Cathay welcomes initiatives in the Government’s Policy Address to further reinforce Hong Kong’s leading international aviation hub status

The city’s home airline eagerly looks forward to the new era of its home hub

Cathay welcomes the Hong Kong SAR Government’s initiatives to further strengthen Hong Kong’s international aviation hub status, as well as attract visitors, mega events and high-calibre talent to the city, by capitalising on the commissioning of Three-Runway System and more than doubling the scale of the Airport City, as outlined in the Chief Executive’s 2024 Policy Address. ​

Cathay Group Chief Executive Officer Ronald Lam said: “Hong Kong International Airport is one of the world's busiest airports for international travel and the world's busiest cargo gateway. The Three-Runway System is poised to open up many exciting opportunities, including tens of millions of additional passengers and millions of additional tonnes of cargo each year.

“We welcome the Hong Kong SAR Government’s plan to greatly expand the scale of the Airport City. The further expansion of the integrated airport ecosystem will create even more tourism and retail opportunities for Hong Kong, and reinforce its status as a world-leading international aviation hub.”

Cathay fully supports the Government’s proactive initiatives to leverage these opportunities to strengthen Hong Kong’s air connectivity with the Chinese Mainland, and enhance cooperation with the civil aviation authorities of Belt and Road countries. ​ Today’s announcement to foster closer ties and develop visitor sources from the Middle East and ASEAN countries will enable even greater tourism and business opportunities between Hong Kong and these important regions. ​

The Destination by Hyatt Brand reaches new heights with Cheyenne Mountain Resort in Colorado Springs

The mountainside resort will complement the diverse collection of Destination by Hyatt hotels through immersive year-round guest experiences amidst breathtaking landscapes.

Hyatt Hotels welcomes Cheyenne Mountain Resort to the Destination by Hyatt brand, extending even more true-to-place experiences in new destinations for guests and World of Hyatt members. Nestled among the scenic wonders of the Rocky Mountains with 316 guestrooms and suites, Cheyenne Mountain Resort invites adventurers, nature enthusiasts, relaxation seekers and business travellers alike to connect to the destination with immersive outdoor experiences and local touches.

World of Hyatt

Located a short drive from both the central downtown and Colorado Springs Airport, Cheyenne Mountain Resort embodies the Destination by Hyatt brand ethos, offering travellers the opportunity to enjoy the local culture and Colorado-inspired accommodations which refresh the spirit and uplift the senses. As an inviting gateway to the best of Colorado Springs, the resort provides a dynamic mix of adventure and authentic connections for travellers coming from near and far.

“Cheyenne Mountain Resort perfectly embodies the Destination by Hyatt portfolio, inviting guests to enjoy the natural beauty and adventure-filled stays Colorado Springs offers through a local lens,” said Katie Johnson, Vice President, Global Brand Leader for Hyatt’s Independent Collection brands. “The addition of this unique hotel reflects Hyatt’s commitment to expanding the Destination by Hyatt brand presence in meaningful ways with distinct hotels that celebrate the unique essence of their locations.”

An Unforgettable Gateway to Experience a Deep Sense of Place

Surrounded by picturesque views of the Rocky Mountains and overlooking a tranquil 35-acre lake, Cheyenne Mountain Resort serves as an ideal base camp for exploration. Guests can dive into countless year-round activities, including hiking trails leading to panoramic views of Pikes Peak, serene lakeside moments where they can dive into a new book or build sandcastles at the lakefront beach. The resort’s proximity to activities such as kayaking through Curr Reservoir and visiting Garden of the Gods, a world-renowned natural landmark, ensures that each stay is a one-of-a-kind and enriching journey.

“We are excited to join the Destination by Hyatt brand to introduce our hotel’s elevated guest experience to those who have come to know and trust Hyatt hotels with their stays – whether travelling with family to explore a new destination or for team-building experiences among colleagues,” said Jess Johnson, Director of Sales and Marketing, Cheyenne Mountain Resort. “The resort blends personalized service with memorable experiences – all authentically rooted in the local atmosphere, making it a perfect getaway to reconnect with self and those who matter the most.”

The resort is comprised of 100,000 square feet of indoor and outdoor space featuring 316 well-appointed guestrooms and suites, designed for warm and welcoming comfort, with many accommodations offering private balconies with stunning views of the mountains or the lake. There are five swimming pools onsite as well as access to 16 tennis courts, eight pickleball courts and an 18-hole Pete Dye-designed golf course. The resort's commitment to well-being and outdoor recreation is further enhanced by its state-of-the-art, 9,000-square-foot fitness centre offering complimentary fitness and aquatics classes, plus outdoor courts for beach volleyball and basketball. Guests can unwind at the Alluvia Spa and Wellness Retreat with a range of rejuvenating treatments, including soothing aromatherapy massages, energy-balancing sessions and refreshing facials, designed to restore both the body and mind.

