December 1st 2023

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OCTOBER

Severe financial pressure forced MYAirline to suspend all operations this month. Read More » The Malaysian start-up cited an inability to secure new funding for its grounding. At press time, the LCC had not resumed flying, its air operator certificate remained suspended and the bulk of its A320 fleet was in the hands of lessors.

In more positive news, Virgin Australia (VA) reported its first annual profit in 11 years, auguring well for a potential 2024 listing of the company on the Australian stock exchange. At the start of the pandemic, VA entered voluntary administration and was acquired by private equity group, Bain Capital.

Profitability also was restored at Air China, China Eastern Airlines and China Southern Airlines. The “Big Three” Mainland carriers posted a combined quarterly net profit of 12 billion yuan (US$1.7 million), underpinned by a recovery in domestic travel.

At ANA HOLDINGS INC., parent of All Nippon Airways, interim net profit was more than five times bigger than in first-half 2022. The financial accounts also detailed the substantial financial impact of inspections required for ANA’s Pratt & Whitney engines.

ANA calculates it will cancel 10 to 30 flights a day from January to March next year to complete inspections of GTF engines in its fleet, resulting in an 8 billion yen (US$55 million) hit to revenue.

JAL Group, parent of Japan Airlines, said in its interim accounts COVID-19 was “finally coming to an end” given international border restrictions had ended, domestic restrictions had been lifted and passenger demand had exceeded expectations.

Across the Korea Strait, there was good news from Korean Air (KAL). During the month, the Korea Credit Rating agency raised KAL’s credit rating from BBB+ to A-, the first time the airline has held an “A” level credit rating in eight years.

Still with KAL, the SkyTeam alliance member signed a top up order for 20 A321neos in the month, lifting its planned acquisition to 50 of the type. At press time, KAL was flying nine A321neo.

The largest airline in the Philippines, Cebu Pacific, demonstrated its commitment to staying top of the country’s airline league when it announced it is in the market for 100-140 single aisles and plans Request for Proposals with Airbus and Boeing.

Bamboo Airways admitted this month it had withdrawn all of its 787s from operations and ended flying to Australia and Europe in efforts to turn around its poor financial performance.

Fallout from a disastrous 2023 continued at Qantas Group this month when the group’s chair and two directors announced they were heading for the exit. Chair Richard Goyder will resign before the group’s 2024 shareholders meeting and Jacqueline Hey and Maxine Brenner will step down next February.