Air Cargo continues growth run in March

The International Air Transport Association (IATA) released data for March 2024 global air cargo markets showing continuing strong annual growth in demand. 

•    Total demand, measured in cargo tonne-kilometers (CTKs*), rose by 10.3% compared to March 2023 levels (11.4% for international operations). This is the fourth consecutive month of double-digit year-on-year growth. 

•    Capacity, measured in available cargo tonne-kilometers (ACTKs), increased by 7.3% compared to March 2023 (10.5% for international operations). 

"Air cargo demand grew by 10.3% over the previous March. This contributed to a strong first quarter performance which slightly exceeded even the exceptionally strong 2021 first quarter performance during the COVID crisis. With global cross-border trade and industrial production continuing to show a moderate upward trend, 2024 is shaping up to be a solid year for air cargo," said Willie Walsh, IATA’s Director General.

Several factors in the operating environment should be noted:

•    Global cross-border trade and industrial production increased by 1.2% and 1.6% respectively in February. 

•    In March, the manufacturing output Purchasing Managers’ Index (PMI) climbed to 51.9, indicating expansion. The new export orders PMI also rose to 49.5, remaining slightly below the 50 threshold that would indicate growth expectations. 

•    Inflation saw a mixed picture in March. In the EU and Japan, inflation rates fell to 2.6% and 2.7% respectively, while rising in the US to 3.5%. In contrast, China experienced a slight deflation of -0.01%. This latest figure marks a return to deflation after February's brief period of inflation. 

March Regional Performance

Asia-Pacific airlines saw 14.3% year-on-year demand growth for air cargo in March. Demand on the Asia-Europe route grew by 2.7 ppt to 17.0% and the within Asia market grew by 6.7 ppt to 11.8%. Capacity increased by 14.3% year-on-year.

North American carriers saw 0.9% year-on-year demand growth for air cargo in March —the weakest among all regions. Demand on the North America–Europe trade lane grew by 2.9% year-on-year while Asia–North America grew by 4.7% year-on-year.  March capacity decreased by -1.9% year-on-year.

European carriers saw 10.0% year-on-year demand growth for air cargo in March. Intra-European air cargo rose by 24.7% year-on-year. Europe–Middle East routes saw demand grow by 38.3% year-on-year, while Europe–North America expanded by 2.9% year-on-year.  March capacity increased 8.0% year-on-year.

Brunei orders six H145M helicopters

Airbus Helicopters has signed a contract with the Ministry of Defence of Brunei for the acquisition of six H145M helicopters.

“We are greatly honoured by the selection of the H145M to support the Royal Brunei Air Force’s expanded missions,” said Bruno Even, CEO of Airbus Helicopters. “The H145M is well regarded for its high performance and versatility, and we are confident that it will bring a step change in operational readiness to Brunei.”

Replacing its old BO105 fleet, Brunei’s H145Ms will be used to enhance the air force’s operational capabilities for missions including close air support and aerial observation.

The H145M is a multi-role military helicopter that provides a broad range of mission capabilities. The global fleet of the H145 family has accumulated more than seven million flight hours to-date. It is used by armed, air and law enforcement forces around the world for the most demanding missions. Brunei is the latest nation to order the H145M, after Cyprus, Germany, Hungary, Luxembourg, Serbia and Thailand.

Air Canada Reports First Quarter 2024 Financial Results

Air Canada reports its first quarter 2024 financial results this week, demonstrating operating revenues of more than $5 billion. 

"Air Canada's solid first quarter results position our airline for a strong performance in 2024. We had operating revenues of $5.2 billion in the quarter, up $339 million from last year. Adjusted EBITDA grew by $42 million year over year to $453 million. I thank our employees for their hard work taking care of our 11 million customers and transporting them safely throughout the quarter. I also commend them for improving our operations, notably a 13 percentage-point increase in system-wide, on-time arrivals, preparing us for an anticipated busy summer period," said Michael Rousseau, President and Chief Executive Officer of Air Canada. 

"We are confident in our ability to deliver on our full year 2024 guidance. As we look toward the summer, we see a continued healthy demand environment, and our customers will have a wide range of exciting travel options across Europe, Asia, and North America, for their summer holiday planning.  