Distinct Event Spaces & Tastes for Any Occasion

Cheyenne Mountain Resort offers an exceptional setting for events and corporate meetings, featuring 40,000 square feet of versatile meeting space. With 38 meeting rooms, including scenic outdoor venues like the Cheyenne Courtyard and Grand Rivers Terrace, the resort accommodates everything from intimate boardroom meetings to large events of up to 600 attendees.

Led by Executive Chef James Wilson, a Le Cordon Bleu-trained chef dedicated to using fresh, locally sourced ingredients, various onsite dining experiences are available. Guests can start their day with breakfast at Mountain View Restaurant, featuring stunning panoramic views of the surrounding landscape. For a laid-back evening, Elevations Lounge offers craft cocktails, local brews and shareable plates in a cosy setting – perfect for unwinding after a day of exploring the great outdoors or conquering business meetings. Whether dining indoors or al fresco, every meal promises a taste of Colorado Spring’s rich flavours and welcoming spirit.

 

World of Hyatt

VINCI Airports reports latest traffic figures

◼ Strong traffic growth recorded this summer, up 6.4% vs 2023, significantly exceeding summer 2019 levels (+4%)

◼ Sharp increase in traffic in Europe thanks to good results from the summer season

◼ Traffic acceleration in Japan, particularly thanks to good performance of routes with China

More than 90 million passengers used the airports of the VINCI Airports network last quarter, an increase of 6.4% compared to 2023. The summer season was supported in Europe by leisure traffic to summer destinations, particularly around the Mediterranean, contributing in particular to the very good performance of the two platforms of Edinburgh and Budapest which recently joined the VINCI Airports network. This season was also marked by good momentum in long-haul international segments, particularly transatlantic. The countries whose traffic recovery was already the strongest compared to 2019 continued to grow compared to 2023, despite a high base effect: Costa Rica, Dominican Republic, Serbia, Portugal.

Contributing significantly to the good performance of this quarter, leisure traffic benefited from increased airline capacity and very good load factors, as illustrated for example by the results of London Gatwick airport. Long-haul traffic (Asia, United States) continues to develop in parallel on the London platform. In Portugal, demand remained strong, with very high load factors (+3 pts vs 2019; +1.2 pts vs 2023) and a significant increase in seat supply, particularly from TAP and easyJet. This growth concerned regional traffic (domestic and European) as well as long-haul international (North America, Brazil). In Budapest, the routes to the major European capitals were particularly busy with a sharp increase in seat supply from the two main airlines Wizz Air (+32%) and Ryanair (+22%). At Edinburgh airport, it was also European leisure traffic (Spain, Germany, Italy) which drove traffic growth, particularly thanks to the dynamism of Jet2.

This quarter was also marked by an accelerated recovery of traffic in Japan, particularly on routes with China. The announcement of the reopening of many routes between Kansai International and the main Chinese cities was accompanied by a sharp increase in the supply of seats for several Chinese and Japanese companies. Traffic with China increased by +90%, with in particular strong growth in routes with Shanghai (+61%) and Beijing (+79%). Passenger numbers on other regional segments (Hong Kong +35%, Taiwan +15%, South Korea +4%) as well as on domestic routes remained strong.

Elsewhere, traffic remained very dynamic. Santiago de Chile airport benefited from a clear recovery in its regional traffic (Brazil, Argentina) supported by the increase in the offer proposed by several companies (including LATAM +21%, Avianca +24%). On the long-haul, routes with Spain have been very popular. Traffic growth also remains strong in Cabo Verde, which attracts an ever-increasing number of passengers from Europe.

In the paragraphs above, and unless otherwise stated, the variations refer to traffic levels for the 3rd quarter of 2024 compared to the 3rd quarter of 2023.

PLAY to axe most routes to the US and move some planes to Malta...

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The Icelandic carrier PLAY is making some key fundamental changes as earnings fall way below expectations and cause concern. The alterations to its business model will see the airline further increase an emphasis on the strong leisure markets out of Iceland.  At the same time, PLAY will concentrate less on the model of connecting passengers between North America and Europe. 

The carrier confirmed its yields on the hub-and-spoke part of the business across the Atlantic has been disappointing, particularly in 2024. Increased competition in the North American market has also had a negative effect on PLAY’s financial results. Whereas the point-to-point part of PLAY’s schedule, primarily flights between Iceland and Southern Europe, has been popular and profitable from the beginning. 

Therefore, the airline says it will significantly cut back its capacity on its North Atlantic routes, starting immediately and will continue into 2025. PLAY will also axe some destinations in North America and Northern Europe by the middle of next year as it refocuses attention on Southern Europe.  

