Hyderabad, India, January 18, 2024 – Boeing (NYSE: BA) and Akasa Air announced today the Indian carrier has placed a follow-on 737 MAX order, confirming 150 more fuel-efficient jets in its order book. The purchase of 737-10 airplanes and additional 737-8-200 jets by India’s all-737 operator was revealed at the Wings India 2024 airshow.
Akasa Air will leverage the 737 MAX family to expand its domestic and international network in the coming years. Since launching operations in 2022, the airline has captured approximately 4% of India’s domestic market, serving 18 destinations with a fleet of 22 737 MAX jets. Both 737 MAX variants will provide Akasa Air with added capacity and range on new and existing routes, while reducing fuel use and carbon emissions by 20% compared to older-generation airplanes.
As Akasa Air looks to expand its network in India and South Asia, Boeing’s 2023 Commercial Market outlook forecasts delivery of 2,705 new commercial airplanes over the next 20 years for the region, of which nearly 90% will be single-aisle jets. This order finalized in December 2023 and was unidentified on the Boeing Orders & Deliveries website.
Forward-Looking Statements
This press release may contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including expected delivery dates. Such statements are based on current expectations and projections about our future results, prospects and opportunities and are not guarantees of future performance. Such statements will not be updated unless required by law. Actual results and performance may differ materially from those expressed or forecasted in forward-looking statements due to a number of factors, including those discussed in our filings with the Securities and Exchange Commission.
With very expansive top and bottom line growth expected over the next few years, investors may be wondering why Sun Country Airlines (Nasdaq: SNCY) stock is down -5% year to date.
The answer to this question lies in the trend of earnings estimate revisions which have largely declined landing Sun Country’s stock a Zacks Rank #5 (Strong Sell) and the Bear of the Day.
Boeing [NYSE: BA] today released its biennial World Air Cargo Forecast (WACF), reflecting COVID-19 impacts and opportunities as well as substantial long-term demand for freighters over the next two decades.
Enabled by a rebound in global trade and long-term growth, the WACF forecasts demand for 2,430 freighters over the next 20 years, including 930 new production freighters and 1,500 freighters converted from passenger airplanes.
According to the new forecast, world air cargo traffic will grow at 4% per year over the next 20 years. This growth is influenced by trade and growing express shipments to support expanding e-commerce operations. With these developments and the proven need for dedicated freighter capacity to support the world’s transportation system, the global air cargo fleet is expected to grow by more than 60% through 2039.
“Freighter operators have been in a unique position in 2020 to meet market requirements for speed, reliability and security, transporting medical supplies and other goods for people and communities around the world,” said Darren Hulst, vice president of Commercial Marketing. “Looking ahead, dedicated freighters will be even more critical to compete in air cargo markets; they carry more than half of air cargo traffic, and airlines operating them earn nearly 90% of air cargo industry revenue.”
In addition to projecting long-term demand for freighters, the WACF provides insights into air cargo performance during the pandemic, including the following:
– E-commerce, which was growing at double-digit rates prior to the pandemic, has accelerated its impact on the air cargo market as more businesses shifted to online selling platforms. Year to date through September, express carriers increased traffic by 14%
– Passenger belly cargo, which in 2019 accounted for about half of the world air cargo capacity, was significantly reduced when airlines parked thousands of planes. Freighter operators responded by operating above normal utilization levels, and traffic for all-cargo carriers grew 6%
– So far in 2020, approximately 200 airlines used more than 2,000 passenger widebody aircraft for cargo-only operations to generate cash flow and support global supply chains. These passenger freighters have taken up some of the capacity shortfall and, in some cases, generated quarterly profits for carriers despite minimal passenger operations
(Reuters) – The coronavirus outbreak has virtually shut down corporate Australia and New Zealand, forcing companies to throw out their strategic plans and resulting in thousands of layoffs or staff suspensions.
Listed companies in both the countries have already laid off or began considering laying off more than 100,000 people, temporarily or permanently, highlighting the toll on livelihoods as virtual shutdowns take hold.
