Soundbytes: travel and aviation industry insights – week ending 20-Oct-2023

20 October, 2023

CTC - Corporate Travel Community each week brings you a roundup of the most thought-provoking and interesting comments from those industry leaders in the know.

United Airlines' international profit margins 'well ahead of domestic': CCO

United Airlines EVP and CCO Andrew Nocella, via the carrier's 3Q2023 earnings call, reported United's international profit margins remain "well ahead of domestic", however noted domestic margins remain "solidly profitable".

DAT CEO: Collaboration needed for industry to reach goals

DAT CEO Jesper Rungholm stated "to survive as part of an industry that is both loved, needed and by some even hated, we have to collaborate". Mr Rungholm said: "Without the airports and manufacturers doing their bit, the airlines will not be able to reach the ambitious goals we all both want and are willing to achieve". He added: "Overall, we need the politicians to understand that they are also part of this collaboration and act accordingly".

Air Greenland 'researching the market for aircraft'

Air Greenland commercial director Henrik Søe stated the carrier is "in the process of researching the market for aircraft", in view of new Atlantic airports opening in Nuuk and Ilulissat in 2024 and 2026, respectively. The carrier's early departure from Nuuk and late departure from Copenhagen will be operated by a smaller aircraft type than the trans-Atlantic A330neo aircraft 'Tuukkaq'. Air Greenland also expects "that there will be demand for direct summer flights between Ilulissat and Copenhagen". Mr Søe added however, "it is still too early to say more about whether we will lease or buy an aircraft for the purpose".

Mexico has been 'great source of strength' for Delta Air Lines: president

Delta Air Lines president Glen Hauenstein, via the carrier's 3Q2023 earnings call, reported Mexico has been "a great source of strength" for the carrier over the past year. Mr Hauenstein stated Delta sees "continued strength" in the market, noting business demand to/from Mexico has been "incredible" and is looking "really robust into 2024". As previously reported by CAPA, the US FAA returned Mexico's International Aviation Safety Assessment (IASA) to Category 1 in mid Sep-2023.

Aer Lingus CEO: Night flight reduction at Dublin Airport would cause 'reputational damage'

Aer Lingus CEO Lynne Embleton said Fingal County Council's plans to lower the number of night flights at Dublin Airport would cause "significant reputational damage" to Ireland if they came into force. Ms Embleton wrote to Irish Minister for Transport Eamon Ryan in Aug-2023 to criticise planning permissions related to the new North Runway at the airport, writing: "The current enforcement order will reduce capacity at Dublin Airport and without urgent action, will impact connectivity, employment, tourism and business resulting in significant reputational damage".

Greater Bay Airlines expects to achieve profitability in 2024: CEO

Greater Bay Airlines CEO Stanley Hui Hon Chung reported the LCC briefly broke even in Mar/Apr-2023 due to "unusually" high airfares offsetting the impact of aircraft underutilisation and load factors under 70%. Mr Hui said "We still have a way to go to profitability", but forecast profitability is likely to be achieved in 2024. He confirmed Greater Bay Airlines is engaged in preliminary discussions regarding plans to undertake an initial public offering (IPO), stating: "All business should be looking at an IPO, and that is on the agenda".

BRA chairman: Financial reorganisation necessary for long term business

BRA - Braathens Regional Airlines chairman and owner Per G Braathen, commenting on the company's application for financial reorganisation, stated "At the moment, a series of unfortunate factors have put us in a difficult situation". Mr Braathen said: "The decision to apply for reorganisation is necessary in order to take responsibility for jobs, the aviation infrastructure in Sweden and the business in the long term". He added: "We will continue our ambition to transition the aviation industry to fossil-free as quickly as possible".