American, United and Southwest Cut Marginal Routes as Jet Fuel Hits $4.71 a Gallon
American Airlines, United Airlines and Southwest Airlines are cutting their least-profitable routes as jet fuel prices climb to $4.71 per gallon, more than double the cost a year ago and near a 20-year high. Speaking at Morgan Stanley's annual Laguna Conference on Sept. 16, American CFO Devon May said the fuel spike has added $1 billion to the carrier's projected fourth-quarter expenses, prompting it to cut some December flights and plan for less growth next year. Southwest CFO Tom Doxey said the airline halved its planned 2-3% flight capacity growth "because fuel has been higher," while United CFO Mike Leskinen said United will fly fewer flights in December and could cut further next year, noting that 35% of its fourth-quarter tickets were already booked but that higher fuel costs get passed through to consumers with a lag. United and American declined to share the number of flights they cut, and a Southwest spokesperson told Fortune its schedule adjustments were "very minimal" and do not affect large-scale exits of routes or airports. United and American spent about $8.2 billion and $7.8 billion respectively on fuel in the first six months of this year, both up almost 49% from a year earlier, while Southwest spent nearly $3.6 billion, up about 39%; fares were 23.4% higher in August than a year earlier, compared to a 3.4% increase in overall consumer prices. The fuel shock has also hit Europe, where Ryanair cut its full-year passenger forecast this month from 216 million to 214 million.
Joby Aviation Q2 Revenue Beats at $38.64M as First Dallas EIPP Flights Target This Month
Joby Aviation reported Q2 revenue of $38.64 million against a $30.38 million consensus and raised its fiscal 2026 revenue guidance to $115 million to $125 million, with CEO JoeBen Bevirt saying the company is preparing for commercial service and targeting its first EIPP flights in Dallas-Fort Worth this month. The stock trades at $6.26, down 52.57% year-to-date and 56.49% over the past year, well below its $19.98 52-week high. Joby's FAA Stage 4 certification progress has moved from 6% to 20%, Blade seats sold rose more than 50% year-over-year in Q2, and the company counts a $250 million direct investment from Toyota, a Virgin Atlantic UK partnership, and a Dubai vertiport network among its supports. Against rival Archer Aviation, which carries a $4.02 billion market cap and posted just $5 million in Q2 revenue, Joby's $6.04 billion valuation rests on a larger revenue base. Risks include an operating margin of -1,346.92%, guided H2 2026 cash use of $385 million to $415 million, prior raises of $1.2 billion in February and $576 million in October 2025, and certification timing that could slip into 2027.
Thai Airways benefits as low-cost carriers cut flights, launches Bangkok–Da Nang service on 1 December
Thai Airways, or THAI, sees the liquidity crisis among low-cost carriers as an opportunity to step into routes where flights have been reduced. Mr. Chai Eamsiri, Chief Executive Officer of Thai Airways International Public Company Limited, disclosed that as of the end of the second quarter of 2026 through the present, the company has cash flow of more than 120 billion baht and has already hedged more than 40% of its fuel price exposure for its requirements throughout the second half of 2026. The company will rotate existing aircraft and refurbished aircraft it has taken on, such as the B787 and A321, to compensate on these routes, while increasing frequency and adding new cities in the Asian region, including India, China, and Vietnam. In particular, on China routes it will increase direct flight frequency to Shanghai, Beijing, and Guangzhou to 14 flights per week per route, and will resume the Bangkok–Xiamen route with 4 flights per week, and add a new route, Bangkok–Da Nang, with 14 flights per week, starting 1 December 2026. For the winter flight schedule of 2026/2027, between 25 October 2026 and 27 March 2027, Thai Airways will operate a total of 66 routes, covering both international and domestic services, increasing frequency on the Bangkok–Munich route to 10 flights per week, Bangkok–Zurich to 11 flights per week, and Bangkok–Paris to 14 flights per week. Meanwhile, for the CLMV countries, it will increase the Bangkok–Vientiane and Bangkok–Yangon routes to 21 flights per week per route. Yuanta Securities (Thailand) Company Limited stated in an analysis that it expects revenue for the third quarter of 2026 to recover both quarter-on-quarter and year-on-year, in line with the recovery in load factor, and maintained its Buy recommendation with a fair value at the end of 2027 of 8 baht.