Ultimately, economists forecast the crisis will more than double unemployment to more than 11%, the highest in three decades.
AIRLINES
* Qantas Airways to place 20,000 workers on leave until at least the end of May.
* Virgin Australia to stand down 8,000 employees until the end of May.
* Air New Zealand to lay off nearly a third of its employees, about 3,500, in the coming months, and said that was a “conservative” assumption.
CASINOS
* Star Entertainment Group says 90% of its workforce, or 9,000 people, will be placed on leave due to mandated casino closures.
* Crown Resorts Ltd stood down about 95% or more than 11,500 of its employees on a full or temporary basis as gaming and other non-essential services at its resorts in Melbourne and Perth were suspended.
* SkyCity Entertainment Group has laid off or furloughed at least 1,100 of its staff across Australia and New Zealand.
RETAIL
* Department store operator Myer Holdings will temporarily lay off 10,000 of its staff without pay.
* Kathmandu Holdings Ltd, the outdoor apparel retailer that owns Rip Curl, said most of its global stores were closed and almost all its staff in Australia will be stood down for four weeks without pay. It has around 4,000 employees globally.
* Home ware retailer Smiths City Group Ltd stands down almost all of its 465 employees on 80% of their salary.
* Retail Food Group will stand down or reduce the working hours of the majority of its 500 employees.
* Premier Investments, owner of Smiggle, Just Jeans and chains, is standing down 9,000 employees, most without pay
* Jeweller Michael Hill International is putting staff on leave in Australia, New Zealand and Canada. The company employs about 2,500.
* Fashion retailer Mosaic Brands is standing down 6,800 due to store closures.
* Footwear retailer Accent Group stands down all its retail employees and most support staff for four weeks without pay. The company reportedly employs 5,700.
HOSPITALITY
* Pub and hotel operator Redcape Hotel Group will cut most permanent staff. It employs 800.
* ALH Group, the pubs and hotels group majority-owned by Woolworths, will stand down about 8,000 staff.
TRAVEL AGENTS
* Flight Centre is cutting or putting on leave a third of its 20,000 staff.
* Helloworld Travel lays off 275 people and temporarily stands two-thirds of its 1,800 workforce until the end of May.
HEALTH AND EXERCISE
* Viva Leisure lays off more than 90% of its 2,200 workforce.
* Dental group Abano Healthcare will stand down majority of its 2,300 employees at its operations in Australia and New Zealand.
HIRING:
On the other hand, some companies are hiring under the new circumstances.
* Australia’s biggest supermarket chain Woolworths to hire 20,000 in the next month. Some of the new hires will be those re-deployed from its the pubs and hotels business, ALH Group. Woolworths also plans to offer short-term roles to 5,000 Qantas employees put on leave.
* Coles has added 7,000 people to its ranks, and said it plans to hire another 5,000 to meet increasing demand at its supermarkets and liquor stores.
* Australia’s biggest telecom company Telstra will freeze a 6,000-employee cull and hire 1,000 due to growing volumes at call centres.
* BHP Group, the world’s biggest miner, says it will hire 1,500 temporary workers, some to be offered permanent roles after six months.
(Reporting by Nikhil Kurian Nainan and Anushka Trivedi in Bengaluru; Editing by Byron Kaye, Shounak Dasgupta and Sherry Jacob-Phillips)
TOKYO (Reuters) – Japan’s Mitsubishi Heavy Industries said on Thursday it will book a 496.4 billion yen ($4.5 billion) special loss after its aircraft unit delayed the delivery of its SpaceJet regional jet for at least another year until after March 2021.
The sixth delay announced by Mitsubishi Aircraft is a fresh blow to Japan’s commercial jet ambitions and could stretch Mitsubishi Heavy Industries’ finances.
The company cited the special loss as one reason for wiping out a forecast for operating profit of 220 billion yen in the business year ending March 31.
The new postponement also means an aircraft that Mitsubishi Heavy had planned to bring to market in 2013, will have to compete against a new generation of regional jets built by Brazil’s Embraer SA <ERJ>.
