanced aircraft for their future fleet growth.”

“BOC Aviation’s latest investment in the 737-8 demonstrates the confidence lessors have in this airplane to meet continued air travel demand and improve fuel efficiency,” said Brad McMullen, Boeing senior vice president of Commercial Sales and Marketing. “The 737 MAX 8 is much sought after by airlines due to its unmatched versatility, generating significant operational savings because of lower fuel consumption.”

This latest order with Boeing increases the lessor’s outstanding Boeing order book to 139 unfilled orders. BOC Aviation currently has 69 737 MAX airplanes on operating leases to more than 15 airlines worldwide, according to the company.

More about BOC Aviation

BOC Aviation, the aircraft leasing arm of the Bank of China, is a leading global aircraft operating leasing company with its global headquarters located in Singapore with other offices in Dublin, London, New York, and Tianjin. The company has a current portfolio of over 800 aircraft and engines owned, managed, and on order. Its owned and managed fleet was leased to 92 airlines in 48 countries and regions worldwide as of December 31, 2024.

In recent months, the company has announced lease deals with several airlines worldwide. Most recently, the firm signed a deal with Arajet of the Dominican Republic for five Boeing 737 MAX 8s, while in December 2024, it signed an agreement with pan-European operator TUI for 14 of the same type. Additionally, in August 2024, Turkish Airlines agreed to lease six A321neos from the lessor.

With single-aisle jets projected to account for 75% of global deliveries over the next 20 years, lessors are continuing to build their order books to support airlines’ fleet growth plans and replace less-efficient older jets, as demand for air travel continues to soar worldwide.

The announcement was made on March 13, 2025, by Air Lease Corporation (ALC), the latest leasing firm Udvar-Házy founded, and where he currently holds the role of Executive Chairman. 

ALC has confirmed that, after stepping down from his executive functions, Udvar-Házy will continue to serve on the Company’s Board of Directors as non-executive Chairman for another year, until the firm’s 2026 annual stockholders meeting. 

Over his 60-year career, Udvar-Házy has helped shaped the commercial aviation industry. The International Lease Finance Corporation (ILFC), which he founded in the early 1970s and sold two decades later to American International Group (AIG), was instrumental in propelling the modern aircraft leasing industry.  

Likewise, Udvar-Házy’s next venture, Air Lease Corporation (ALC), which launched in 2010, became a major player in the aircraft leasing industry. As of March 2025, it has a fleet of nearly 500 aircraft, with a combined value of over $28 billion, plus another $17 billion in future aircraft commitments. 

During all these active decades Udvar-Házy, who was born in Hungary in 1946 and emigrated to the US with his family at a young age, has become one of the most respected voices in the commercial aviation industry, with other senior executives, analysts and the media seeking his often straightforward comments at all manner of industry conferences and functions. 

Udvar-Házy is also known for his philanthropic work, notably his funding of the Smithsonian Institution to build the Steven F. Udvar-Hazy Center of the U.S. National Air and Space Museum. This center, located next to Washington Dulles International Airport (IAD), is considered to be one of the World’s top aerospace museums,

AeroTime had the opportunity to interview Mr. Udvar-Házy in November 2024, as part of the Executive Spotlight series, and ask his views about a number of industry developments and trends. You can find that interview here. 

They show that the two airlines constituting the group, Air Astana’s mainline operation and its low-cost subsidiary FlyArystan, carried a record nine million passengers, one million up from the preceding year.  

The Kazakh flag carrier attributed this increase to strong market demand and capacity expansion, with the combined fleet of the group’s airlines growing by eight units (from 49 to 57 aircraft). 

This growth has also been reflected in the revenue figure, which grew by 12.4%, to US$1.3 billion (vs. US$ 1.16 billion in 2023), as well as EBITDAR, which is up by 16.1%, to US$336.8 million. However, net income went down from US$68.7 to US$52 million.  

The group managed to strengthen its cash position by 78.4% in 2024, from US$214.7 to US$488.7 million, in part thanks to US$120 million raised through the company’s IPO, which consisted of dual listings in the London Stock Exchange (LSE) and Kazakhstan. 

In the statement announcing the annual results, Peter Foster, CEO of Air Astana Group, said: “We achieved strong growth in our first year as a public company, fulfilling our promises set out at IPO despite the capacity and cost challenges impacting the wider industry.”  

Air Astana’s CEO confirmed the company’s plans to continue fueling further growth in the near future, reiterating what he had already told AeroTime in an exclusive Spotlight interview published in November 2024. 

In a letter dated March 12, 2025, the 15-member strong coalition, which includes Airlines for America, and the National Business Aviation Association (NBAA), wrote to Transportation Secretary Sean Duffy to put forward its case.  

The coalition is urging the Trump administration to work with those within the aviation sector to “minimize disruptions” in the industry’s supply chain. 

“The aviation supply chain involves tens of thousands of suppliers from all over the globe which provide parts, platforms, and systems that require safety approval for use and installation, all of which may not be easily replaced or substituted,” the coalition wrote. 

The coalition said that given the “reality” of aviation supply chain it is “essential that both government and industry work together”. 

The coalition added that disruptions to the aviation supply chain in many cases “cannot be easily or quickly addressed”.    

“We believe such dialogue and analysis will benefit the competitiveness of the U.S. aviation manufacturing and maintenance sectors and will be critical as the industry continues to innovate and contribute positively to the U.S. balance of trade,” the coalition concluded. 

The coalition also requested to meet with the Trump administration to discuss the current state of the aviation sector and look at ways to make it more resilient moving forward. 

On February 10, 2025, the US announced that it would impose 25% tariffs on imports of steel and aluminum and derivative products. 

Starting on April 1, 2025, the European Union (EU) will introduce countermeasures on US goods exports worth up to €26 billion ($28 billion), which the EU says, “matches the economic scope of the US tariffs”. 

President Donald Trump has also introduced 25% tariffs on other goods from Canada and Mexico, both of which are hitting back against the US with their own tariffs. 

Goods (worth over $800) moving from China into the US are now hit with a 20% tariff. China has responded with retaliatory tariffs. 

Read the full letter.

Stakeholders signing the letter to the Trump administration include: 

• Aeronautical Repair Station Association 

• Aircraft Electronics Association 

• Aircraft Owners and Pilots Association 

• Airlines for America 

• Air Traffic Control Association 

• Cargo Airline Association 

• Experimental Aircraft Association 

• General Aviation Manufacturers Association 

• Light Aircraft Manufacturers Association 

• National Agricultural Aviation Association 

• National Air Carrier Association 

• National Air Transport Association 

• National Business Aviation Association 

• Professional Aviation Safety Specialists 
• Vertical Aviation International 

According to Spanish newspaper El Confidencial, the Air France-KLM Group has proposed to pay the sum of €300 million in cash to the Hidalgo family in exchange for a 51% stake in Air Europa. The Hildago family, though their Globalia travel consortium, are currently the largest stakeholder of Air Europa’s shares. Additionally, Air France-KLM is reportedly willing to assume the airline’s outstanding debts owed to the Spanish government, accrued through lifeline loan payments made to the airline during the COVID-19 pandemic to keep it afloat.  

Air Europa had been struggling for several years even before the pandemic, a situation that was exacerbated with a proposed takeover by the International Airlines Group (IAG), the owner of British Airways and Iberia, collapsing in August 2024. The collapse followed a ruling by EU competition authorities that a takeover would be anti-competitive. Lufthansa emerged following that process as the leading front runner, reportedly offering a €240 million ($264 million) investment in exchange for a 25% stake in the Spanish airline.

The German carrier has been pursuing an unrelenting drive to take control of many of Europe’s leading airlines in recent years. So far, the Lufthansa Group owns majority shareholdings in Lufthansa, SWISS,  Brussels Airlines, ITA Airways, Discover Airways, Austrian Airlines, and several regional affiliates. The Group has also also expressed an intention to bid for a stake in TAP Air Portugal when that carrier is eventually put up for sale.