Krungsri says AirAsia's clarification eases concerns, but still does not recommend investing in AAV due to intercompany receivables
Analysts at Krungsri Securities Public Company Limited summarized the key points from the briefing on the situation of AirAsia in Malaysia by Tony Fernandes, noting that AirAsia denied reports that it was preparing to seek 3 billion USD in funding, confirming that it plans to raise only 1 billion USD to refinance existing high-interest debt borrowed during the COVID-19 crisis, with a conclusion expected late this year to early next year. Meanwhile, debt exceeding 4 to 5 billion USD is mostly debt arising from aircraft lease contracts under accounting standards. Aviation statistics in 2026 remain strong, with the passenger load factor from January to August 2026 in the high 70s to low 80s percent, and the situation is expected to recover further in the second half of 2026 after ticket price increases without any decline in travel demand. They assess that the above briefing helps the market ease concerns over news about the situation of AirAsia in Malaysia, but see pressure from rising oil prices as a key risk factor for the low-cost airline business that must be closely monitored. As for AAV (Thai AirAsia), the business situation is seen as less concerning than in Malaysia, but there may be downside risk in a worst-case scenario regarding intercompany receivables from ticket sales revenue through the AirAsia website and various collaborations. Therefore, they maintain a cautious view and still do not recommend investing at this time, even though AAV's share price is below the estimated target price.
AAV Plunges 14.58% on AirAsia Malaysia Liquidity Concerns; Tony to Hold Briefing on September 18
Shares of Asia Aviation Public Company Limited, or AAV, closed on September 17, 2026 down sharply by 14.58% at 0.82 baht amid concerns over liquidity problems at AirAsia Malaysia. A senior source at AAV confirmed that the operations of Thai AirAsia, or TAA, are not directly connected to AirAsia Malaysia, and that AAV currently has sufficient cash flow to manage its operations. Forward ticket bookings also continue to grow in line with travel demand for both business and tourism. At the same time, Thai AirAsia has sent a letter seeking clarification of the facts to AirAsia Malaysia and is awaiting a response. Meanwhile, Tony Fernandes, founder and advisor of AirAsia Group Berhad of Malaysia, is scheduled to hold a press briefing in Thailand to clarify the facts on Friday, September 18, 2026, from 10:00 to 12:00. Dittanop Watthanavekin, a senior analyst at Krungsri Securities Public Company Limited, said that Thai AirAsia and AirAsia Malaysia keep clearly separate accounts. Although they benefit from an interline flight network, because AirAsia Malaysia sells tickets to Thai AirAsia, AAV holds the status of a creditor of AirAsia Malaysia. Therefore, in the worst case, if AirAsia Malaysia enters a business rehabilitation plan, Thai AirAsia may have to set aside provisions for doubtful debts under accounting standards. In its second-quarter 2026 financial statements, AAV had related-party receivables of more than 14 billion baht, of which 7 to 8 billion baht were overdue, equal to 0.59 baht per share. The analyst maintained a target price for AAV shares of 1.19 baht and kept a hold recommendation.
Ryanair Proposes $1.6 Billion Baltic Expansion as airBaltic Shrinks
Ryanair is proposing a $1.6 billion, five-year investment in the Baltic region that could double its traffic there by 2031, moving in as airBaltic restructures under Chapter 11 bankruptcy. The Irish low-cost carrier wants to offer 11 million annual seats across Latvia, Lithuania and Estonia and increase aircraft based in the region from seven to 16, adding nine aircraft to its Baltic bases. It is explicitly linking the investment to airBaltic's retrenchment: the Latvian carrier plans to cut its fleet from 54 aircraft to 36 by the end of 2026 and expects to operate only around 40 aircraft by 2031, abandoning its previous ambition to reach 100. Ryanair will first increase Riga winter capacity by 6%, adding flights on routes including Barcelona, Alicante and Milan, but will cut winter capacity in Lithuania and Estonia by 25% due to higher airport charges. airBaltic, which filed for Chapter 11 on September 14, has secured a commitment for €350 million, about $402 million, in debtor-in-possession financing while it restructures, with completion expected around June 2027.