Another way to cut costs PLAY believes is to base part of its fleet in Malta and has applied for an Air Operating License (AOC) in Malta. This process is expected to be completed by the spring of next year. If all goes to plan, the carrier will move its first aircraft under the new Maltese AOC to Tenerife, from where it will be operated to Keflavík and Akureyri in Iceland and to other destinations. PLAY says it will then operate 6-7 of its aircraft on its Icelandic AOC and 3-4 on the Maltese AOC.  These moves will also make it easier for the carrier to keep flying in some form even if its financial position doesn't improve and it has to liquidate part of the airline to free up funds. 

The airline promises its financial position currently remains secure, with no present plans to raise capital. However, PLAY’s EBIT for the full year 2024 is now expected to fall below last year's results, which is a change from previous statements. The increase in capacity across the Atlantic in the spring and summer of 2024 had a greater negative impact than initially anticipated.

"Since PLAY's inception, we've observed shifts in the market, and it is our view that the via-route network is no longer as profitable as it once was. As a result, we have decided to adjust our business model, which will take effect around mid-2025. PLAY remains the airline of choice for Icelanders, and we aim to increase our share in the local market. In short, we will focus on the aspects of our business that have proven both successful and profitable—namely, transporting passengers between Southern Europe and Iceland. PLAY currently operates a fleet of 10 aircraft, but with these changes, about six to seven will remain under the Icelandic AOC, while three to four will be allocated to other projects. One aircraft will be temporarily leased to Miami, and we are exploring a year-round project that we hope to announce soon. I am confident that these adjustments to our business model will allow us to grow, ensuring PLAY remains a top choice for travellers,” says Einar Örn Ólafsson, PLAY’s CEO.

PLAY's Q3 presentation will take place at Sykursalur in Gróska at 16:00 local on Thursday, 24th October.  

AirAsia X shareholders unanimously back value accretive acquisition of Capital A’s aviation business

Stronger together: Upon completion, the new aviation group will offer a comprehensive range of low-cost air travel services across short, medium, and long-haul routes, establishing KLIA as a leading aviation megahub and positioning Asean as a key global transit point

                   

                         AirAsia X has announced that its shareholders expressed strong support for the Proposed Acquisition of Capital A’s entire equity interest in the aviation business within AirAsia Aviation Group Limited (AAAGL) and AirAsia Berhad (AAB) for RM6.8 billion, during the Extraordinary General Meeting (EGM) held today.

At the EGM, 99.08 per cent of shareholders voted in favour of the resolution, signalling strong support for AAX’s vision to capitalise on new market opportunities, strengthen operational synergies, and expand its service offerings. This pivotal decision clears the path for AAX’s transformative acquisition which is expected to be completed by the end of the year as an enlarged aviation group, subject to final court and regulatory approvals.

Additionally, shareholders voted in favour of the resolutions for the proposed issuance of free warrants, proposed private placement to raise gross proceeds of RM1 billion, proposed share capital reduction and proposed granting of subscription shares.  

Dato’ Fam Lee Ee, Chairman of AirAsia X said: “The unanimous approval from our shareholders marks a pivotal moment for AAX as we take a bold step forward in shaping the future of low-cost travel. 

AirAsia celebrates guests onboard AirAsia X SEGA Sonic the Hedgehog flight in style!

It’s a supercharged takeoff! AirAsia today celebrated the much-awaited Sonic the Hedgehog livery, and guests aboard the D7 170 flight from Kuala Lumpur to Bangkok were in for a treat. The Sonic the Hedgehog plane brought Sonic’s electrifying energy to the skies in a never-before-seen crossover between travel and gaming.

Passengers were welcomed into a Sonic wonderland, with vibrant blue backdrops, Sonic-themed goodies, and exclusive in-flight experience that kept the excitement rolling throughout the flight. Everyone's favourite dessert for the day? Sonic’s Golden Ring Cakes! The zesty mango and lemon-flavoured combo paired with a Fizzy Iced Yuzu drink brought smiles all around. 

From taking pictures with Sonic-inspired installations at the boarding gate to receiving special Sonic keepsakes, guests on board got to experience a one-of-a-kind journey they won’t soon forget.

Izal Azlee, Head of IP Development of AirAsia brand co., shared his excitement, saying:  "We are thrilled to bring Sonic and friends to the skies. It's a dream come true for us to highlight iconic characters on board and offer this unique experience. Now, not only can everyone fly but also enjoy flying with their favourite characters on AirAsia flights around the region."

The Sonic livery is part of AirAsia’s thrilling ‘The Colour of Connection’ campaign, blending the best of gaming and travel. With Sonic leading the way, AirAsia is continuing to push boundaries, offering more immersive experiences for passengers on every journey.

Vista America celebrating a year of service and innovation

Vista America, an operating partner of Vista—the world’s leading global business aviation company—celebrates a milestone year, establishing a new benchmark in business aviation services across the United States.