While there are already established links between the Lufthansa Group and Air Europa in the form of a Boeing 787-9 that has been leased by the Spanish carrier to Austrian Airlines, El Confidencial reports that the Hidalgo family is split on whether to proceed with the bid from the two current contending parties, Air France-KLM or the Lufthansa Group. Such considerations at play could be how either party will grow the Spanish carrier, thought by analysts to be operating at a sub-optimal level in terms of efficiencies and unable to compete with Spanish flag carrier Iberia.

Other factors will likely involve assurances over the airline’s ongoing financial stability and partnership possibilities with potential new investors, such as interline and codeshare opportunities. In an address earlier in March 2025, when speaking about the 2024 results for the Air France-KLM Group, Chief Executive Benjamin Smith stated that a stake in Air Europa would be of interest to the airline group, which has also recently acquired 19.9% of Scandinavian airline SAS.

According to Planespotters.net, Air Europa currently operates a fleet of 26 Boeing 737-800s, seven Boeing 787-8 Dreamliners, and 15 787-9s, all with an average age of 9.1 years. The airline carried 12 million passengers across Europe, Latin America, and the Caribbean in 2024.

According to a report published by the Economic Times of India, Blackstone is on track to buy back the seaplane operator at almost the same price it sold it, according to inside sources. In 2017, Blackstone exited TMA, which was its largest divestment in the Asia region at the time. The company sold its initial $98 million investment in TMA for $500 million to the Bain-led consortium.

Bain had been attracted to the niche operator at the peak of the tourism and luxury travel market in the Maldives. TMA’s specialization is transferring high-end tourists from the seaplane base at Male-Velana International Airport (MLE) to the outlying islands of the Maldives, an archipelago of over 1,000 islands. However, Bain’s hopes to cash in on high-end leisure travellers flocking from Asia and Europe to the Maldives collapsed as the COVID-19 pandemic took hold and effectively killed off long-haul travel for around two years.

When Bain and its Chinese partners defaulted on a $305 million loan taken out to purchase TMA, the company’s lenders took control of the business, relying on securities clauses within the loan agreement to do so. Subsequent debt restructuring saw a new lender consortium led by Carlyle Group take control of the operator as it weathered the storm caused by the global health crisis. While the current owners had been reportedly hoping to sell for a figure closer to $700 million, they may be happy to settle for the $500 being offered by Blackstone in what is now seen as a market highly volatile to external world events.

With Blackstone now poised to once again take the helm of the airline, the investment process appears to have come full circle, with the deal all but completed, said the sources. Tourism to the Maldives has now fully recovered, with increasing numbers of tourists arriving on a growing number of carriers serving Male International Airport.

According to ch-aviation, Trans Maldivian Airways is the world’s largest amphibious aircraft operator and also the largest operator of De Havilland Canada DHC-6 Twin Otter seaplanes. The airline currently operates 59 DHC-6-300s, three DHC-6-400s, two DHC-6-200s, and a single DHC-6-100. The airline was merged with fellow seaplane operator Maldivian Air Taxi in 2013, which was also owned by Blackstone at the time. Today, the combined carrier competes with Manta Air and Maldivian on inter-island air services around the Maldives.

In a statement issued ahead of the investor presentation, Delta said it has revised its March quarter outlook downward compared to the guidance it provided on January 10, 2025. The airline now expects its total revenue to grow 3% to 4% year over year during the March quarter, down from its earlier guidance of 7% to 9%. Meanwhile, its operating margin will be 4% to 5%, down from its previous guidance of 6% to 8%.

“The outlook has been impacted by the recent reduction in consumer and corporate confidence caused by increased macro uncertainty, driving softness in domestic demand,” Delta said. “Premium, international and loyalty revenue growth trends are consistent with expectations and reflect the resilience of Delta’s diversified revenue base.”

When Delta announced its initial guidance for 1Q25 in January 2025, the company said in an earnings statement that it was “building momentum” as it closed out 2024 and that demand trends accelerated through the fourth quarter of that year. “With strength continuing into the new year, we expect March quarter adjusted revenue to be 7% to 9% higher than 2024 on growth in capacity and unit revenue,” Delta stated.

However, several key economic factors have come into play since that statement was released, and the airline has also suffered a widely reported accident involving a subsidiary’s aircraft while attempting to land in Toronto. On February 17, 2025, Delta Air Lines Flight 4819 landed upside down at Toronto-Pearson International Airport. While no one died in the accident, the aircraft was written off, and there was widescale adverse publicity for the carrier and the crew members involved.   

Additionally, the airline’s initial response to the crisis was to unconditionally offer $30,000 to each of the 76 passengers involved, which sparked a debate about the level of compensation offered and its potential long-term effects on customer loyalty and legal liability in such accidents.

Speaking on CNBC’s Closing Bell: Overtime to discuss the various issues that are currently affecting the Atlanta-based airline,  Bastian said that a softness in domestic demand was attributable to weaker consumer confidence among both leisure and business customers. This fall in consumer confidence has led to an overall drop in bookings as consumers hold off booking travel until the macroeconomic outlook in the US economy becomes clearer. With President Trump refusing to deny that the US economy is heading for a recession and also seemingly undecided over the extent of the imposition of international trade tariffs, these factors are hitting companies like Delta, Bastian said.

He added that concerns about aviation safety from the Toronto accident, as well as other recent evets such as the American Airlines accident in Washington DC had “somewhat exacerbated the impact on us.”

Other challenges facing Delta are how the company manages its ongoing labor shortage amid rising labor costs. Bastian stressed in his interview the importance of investing in employees and maintaining a positive work environment to attract and retain talent. Bastian added that the carrier must continue to adapt to evolving travel patterns, such as the rise of remote work and the increasing demand for leisure travel, to keep adjusting to travel demand patterns in all classes of service onboard.

Delta Air Lines is celebrating its centenary year in 2025, having begun life as a crop dusting operation in Georgia, US, in 1925. The airline currently operates 5,000 flights per day using a fleet of almost 1,00 aircraft. The company carried 200 million passengers in 2024.

According to these reports, which have not been officially confirmed although appear to be based on comments from people familiar with the matter, the Saudi fund would invest close to US$100 million to get a 15% stake in Capital A, the parent company of the AirAsia group of airlines.  

This amount would be part of a larger $226 million round and would value the Malaysian entity at US$2 billion. Investors from Singapore and Japan are also said to be taking part in conversations to join this round. 

These rumors emerged shortly after Tony Fernandes, Capital A’s iconic CEO, announced that, following the approval by Bursa Malaysia (the Malaysian stock exchange) of the company’s restructuring plan, the group was close to exiting PN17 status.  

PN17 is a designation Bursa Malaysia (the Malaysian stock exchange) uses for companies experiencing some degree of financial distress.  

Capital A received its PN17 designation in 2022, as the group’s airlines were still reeling from the heavy impact of the COVID pandemic and the comprehensive travel restrictions enforced by several countries across Asia. 

AirAsia’s family of airlines have been able to continue operating under PN17, this status made it difficult for the firm to raise fresh capital. 

In early 2024, Capital A announced a reorganization of its varied businesses, which would see its portfolio of short haul airlines, all of which operate under the AirAsia brand, will be folded into AirAsia X, the group’s long-haul airline business. 

Although few details are known about the potential structure of the funding deal, it would be logical to expect that any new investors would enter the capital of this merged airline holding company. 

While it awaits the merger with Capital A’s other airlines, AirAsia X, which is listed as a stand-alone entity on the Kuala Lumpur stock exchange, posted its third consecutive full year profit. In the fiscal year 2024, Air Asia’s long-haul business increased its passenger numbers by 42%, to nearly 4 million, and its revenue by 28%, to RM3.2 billion (US$ 750 million approximately). However, in 2024, net profit declined to RM229.1 million from RM336.5 million the preceding year. The company attributed this drop to an unexpected reversal of provisions in 2023, which had brought up that year’s net profit. The implication being that the 2024 figure, thus, would be a better reflection of the regular operational results. 