Japan’s biggest airline by revenue, ANA Holdings Inc., is now to take the first delivery of the jet sometime after March 2021.
Mitsubishi Heavy, which builds products ranging from nuclear reactors and ships to rockets and industrial machinery, has traditionally relied on stronger units to support weaker businesses.
“We use cashflow and borrowing to finance our projects and going forward the SpaceJet development will require further funds,” a spokesman for Mitsubishi Heavy said. The company, he added, had no plan at the moment to raise capital for aircraft development.
Government funding would not be an option for Japan’s biggest heavy machinery maker even though the SpaceJet is backed by the government because doing so would contravene World Trade Organization (WTO) rules banning taxpayer subsidies.
A spokeswoman for Mitsubishi Aircraft declined to say how much development of the SpaceJet has cost so far.
The company on Thursday said it had appointed Takaoki Niwa, the head of its U.S. operations, as its new president, replacing Hisakazu Mizutani, who will become chairman.
(Reporting by Tim Kelly; Editing by Kim Coghill and Christopher Cushing)
DEARBORN, Mich. (Reuters) – Investors sent Ford Motor Co shares skidding on Tuesday after the company delivered a weaker-than-expected 2020 forecast, warning of higher warranty costs, lower profits at its credit arm and continued investments in future technology such as self-driving cars.
Shares in the No. 2 U.S. automaker plunged 9.4% in after-hours trading, shaving more than $3 billion off the company’s value. In comparison, electric carmaker Tesla closed up nearly 14%, pushing its market cap to $160 billion, more than four times the size of Ford’s $36.4 billion.
“The results were not OK in 2019,” Ford Chief Financial Officer Tim Stone told reporters at the company’s headquarters outside Detroit.
“As I look to 2020 and beyond, I’m very optimistic,” he said, while cautioning that Ford’s lower guidance does not yet account for the potential impact of the coronavirus outbreak in China.
In an after-hours call with financial analysts, Chief Executive Jim Hackett was more blunt about the challenge of balancing Ford’s protracted turnaround efforts with its continuing work on future technology, including electric and self-driving cars.
“I don’t think this company can keep straddling the old and new worlds forever … This company has to change,” Hackett said.
Ford said it expects 2020 operating earnings to be in the range of 94 cents to $1.20 a share. Analysts were expecting $1.26 a share.
Stone said Ford expects to continue its quarterly dividend of 15 cents, which could cost the company $2.4 billion in 2020. Asked about continuing the dividend after lowering its 2020 guidance, Hackett said, “We like to return value to shareholders.”
The disappointing 2020 forecast, coming after Ford previously trimmed its 2019 outlook, is a blow for Hackett, who took the helm in May 2017.
He has been asking investors to be patient with a restructuring that has seen the formation of a wide-ranging alliance on commercial, electric and autonomous vehicles with Volkswagen AG <VOWG_p.DE> and the sale of its money-losing operations in India to a venture controlled by India’s Mahindra & Mahindra.
But by Ford’s own accounting, the restructuring is far from complete. It has booked $3.7 billion of the projected $11 billion in charges it previously said it would take, and expects to book another $900 million to $1.4 billion this year.
For the fourth quarter of 2019, Ford reported a net loss of $1.7 billion, or 42 cents a share, compared with a loss of $100 million, or 3 cents a share, a year earlier.
The quarter included a loss of $2.2 billion due to higher contributions to its employee pension plans, something it disclosed last month.
Revenue in the quarter fell 5% to $39.7 billion, above the $36.5 billion Wall Street had expected.
Ford’s adjusted free cash flow fell 67% in the fourth quarter to $500 million, including the $600 million cost of bonuses related to a new labor deal with the United Auto Workers union. The UAW deal also played a role in driving North American automotive profit margins down to 2.8% in the fourth quarter.
Ford said its operating losses in China last year totaled $771 million, including a loss of $207 million in the fourth quarter. It lost $1.5 billion in 2018. Ford’s market share in China in the fourth quarter fell to 2% from 2.3% last year.
