Jetstar Japan has reported a net loss of 7.76 billion yen (US$74 million) for the 12 months to July 31, slumping into the red from a net profit of 914 million yen a year earlier after COVID-19 smashed passenger demand. Operating revenue fell 20.9%, to 47.9 billion yen, Jetstar Japan said in a statement yesterday.Read More » The LCC, jointly owned by Century Tokyo Leasing Company, Japan Airlines and Qantas Group, said it carried 4.3 million passengers in the fiscal year, down 21.8% from 12 months ago. Jetstar Japan CEO, Yu Kataoka, said the LCC would continue to be flexible in response to the coronavirus pandemic.
Lufthansa announced overnight it had cancelled all flights between Germany and India from September 30 to October 20 after approvals to operate to the country were not extended. The German flag carrier had been flying to Bangalore, Delhi and Mumbai under the "air bubble" arrangement with the two countries and it had planned to add Chennai in October. Lufthansa called on the German and Indian governments to establish a temporary travel agreement with both countries and added it was being unnecessarily restricted in its ability to serve the Indian market.
India's Directorate General of Civil Aviation (DGCA) said in a statement in response to Lufthansa's cancellation the restrictions on Indians travelling to Germany had put Indian carriers at a "significant disadvantage resulting in inequitable distribution of traffic in favour of Lufthansa", with Indian carriers operating three to four flights a week compared with Lufthansa's 20 flights a week. "In spite of this disparity we offered to clear seven flights a week for Lufthansa, which was not accepted by them. Negotiations continue," the DGCA said.
The International Air Transport Association (IATA) has downgraded its forecast for global demand after director general and CEO, Alexandre de Juniac, described the recent northern summer as the industry's "worst-ever summer season". The airline lobby group said overnight global demand, measured by revenue passenger kilometres, was expected to be down 68% in December compared with a year earlier. This was a more pessimistic scenario than in July, when IATA said global RPKs were expected to decline 55% year-on-year in December. "The near-term industry outlook has actually become darker, something I would not have believed possible just a few months ago," de Juniac said in a statement.
IATA’s monthly traffic figures showed RPKs in the Asia-Pacific fell 69.2% in August, compared with the same month in 2019. Capacity, measured by available seat kilometres (ASK), collapsed 60.3%. Passenger load factor was 19 percentage points lower, at 65%, in August.
China Eastern Airlines (CEA) said in a regulatory filing to the Stock Exchange of Hong Kong yesterday it had entered into an exclusive operation agreement with China Cargo Airlines, a subsidiary of the airline's parent company, CEA Holdings. The exclusive agreement adjusts an existing long-term deal, established in 2018, where China Cargo Airlines operated and managed belly hold space in CEA's passenger aircraft. The regulatory filing said the new agreement meant the transaction terms would be more defined and clear and the business coverage would be more complete. It added elements of the previous arrangement were "incapable of dealing with the material and adverse impacts of abnormal and volatile fluctuations such as COVID-19".
Australia's Regional Express (REX) said today it had signed Letters of Intent with two lessors for six 737-800s for its expansion into domestic jet aircraft services from March 2021. The first 737-800 is due to arrive at the carrier in November, with the remaining five to land with REX in the following four months, the airline said in a regulatory filing to the Australian Securities Exchange. REX deputy chairman, John Sharp, said he hoped to increase the 737 fleet to 10 aircraft by year-end 2021 and that the airline was working to obtain regulatory approval for its proposed jet services by December.
International Civil Aviation Organisation (ICAO) council president, Salvatore Sciacchitano, told the Air Transport Action Group’s (ATAG) 2020 global sustainable aviation forum that aviation leaders had a "great responsibility upon them" as the industry confronted the existential threat of the coronavirus pandemic, given the importance of air travel to so many people's fundamental collective aspirations and quality of life.
“Health and safety, and the fundamental economic viability of operators must be assured and as medical conditions permit we must work better together to see the traffic recovery proceeds on the basis of continuously improving international alignment,” Sciacchitano said in prepared remarks. “We also must recognise the opportunity this crisis provides to build back commercial aviation that is greener and more sustainable, including its overall role in the social and climate impacts of international travel and tourism.”