If finally confirmed, the AirAsia stake would add to a portfolio of high-profile aviation assets that Saudi Arabia’s PIF has been building throughout the world in the course of the last few years. 

The Saudi fund is a shareholder in the Saudia Group, which has been, to this date Saudi Arabia’s main airline group. PIF is also funding the launch of Riyadh Air, the kingdom’s new and second flag carrier, it has established AviLease, an aircraft leasing firm with global ambitions, and, in December 2024, it completed the acquisition of a 15% stake in the company managing London Heathrow Airport (LHR). 

This interest in commercial aviation investment opportunities is in line with Saudi Arabia’s Vision 2030, which has the transformation of the kingdom into a major player in the global aerospace and aviation industries, as one of its goals. 

Air Asia has reportedly declined to comment on the rumors concerning a new investment round. 

Reporting the latest figures, the airline said in a statement of its 2024 performance, “Despite a challenging start of the year with results falling short of initial projections, the airline demonstrated the effectiveness of its strategy. When operations proceed as planned, the financial performance consistently delivers satisfactory results.”

Brussels Airlines operated 2% fewer flights in 2024 than in 2023. In 2024, the airline operated 61,564 flights versus the 62,949 operated in 2023. However, despite this, passenger numbers rose year-on-year, with 8.36 million travelers choosing the airline in 2024 versus 8.29 million the year before. Total seat capacity (measured in available seat kilometers or ASKs) increased by 1% from 18.1 million to 18.3 million in 2024. Revenue seat kilometers also rose from 14.9 million in 2023 to 15.1 million in 2024.

The 2024 network load factor figure remained largely consistent with that seen in 2023, albeit with a slight overall increase of 0.2% from 82.5 to 82.7%. The average number of full-time employees working at Brussels Airlines in 2024 stood at 3,549 versus 3,366 the year before.

While the airline was unable to secure a wet-lease partner to expand capacity on its European network during the summer season of 2024 to meet rising demand amid a shortage of capacity, it did add an additional long-haul aircraft in the form of an Airbus 330 to its fleet, which boosted capacity on the carrier’s intercontinental network.

Throughout 2024, the Belgian carrier was one of the most reliable airlines in Europe. Brussels Airlines ranks as the fourth most punctual network operator in Europe according to Cirium, the aviation data analysis company. American consumer platform Airhelp even named Brussels Airlines as its ‘Best Airline’ globally for its balance between on-time performance, claim processing, and overall customer experience.

“We faced numerous challenges, particularly in the first half of the year, which prevented us from operating as planned,” said Nina Öwerdieck, Chief Financial Officer of Brussels Airlines. “However, the second half of 2024 was highly successful. Also, in 2025, demand remains strong, and we have ambitious growth plans for this year. We create more opportunities to connect people, cultures and economies, and we create more jobs, with this year a new colleague joining our team almost every single day.”

Growth coming in 2025

In December 2024, Brussels Airlines unveiled plans for its long-haul network for the northern summer of 2025. The peak 2025 season will see the Belgian national carrier offer more capacity to sub-Saharan Africa than at any time in its history, even before the COVID-19 pandemic.  

The carrier will operate 56 weekly flights to the sub-Saharan region, a figure that represents an increase of 10% over the same period in 2024. The arrival of a further  Airbus A330 widebody aircraft in June 2025 will facilitate this growth, while the airline will also continue to maintain regular services on its North American network to both New York-JFK Airport (JFK) and Washington-Dulles Airport (IAD).  

According to ch-aviation, the carrier’s current all-Airbus fleet comprises 45 aircraft, including 14 A319s, 16 A320s, five A320neos, and 10 A330-300s, with the 11th due in the summer of 2025. In the coming years, Brussels Airlines plans to grow its long-haul fleet to 13 aircraft with the addition of two extra airframes. By 2027, the Belgian airline also aims to introduce brand-new cabin interiors, featuring new business class, premium economy, and economy class offerings.  

There were many positives for Europe’s largest airline conglomerate to savor but clearly there is a feeling that more could have been achieved if events had unfolded in its favor. 

“Looking back, 2024 was a year of two halves for the Lufthansa Group. In the first six months, we still had to cope with a significant decline in operating profit – due, among other things, to strikes, delayed aircraft deliveries and operational challenges at our hubs,” said Carsten Spohr, Chairman of the Executive Board and CEO of Deutsche Lufthansa. 

In 2024, Lufthansa Group increased its revenue by 6% year on year to €37.6 billion ($40.5 billion) from €35.4 billion ($38.2 billion) in 2023, due to the higher flight offering.   

Lufthansa Group, which includes Austrian Airlines, Brussels Airlines, Swiss and Eurowings, said its operating profit fell from €2.7 billion ($2.9 billion) in 2023 to €1.6 billion (1.7 billion) in 2024. 

Benvenuta and welcome to the Lufthansa Group family, ITA Airways.

We are thrilled to be taking off together to turn the sky more azzurro. We are celebrating becoming even more international, more diverse and having even more choice for our travelers.

There’s more to come. pic.twitter.com/tulas5tl2J

— Lufthansa (@lufthansa) January 17, 2025

During the first six months Lufthansa Group said it had to weather strikes and “absorb a significant decline in average yields at the beginning of the summer due to the large industry-wide increase in capacity”. 

Significantly higher costs, especially in Germany, had a negative impact and flight operations also suffered from further delays in aircraft deliveries, according to the company.  

“The trend was reversed in the course of the year with two consecutive quarters in which we generated revenue of over 10 billion euros each for the first time, and in the fourth quarter we exceeded the previous year’s profit,” Spohr explained.  

The passenger load factor rose to a record level of 83.1% in 2024 against 82.9% in 2023 thanks to 131 million people travelling with the group’s airlines.  

“In terms of the passenger load factor, the summer months of July and August were not only the strongest months of last year, with a load factor of almost 88 percent, but also among the strongest in the company’s history,” Lufthansa Group said. 

‘Among the strongest in the company’s history’

Overall, the group’s passenger airlines generated Adjusted EBIT of €1 billion ($1.07 billion) in 2024 against €2 billion ($2.1 billion) in 2023.  

Lufthansa Group explained that the decline in the passenger airlines’ operating profit is mainly due to the decline in Lufthansa Airlines’ earnings by €948 million ($1 billion). 

“Delayed deliveries of new aircraft forced Lufthansa Airlines to keep aircraft in service for longer, which, together with higher location and personnel costs and increased expenses for compensation for flight irregularities, weighed disproportionately on earnings,” Lufthansa Group said. 

Looking to 2025, Lufthansa Group expects demand for air travel to remain high and says it will take delivery of a new aircraft every two weeks during the current year.   

The company expects Adjusted EBIT in the 2025 financial year to be significantly higher than in the previous year with net capital expenditure of between €2.7 billion ($2.9 billion) and €3.3 billion ($3.5 billion). 

“The further internationalization of the Lufthansa Group through the integration of ITA Airways, the significantly improved stability in flight operations and the growing satisfaction of our customers – all this shows that our strategy is right and our measures are taking effect. However, there is no question that we now also have to achieve an economic turnaround for our core brand Lufthansa,” Spohr said.   

He added: “This year, 2025, will be a year of transformation for us with a clear goal: to further strengthen our position as the global number one outside the United States.” 

The Air-France-KLM Group includes the parent airlines plus the low-cost airlines Transavia and Transavia France. The Group employs 76,000 and has a combined fleet of 551 aircraft serving over 300 global destinations.

In 4Q24, the Group saw revenues increase by 6.4% to €7.9 billion ($8.7bn), with overall network capacity increasing by a more modest 2.2%. The operating revenue reached €396 million ($436m), an improvement of €453 million ($498m) compared to the same period in 2023. For the full-year results, Group revenues stood at €31.5 billion ($34.6bn), up 4.8% compared to 2023, driven by an increase in capacity of 3.6%, a stable unit revenue, and increased third-party maintenance revenues. Operating revenues reached €1,601 million ($1,761m) with an operating margin of 5.1%.