In December, Ford said it would halve its operating loss in 2019 and nearly halve it again in 2020, followed by further improvement in 2021.
However, that forecast was before the appearance of the fast-spreading coronavirus and its crippling effects on China’s economy.
Ford’s China sales fell about 15% in the fourth quarter and 26% for the year as it continued to lose ground in its second-biggest market. Ford has been struggling to revive sales in China since its business began slumping in late 2017.
Detroit rivals General Motors Co and Fiat Chrysler Automobiles are scheduled to report their results on Wednesday and Thursday, respectively.
(Reporting by Ben Klayman and Paul Lienert; Editing by Tom Brown)
SKY, a Chilean-based ultra-low-cost carrier, has signed a Purchase Agreement with Airbus for 10 A321XLRs. The airline will expand its international route network with the new aircraft.
The A321XLR is the next evolutionary step in the A320neo/A321neo Family, meeting market requirements for increased range and payload in a single-aisle aircraft. The A321XLR will deliver an unprecedented narrow-body airliner range of up to 4,700nm, with 30% lower fuel consumption per seat compared with previous-generation competitor jets, allowing airlines to expand networks by making new longer routes economically viable.
“This new aircraft fleet will allow us to expand our offer of international and wide-ranging routes, always under our successful low cost model and its extremely convenient ticket prices. Now passengers can enjoy new and very attractive destinations on the most modern airplanes in the market,” said Holger Paulmann, CEO of SKY.
Arturo Barreira, President of Airbus Latin America, said: “We are delighted that SKY has selected the A321XLR to further expand its fleet of all Airbus aircraft. The A321XLR will allow SKY to offer its customers new destinations, such as direct flights from Santiago in Chile to Miami in the U.S.”
According to the latest Airbus Global Market Forecast (GMF), Latin America will need 2,700 new aircraft in the next 20 years, more than double today’s fleet. Passenger traffic in Latin America has doubled since 2002 and is expected to continue growing over the next two decades. Specifically in Chile, traffic is expected to increase from 0.89 trips per capita to 2.26 trips in 2038.
In parallel to the growing fleet, according to Airbus’ latest GMF, there will be a need for 47,550 new pilots and 64,160 technicians to be trained over the next 20 years in Latin America. To cover this necessity SKY also selected Airbus as its flight training provider, making the airline the launch customer for the new Airbus Chile Training Centre. The centre will offer flight crew training for Chilean pilots and will include a full-flight A320 simulator.
SKY has been an Airbus customer since 2010 and became an all-Airbus operator in 2013. The airline’s fleet of 23 A320 Family aircraft serves national and international routes connecting Chile to Argentina, Brazil, Peru and Uruguay.
Airbus has sold 1,200 aircraft, has a backlog of more than 600 and more than 700 in operation throughout Latin America and the Caribbean, representing a 60% market share of the in-service fleet. Since 1994, Airbus has secured nearly 70% of net orders in the region.
Airline prioritises passenger experience and connectivity with fleet upgrade
Toulouse, 19 November, 2019 – World number one regional aircraft manufacturer ATR, just delivered the first of three ATR 72-600 aircraft to Tunisair Express. The Tunisian airline will use these aircraft to renew its regional fleet providing passengers with essential connectivity both domestically and internationally. The latest generation ATR 72-600 burns 40% less fuel and emits 40% less CO2 compared to a similarly sized regional jet.
By upgrading to the ATR -600 series, the airline has also chosen to prioritise the comfort of its passengers, introducing the latest generation 18” wide seats and the Cabinstream In-Flight Experience, allowing passengers to access a variety of content on their personal electronic devices.
Tunisair Express Director General, Yosr Chouari, said: “We are looking forward to introducing this new ATR aircraft with the latest comfort and technology to our passengers, with this first delivery marking an important step in our fleet renewal. Regional aviation provides essential connectivity for Tunisia and the unbeatable economics of the ATR 72-600, together with the best cabin, make it perfect for both our domestic and international operations.”