"In the quarter, we generated over $1 billion of free cash flow, mainly resulting from cash generated from operating activities. Our net debt-to-adjusted EBITDA ratio fell to 0.9 at the quarter's end. We also made further progress in our strategy to deleverage the balance sheet by reducing gross debt. Our accomplishments in this regard have been recognized by the credit rating agency community, more recently with S&P Global Ratings' latest upgrade to 'BB' from 'BB-' at the end of April. For the full year 2024, we remain certain of our ability to generate significant free cash flow. Our strong balance sheet will serve as the foundation on which we will grow our airline through investments in our world-class global network and the deployment of capital allocation strategies that will create sustainable, long-term value, for all of Air Canada and its shareholders," said Mr. Rousseau.

First Quarter 2024 Financial Results

• Operating revenues of $5.226 billion increased $339 million or 7% on an operated capacity growth of 11% year over year.
• Operating expenses of $5.215 billion increased $311 million or 6%. The increase was due to higher costs in nearly all line items reflecting higher operated capacity and traffic year over year, in addition to higher labour, maintenance and information technology expense. Lower fuel expense partially offset the increase.
• Operating income of $11 million, with an operating margin of 0.2%, improved $28 million.

Singapore Airlines picks WebCargo by Freightos to expand booking options in Asia-Pacific's busiest hubs

WebCargo by Freightos, a leading vendor-neutral booking and payment platform for the international freight industry, is excited to announce that Singapore Airlines' cargo capacity is now being offered on WebCargo's platform. This relationship with Singapore Airlines underscores WebCargo's position as the leading digital platform for the air freight industry, offering its users an end-to-end booking experience while expanding its reach in the Asia-Pacific region. Digital bookings for shipments from Asia origins on WebCargo more than doubled between Q4 2022 and Q4 2023, showing strong appetite for digitalization in Asia, a trend that will likely be accelerated with Singapore's national carrier on the platform.

With a fleet of seven Boeing 747-400F freighters and over 190 Singapore Airlines and Scoot passenger aircraft serving more than 120 destinations, Singapore Airlines brings expanded reach to the thousands of freight forwarders that use WebCargo's platform for real-time air cargo pricing and booking starting this week. The partnership provides WebCargo's users with additional access to sought-after Asia-Pacific destinations, such as Singapore, Hong Kong, Australia, Indonesia, Thailand and Vietnam. Coverage on the platform is slated to increase over the course of the year.

WestJet outlines strategic plan in St. John's

WestJet Group outlines strategic plan in St. John's

Celebrating the Group's return of transatlantic flying to the region, von Hoensbroech underscores steadfast commitment to Newfoundland and Labrador during his inaugural visit

 WestJet Group CEO, Alexis von Hoensbroech concluded his inaugural visit to Atlantic Canada in St. John's, Newfoundland on Thursday, where he was joined by key stakeholders and community members to discuss the Group's expanding presence across the region. Von Hoensbroech highlighted the WestJet Group's renewed commitment to the region, as exhibited by network enhancements unfolding across the province's key airports this summer, including; increased east-to-west domestic air service seamlessly connecting Canadians from coast-to-coast, and enhanced leisure service, accomplished through the resumption of seasonal transatlantic service to London (Gatwick) and increased north to south air service providing access to popular sun destinations in the winter.

"We have heard loud and clear from both the city and the province on the importance of the WestJet Group's presence in the region. We are committed to leveraging our aircraft to further enhance Atlantic Canada's accessibility through thoughtful and targeted air connections, facilitating critical domestic, leisure and global air links to St. John's and the broader province," said von Hoensbroech.