In 2024, the Group’s net debt rose to €7.4 billion ($8.1bn), up €2.3 billion ($2.5bn) over 2023 which the Group attributed to a higher new and modified lease debt amount of €1.9 billion ($2.1bn), up €0.7 billion ($0.77bn) compared to 2023), which itself was largely driven by the fleet renewal program plus the extension of current aircraft lease commitments to cover delays in deliveries. Looking ahead to 2025, the Group expects a capacity increase of 4% to 5% compared to 2024, with unit costs increasing to low single digits compared to 2024.

In line with its fleet renewal strategy, the Air France-KLM Group is continuing to take delivery of several new generation aircraft types to improve efficiency and lower operating costs.

These include the Airbus A350 which consumes 25% less fuel per passenger km and is 40% quieter than the previous generation aircraft it replaces, the Airbus A320neo aircraft family, which consumes 15% less fuel per passenger km and is 50% quieter than the previous generation aircraft, and the Airbus A220 which consumes 20% less fuel per passenger km and is 34% quieter than the previous generation aircraft. On the regional side, the Embraer 195-E2 consumes 31% less fuel per passenger km and is 63% quieter compared to the E-190 that it replaces.

By the end of 2024, the Group had 27% of its fleet composed of new generational aircraft and plans to have 80% of its fleet with new generational aircraft by 2030. In 2024, the airline retired 18 of its older generation aircraft, which included Boeing 737-700/800s, Airbus A319s, A320s, and a A330, plus a single Embraer E190. Likewise, in 2024, the Group introduced 41 new planes, which included eight A350s, 19 A320neo family, nine A220s, four Embraer E195s, plus a single 787-10.

“In the fourth quarter of 2024, Air France-KLM delivered a particularly strong finish, concluding a year shaped by both operational and external challenges,” commented  Benjamin Smith, the Group’s CEO. “Throughout these headwinds, we remained steadfast in our commitment to offer a premium, customer-centric service and to advance our sustainability roadmap through continued fleet renewal and ambitious SAF initiatives. We also broadened our global reach by introducing new routes and reinforcing strategic partnerships, including our recent acquisition of a minority stake in SAS, which already shows promising results.”

“As we celebrated our 20th anniversary as a Group, the Olympic Games provided a unique platform to demonstrate our operational expertise and capabilities and offered unparalleled visibility for France as a destination. In 2025, we will continue to deliver on our strategic roadmap and keep transformation as our number one priority. In this context, we remain confident in achieving our medium-term ambition with a disciplined approach to capital allocation and cost efficiency.”

Things are not as rosy at KLM

Drilling down into the KLM results, however, the position is not as positive as that at the Group level. In 2024, operating revenues decreased by €234 million ($257m) to €416 million ($457m). Despite a revenue growth of 5.4%, profitability came under pressure due to rising costs of equipment, personnel, and airport fees. However, with its program of cost-cutting first announced in October 2024, KLM aims to save €450 million ($495m) in 2025 and is forecasting to achieve an 8% profit margin in the period 2026-2028, fuelled, according to the airline, by the execution of its ambitious fleet renewal plan and future strategy which includes adding more services to more destinations. 

“Our results for 2024 show two different sides,” said Marjan Rintel, KLM CEO. “On one hand, we are still not operating at 100% of our flight capacity, and costs continue to rise sharply. As a result, we run the risk of not earning enough to keep investing in our future, although I’m confident that our plans will help us to improve our operations and finances for the long term.”

“At the same time, 2024 also brought some good news and progress. We saw growing customer demand for flight tickets, achieved operational improvements, welcomed the first Airbus A321neo, and successfully completed the conversion of our Premium Comfort Class (premium economy).”

Ending its statement on a more positive note, the airline added, “More than three-quarters of Dutch people have a positive view of aviation, and the demand for flying continues to rise. This is reflected in the numbers for both KLM and Transavia. In 2024, KLM welcomed 33 million passengers on board and Transavia around 9.5 million. KLM also transported 434,000 tons of cargo, announced seven new destinations, and added nine new aircraft to its fleet.” 

The company reported a revenue of €6.2 billion for 2024, marking a 29% increase compared to 2023. Its adjusted net income surpassed €1 billion. 

Dassault Aviation’s order book grew in 2024, driven mainly by the success of the Rafale. The total order backlog reached 299 aircraft, valued at €43.2 billion. 

In 2024, the company secured orders for 30 Rafale jets from export customers, 18 from Indonesia and 12 from Serbia, while France did not place any new orders. Falcon business jet orders rose to 26, up from 23 the previous year. 

Despite ongoing supply chain disruptions, deliveries improved, with 21 Rafale and 31 Falcon aircraft delivered, compared to the projected 20 and 35, respectively. The company delivered 13 Rafale and 26 Falcon jets in 2023. 

“Dassault Aviation is continuing to ramp up production of the Rafale against a backdrop of persistent external and internal supply chain issues,” said Éric Trappier, Chairman and Chief Executive Officer of Dassault Aviation. 

To mitigate these challenges, the company reported strengthening its supply chain through industry collaboration, investment support, supplier assistance, alternative sourcing, and proactive internal monitoring. 

Building the future: From Rafale F5 to Falcon 10X 

Dassault Aviation welcomed the announcement of a next-generation combat drone designed to complement the upcoming F5 standard of the Rafale. As the lead contractor, Dassault will build on the advancements made with the nEUROn combat drone demonstrator. 

The Rafale F5, slated to enter service by 2030, is expected to significantly enhance the operational capabilities of the French Air and Space Force, particularly for conventional missions and nuclear deterrence roles.  

Alongside its ‘loyal wingman,’ another key addition to the Rafale F5’s arsenal is the ASN4G, a hypersonic, nuclear-capable ramjet missile, set to become the air-launched component of France’s nuclear deterrent by 2035. 

Development efforts continue within the Future Combat Air System (FCAS) framework, with phase 1B of the New Generation Fighter (NGF) demonstrator progressing. 

Meanwhile, work on the Falcon 10X business jet remains on track, with first deliveries expected by the end of 2027. 

Looking ahead to 2025, Dassault Aviation forecasts an increase in net sales to approximately €6.5 billion. The company aims to deliver 40 Falcon business jets and 25 Rafale fighters. 

The biggest aircraft lessors in 2025

According to KPMG’s Aviation Leaders Report 2025, the biggest lessor in the world in 2025 is AerCap by quite some margin. With a total fleet size of 1,676, it has over 900 more aircraft than its next nearest competitor, SMBC. 

Japanese by ownership but based in Ireland, SMBC has a sizable fleet of 761 aircraft with a strong focus on the narrowbody side. Coming in third is another Irish company, Avolon, with 583 aircraft. Stay with us as we take a deeper look at each and the rest of the top 10 lessors list.

1: AerCap – 1,676 aircraft

AerCap traces its history back to one of the earliest leasing companies, Guinness Peat Aviation, which was founded in 1975 by Tony Ryan. After a few name and ownership changes, it became AerCap in 2006 and went on to become a major force in the leasing world. Its acquisition of ILFC in 2014 saw it significantly expand its fleet and market share, which was further augmented in 2021 when it acquired GE Capital Aviation Services (GECAS).

It owns aircraft across the spectrum, including the biggest fleet of both single aisle and twin aisle jets in the leasing world. With 278 widebodies, it has more than double the number of its next nearest competitor. It also boasts the largest fleet of leased regional jets in the world, including 45 of the newest generation Embraer E2 jets.

2: SMBC Aviation Capital – 761 aircraft

Founded in 1994 as International Aviation Management Group by Domhnal Slattery, the Royal Bank of Scotland acquired the leasing business in 2001, rebranding it to Lombard Aviation Capital and then in 2004 to RBS Aviation Capital. It was sold to a Japanese consortium of Sumitomo Mitsui Banking Corporation (SMBC), Sumitomo Mitsui Finance and Leasing Company Limited (SMFL) and Sumitomo Corporation in 2012 and renamed SMBC Aviation Capital. 