Ryanair Cuts Full-Year Traffic Target to 214 Million Passengers on Fuel Costs
Ryanair Holdings plc cut its full-year traffic target from 216 million to 214 million passengers, saying it wants to shrink its exposure to unhedged jet fuel during its unprofitable winter schedule from November to March. Jet fuel was trading near $140 a barrel when the airline made the call, and Ryanair expects the smaller winter flight plan to trim its seasonal losses by €70 million to €100 million. Management warned that competitors with weaker fuel hedges could struggle to keep flying, or even survive, the coming winter. August traffic still grew 6% year over year to 22.2 million passengers, with the load factor holding steady at 96%. The airline has locked in about 80% of its fuel needs for the year at roughly $67 a barrel, far below the current $140 spot price, and holds roughly €2.8 billion in cash with no debt after repaying its final bond.
Southwest to Open First Airport Lounges in 2027 With JPMorgan Card
Southwest Airlines disclosed plans on September 2 to open its first-ever airport lounges, partnering with JPMorgan Chase on a new premium co-branded credit card launching in 2027 that will provide access. The first four lounges will open at Austin, Baltimore, Honolulu, and Nashville airports in late 2027, part of a longer-term plan for a network of at least 11 locations. The move continues Southwest's shift away from its historic no-frills model of free bags, open seating, and a single cabin, having already introduced assigned and tiered seating and bag fees for most passengers. CEO Bob Jordan has separately signaled Southwest could eventually add cabin options including true first class and long-haul international flying, though he described those as still just ideas. The transformation continues under pressure from activist investor Elliott Investment Management following weaker post-pandemic margins and comes as rising fuel costs from the U.S.-Israel-Iran conflict squeeze industry-wide airline margins.
Thai Airways shows cash flow of 120 billion baht, launches winter flight schedule with 998 flights per week
Thai Airways disclosed that it holds cash flow of as much as 120 billion baht and does not need to compete by cutting fares. Chai Eamsiri, Chief Executive Officer of Thai Airways, said at the THAI TALK event that the company has adjusted its strategy to stay flexible in the face of global uncertainty, as reflected in its second-quarter 2026 results, which showed a net profit of 1.537 billion baht, with improved margins despite a decline in passenger numbers. The company is continuing to invest in additional aircraft under its plan and is restructuring its fleet down to four aircraft types, while acknowledging that deliveries of new aircraft are running about three years late, with some models facing waits of five and even ten years. Kittiphong Sansomboon, Chief Commercial Officer, said the winter flight schedule for 2026/2027, running from 25 October 2026 to 27 March 2027, will cover a total of 66 routes, equal to 998 flights per week. It will open a new Bangkok-Da Nang route with 14 flights per week starting 1 December 2026, increase frequencies on Bangkok-Vientiane and Bangkok-Yangon to 21 flights per week on each route, operate Bangkok-Siem Reap with 7 flights per week, resume Bangkok-Xiamen with 4 flights per week, and on the European side serve Bangkok-Amsterdam with 7 flights per week while raising frequencies on Bangkok-Munich to 10 flights per week, Bangkok-Zurich to 11 flights per week, and Bangkok-Paris to 14 flights per week.
THAI Opens New Bangkok-Da Nang Route with 14 Weekly Flights in December 2026
Thai Airways, or THAI, has announced plans to expand its flight network in the winter 2026/2027 schedule, operating a total of 66 routes. The highlight is the launch of a new Bangkok-Da Nang route in Vietnam with 14 flights per week, starting December 1, 2026. Kittiphong Sansomboon, Chief Commercial Officer of THAI, said the company will increase flight frequencies within the CLMV group, namely Vientiane and Yangon to 21 flights per week, and Siem Reap to 7 flights per week. For European routes, THAI will operate the Amsterdam route with 7 flights per week and increase frequencies on the Munich route to 10 flights, Zurich to 11 flights, and Paris to 14 flights per week. Meanwhile, in Asia, it will resume flights on the Xiamen route with 4 flights per week. Earlier, Chai Eamsiri, Chief Executive Officer of THAI, revealed at the THAI TALK event that the company has adjusted its business strategy to be more flexible in order to cope with global uncertainty, which has succeeded in maintaining financial stability, reflected by its second-quarter results with a net profit of 1.537 billion baht. It also plans to increase the number of aircraft and restructure its fleet to consist of 4 types. In addition, THAI is targeting new customer groups with the Junior Sky Explorers project for children and families, and the Royal Orchid Holidays travel program, which offers packages focusing in depth on tourism and culture in Pakistan.