In his remarks, von Hoensbroech provided a comprehensive overview of the WestJet Group's ongoing investments in Newfoundland and Labrador, demonstrating confidence in the airline's future presence in supporting the region:

Transatlantic flights reconnecting Newfoundland and Labrador to the world

Elevating its growth strategy, the WestJet Group has reached significant milestones, bolstering the province's network in 2024:

• May 1, 2024, the WestJet Group restarted the highly anticipated service between St. John's and London (Gatwick), providing the community with non-stop service to one of Europe's most popular global travel hubs, filling the largest air access gap for the province.
• This summer, St. John's will gain a 35 per cent increase in seat capacity, as a result of the WestJet Group's investments, compared to 2023.
• The WestJet Group will operate 36 weekly flights out of St. John's International Airport, during peak summer this year, a 20 per cent increase in total weekly flights, compared to 2023.
• The WestJet Group will return service to Deer Lake this spring, with new non-stop seasonal service to Calgary on May 18, 2024 and the restart of service to Toronto on May 16, 2024.

The WestJet Group fulfils its promise to satisfy demand through network schedule

GE Aerospace Foundation's $1 Million Pledge to Airlink to Strengthen Disaster Response Efforts Worldwide

Today, disaster logistics nonprofit Airlink received a $1 million donation from the GE Aerospace Foundation, emphasizing their shared commitment to leveraging aviation for humanitarian purposes. Established in 2010, Airlink is a nonprofit organization providing free air transport and logistical coordination for a pre-screened network of over 200 nonprofits, aiding in delivering disaster responders and aid supplies to areas affected by global humanitarian crises. 

The GE Aerospace Foundation, an independent charitable organization funded by GE Aerospace, made the donation at the formal launch of the Foundation during a press conference in Cincinnati.

“Our Foundation’s new commitment reflects our belief in aviation’s ability to do good, to save lives and rebuild communities," said GE Aerospace Foundation President Meghan Thurlow. "We are proud to partner with Airlink to help lift people up in communities around the world, providing supplies and support when they are needed most.” 

Airlink's work extends to humanitarian crises across the globe, from rapid-onset disasters like hurricanes and earthquakes to ongoing crises such as refugee emergencies. In 2023 alone, Airlink directly assisted over 12.5 million people in the aftermath of disasters, including the war in Ukraine, Turkey-Syria earthquakes, food insecurity across Sub-Saharan Africa, an outbreak of cholera in Haiti, and hurricanes and wildfires in the US. 

German passenger tax increase will weaken German economy and hamper decarbonization claims Willie Walsh

Willie Walsh has taken to the pulpit again to attack a democratically elected government's tax position which he claims will weaken the economy of Germany and halt the development of decarbonization.

As the Director General of the International Air Transport Association (IATA) Walsh sharply criticized the increase in German aviation taxes which have recently gone up.   

The outspoken industry veteran said: “When Germany’s economic performance is anaemic at best, denting its competitiveness with more taxes on aviation is policy madness. The government should be prioritizing measures to improve Germany’s competitive position and encouraging trade and travel. Instead, they have gone for a short-term cash grab which can only damage the economy’s long-term growth,"

IATA warned that the tax increase imposed by Germany will hamper the industry’s efforts to decarbonize. Aviation has a goal of reaching net-zero CO2 emissions by 2050 and sustainable aviation fuels (SAF) are vital to this effort. The German government coalition agreement originally stated that revenues from aviation taxes would directly fund the production of SAF, but IATA claims this commitment has been broken. 

Continuing the attack, Walsh said: "The German government appears to have an unhealthy obsession with aviation taxes. On top of increasing the passenger tax, it is also in favour of a European jet fuel tax which will make it even more expensive to do business in Germany or for families to go on holiday. Our survey of air travellers in Germany shows deep scepticism about government claims for ‘green taxes’. 75% agreed with the statement “Taxation is not the way to make aviation sustainable” and 72% agreed that “Green taxes are just government greenwashing”. Time and again, we see taxation that was supposed to help the industry decarbonize be stolen and then lost in the general budget. And money taken out of the industry means that it has less money to invest in other decarbonization measures,”.

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Aviation Capital Group announces key leadership promotions.

Aviation Capital Group, the global aircraft asset manager, has announced the promotions of Rob Downes and John Nally to key leadership positions effective immediately.

Rob Downes, currently Head of our Aircraft Trading business, has been promoted to the newly created position of Senior Vice President and Chief Investment Officer and will join ACG’s Senior Leadership Team.  In his new role, Rob will help design and implement strategic and asset investment activities to drive ACG’s continued growth and profitability.