Its portfolio focuses on narrowbodies, with more than 500 of the 761 aircraft in its fleet either A320 or 737 family jets. It has commitments for a further 175 A320neo family aircraft to be delivered, and 83 more Boeing 737 MAX. In 2024, it delivered the first ever Airbus A321LR to Icelandair, and has already signed lease agreements in 2025 with Thai Airways, Turkish Airlines and SKY for more A320neo family aircraft.

3: Avolon – 583 aircraft

Also founded by Domhnal Slattery, Avolon was established in 2010 and has gone on to become the third biggest aircraft lessor in the world. Like the other big lessors, Avolon focuses on narrowbodies, and has over 420 single aisle aircraft in its fleet. Alongside these, it also has 28 A330neos, 27 Dreamliners and 23 A350s, with more of each on order. 

Avolon is growing in 2025, as it agreed in late 2024 to acquire smaller rival Castlelake Aviation. The deal, which closed in January 2025, will add another 106 aircraft to its fleet plus production slots for 10 new technology aircraft. Alongside this, the lessor has commitments for 571 new aircraft to be delivered, including 325 more A320neo family jets and 131 more 737 MAX.

4: Air Lease Corporation – 575 aircraft

The first of the biggest aircraft lessors to not be headquartered in Dublin, Air Lease Corporation (ALC) was established in 2010 by aviation legend Steven Udvar-Házy. Having previously founded ILFC, he left to set up ALC along with ILFC COO John Plueger. The company supplies aircraft to a huge number of global airlines and generated record revenues in 2024 of over $2.7 billion, with a $574 million profit.

Air Lease has a slightly more widebody weighted split between aircraft types, although the bulk of its fleet is still narrowbody. The A321neo accounts for 22.1% of its owned fleet, while the 737-800 and 737 MAX 8 make up a further 24%. On the widebody side, it has a fleet of 38 Dreamliners, accounting for almost 8% of the total fleet, while the A330neo makes up almost 6% with 28 aircraft.

5: ICBC Aviation Leasing – 504 aircraft

Wholly owned by ICBC Bank, ICBC Aviation Leasing began life in 2010, and was spun off as a subsidiary in 2018. It has quickly grown to become one of the leading players in China’s leasing industry. By the end of 2018, it had placed 385 aircraft with customers, making it the sixth-largest lessor in the world and the biggest in China.

Although the sheer number of aircraft put ICBC in fifth place in terms of fleet size, it has a relatively large number of regional aircraft with 37 in its fleet. As such, if we were considering the capital value of its portfolio ($16.4 billion) it would fall to seventh place in the ranking. Nevertheless, the company has a sizable fleet with 418 narrowbodies and 49 widebodies alongside its regional aircraft.

6: BOC Aviation – 463 aircraft

BOC Aviation, originally established in 1993 as Singapore Aircraft Leasing Enterprise (SALE), was acquired by the Bank of China in 2006 and rebranded BOC. It serves a diverse assortment of 90+ airlines across 48 countries, including carriers like Cathay, Qantas, Air France, Turkish, Emirates, LATAM and many more.

Its fleet strategy is focused on modern narrowbodies. Although it has dozens of A320ceo and 737 NG aircraft in its fleet, it is rapidly building a huge portfolio of new technology aircraft. BOC has 140 A320neo family aircraft in its fleet, plus 129 more on order. On the Boeing side, it has 69 737 MAX in service, with 96 more on order.

7: BBAM – 452 aircraft

Babcock & Brown Aircraft Management (BBAM) originated in Australia and was established in 1989. In 2010, following the collapse of its parent company, BBAM’s senior management acquired the aircraft leasing business, securing its future as an independent aircraft leasing company. 

Today, it is transitioning to a new technology focus, although it strategically maintains a large fleet of older aircraft too. With 117, the most numerous is the Boeing 737-800, although it is adding 737 MAX aircraft too. On the Airbus side, the fleet is slowly getting heavier on the neo side, while it also has 25 large widebody A350 aircraft.

8: DAE Capital – 410 aircraft

Dubai Aerospace Enterprise (DAE) Capital, based in the UAE, has grown enormously in the last decade, largely thanks to its 2017 acquisition of Ansett Worldwide Aviation Services (AWAS). The merger of the two companies propelled DAE to the position of one of the largest lessors in the world, with a fleet of 400 aircraft.

KPMG values DAE at $10.5 billion, making it only ninth largest lessor in market value, but its big fleet of 410 aircraft puts it eighth in size. Alongside 302 narrowbody aircraft, it has a large fleet of 67 ATR-72 turboprops and 41 widebodies. Its average fleet age is just 6.3 years, and it does business with a huge 128 different airlines.

DAE has announced plans to acquire Nordic Aviation Capital, which would take its fleet to around 750 aircraft, albeit mainly turboprops.

9: Carlyle Aviation Partners – 372 aircraft

Carlyle Aviation Partners, originally founded as Apollo Aviation Group in 2002 by Bill Hoffman and Robert Korn, began by focusing on mid-life aircraft and engine leasing. From here, the company has grown through acquisitions and aircraft purchases to become the ninth largest in the world in fleet size. This focus on the resale market does, however, result in a lower valuation of $8.6 billion, making Carlyle 13th largest in market value.

Across the fleet, it has 336 narrowbody and 36 widebody aircraft – many of these widebodies are freighters. All in, it leases aircraft and engines to 111 airlines across 53 countries. As well as leasing, the company does a solid trade in strategic financing initiatives, providing liquidity to airlines in times of need.

10: Aviation Capital Group – 370 aircraft

With a long history in aircraft leasing, Aviation Capital Group (ACG) has built strong relationships with its customers and continues to place most of its 370 aircraft portfolio with airlines all over the world. Focusing intensely on narrowbody leasing, the company has only 15 widebodies in its fleet, and a large backlog for 140 new technology aircraft like the A320neo and 737 MAX.

Last year, ACG finalized an order for 35 Boeing 737 MAX jets, including the -8 and -10, and has orders in place for A320neos as well as 20 Airbus A220s. Recently, it has been involved in several sale and leaseback transactions with Air India Express, helping the airline modernize its fleet affordably. 

Bonus: Bocom Leasing

Although Bocom didn’t make the cut for the top 10 aircraft lessors by fleet size, its substantial fleet of new technology aircraft makes it one of the most valuable. With a valuation by KPMG of $10.5 billion, it would be the 10th largest lessor in the world if we considered market value.

It is a wholly owned subsidiary of The Bank of Communications, one of China’s leading commercial banks, and has been on a growth trajectory for many years. It was among the first to be approved to establish a subsidiary in free trade zones. So far, the company has set up businesses in Shanghai, Tianjin, Nansha and Ireland.

On February 24, 2025, flydubai confirmed that pre-tax profits reached AED 2.5 billion ($674 million) for the financial year ending December 31, 2024.  

Total revenue hit AED 12.8 billion ($3.5 billion), marking an increase of 15% compared to AED 11.2 billion ($3 billion) in the previous year.   

The Chairman of flydubai, and the CEO of Emirates, Ahmed bin Saeed Al Maktoum, described the latest results as a “milestone” for the airline as it “continues to push boundaries” each year. 

“In its young, but impactful, journey, it has emerged as a key player in the aviation industry in Dubai and the region. Its business model is built on solid foundations and an unwavering commitment to supporting Dubai’s economic and tourism vision,” said Al Maktoum. 

He added: “flydubai is well-placed for continued growth and success in the next chapter of its journey as it expands its horizons and operations, continues to invest in innovation and delivers an enhanced customer experience over the coming years.”   

flydubai reported a year-on-year increase of 15% in its EBITDA at AED 4.1 billion ($1.1 billion) and an 11% rise in passenger numbers to 15.4 million in 2024. 

The flydubai fleet increased to 88 aircraft by the close of 2024 with four Boeing 737 MAX 8s delivered in the first six months that were part of backlog from previous years.   

