December 1st 2023

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AUGUST

The month was dominated by financial results from airlines across the region and they announced plenty of positive news. Read More » Air New Zealand and Qantas Group reported their first annual net profits since the start of the pandemic, IndiGo posted its highest ever quarterly revenue results and Cathay Pacific surged back to the black for its half-year.

But some of the commentary pointed to challenges ahead. Cebu Pacific Air noted declines in short-haul demand and supply chain concerns. Korean Air achieved, in its own words, a “moderate operating profit”, due to rising operating costs and airport fees. The “Big Three” Mainland airline groups – Air China, China Eastern Airlines and China Southern Airlines – posted combined interim losses of 12.5 billion yuan (US$1.7 billion), albeit the results improved over the previous year.

Not content with signing orders for hundreds of Airbus and Boeing aircraft, Air India also found the time to unveil a new livery featuring red engine housings, the airline’s name in an all-capitals typeface and the addition of a window frame pattern on the tail the airline said symbolised a “window of possibilities”.

Lion Air Group carrier, Batik Air Malaysia, commenced an intriguing route during the month; operating six flights a week from Kuala Lumpur to Auckland via Perth. The airline, formerly named Malindo Air, hopes to establish Perth as its next hub after Kuala Lumpur. AirAsia X and Malaysia Airlines fly Perth-Kuala Lumpur and Air New Zealand operates nonstop Auckland-Perth.

Significant orders in the month included Cathay Pacific signing with Airbus for up to 32 A320neo family aircraft, with deliveries from 2029. The aircraft will be flown by Cathay Pacific and its 100%-owned LCC, HK Express. The commitment was in addition to the group’s order for 32 A320neo family aircraft of which 13 of the single aisles have been delivered.

Airbus received another boost to its order book after Papua New Guinea’s flag carrier, Air Niugini, put pen to paper for 11 A220s with deliveries from 2025. The aircraft will replace the airline’s Fokker 100s and Fokker 70s.

There was good news for China’s citizens during the month when their government removed bans on outbound group travel to around 70 countries. Separately, the U.S. and China approved an increase in flights between the U.S. and China. Until this decision was implemented, frequencies had been severely restricted as both countries took a tit-for-tat approach to access during the pandemic.

ANA HOLDINGS INC. chose the peak summer month of August to announce its new airline, AirJapan, will take flight next February. Tokyo Narita-Bangkok Suvarnabhumi will be its inaugural route.

On the last day of the month and a week after Qantas unveiled a bumper annual profit, the Australian Competition and Consumer Commission commenced legal action against the Australian airline alleging false, misleading or deceptive conduct for advertising tickets for more than 8,000 flights it had cancelled but had not removed from sale.