December 1st 2023

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MAY

Singapore Airlines Group (SIA) reported its highest annual net profit in its 76-year history this month, storming back to profitability on the back of “proactive strategic initiatives, pre-emptive preparation when borders remained closed and the hard work, dedication and sacrifices of its employees”. Read More »

SIA said forward sales are healthy across all cabin classes and demand robust.

It was a similar message from several other airlines reporting their latest financial results this month such as Japan Airlines (JAL). It cited a steady recovery of air passenger demand as the “shift towards balancing pandemic prevention and socio-economic activities gained momentum” after reporting a return to profitability in its 2023 fiscal year. The company’s outlook showed an increasing confidence, with net profit forecast to grow by close to 60% in the current year.

Adding to the positive outlook, the country’s aviation sector, and travel and tourism businesses more generally, were boosted by the Japanese government’s removal of COVID-19 testing and vaccination requirements for international travellers this month.

In Australia, Qantas Group announced chief financial officer, Vanessa Hudson, as the successor to Alan Joyce, who intended to step down in November after 15 years in the role. However, events subsequent to the announcement resulted in a change to the original timeline. (See August).

The airline group named former American Airlines CEO, Doug Parker, as a non-executive director.

India’s aviation market faced disruptions this month when financially troubled Go First abruptly suspended all flights due to what it described at the time were issues with the Pratt & Whitney engines on its A320 fleet. While the cash-strapped LCC stated the suspension was only for a short period, at press time flights had yet to be restored as parent company, Wadia Group, worked through an insolvency process and lessors sought the return of their aircraft.

Philippine Airlines took a major step forward in the renewal of its fleet by signing a Memorandum of Understanding with Airbus for nine A350-1000s to be delivered in the 2025-2027 timeframe, along with purchase rights for a further three of the type, to be used on North American and, potentially, European routes.

Thai Airways International (THAI) announced plans to consolidate its regional wing, Thai Smile, with the parent airline and have the two carriers flying under a single air operator certificate.

After receiving good news from U.K. regulators recently, Korean Air’s (KAL) proposed takeover of Asiana Airlines suffered a setback this month when the European Commission (EC) said the tie-up may reduce competition on passenger flights from South Korea to France, Germany, Italy and Spain and on all cargo flights between Europe and South Korea.