Vista America, which operates the Vista Members’ fleet in the U.S. for VistaJet and XO clients, has successfully established Vista’s reputation for excellence in the region. Through operational expertise, infrastructure, and a world-class team of aviation professionals, Vista America delivers flight operations, maintenance, and aircraft management services of the highest caliber. Over the past year, the company has made significant strides in enhancing its capabilities, setting new standards for business aviation.

Strategic Investments and Awards Announced

Simulator Investment: Full-motion Bombardier Challenger 300/350 simulator to be introduced in 2025;

Fleet Agility: Strategic aircraft relocation to meet seasonal demand and provide crew with international experience;

Hertz Partnership: Dedicated Hertz agents for seamless air-to-ground travel integration and enhanced client benefits;

Global 7500 Fleet: Dedicated Bombardier Global 7500 fleet introduced to the U.S. market, the only to offer guaranteed availability for domestic and intercontinental travel;

U.S. Tour: Completed its first-ever U.S. tour of the Global 7500 to demonstrate aircraft performance and capabilities;

Wyvern Wingman Certified: Adhering to one of the most rigorous safety practices in private aviation and continuing to surpass these benchmarks;

Certified Great Place To Work Earned the distinction highlighting employee satisfaction and career development.

David Stanley, President of Vista America: “I couldn’t be prouder of our incredible team at Vista America. This first year has been a journey of growth, expanding our capabilities and making a meaningful impact in the world of business aviation across the region—all thanks to the dedication of the people who make it happen, working around the clock every day of the year. Their commitment to excellence and passion for what they do is the heart of our success.

As we look to the future, we will continue investing in our people and our business, ensuring that Vista America evolves, expands, and strengthens the key pillars that define our success.”

50,000 people voted for their favourite Belgian Icon, jury selects winner from top 5

Lucky Luke, the Atomium, Cycling, Poppies and Shrimp fishers were the most popular designs.

Brussels Airlines received over 50,000 votes for the next Belgian Icon. The five designs with the most votes have been presented to a jury who selected the final winner who will be announced in early November. The five most popular designs are (in random order): Lucky Luke, the Atomium, Cycling, Poppies and Shrimp Fishers.

In August, Brussels Airlines launched a contest: everyone with the Belgian nationality or living in Belgium could submit a design for the next Belgian Icon. The airline received no less than 900 designs. An internal jury selected 15 finalists. Between October 4 and October 11, everyone could vote for their favourite design.

Michel Moriaux, Head of Marketing, at Brussels Airlines, said: “We are pleased to see so many people cast their vote. It’s clear that the Belgian Icon contest was ‘the talk of the town’ in Belgium. As the Belgian home carrier, we want to proudly present our country to the world, and our Belgian Icons play an important part in that strategy. The design contest challenged people in Belgium to reflect on what makes us proud and who we are as a nation. We’re glad to have sparked that discussion.” ​

​

Jury time

​Brussels Airlines gathered a jury to choose the winning design from the final five. ​

​These were the members of the jury: ​

​- Sandra Kim, who won the Eurovision Song Contest for Belgium in 1986, ​

​- Alex Callier, from Hooverphonic, the band that made the iconic safety video for Brussels Airlines, ​

​- Philippe Geluck, from the well-known ‘Le Chat’ cartoons, ​

​- Michèle George, who won two gold medals during the Paralympic games in Paris 2024,

​- Sandrine Corman, former miss Belgium and TV Host, ​

​- Gabrielle Szwarcenberg, the designer of the Brussels Airlines uniforms, ​

​- Elisia Poelman, painter, and Griet Aesaert, who has her own label of designer handbags, and both created the amenity kits for Brussels.

Brussels Airlines also had two members in the jury: CEO Dorothea von Boxberg and Michel Moriaux, Head of Marketing.

Michel Moriaux, Head of Marketing, at Brussels Airlines said:  “We’ve shown all the designs to the entire jury and had a very interesting debate. Afterwards, each jury member could vote individually for their favourite design. The jury was not informed about the number of votes the designs got during the contest last week, to give all five designs an equal chance. It was not an easy decision as all designs in the final five are very impressive and could be great Belgian Icons.”

 

Brussels Airlines’ Belgian Icons

The idea behind the Belgian Icons is to introduce the best of Belgium to the world. The Belgian Icons are known all over the world and make flying even more fun.

Brussels Airlines’ first Belgian Icon, Rackham, was introduced in 2015 and pays tribute to Tintin, the world-famous Belgian comic. Earlier this year, Amare was presented to the world which is the most recent Belgian Icon in cooperation with the music festival Tomorrowland. The third Belgian Icon currently in the fleet is Trident, the official plane of the Belgian Red Devils and Red Flames, respectively the male and female national football teams.