Thai Airways Deploys 120 Billion Baht in Cash to Fill Routes Left by Struggling Low-Cost Carriers, Launching 66 Winter Flight Routes
Thai Airways is preparing cash reserves of more than 120 billion baht and stands ready to operate flights on routes where low-cost carriers are facing financial trouble. Chai Eamsiri, Chief Executive Officer of Thai Airways International, said the company views other airlines' crises as opportunities and is prepared to move quickly to seize them. The airline reported a net profit of 1.537 billion baht in the second quarter. Kittiphong Sansomboon, Chief Commercial Officer, disclosed that under the winter flight schedule for 2026/2027, running from 25 October 2026 to 27 March 2027, Thai Airways will operate a total of 66 routes covering both international and domestic destinations. The new route is Bangkok–Da Nang with 14 flights per week starting 1 December 2026. The airline will also increase frequency within the CLMV group, namely Bangkok–Vientiane and Bangkok–Yangon, to 21 flights per week per route, while Bangkok–Siem Reap will be served with 7 flights per week. On its European network, Thai Airways will operate Bangkok–Amsterdam with 7 flights per week, raise Bangkok–Munich to 10 flights per week, Bangkok–Zurich to 11 flights per week, and Bangkok–Paris to 14 flights per week. In Asia, it will resume Bangkok–Xiamen with 4 flights per week. The company also plans to restructure its fleet to four aircraft types and will begin offering new-look onboard products in mid-2027, along with launching the Junior Sky Explorers programme for children and families and the Royal Orchid Holidays travel programme for routes to Pakistan.
Surf Air Mobility Signs First OperatorOS Contract With Sprintbach Aviation
Surf Air Mobility Inc. has signed a definitive agreement with Sprintbach Aviation for OperatorOS, its SurfOS flight operations software for Part 135 operators powered by Palantir Technologies, marking the official commercial launch of the product. The contract is the company's first commercial OperatorOS agreement and will contribute to its goal of having five operators live on OperatorOS by the end of 2026, with Surf Air Mobility earning a percentage of revenue for all Sprintbach flights managed through the software. OperatorOS is designed to manage aircraft and crew scheduling, flight management, reporting, and distribution for Part 135 operators, and has been used internally to run Surf Air Mobility's own airline operations, Southern Airways and Mokulele Airlines, since 2025. The system was recently approved by the Federal Aviation Administration as an authorized system of record for electronic signatures and recordkeeping. Sprintbach currently operates 9 aircraft with 16 pilots on staff, and OperatorOS will help it streamline and optimize aircraft and crew scheduling, generate actionable insights and clearer visibility into its operations, and reduce manual processes from a single AI-enabled software solution.
Thai Airways Expands Fleet and Asian Routes, Eyes 2026 Revenue of 200 Billion Baht
Thai Airways, or THAI, has unveiled its second-half plan, saying it will continue managing yield alongside improving fleet efficiency and expanding routes in Asia. It sees the troubles of low-cost carriers in the industry as an opportunity to step in and fly routes that competitors have withdrawn from or reduced service on. CEO Chai Eiamsiri said at the THAI TALK press conference that the company has more than 120 billion baht in cash on hand and does not need to dump prices to bring cash into the company, but instead will focus on managing yield higher, after posting net profit of 1.537 billion baht in the second quarter despite it being the low season. For its full-year 2026 revenue target, it expects a chance of reaching 200 billion baht, after first-half revenue totaled 99.65 billion baht. As for dividend payments next year, these still need to be considered in line with relevant criteria and conditions. Chief Commercial Officer Kittiphong Sarsomboon said that in the winter flight schedule for 2026/2027, running from October 25, 2026 to March 27, 2027, Thai Airways will operate a total of 66 routes, covering both international and domestic destinations. It will open a new Bangkok–Da Nang route with 14 flights per week starting December 1, 2026, increase frequencies on CLMV and European routes, and resume service on the Bangkok–Xiamen route with four flights per week. On the new round of CEO applications between September 7 and 27, 2026, Chai said he has not yet decided whether to apply again.