John Nally, a member of our Trading team since 2021, has been promoted to Vice President, Head of Aircraft Trading.  John will lead the company’s aircraft trading initiatives, spearheading efforts to optimize ACG’s asset portfolio and strengthen its position in the global aviation market.

“Rob and John have been key to the execution of ACG’s commercial strategy for the past several years, demonstrating sound understanding of the market, exceptional leadership, and solid execution.  Their promotions reflect ACG’s commitment to developing, enabling and advancing talent within our business.  We are excited for the significant positive impact they will have in their expanded roles,” said Thomas Baker, CEO and President of ACG.

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The WestJet Group's growth strategy comes to life in Halifax this summer amidst return of transatlantic air connectivity

Alexis von Hoensbroech, WestJet Group CEO, commemorates first visit to Halifax with key partners and community members, reaffirming commitment to Atlantic Canada

This week WestJet Group CEO, Alexis von Hoensbroech, addressed key stakeholders and community members with a fulsome update on the airline's growth strategy and vision for Atlantic Canada at a special event hosted by the Halifax Chamber of Commerce. Commemorating his first visit to Nova Scotia, von Hoensbroech spoke about the WestJet Group's commitment to growing its presence across the region through critical air connectivity. With increased leisure opportunities, achieved through the resumption of transatlantic service and increased north to south air service providing access to popular sun destinations in the winter, along with enhanced east-to-west domestic air service better connecting Canadians from coast-to-coast, the WestJet Group's strategy is coming to fruition across Atlantic Canada.

"It is incredible to be visiting Halifax for the first time, meeting with our remarkable partners and getting to experience the tremendous Atlantic Canada hospitality firsthand," said von Hoensbroech. "We set out our growth strategy almost two years ago, and we are seeing it well in action across Atlantic Canada; our commitment to Halifax is strong as we work to meet demand and fuel Halifax's tourism pipeline."

Von Hoensbroech highlighted the WestJet Group's milestone achievements in Halifax and current and upcoming network investments serving to enhance the city's air connectivity, while bolstering the region's visitor economy:

Propelling Halifax forward through partner collaboration and strategic investments

Taking the airline's growth strategy to new heights in 2024 and beyond, the WestJet Group has accelerated on the following cornerstone achievements:

• On April 28, 2024, the WestJet Group celebrated the takeoff of its inaugural service between Halifax and London Gatwick, the first of three critical transatlantic routes that will return to Nova Scotia's capital this summer, bridging essential connections to global hubs, tourism and business economies.
• This summer, Halifax will see a 31 per cent increase in seat capacity provided by the WestJet Group, compared to 2023.
• Halifax Stanfield International Airport will have 90 weekly flights operated by the WestJet Group during peak summer this year; a 43 per cent increase in total weekly flights compared to 2023.

IAG Cargo invests 1.5 million Euros in perishables facility at Madrid hub

IAG Cargo, the cargo division of International Airlines Group (IAG), has recently invested €1.5 million into the expansion of its temperature-controlled perishables facility in Madrid. This forms part of a total €12 million invested in the business’ Spanish hub over the last 6 years.

As the first point of entry into the EU for perishables, IAG Cargo boasts an extensive network of connections from Latin America, with Madrid serving as a vital centre for distribution of produce across the region. This investment will increase the total capacity of the facility by 45% and will home 1,340 square metres of dedicated temperature-controlled space for perishable goods, offering customers the largest cooling chambers at Madrid airport. These chambers bring improved reliability and efficiency to IAG Cargo’s cold chain operations in Europe and are monitored 24/7 to ensure temperature sensitive goods are held in the correct conditions.

This forms part of IAG Cargo’s wider 12 million Euro investment into its Madrid hub over the last 6 years to enhance services for customers

The expansion of the facility will provide more capacity for the transportation of fruit, vegetables, meat, and fish between Latin America and Europe

The new facility features state-of-the-art cooling chambers to maintain the integrity of perishable goods

Fernando Terol Armas, Director of Spanish Hub and Operations at IAG Cargo said: “We are thrilled to announce this latest investment in our Madrid facility, which further demonstrates our commitment to providing the highest quality service to our customers.