“flydubai did not receive any of the aircraft that were contractually scheduled to be delivered in 2024 due to ongoing challenges with Boeing’s delivery schedule,” the airline said. 

flydubai currently has 127 Boeing 737 aircraft scheduled to be delivered over the next decade in addition to 30 Boeing 787 Dreamliners, following its first wide-body aircraft order. 

Ghaith Al Ghaith, CEO at flydubai, said the airline was “looking forward to another positive performance this year where we have laid strong foundations for further growth”. 

“Our strategic plans are highly influenced by the manufacturer’s ability to deliver on their promise to bring the aircraft delivery schedules back on track and clear the backlog. flydubai will receive 12 new Boeing 737s in 2025 to continue growing its fleet, replace some of its existing aircraft and support its network expansion plans,” said Al Ghaith 

On February 20, 2025, the Bankruptcy Court for the Southern District of New York said that Spirit’s reorganization plan had been “confirmed” in its entirety and that the “burden of proving the satisfaction of the requirements” had been met.  

Spirit’s President and CEO, Ted Christie, said: “Today’s approval is a major milestone as we progress toward the successful conclusion of our in-court process. We will emerge as a stronger airline with the financial flexibility to continue providing Guests with enhanced travel experiences and greater value. Throughout this process, we’ve had virtually unanimous support from our bondholders, who recognize Spirit’s value and potential.” 

Christie added: “As we move forward, our leadership team remains focused on reducing costs while also advancing our strategic initiatives to transform our Guest experience and position Spirit for success. I’m especially grateful for the dedication and unwavering commitment of our entire Spirit Family, who continue their outstanding work to serve our Guests and drive our business forward.”   

Under the approved plan, Spirit will equitize $795 million of funded debt, receive $350 million of new equity investment and issue $840 million aggregate principal amount of new senior secured debt to existing bondholders upon emergence.  

In addition, Spirit will enter into a new revolving credit facility of up to $300 million. Spirit vendors, aircraft lessors and holders of secured aircraft indebtedness will not be affected.     

On November 18, 2024, Spirit confirmed that the carrier has entered a prearranged Chapter 11 process so it could set out plans to reduce its debt, provide increased financial flexibility and position the airline for long-term success.  

As part of the Chapter 11 process, Spirit announced that its bondholders would commit to a $350 million equity investment, plus $300 million in debtor in possession (DIP) financing. 

On February 11, 2025, Spirit said it had rejected Frontier Group’s latest merger offer, stating that it is less beneficial to shareholders than the airline’s current restructuring plan.    

Spirit expressed concerns about the timing and completion of the proposal, which would result in “extended and more costly chapter 11 proceedings”.   

According to the US Courts, Chapter 11 of the Bankruptcy Code “generally provides for reorganization, usually involving a corporation or partnership. A Chapter 11 debtor usually proposes a plan of reorganization to keep its business alive and pay creditors over time. People in business or individuals also can seek relief in Chapter 11.” 

The Auckland-based carrier saw its earnings before tax fall to NZ$155 million ($88 mn) for the six months until December 31, 2024. This figure represents a significant drop from NZ$185 million ($105mn) reported in the same year previously. The airline’s net profit also declined by 22% from NZ$129 million ($73mn) to NZ$106 million ($60mn). The underlying profit was near the top end of its NZ$120 million to NZ$160 million ($68mn to $91mn) guidance range given at the start of the fiscal period.

Despite the figures, the airline is remaining positive amid a swathe of ongoing challenges. The airline’s Chair, Dame Therese Walsh said the figures represented a strong result when considering the headwinds the airline had been navigating for almost a year. “Air New Zealand’s strong balance sheet, liquidity, and financial discipline provide us with the flexibility to successfully manage the short-term challenges we face, while also continuing to invest in our future and return capital to our shareholders,” Walsh commented.

The airline will reportedly pay a dividend of NZ1.25c  per share to shareholders for the period, down on NZ2c per share interim dividend paid in 2024. However, the airline plans to announce an up to NZ$100 million ($57mn) share buy-back scheme imminently which will bolster the carrier’s finances as the airline battles with ongoing operational issues. Walsh added that the buy-back reflected the board of directors’ confidence in the airline’s long-term outlook. 

Chief executive Greg Foran expanded on the scale of the issues that have affected the powerplants on its Airbus A320neo family aircraft as well as its Boeing 787 Dreamliners. The airline has faced significant challenges including aircraft groundings which have been associated with additional engine maintenance requirements impacting the Pratt & Whitney GTF engines fitted to its Airbus A320neo family fleet as well as the Rolls-Royce Trent engines on its Boeing 787-9s.

The airline has had numerous aircraft grounded as a result of these issues in recent months. In November 2025, AeroTime reported that up to six of its A320neo family aircraft as well as four of its widebody Boeing 787s were currently out of service due to ongoing engine issues. This number represented almost 20% of the airline’s total fleet of 59 mainline jet aircraft.  

“Investment in modern, fuel-efficient aircraft is an important part of Air New Zealand’s fleet strategy. But with more than $1 billion worth of our newest, most efficient aircraft grounded at times, it’s been a tough year so far,” said Foran.

Unflown capacity

Foran added that at some points in recent months, the carrier had seen 5,000 seats per week effectively grounded by the ongoing engine issues, with the resulting loss of millions of dollars in revenue. This fact has been compounded by a fall in passenger revenues by 5% to NZ$2.9 billion ($1.65bn) as the airline saw weaker demand for its services, particularly in the higher-yielding corporate and government segments. 

Despite receiving NZ$94 million ($53mn) in compensation from engine manufacturers, the airline estimates its first-half earnings would have been approximately NZ$40 million ($22.8mn) higher had it been able to operate its full aircraft fleet as intended. 

“While compensation has played an important role in offsetting some of the financial impact of the delays, it falls well short of making the airline whole for the operational and economic losses sustained,” Foran said. “We strive to deliver a reliable experience for our customers. However, with 4% less capacity available largely due to the engine maintenance delays, this has been a real challenge for the airline.” 

Foran added that 2025 will continue to be financially challenging as it would be the first full year hit by engine problems, with up to 11 jets out of service at any one time. The airline expects its performance for the second half of 2025 to be “significantly lower” than the first half as a result. 

Following a shareholder vote on February 19, 2025, NAC announced that over 85% had backed the transaction for the Dubai-based lessor to acquire 100% of the company.  

While the multi-billion-dollar deal still requires regulatory approval, it is expected that the acquisition will be finalized within the coming months.  

NAC sought financial guidance from global giants Goldman Sachs International and Deutsche Bank while Clifford Chance and KPMG Deal Advisory acted as legal and accounting advisors, respectively.  

“We are pleased that shareholder approval has been received to sell the firm to DAE, a top global aircraft lessor. Our significant reshaping of the fleet plus substantial reduction of debt markedly enhanced our acquisition prospects. We appreciate the ongoing support from our business partners and team members during this transition,” said Norman C.T. Liu, NAC President and CEO. 

As of December 2024, NAC’s fleet comprised of 233 owned and committed aircraft on lease to approximately 60 customers in 40 countries. 

Upon completion of the deal, DAE’s fleet will balloon to around 750 owned, managed and committed aircraft (worth $22 billion), with 170 airline customers in 70 countries.    

DAE is owned by the Investment Corporation of Dubai, the investment arm of the Government of Dubai. Its current fleet includes around 500 Airbus, ATR and Boeing aircraft, with a total value of $18 billion.    

In January 2025, Firoz Tarapore, CEO of DAE, said: “We are delighted at this opportunity to add NAC’s capabilities, complementary market presence, and people to our platform. This transaction will allow us to provide more cost-effective solutions to a larger group of customers.”   

In a financial update statement issued on February 19, 2025, the company confirmed that an increasing trend for late booking for summer holidays in 2025 along with upward pressure on certain cost parameters were of concern for the airline in a market where margins are traditionally slim and competition in the European leisure market is increasing, particularly from low-cost airlines such as easyJet and Ryanair.