These are the previous Belgian Icons:

Magritte was part of the fleet between 2016 and 2021. The aircraft was a homage to René Magritte, the Belgian surrealistic painter.

Aerosmurf smurfed the fleet between 2018 and 2023. This plane also took shape during a design contest organized by Brussels Airlines.

Flemish painter Pieter Bruegel the Elder, a Belgian icon from the 16th century, travelled the world between 2019 and 2023.

Local community groups benefit from East Midlands Airport funding

More than 80 groups and charities in communities surrounding East Midlands Airport (EMA) have benefited from a share of £228,000 in funding from the airport over the last six months.

One group, the Derby West Indian Community Association Steel Band (pictured), came to the airport at the weekend to help put customers in the holiday mood, after they received £2,000 towards new steel pans. The performance was part of EMA’s celebrations for Black History Month. A video of the performance is available here: https://content.presspage.com/uploads/1948/49b4a2e1-93f7-4b75-acba-eb0aa3dafebf/1728733468535-original-d69e3256-b09a-47a9-ba37-4c5bcf75ddc6.mp4?10000y

The EMA Community Fund is dedicated to bringing lasting benefit to those areas most affected by the airport’s operations. Eligible organisations within the  Area of Benefit – which stretches to the outer edges of Derby, Nottingham and Leicester to the north, east and south and includes Burton on Trent to the west - can apply for funding.

Part of the £228,000 donated to 81 organisations since April was from the Eco Garden and Low Carbon Energy Funds which are now closed. Over the past three years, this handed out just over £1m for local environmental projects using surcharges levied against noisy aircraft.

£60,000 of these funds is ringfenced to help mark EMA’s 60^th anniversary next year, going towards upgrading the Airport Trail - a 6.3-mile walking route around the perimeter of the airport which passes the EMA Aeropark aviation museum and aircraft viewing areas.

Projects that have benefited from EMA Community Fund donations this year include:

·       Bennerley Fields School, Ilkeston, was awarded a grant of £2,000 towards their fully accessible school minibus

·       Newhall Football Club, Swadlincote, received £1,966 towards sports equipment including pitch maintenance equipment, training goals, posts, respect barriers, a pop-up shelter and funding for kits

·       Orchard Primary School, Castle Donington, was awarded £2,000 towards a trim trail in the school playground, installed over the summer holidays. It is available for pupils as well as clubs including Rainbows, Brownies, Guides, Cubs and Scout Groups, and holiday clubs

·       4^th Coalville Scout Group received a grant of £2,000 towards the purchase of a new trailer, to transport camping and activity equipment to camps and events.

Projects that have benefited from the EMA Low Carbon Energy Grant and Eco Garden Grant this year include:

·       Gotham Sports Arena and Kegworth Tennis Club were each awarded £10,000 towards new LED floodlights

·       Nottingham Casuals Rugby Football Club recently won £10,000 towards the purchase of solar panels

·       St John Fisher Catholic Voluntary Academy in Alvaston, Derby recently completed the development of their Eco Garden with £9,285 of funding.

EMA’s Community Engagement Manager, Colleen Hempson, said: “We take our responsibilities very seriously as a large employment site which, given our business, has an impact on surrounding communities.

“As well as engaging with our communities all year round, we’re really pleased to be able to give something back through our Community Fund, which can make a big difference to community groups and benefit thousands of people in our area every year.”

You can find out more about the East Midlands Airport Community Fund here.

 

 

 

 

 

 

 

 

Pictured above (l-r) Bennerley Field School Accessible Minibus; Kegworth Tennis Club; Orchard Primary School; St John Fisher CVA School; Nottingham Casuals Rugby Football Club; Gotham Sports Arena LEDs; 4^th Coalville Scouts; Newhall Football Club

Condor cutting Hamburg services following airport price hike....

The German leisure airline Condor is cutting service from Hamburg by 13% due to significantly increased costs introduced by the airport. The carrier is adjusting its schedule for summer 2025 and has decided to axe its planned growth at the airport with additional frequencies and completely new destinations. 

Connections to Samos in Greece and Malaga in Spain will be completely removed from the flight schedule, while flights to Kos (Greece) will be significantly reduced. Condor had also planned to add a total of four new destinations from Hamburg with several weekly connections, thus better connecting the Hanseatic city to the rest of the world.

“We are not only cutting capacity in Hamburg, but also our planned growth in summer 2025 - a logical consequence of the threat of a completely disproportionate increase in charges in Hamburg,” says Peter Gerber, CEO of Condor. “With these significantly increased costs, we are not only forced to relocate flights from Hamburg to other locations, but also to increase prices. This is particularly regrettable for our customers there, especially as Hamburg had reliable solutions that would have prevented such a development. To date, this has failed due to the airport's unwillingness to reach an agreement with the airport users.”