With the expansion of our temperature-controlled space and state-of-the-art cooling chambers, we can now offer even greater capacity for perishable goods, ensuring their integrity is maintained throughout the supply chain. This investment will enable us to continue to serve as a vital link between Latin America and Europe, and we look forward to supporting our customers' growth in this region.”

Ramon Rey, International Director of Eurobanan that houses tropical fruit brand Isla Bonita added, “We are delighted by the additional capacity IAG Cargo has created at their perishables facility in Madrid. This development will allow us to continue delivering premium quality fruits and vegetables to consumers across Spain year-round. With enhanced logistics, IAG Cargo enables us to ensure that freshness is never compromised.”

The expansion of this facility will benefit customers importing fruit and vegetables, including asparagus from Peru and Los Angeles, papayas from Brazil, and mangos from Dominican Republic, as well as meat from Argentina and Uruguay, and fish, such as hake and salmon, from Chile.

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Get ready for another launch from Rocket Lab

Rocket Lab USA, is preparing two back-to-back Electron launches to deploy NASA’s PREFIRE - Polar Radiant Energy in the Far-InfraRed Experiment mission.  The two dedicated missions will each deploy one satellite to a 525km circular orbit from Rocket Lab Launch Complex 1 in Mahia, New Zealand. The first mission – named ‘Ready, Aim, PREFIRE’ – is scheduled to launch no earlier than May 22, 2024. The launch date of the second mission – named ‘PREFIRE And Ice’ – will be scheduled to take place within three weeks of the successful deployment of the first PREFIRE mission. The missions will be Rocket Lab’s 48th and 49th Electron launches overall and its sixth and seventh launches of 2024.

NASA’s PREFIRE mission is a climate change-focused mission that will systematically measure the heat, in the form of infrared and far-infrared wavelengths, lost from Earth’s polar regions for the first time. Extreme storms, flooding, and coastal erosion are examples of weather outcomes that are influenced by climate conditions in the Arctic and Antarctica. Once deployed to their separate orbits, the two PREFIRE satellites will criss-cross over the Arctic and Antarctica measuring thermal infrared radiation – the same type of energy emitted from a heat lamp – that will make climate models more accurate and help predict changes caused by global warming. PREFIRE consists of two 6U CubeSats with a baseline mission length of 10 months.

JETLINER CABINS: Evolution & Innovation by Jennifer Coutts Clay, extensively updated.....

JETLINER CABINS: Evolution & Innovation by Jennifer Coutts Clay, the foremost authority on aircraft interiors and the only resource of its kind, has been extensively updated and newly released by Amazon at the Kindle Store. The interactive E-BOOK, priced at $19.99, features case studies, video clips, and 20 picture galleries with more than 7,000 images and 16 updated chapters. Additionally, there are core insights from more than 50 international specialists and in-depth guest essays.

The E-BOOK covers everything flyers ever wanted to know about creating the cabin experience. ‘We are proud to provide this enhanced Edition of the ultimate resource for aviation professionals, aircraft enthusiasts, interior designers, architects, and people who simply love to travel by air,’ noted Jennifer Coutts Clay who herself has spent years as a professional in the aviation industry.

The new Kindle E-BOOK is the Fourth Edition of JETLINER CABINS: Evolution & Innovation with material that builds on the prestige of the original Hardback Edition first published by Academy Press of John Wiley & Sons Inc. in 2004. A subsequent Paperback Edition (2006) and an E-BOOK app for Apple iPad (2014) followed and led to further updates and enhancements, combined with new Amazon Kindle technology, for this latest user-friendly Edition. Readers have expanded access to the content, now available on a wider range of platforms including Kindle and E-reader devices.

Former CEO of JetBlue Airways joins Airbus

The former CEO of JetBlue Airways is joining Airbus as Chairman and Chief Executive Officer of Airbus Americas, from 3rd June 2024.  Robin Hayes is replacing C. Jeffrey Knittel who is retiring. 