ATR Chief Executive Officer, Stefano Bortoli, commented: “As the leading regional aviation manufacturer, we understand how tough it can be for regional airlines. That is why we do everything that we can to support our clients and operators, ensuring that each innovation we introduce adds value in either the cockpit or the cabin and their bottom line. It is a clear recognition that when an airline wants to put its passengers first, the ATR is selected as the best aircraft for the job.”
ATR’s Market Forecast sees a demand for 350 new turboprops over the next 20 years for the Africa and Middle-East region. Regional aviation provides essential connectivity around the world. A 10% increase in regional flights generates additional increases of 5% in tourism, 6% in regional GDP and 8% foreign direct investment. Turboprops are key in connecting communities around the world: 36% of all commercial airports rely exclusively on turboprops and 50% rely, also exclusively, on regional aircraft.
– Market faces potential surplus of 1,000 jets next year
– Air Lease CEO less worried about surge in MAX deliveries
– Older aircraft won reprieve during MAX grounding
– Boeing aims to deliver record-matching 70 MAX a mth on return
HONG KONG, Nov 5 (Reuters) – Airlines struggling to cope with the grounding of the 737 MAX could face a markedly different problem when Boeing Co’s best-selling jet is cleared to re-enter service: a switch to concerns about aircraft oversupply, carriers have been warned.
The U.S. planemaker has continued to produce the jet since it was grounded in March after two fatal accidents, and is expected to speed deliveries by 40%, to 70 units a month, when its factory doors reopen, in a bid to clear the backlog.
Rob Morris, global head of consultancy at UK-based Ascend by Cirium, said the combination of any rapid rebound in deliveries, economic worries and an accumulation of market pressures dating back before the crashes could make it hard to absorb the jets.
“Next year is the challenge. When the dam breaks and the MAX starts to flow, there are going to be a lot of aircraft,” Morris told financiers at a Hong Kong briefing late on Monday.
“There could potentially be as many as 1,000 surplus aircraft next year.”
The forecast is based on both a rebound in MAX deliveries and a potential glut of second-hand airplanes flooding back onto the market after standing in for the MAX during the grounding.
The crisis has rekindled demand for older and less efficient jets, with airlines using more than 800 planes that are more than 15 years old, compared to conditions four years ago, Morris told the Airline Economics Growth Frontiers conference on Tuesday.
TWO-YEAR LOG JAM
Until now, most concern has focused on whether regulators would permit an orderly return to service by avoiding gaps in approvals by different countries.
But Morris, who has warned a long up-cycle in aviation is nearly over, said there were also risks in opening floodgates too quickly, overwhelming fragile growth in travel demand.
Still, he and other delegates at back-to-back aviation finance gatherings in Hong Kong agreed it would take Boeing 18 months or longer to deliver all the stranded aircraft.
The operation will be one of the industry’s biggest ever logistical challenges and any glitches or delays could further brake supply.
“Getting all those aircraft, that are currently parked, off the ground could take two years,” John Plueger, chief executive of Air Lease Corp, told Reuters, adding he did not see fundamental changes as a result of the MAX’s return.
“It is not as if all these MAX could be delivered over a one-, two- or three-month period … so it is not an open floodgate and 350 planes all coming onto the market tomorrow,” he said on the sidelines of last week’s Airfinance Journal Asia Pacific conference.
Boeing aims to return the 737 MAX to service in the United States by the end of 2019, after making software changes in the wake of the crashes, which killed 346 people.
Europe’s top regulator said on Monday the airliner is likely to return to service in Europe in the first quarter of 2020.
Analysts say more than 300 MAX aircraft have been produced since March, when commercial flights were banned and deliveries frozen. This could rise to 400 by the time it resumes service.
Boeing is additionally expected to deliver close to 600 jets straight from the production line next year. It has indicated it plans to deliver up to 70 jets a month, equal to a previous record. Of this, analysts say around 20 are expected to be drawn from inventory parked at its factories and the rest newly built.
(Reporting by Tim Hepher and Anshuman Daga in Hong Kong Editing by Matthew Lewis and Clarence Fernandez)