Peter Gerber, who is also President of the Federal Association of German Airlines (BDF), emphasizes that the Hamburg case clearly shows that a sustainably competitive cost structure is needed at German aviation locations. “To achieve this, politicians must urgently set the course for a correction.”

Condor is the third largest airline at the location with its flights from Hamburg. The flight schedule includes vacation destinations in Greece, the Balearic Islands, the Canary Islands and the Spanish mainland, Madeira, Egypt, Italy, the Algarve and Turkey.

Mesa Air Group reports third quarter results

Mesa Air Group has reported third quarter fiscal 2024 financial and operating results this week, showing total operating revenues of $110.8 million, United Express contract revenue 8.0% higher year-over-year.  Pre-tax loss of $20.7 million, net loss of $19.9 million, adjusted net loss1 of $9.4 million2, adjusted EBITDAR1 of $10.6 million.

United CPA and Fleet Update:

• Extended increased block-hour rate on E-175 flying in current United CPA through August 31, 2025
• At United’s request, agreed to accelerate transition of fleet to all E-175s by March 1, 2025
• United to reimburse costs up to $14 million associated with transition
• United to purchase two CRJ-700s formerly leased to a third party for total proceeds of $11.0 million, $4.5 million of which will pay down the related outstanding obligations
• Mesa and United remain in discussions for an enhanced CPA to support long-term profitability
  

Additional Updates:

• During June quarter, entered agreements to sell 23 CF34-8C engines for total proceeds of $33.5 million, $29.0 million of which will pay down U.S. Treasury debt
• Completed all asset transactions to eliminate RASPRO finance lease obligation
• Generated $9.6 million from sale of approximately 2.3 million common shares of Archer Aviation, Inc. (“Archer”), originally acquired for $5.0 million, with Mesa still retaining up to approximately 1.17 million unvested equity warrants4 in Archer

“While we were pleased to experience an 8.0% increase in United Express contract revenue, our third-quarter block-hours were negatively impacted by a lag as we removed CRJ-900s from our contractual fleet and trained pilots to fly our E-175s,” said Jonathan Ornstein, Chairman and CEO. “We generated positive adjusted EBITDAR for the second straight quarter given improving fleet mix and cost control. We continue to monetize our surplus assets and will direct proceeds toward reducing the related obligations and, as a result, interest expense. We were modestly operating cash flow-positive during the third quarter.

“Importantly, we have extended the increased block-hour rate in our CPA with United into next year. United has also agreed to reimburse Mesa for expenses associated with the transition to fully flying E-175 aircraft. The updated financial terms and our ongoing planning with United is critical as we rebuild our E-175 fleet utilization and margin runway through fiscal year 2025. We currently have the pilot resources to fly increased E-175 block hours, and have started the process of recalling pilots from furlough in anticipation of improved aircraft utilization.

“While we are not yet providing a forecast for fiscal year 2025, our focus continues to be on increasing utilization and maintaining overall operational performance,” continued Ornstein. “As we transition into flying all E-175s, we will look to drive additional efficiencies from operating a single fleet type. We will also continue to consider longer-term financial and strategic opportunities to enhance the business.”

________________________

1 See Reconciliation of GAAP versus non-GAAP Disclosures
2 Adjusted net loss primarily excludes $10.0 million of losses from accounting treatment of assets held for sale
3 Excludes cancellations due to weather and air traffic control
4 Vesting subject to Archer aircraft certification and the order and delivery of a specified number of aircraft

Third Quarter Fiscal 2024 Details

Total operating revenues in Q3 2024 were $110.8 million, a decrease of $3.9 million, or 3.4%, from $114.7 million for Q3 2023. Contract revenue increased $1.2 million, or 1.3%, to $95.6 million, compared to $94.4 million in Q3 2023, driven by higher E-175 block-hour rates with United Airlines despite 3.3% fewer block hours. This increase was partially offset by higher deferred revenue in Q3 2024 and the wind-down of the DHL contract.

Pass-through revenue decreased by $5.1 million, or 25.3%, driven by lower pass-through maintenance expense. Mesa’s Q3 2024 results include, per GAAP, the deferral of $2.3 million in revenue, versus the recognition of $1.8 million of previously deferred revenue in Q3 2023. The remaining deferred revenue balance of $12.4 million will be recognized as flights are completed over the remaining term of the United contract.

Total operating expenses in Q3 2024 were $119.8 million, a decrease of $35.1 million, or 22.7%, versus Q3 2023. This decrease primarily reflects a $22.6 million lower asset impairment loss. In addition, maintenance expense decreased by $6.8 million primarily due to lower labor and pass-through costs, and flight operations expense was $6.1 million lower due to decreases in pilot wages and training costs. Depreciation and amortization expense decreased $5.6 million primarily due to the retirement and sale of CRJ aircraft and engines.