Jet2, as the UK’s largest inclusive tour operator, said it had raised its profit projections for 2025 by up to 10% to reach between £560 to £570 million ($711 million to $724 million) for its fiscal year which ends at the end of March 2025. The increase is being driven in part by the launch of two new operating bases in the past twelve months, with aircraft and crews being placed at Bournemouth Airport (BOH) in the south of England as well as at London-Luton Airport (LTN).

With the addition of the new bases plus the delivery of new aircraft to the airline’s fleet, the company has already calculated that its 2025 summer capacity will equate to an 8.5% increase over 2023 with 18.6 million seats on offer across its network. The two new bases alone will contribute over 700,000 of those seats.

Challenges ahead

Although on first reading, these numbers all look positive for the Jet2 Group, the company is predicting the possibility of a bumpy ride in the coming months as a perfect storm of economic and operational considerations come into play. The airline said that while deliveries of its new Airbus A321neo aircraft are continuing which will bring the carrier’s fleet of the type to 23 by the peak of summer 2025, it faces delays to the delivery of 14 of these new airplanes.

“Unfortunately, a number of these aircraft will be delayed from their agreed delivery dates and consequently we expect to incur additional operational costs to cover aircraft gaps in the peak summer flying program,” said a company statement. “Nevertheless, we remain very pleased that the A321neo aircraft are already demonstrating their strategic value in terms of operating economics, reduced emissions, and customer experience,” the company added.

According to Planespotters.net, the company’s current fleet consists of 100 Boeing 737s plus 18 Airbus A321s, with a single wet-leased A330-200.  

The airline believes that the ongoing strain on UK household budgets caused by wayward inflation figures and the rising cost of living were likely to continue impacting the airline’s financial performance, as customers held out for late booking deals. The airline added, “To date, we are continuing to see a later booking profile. For the combined departure months of April, May, and June [2025], total forward bookings are up by approximately 7% with the overall average load factor for our existing bases broadly flat. 

“Bookings for our two new bases are encouraging, although the average load factor at London Luton is materially lower than that of existing bases due to it only going on sale when operations were announced in November 2024. For the same departure months, package holiday customers have increased by 4%, while flight-only passengers have grown by 19%. Pricing remains keen with our package holiday product displaying a modest average increase and flight‐only slightly positive.”

In terms of macroeconomics, Jet2 warned that it faces “material cost increases” due to increased UK employer National Insurance contributions introduced by the UK Government in late 2024, alongside rises in the National Living Wage, which have combined to result in a previously announced £25 million hit.

Touching on direct operating costs, the airline said that the UK Government’s mandated increase to 2% of sustainable aviation fuel (SAF) will also result in more than £20 million of incremental costs for the carrier, owing to the significant price differential between SAF and conventional jet fuel. Elsewhere, large cost increases in hotel accommodation, aircraft maintenance, general airport handling fees, and Eurocontrol charges will all hurt the airline, it added.

Outlook for 2025

Jet2’s Chief Executive Steve Heapy summarised the airline group’s position, warning that although the overall trend for profitability is upward, the next twelve months will not be without its challenges.

“We are very pleased with how the 2025 financial year is ending and our expected 8%-10% profit growth, and given the limited forward visibility, we are satisfied with early bookings for summer 2025,” said Heapy. “We continue to believe that our customers cherish their time away from our rainy island and want to be properly looked after throughout their holiday experience and we will continue to invest in our business to meet these expectations.”

“However, we also recognize the current macroeconomic conditions, and the many demands placed on consumer discretionary incomes, which combined with the later booking profile and cost headwinds detailed, may mean profit margins in the year ahead come under some pressure. 

“Nevertheless, our customer-first focus remains unwavering and as a much trusted holiday provider with an end-to-end customer care approach, we remain confident customers will continue to travel with us to the sunspots of the Mediterranean, the Canary Islands, and to European leisure cities for many years to come,” Heapy concluded.

While the annual profitability of Etihad still falls well behind that of its local rival Emirates ($4.7 billion in 2024), the homegrown Abu Dhabi airline is feeling buoyant about its turnaround. The airline saw profits come in at $143 for 2023, while revenues for 2024 also hit a new high for the carrier reaching $6.9 billion.

In 2024, Etihad flew 18.5 million passengers while its cargo revenues for the year were $1.1 billion, an increase of 24% over 2023. By the end of the year, the airline operated to 80 locations with a fleet of 97 Airbus and Boeing aircraft. In 2024, the carrier expanded its fleet adding six additional Airbus A321neos and re-introducing a fifth A380 into its long-haul fleet.

“These results are a testament to the dedication of our people who have worked together for a purpose: delivering our strategy,” said Etihad CEO Antonoaldo Neves. “Their efforts have driven improvements in customer satisfaction measured across all cabin classes and numerous other touchpoints. Equally, they have delivered sustainable, profitable growth while maintaining disciplined efficiency and a steadfast commitment to safety.”

“Looking ahead, I am confident we will continue to be a financially strong airline delivering extraordinary customer experiences, fulfilling our shareholders’ mandate, and contributing to the long-term prosperity and success of the UAE.”

The announcement of its latest profitability figures will come as a major boost to Etihad which is currently undergoing a major route expansion program for 2025. The launch of flights to Sochi in Russia on February 18, 2025, was the latest new route in a steady stream of expansion plans announced by Etihad in recent months. Indeed, the Russian city will become Etihad’s fourteenth new destination in 2025.

Etihad will also commence flights to other global cities including Atlanta, Hanoi, Hong Kong, and Taipei, as well as to the European capitals of Prague and Warsaw. Expanding its network across North Africa, Etihad will begin flying to Algiers, Tunis, and Al Alamein in 2025.

Additionally, Etihad will bolster its network across Southeast Asia, with new connections directly to popular vacation destinations including Chiang Mai and Krabi in Thailand, Medan on the island of Sumatra, and the cultural city of Phnom Penh in Cambodia. These flights join the carrier’s existing services across Southeast Asia including Phuket and Bangkok. Elsewhere, the Gulf-based airline will also commence direct flights between Abu Dhabi and Nairobi in Kenya.

As of the time of writing, the airline’s fleet currently stands at 104 aircraft in total with a further 98 on order which includes 20 Airbus A321LRs, 15 A350-1000s, eight Boeing 777-8s, 17 777-9s, 20 787-10s, and a further eight 787-9s.  

Abu Dhabi’s rulers launched Etihad in 2003 to rival its locally established competitor Emirates based at Dubai International Airport, located only 70 miles (115 km) up the road from Etihad’s base at Zayed International Airport in Abu Dhabi. Along with Doha-based Qatar Airways, the three Middle Eastern carriers (often referred to as the “Big Three”), the trio of airlines dominate the international airline scene, using their geographical location at the crossroads between the East and the West to their advantage by attracting millions of transiting passengers annually.

The Canadian flag carrier managed to achieve these positive figures while increasing its capacity by 5% over the preceding year and carrying 47 million passengers throughout the year. However, it also registered an erosion of 4.7 percentage points from its profit margins, which went down to 5.7%. This is in great part due to the year-on-year 7% increase in operating expenses outstripping the 2% revenue growth.  

In this regard, Air Canada was impacted by a C$490 million (US% 354 million) one-time charge in Q4 2024, relating to a new collective agreement it reached in September 2024 with its pilots and their trade union, the Air Line Pilots Association, International (ALPA). 

Air Canada has also posted an EBITDA, adjusted for the one-off union settlement charge, of nearly C$3.6 billion (US$ 2.54 billion) and a net income of $1.72 billion (US$ 1.2 billion). However, the airline noted that a significant portion of last year’s net income is attributable to the recognition of C$1.154 billion (US$ 810 million) resulting from deferred income tax assets. 

When it comes to guidance for 2025, Air Canada maintains its expectation to generate an adjusted EBITDA of between $3.4 billion and $3.8 billion with a capacity increase, versus 2024, measured in terms of average seat miles (ASM) in the 3% to 5% range. 