Thai Airways is signalling continued profit growth in 2026, with Chai Eamsiri, Chief Executive Officer of Thai Airways International Public Company Limited, or THAI, revealing that the company expects full-year total revenue to potentially exceed 200 billion baht, after the first half of the year brought in nearly 100 billion baht, or approximately 99 billion baht, along with a profit of about 12 billion baht. At the same time, its liquidity position remains a strength, with more than 120 billion baht in cash on hand, up from the second quarter. The company is pressing ahead with managing its fleet of 87 aircraft to capture opportunities from regional low-cost carriers facing liquidity constraints and cutting services on certain routes. It plans to add Boeing 787 aircraft to the fleet and to return one existing aircraft that has been refurbished and fitted with seats to service on medium-haul routes. In the Asian market, particularly China, India, and Vietnam, it is preparing to add Airbus A321 aircraft. On fuel price risk management, for the remainder of 2026 the company has already hedged more than 40%, and for 2027 it has hedged about 48%. Kittiphong Sansomboon, Chief Commercial Officer, said that in the winter flight schedule for 2026/2027, running from October 25, 2026 to March 27, 2027, Thai Airways will operate a total of 66 routes, launching a new Bangkok–Da Nang route with 14 flights per week starting December 1, 2026, while increasing frequency on the Bangkok–Vientiane and Bangkok–Yangon routes to 21 flights per week per route, Bangkok–Siem Reap to 7 flights per week, Bangkok–Amsterdam to 7 flights per week, Bangkok–Munich to 10 flights per week, Bangkok–Zurich to 11 flights per week, Bangkok–Paris to 14 flights per week, and resuming service on the Bangkok–Xiamen route with 4 flights per week.
AAV Plunges 12.5% to 0.84 Baht as Krungsri Turns Negative on AirAsia Financial Risk
AAV shares fell sharply by 12.5% to 0.84 baht, down 0.12 baht, after Krungsri Securities took a Negative view on Asia Aviation Public Company Limited, even though it assesses that Thai AirAsia, wholly owned by AAV, will not be directly affected by AirAsia's severe financial risk. However, it faces indirect risk from the loss of competitive advantages, including the group's flight network, bargaining power in aircraft purchases, and other cooperation, as well as the risk that receivables from related companies could turn into bad debt, which could pressure profits and the target price. Krungsri Securities noted that the Malaysian government has begun planning to cope with AirAsia's financial problems by asking Malaysia Airlines and Batik Air whether they could take over AirAsia's domestic routes and passengers if a necessary situation arises. The issue emerged after AirAsia reported second-quarter 2026 results with a net loss of 831 million ringgit and current liabilities of more than 18.4 billion ringgit, while still owing at least 500 million ringgit in airport service fees to MAHB and facing pressure from higher jet fuel prices. AirAsia is currently rushing to raise up to 1 billion dollars from overseas bond markets, plus a domestic credit facility of another 700 million ringgit, to restructure its debt. It insists the fundraising target is sufficient for its needs and that the company continues to operate as normal. As for AAV, in its second-quarter 2026 statements it has more than 14 billion baht in related-party receivables, of which about 7 to 8 billion baht is overdue, equivalent to 0.59 baht per share, creating a risk that these receivables could become bad debt if AirAsia collapses, which would put further downside pressure on AAV's earnings and target price. Another factor to watch is the renewed intensification of war in the Middle East, which Krungsri Securities assesses leaves AAV with the highest risk in the sector from that issue. Although AAV's current share price of 0.84 baht is below Krungsri Securities' target price of 1.19 baht, the broker still does not recommend investing, advising investors to keep a close watch on two risk issues: the indirect impact of AirAsia's financial situation and the risk from war in the Middle East.
Three Major US Airlines to Scale Back Operations Amid Soaring Fuel Costs
Three major US airlines—American Airlines, United Airlines, and Southwest Airlines—are scaling back their planned operations in response to further increases in fuel prices. Executives from the three carriers disclosed this on the 16th at a conference hosted by Morgan Stanley. American Airlines CFO Devon May said fourth-quarter fuel prices have risen by about one dollar per gallon from assumptions made in July, adding roughly one billion dollars to fourth-quarter costs, and indicated the airline will continue adjusting seat capacity. United Airlines CFO Michael Leskinen said the carrier is canceling some flights planned for December and may make further adjustments from the first quarter of next year onward. Southwest Airlines had planned to expand seat capacity by 2 to 3 percent in 2026, but has cut that growth to about half amid soaring fuel costs, and CFO Tom Doxey indicated the airline could reduce further if fuel costs remain elevated.