Mesa’s Q3 2024 results reflect a net loss of $19.9 million, or $(0.48) per diluted share, compared to a net loss of $47.6 million, or $(1.17) per diluted share, for Q3 2023. Mesa’s Q3 2024 adjusted net loss was $9.4 million, or $(0.23) per diluted share, versus an adjusted net loss of $27.2 million, or $(0.67) per diluted share, in Q3 2023.

Mesa’s adjusted EBITDA1 for Q3 2024 was $8.9 million, compared to an adjusted EBITDA loss of $1.8 million for Q3 2023. Adjusted EBITDAR was $10.6 million for Q3 2024, compared to an adjusted EBITDAR loss of $0.9 million for Q3 2023.

Third Quarter Fiscal 2024 Operating Performance

Changes ahead for PLAY as earnings below expectations

The Icelandic carrier PLAY is making some key fundamental changes as earnings fall way below expectations and cause concern. The alterations to its business model will see the airline further increase an emphasis on the strong leisure markets out of Iceland.  At the same time, PLAY will concentrate less on the model of connecting passengers between North America and Europe. 

The carrier confirmed its yields on the hub-and-spoke part of the business across the Atlantic has been disappointing, particularly in 2024. Increased competition in the North American market has also had a negative effect on PLAY’s financial results. Whereas the point-to-point part of PLAY’s schedule, primarily flights between Iceland and Southern Europe, has been popular and profitable from the beginning. 

Therefore, the airline says it will significantly cut back its capacity on its North Atlantic routes, starting immediately and will continue into 2025. PLAY will also axe some destinations in North America and Northern Europe by the middle of next year as it refocuses attention on Southern Europe.  

Another way to cut costs PLAY believes is to base part of its fleet in Malta and has applied for an Air Operating License (AOC) in Malta. This process is expected to be completed by the spring of next year. If all goes to plan, the carrier will move its first aircraft under the new Maltese AOC to Tenerife, from where it will be operated to Keflavík and Akureyri in Iceland and to other destinations. PLAY says it will then operate 6-7 of its aircraft on its Icelandic AOC and 3-4 on the Maltese AOC.  These moves will also make it easier for the carrier to keep flying in some form even if its financial position doesn't improve and it has to liquidate part of the airline to free up funds. 

The airline promises its financial position currently remains secure, with no present plans to raise capital. However, PLAY’s EBIT for the full year 2024 is now expected to fall below last year's results, which is a change from previous statements. The increase in capacity across the Atlantic in the spring and summer of 2024 had a greater negative impact than initially anticipated.

"Since PLAY's inception, we've observed shifts in the market, and it is our view that the via-route network is no longer as profitable as it once was. As a result, we have decided to adjust our business model, which will take effect around mid-2025. PLAY remains the airline of choice for Icelanders, and we aim to increase our share in the local market. In short, we will focus on the aspects of our business that have proven both successful and profitable—namely, transporting passengers between Southern Europe and Iceland. PLAY currently operates a fleet of 10 aircraft, but with these changes, about six to seven will remain under the Icelandic AOC, while three to four will be allocated to other projects. One aircraft will be temporarily leased to Miami, and we are exploring a year-round project that we hope to announce soon. I am confident that these adjustments to our business model will allow us to grow, ensuring PLAY remains a top choice for travellers,” says Einar Örn Ólafsson, PLAY’s CEO.

PLAY's Q3 presentation will take place at Sykursalur in Gróska at 16:00 local on Thursday, 24th October.  

FedEx Panda Express completes first-ever roundtrip deliveries........... Continuing support of giant panda conservation

This week, FedEx transported six giant pandas between the United States and China on two separate flights. The roundtrip journey departed Atlanta, GA., arrived in Chengdu, China, where it delivered four pandas and then returned to Washington, D.C. with two pandas. The pandas travelled aboard a FedEx Boeing 777-F, known as the “FedEx Panda Express.”

Departing Atlanta, FedEx transported four giant pandas from Hartsfield-Jackson Atlanta International Airport to Chengdu Shuangliu International Airport (CTU). The FedEx Panda Express departed on October 12 and arrived in Chengdu on October 13. The four pandas aboard included 27-year-old female Lun Lun and 27-year-old male Yang Yang, who have resided at Zoo Atlanta since 1999, and their twin female offspring, Ya Lun and Xi Lun, born at Zoo Atlanta in 2016. They have now safely arrived at the Chengdu Research Base of Giant Panda Breeding.

On the return flight, FedEx transported two pandas from CTU to the Smithsonian’s National Zoo and Conservation Biology Institute (NZCBI) in Washington, D.C. The FedEx Panda Express departed Chengdu on October 14 and arrived at Dulles International Airport on October 15. From there, the pandas were taken by truck to NZCBI. The two pandas aboard included two-year-old male Bao Li and two-year-old female Qing Bao. Bao Li is the grandcub of Mei Xiang and Tian Tian, whom FedEx transported to China, along with their cub, Xiao Qi Ji, in November 2023.