This forward statement includes a caveat about the achievement of these goals being subject to a number of external factors, including political decisions such as tariffs or the threat of tariffs that could affect the regular conduct of business. This is a customary caveat that nevertheless it takes on a new, more significant meaning in light of the recent scuffles between the Canadian government and the new Trump administration. 

The company recorded orders for 56 aircraft, marking a 40% increase from 2023. The order book included commitments from both new and existing operators. The breakdown consists of 51 ATR 72s and five ATR 42s, bringing ATR’s backlog to over 150 aircraft.  

Interest from Asian carriers was particularly notable, and Canadian operators have also begun entering the market for ATR aircraft. 

ATR delivered 35 aircraft in 2024, compared to 36 the previous year, with one additional aircraft ready for delivery.  

“In 2024, we delivered what we said we would,” ATR CEO Nathalie Tarnaud Laude commented. “We maintained delivery rates despite tough conditions while welcoming 16 new operators, securing 56 aircraft orders, expanding value-added services, and streamlining operations.” 

For the second year in a row, ATR reported $1.2 billion in revenues, with a book-to-bill ratio well above 1, underscoring strong demand. The company also recorded nearly 100 transactions on the second-hand market, reaffirming the appeal for ATR aircraft. Customer support and services saw a 15% increase compared to 2023, reaching $480 million.  

ATR expects 2025 to be another year of stabilization, as tensions in the supply chain will remain at least during the first half of the year. 

In November 2024, the manufacturer reported halting the development of the ATR 42-600S, a short takeoff and landing (STOL) variant of the aircraft, based on “extensive market review” and “lingering tensions on its supply chain.” 

Rex Airlines collapsed into administration following an ill-fated attempt to compete against Qantas/Jetstar and Virgin Australia on trunk routes linking the state capitals using its small fleet of Boeing 787-800 aircraft. This operation ceased once administrators were appointed with all the jet aircraft departing, leaving Rex with a fleet of 58 Saab SF340 turboprops.

According to the report published by The Conversation, despite administrators having worked tirelessly since then to secure a buyer for the airline, the government is expected to announce that to ensure continuity of operations, it will “work with shortlisted bidders on potential support to maximize the prospects of a sale.” This will be the second attempt to find a buyer for the embattled carrier after an initial attempt to sell Rex failed in late 2024.

While the exact nature of the support remains unclear, it is thought to be conditional on any potential bidders committing to provide an “ongoing, reasonable level of service to regional and remote communities”. The Government adds that any assistance it provides to Rex must also represent value for taxpayers’ money and there would have to be assurances from the potential buyer of good governance. Although the Australian Government is not currently a ‘live’ bidder in the ongoing sale process if a long-term buyer cannot be found, the Government is expected to go down an alternative route.

“In the event there is no sale, the Albanese government will undertake necessary work, in consultation with relevant state governments, on contingency options, including preparations necessary for potential Commonwealth acquisition,” a source told The Conversation.

Providing extra support

The government has already provided support for Rex by providing an extension to the exemption from the “use it or lose it” rule for slots used by Rex at Sydney Airport (SYD) for its regional flights, operated by its fleet of SF340 turboprops. The extension secures the airline’s access to those slots until October 24, 2026, meaning that its regional flight network from the airport can continue to operate without the risk of slots being confiscated.  

Additionally, the Federal government has provided Rex with extensive financial support to keep it flying its regional routes while its long-term future is determined. This has included AUS$80 million ($50.4 million) in a loan to the administrator to keep various regional flights operating until June 30, 2025, as well as a buyout of AUD$50 million ($31.5 million) worth of debt from its biggest creditor, PAGAC Regulus Holdings Limited. These actions have essentially made the Australian Government Rex’s largest creditor.

“We are working collaboratively with the administrators of Rex to ensure that regional services continue beyond June 2025, including looking at what support the Commonwealth can provide,” said Anthony Albanese when speaking about the airline’s immediate prospects. “Regional Australians can be assured that our government will continue to fight to ensure these regional airfares remain available.”

“When markets fail or struggle to deliver for regional communities the government has a role to ensure people do not miss out on opportunities, education, and critical connections,” added Australian Transport Minister Catherine King.

The Federal Government of Australia has not owned shares in any airline since it divested its shares in flag carrier Qantas in August 1992. Any investment in Rex now would therefore be an about-turn, However, it would secure air links for numerous rural communities that have relied on Rex regional flights to link them with major towns and cities so they can access healthcare, conduct business, and visit friends and family living in the larger centers of population.

On February 6, 2025, Bombardier said that in an unpredictable climate arising from US President Donald Trump’s tariff threats on Canadian goods, it needed more time to assess “direct and indirect impacts”.  

Bombardier said: “In light of the rapidly evolving landscape stemming from the February 1, 2025, executive orders signed by the President of the United States regarding new tariffs, Bombardier has elected to defer providing guidance and 2025 objectives.” 

While the threat of tariffs is currently on hold for a month after President Trump postponed going through with the order, Bombardier is still wary of a looming 25% duty being introduced on Canadian imports into the US. 

In more positive news for Bombardier, the company posted total revenues of $8.7 billion for 2024, an 8% increase on 2023, and a net income of $370 million. 

2025 is just around the corner. #CatchTheMach #Global8000

2025 arrive à grands pas. #AttrapezLeMach pic.twitter.com/lms0nEoyYu

— Bombardier (@Bombardier) December 28, 2024

Services revenues were up 16% from 2023, with $2.04 billion in revenue secured. The company reported free cash flow generation of $232 million. 

Bombardier delivered 146 aircraft for the year, measured against 138 in 2023. Its backlog value rose $200 million from 2023, reaching $14.4 billion by the close of 2024.  

Éric Martel, President and CEO of Bombardier, said: “Our team passionately and proudly executed our plan in 2024 at a very high level, growing revenue to meet guidance, growing deliveries, growing our backlog, meaningfully expanding our margins, and reaching a net leverage ratio of 2.9x.” 

Martel added: “Four years ago, we outlined a bold vision for how we wanted to structure Bombardier for success. Our company has accomplished more than we set out to, including reaching our 2-billion-dollar service revenue ambition a full year ahead of schedule by rapidly elevating our customer experience and offerings. Whether in our operations, in the field or on our balance sheet, we have time and again demonstrated that we are strong and resilient.” 

Under this plan, Honeywell’s aerospace and automation divisions will each become an independent business. Honeywell will also move ahead with the spinoff of its advanced materials division, which was already slated to take place. In addition, Honeywell has an energy and sustainability solutions business. 

The move has been instigated by activist fund Elliott Management. This investment firm purchased $5 billion worth of Honeywell stock back in November 2024 with the declared purpose of pushing for a break-up of the company.  

At the time of the share purchase, Elliott Management stated that it considered Honeywell’s performance to be suffering from an over-complex structure and poor management, which had led the stock to underperform compared to its industry peers. 

Honeywell is a major player in the aerospace sector. Its aviation division, called Honeywell Aerospace Technologies, develops and manufactures a broad range of systems used in civilian and military aircraft, at airports and across several other areas of the industry, such as air traffic control and safety.  

These include engines for fixed-wing aircraft and rotorcraft, avionics, communications and vision systems, auxiliary power units (APUs), airport and air traffic management systems, aircraft brakes and even the black boxes where flight data is recorded. 

The aerospace business is also the largest of Honeywell’s divisions, generating around 40% of the group’s revenue of US$28.4 billion in 2024.  

Together with investment bank Goldman Sachs, Honeywell has been working on a plan to spin off its business units since at least December 2024. Analysts quoted by several media outlets estimate that as an independently listed company, Honeywell’s aerospace business could be valued somewhere in the region of $100 billion. 

Here Honeywell is following in the footsteps of GE, another major US conglomerate with interests in the aerospace sector, which spun off its aero engine business, GE Aerospace, in 2024. 

Honeywell’s stock dropped 4.4% on February 6, 2025, after the company announced its break-up and a lower-than-expected earnings forecast for 2025.