Krungsri Securities advises against investing in AAV, fearing AirAsia collapse risk and bad debt impact
The analyst at Krungsri Securities has a Negative view on AAV, even though Thai AirAsia, which AAV wholly owns, is expected to avoid direct impact from the severe financial risk facing AirAsia. However, there is a risk of losing competitive advantages from the group's flight network, aircraft purchasing bargaining power, and other cooperation within the group, as well as potential bad debt from related companies. In AAV's second-quarter 2569 results, related-party receivables exceeded 14 billion baht, with 7 to 8 billion baht overdue, or 0.59 baht per share, which risks turning into bad debt if AirAsia collapses, creating downside for earnings and the target price. Krungthep Turakij newspaper reported that the Malaysian government has begun planning to handle AirAsia's financial problems by asking Malaysia Airlines and Batik Air whether they can take over AirAsia's domestic routes and passengers if necessary. This follows AirAsia's second-quarter 2569 results showing a net loss of 831 million ringgit, current liabilities exceeding 18.4 billion ringgit, and at least 500 million ringgit in overdue airport service fees to MAHB. It is also under pressure from surging jet fuel prices. AirAsia is currently rushing to raise up to 1 billion dollars from overseas bond markets and an additional 700 million ringgit in domestic credit lines to restructure its debt. The company insists its fundraising target is sufficient for its needs and that it continues to operate normally. In addition, AAV carries the highest risk in the group from the renewed intensification of the Middle East war. Therefore, even though AAV's share price is already below the target price of 1.19 baht, investment is still not recommended.
THAI set to join FTSE Small Cap index on 18 September, foreign funds expected to add shares
THAI shares are set to be added to the FTSE Small Cap index, with the reweighting taking effect on Friday, 18 September, which will require foreign funds that use the FTSE index as a benchmark to add THAI shares to their portfolios. Analysts at Yuan Ta Securities (Thailand) said THAI has a short-term positive catalyst pending from the index inclusion. At the same time, although crude oil prices have risen recently, THAI shares have not reacted negatively, as the share price remains in the lower zone. Normal profit for the third quarter of 2026 is expected to still grow from the same period last year. THAI currently trades at an EV/EBITDA of only 6.2 times and offers an ROE of 20.9%.
American Airlines Warns of Capacity Changes as Fuel Costs Add $1 Billion
American Airlines may have to alter its future flight plans if fuel prices stay elevated, Chief Executive Robert Isom said Wednesday, as the carrier leans on stronger fares and demand to offset higher expenses. Speaking at a Morgan Stanley conference, Isom said the airline was confident in its forecast for third-quarter revenue growth of 16% to 19%, and he expects most of the recent revenue improvement to persist. Chief Financial Officer Devon May said American expects higher fuel prices to add about $1 billion to its costs in the fourth quarter, with each additional penny in fuel costs translating into roughly $10 million in expenses. United Airlines also expects to adjust its operations if fuel prices remain high, with Chief Financial Officer Mike Leskinen saying changes could extend into the first quarter and beyond in 2027 and that some December flights would not operate; United had already reduced scheduled flights by 5% in the second and third quarters, targeting weaker off-peak routes and cutting service at Chicago O'Hare. American has benefited from higher fares and premium products, including increased revenue from the front of its aircraft, helping offset part of the fuel cost increase.
American Airlines Warns Fuel Spike Could Add $1 Billion to Fourth-Quarter Costs
American Airlines Group expects third-quarter revenue growth of 16% to 19% year over year, CEO Robert Isom said at a Morgan Stanley conference, citing broad-based strength in corporate, international, domestic, premium-cabin and coach demand. The carrier's outlook is clouded by fuel, as Chief Financial Officer Devon May said fourth-quarter fuel prices have risen about $1 per gallon over the past four weeks versus levels baked into prior guidance, and that each one-cent move is worth roughly $10 million per quarter, implying about a $1 billion increase in fourth-quarter fuel expense. May said American may adjust late-fourth-quarter capacity, including December flying, in response to higher fuel prices. Isom said the company has recovered a substantial portion of higher fuel costs through pricing and that premium seating is expected to increase about 50% by the end of the decade, with 30% of seats now generating 50% of revenue. American expects approximately $8 billion in co-brand cash remuneration this year, projected to exceed $10 billion by 2030, and said its Citi relationship could add $1.5 billion in pretax profitability by 2030, while total debt has fallen from a peak of $54 billion to roughly $36 billion against a $35 billion target.