For more than two decades, FedEx has worked with the Chinese government and zoos around the world to safely transport giant pandas to and from China. The company is committed to keeping supply chains moving and connecting communities around the world by enabling global trade. FedEx donated the transportation cost as part of its ongoing corporate social responsibility and environmental conservation efforts.

AeroVironment shows off JUMP 20’s advanced maritime capabilities at NATO REPMUS demonstration

AeroVironment (AV) successfully showcased the maritime prowess of its combat-proven JUMP® 20 uncrewed aircraft system (UAS) during the NATO REPMUS 2024 (Robotic Experimentation and Prototyping using Maritime Uncrewed Systems) exercise off the coast of Portugal. This dynamic demonstration reinforced JUMP 20’s advanced Intelligence, Surveillance, and Reconnaissance (ISR) capabilities, autonomously launching and landing on a moving vessel in rough seas, with conditions reaching sea state lev
el 5 and winds over 20 knots.

The JUMP 20 also highlighted its multi-sensor mission versatility, seamlessly executing wide-area search and detection tasks. Its advanced Electro-Optical and Mid-Wave Infrared (MWIR) turret automatically slewed to investigate identified targets without repositioning the platform, ensuring constant operational focus. Full-motion video was captured and later analyzed using AV’s cutting-edge computer vision technology, SPOTR-Edge™, enabling perception analysis using its robust library of object classifications, including persons, vehicles, and maritime vessels. Additionally, video from this event will further enhance the solution, making the JUMP 20 even more capable for future deployments by refining its object recognition and situational response capabilities.

Airlines for Europe CEOs set out demands for new EU term

The CEOs of Airlines for Europe (A4E), the trade body for European airlines, gathered in Brussels today for a boozy meeting to set out their priorities for the new EU term which has resulted in them urging policymakers to focus on reinforcing the competitiveness of airlines, airspace reform, supporting the decarbonisation of aviation and completing Europe’s Single Aviation Market. 

A4E, which is financed by the airlines, contests that achieving their priorities will strengthen the competitiveness of Europe’s airline sector, ensure it remains a globally competitive force which connects Europeans across Europe and with the rest of the world. 

The priorities map out the most pressing challenges facing the sector today, including: 

Reinforcing the competitiveness of Europe’s airlines

The urgent need to reform Europe’s outdated and fragmented airspace to ensure it is fit for today and the future, saving up to 10% of emissions, the equivalent of 90 million tonnes of CO2 over the term of the European Parliament (according to easyJet research)

The support of the decarbonisation of aviation, ensuring that the annual investment needs of EUR 61 billion set out in the Draghi Report will be unlocked between 2030-2050.

The inclusion of aviation in the new Clean Industrial Deal, to ramp up the production and bring down the cost of Sustainable Aviation Fuels (SAFs). Bringing down the price gap between SAFs and conventional jet fuel will be essential to ensure that the sector meets its ambitious climate goals while remaining globally competitive

Completing the single market, giving legal clarity to passengers and airlines and ensuring effective and objective oversight of all stakeholders from airports to ANSPs and intermediaries.

Underlining their commitment to work with the incoming European Commission, newly elected MEPs, and Member States, the CEOs of Europe’s airlines have published an open letter, outlining these priorities and calling on policymakers to “work with us to deliver a future of flying that is connected, dependable, modern, sustainable and which remains available to all.” 

Ryanair's boss, Michael O’Leary, is also the A4E Chairman, says: “The next EU term must be focused on delivery. Policymakers must be bold and deliver the reforms Europe is crying out for to ensure it remains a region that is competitive and innovative and most importantly, so aviation is able to deliver for Europeans in the years to come.” 

Ourania Georgoutsakou, Managing Director of A4E said: “We are clear on the most pressing areas for action—from airspace reform to sustainability, ensuring a level playing field and completing the single market will be essential to maintaining a competitive European airline industry. Expectations are high for decisive action over the next five years, and we are ready to work with the EU to make important progress,” 

The open letter can be found here.
It was signed by:Micheal O’Leary – Ryanair, Chair of A4EBogi Nils Bogason – Icelandair Marco Ciomperlik – TUI Richard Forson – Cargolux Luis Gallego – IAG  Martin Alexander Gauss – AirBaltic Dimitris Georgiannis – Aegean Steve Heapy – Jet2  Geir Karlsen – Norwegian Turkka Kuusisto – Finnair Johan Lundgren – EasyJet Carlos Munoz – Volotea Luis Rodriguez – TAP Ben Smith  – Air France-KLM GroupCarsten Spohr – Lufthansa Group Roman Vik – Smartwings  Valdemar Warburg – Sunclass