Hayes brings 35 years of global aerospace leadership to Airbus having served in a series of senior executive roles at British Airways over the course of his 19-year tenure, and JetBlue,  where he was CEO for nine years. From 2020 to 2022, Hayes was Chair of the IATA’s Board of Governors, where he championed the association’s commitment to achieve net zero carbon emissions by 2050. Hayes will report to Airbus CEO Guillaume Faury.  

“I am delighted to welcome Robin to Airbus,” said Airbus CEO Guillaume Faury. “Together with the leadership team we’re looking forward to having Robin and his vast industry experience onboard to further deliver on our strategic objectives for the region across all the Airbus businesses and further grow our North American footprint. I want to thank Jeff for his many contributions to Airbus’ success over the years, and I wish him all the best for a well-deserved retirement.”

As Chairman and CEO, Hayes will lead the commercial aircraft business, and will have responsibility for coordination among the company’s helicopters, space and defense businesses in North America. The region has more than 10,000 Airbus employees across 50 sites. Additionally, Airbus spends $15 billion annually with more than 2,000 U.S. suppliers in over 40 states.

Hayes led JetBlue during a massively turbulent time for the airline industry and was instrumental in trying to force through JetBlue's failed take-over of the U.S. budget airline Spirit.

“After some time off, I am excited and energised to join Airbus and build on the incredible success in the region. I have known Jeff and the Airbus team for well over a decade and I believe they have done a terrific job leading Airbus in the Americas. It is an honour for me to take up this opportunity to be part of the Airbus team,” said Hayes. “Airbus’ commitment to safety and decarbonisation is incredibly important to me personally, and I am both motivated by and committed to contributing to the Airbus purpose to pioneer sustainable aerospace.” 

SAS gets a new Airbus A320neo on long term lease and set to join SkyTeam Alliance

Aviation Capital Group one of the leading global full-service aircraft asset managers, has announced the delivery of one new Airbus A320neo aircraft on long-term lease to the financially constrained Scandinavian Airlines. This jet is powered by CFM International LEAP-1A engines and will be used to bolster the carrier's fleet.  ACG advised this is the eleventh aircraft it is scheduled to deliver to the airline as part of a multiple-aircraft sale-leaseback transaction between ACG and SAS, which helps the airline form a more secure financial position.

ACG specializes in commercial aircraft leasing and aviation finance, with approximately 490 owned, managed and committed aircraft as of December 31, 2023, leased to roughly 90 airlines in approximately 45 countries. 

The flag carrier of Scandinavia is all set to join the SkyTeam Alliance on 1 September 2024 after completing a series of negotiations and signing the alliance's adherence agreement. 

This news will mean in future, SAS customers will benefit from seamless products as well as enjoy more travel options to several previously unserved destinations via the alliance member airlines. All EuroBonus members will benefit from earning and burning points, while Gold and Diamond members will enjoy SkyPriority services and lounge access.

The company also deferred interest payments due on 23 and 26 April this year on its perpetual capital securities, as part of the airlines's voluntary Chapter 11 process in the U.S and its reorganization proceeding in Sweden. The airline says the deferral of interest payment is made in accordance with the terms and conditions for the respective capital securities. But have done little to quell rumours that the carrier will not exit Chapter 11 this year or early next year. 

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Joby Aviation expanding its California manufacturing facility....

Joby Aviation has broken ground on an expansion for its pilot production line in Marina, California. The expansion will more than double Joby’s manufacturing footprint at the Marina Municipal Airport and is expected to begin operations next year.

The company developing electric air taxis for commercial passenger service, celebrated the event jointly with the rollout of its second production prototype aircraft. The aircraft is expected to join Joby’s first production prototype aircraft at Edwards Air Force Base later this year. Two additional aircraft are in final assembly.

The expanded facility is designed to support a target production rate of 25 aircraft per year and will also house a range of key operations facilities, including an expanded pilot training and flight simulation centre as well as aircraft maintenance facilities that are designed to support the scaling of Joby’s commercial operations.

JoeBen Bevirt, Founder and CEO of Joby said:  “This facility will play a foundational role in our future success and it is a privilege to once again be growing our footprint and our workforce in California. I am grateful to the local community and our many supporters who have advocated on our behalf to reach this point and to Toyota for everything they continue to do to make manufacturing a success at Joby,”