Ryanair Urges EU to Extend EES Derogation as Border Delays Hit Summer Travel
Ryanair Holdings plc is urging the European Union to extend the derogation for its Entry/Exit System, citing border-control delays of up to two to three hours at airports including Krakow, Lisbon, Milan and Rome during the summer. The EES became fully operational at external Schengen border crossing points on April 10, 2026, and is designed to digitally record entries, exits and biometric data of eligible non-EU short-stay travelers. Ryanair attributed the disruption to malfunctioning kiosks, staffing shortages and longer processing times, warning that persistent congestion at major airports could increase the risk of missed connections and add pressure on airport and airline operations. Extending the derogation, as Ryanair proposes, would give national authorities greater flexibility to manage congestion while technical and staffing issues are addressed. The European Commission said the system had registered more than 145 million entries and exits by July 2026, indicating substantial usage since becoming fully operational.
Joby Aviation Bull Case Hinges on FAA Certification Before Cash Tightens
Joby Aviation's bull case now rests on whether the FAA certifies its aircraft and commercial operations scale before the company's cash position tightens, with shares down 53.56% year-to-date to $6.13 even as analysts hold a $10.68 consensus one-year target implying 74.23% upside. The company reported $38.6 million in revenue against a $30.38 million consensus and raised full-year 2026 revenue guidance to between $115 million and $125 million, while management guided $385 million to $415 million of second-half 2026 cash use against roughly $2.3 billion in liquidity. On certification, Stage 3 stands at 83% Joby and 77% FAA and Stage 4 at 20% Joby and 10% FAA, with five conforming aircraft flying and 12 more in production. First eIPP commercial flights are set for September in the Dallas-Fort Worth area with paying passengers targeted in 2026, and Toyota's $250 million direct investment is expected to close by early 2027, backing a Dayton facility built to double production from 2 to 4 aircraft per month in 2027. At $12 per share, Joby would trade near 100x forward sales on the $120 million guidance midpoint, a multiple the article argues becomes defensible once the FAA signs off and the aircraft generates revenue.
Delta and Hyatt Unveil Long-Term Loyalty Partnership With Dual Earning
Delta Air Lines and Hyatt Hotels unveiled a new long-term loyalty collaboration that ties together their elite rewards programs. The agreement introduces dual earning of airline miles and hotel points on qualifying bookings across both brands for eligible members, and elite customers are expected to see integrated recognition and benefits across flight and hotel stays as the partnership rolls out. Delta Air Lines, a US carrier providing scheduled passenger and cargo flights, operates as a large player in the global aviation industry with a market value of about $52.2b. The tie-up leans into the part of the Delta story that looks to premium cabins, loyalty and international routes as more resilient revenue streams, and could offset pressure in weaker domestic main cabin segments where low cost carriers like Southwest or Frontier compete aggressively. The bigger tension is whether higher loyalty engagement can meaningfully counter risks analysts already flag, such as high debt levels and any future softness in corporate travel.
Thai Airways confident revenue will reach 200 billion baht this year as new aircraft boost second-half flights
Thai Airways confirmed its full-year revenue target of 200 billion baht, even as oil prices climb again, after posting 99.6 billion baht in revenue in the first half. Chai Eamsiri, chief executive of Thai Airways, told InfoQuest that the company has not cut flights since July, even though jet fuel prices have risen again to more than 160 dollars a barrel. That follows the second quarter, when flights were cut by about 6-7% in May and roughly 2% in June. Second-quarter net profit came to 1.528 billion baht, down 87% from a year earlier, while the first quarter delivered a profit of 10 billion baht. Fuel costs rose to 40% of total costs, squeezing the second-quarter net profit margin to about 3%, down from nearly 20% during its strong performance period. The company has hedged more than 40% of its forecast fuel consumption and will take delivery of another 13 aircraft this year, bringing the fleet to 102 planes by year-end, before expanding to 111 in 2027 and 150 under its plan by 2033. It will also add frequency on European and Asian routes and resume flights to Da Nang, Siem Reap and Xiamen. Meanwhile, the 10 billion baht aircraft maintenance centre project at U-Tapao has yet to be approved by the company's board.
ANA Holdings Posts Higher Q1 Revenue but 43.5% Drop in Operating Profit
ANA Holdings reported on July 29 its fiscal first-quarter results for the year ending March 2027, with revenue of 672.7 billion yen, up 22.6% year on year and a record high for a first quarter, while operating profit fell 43.5% to 20.7 billion yen, ordinary profit dropped 37.3% to 22.5 billion yen, and quarterly net profit declined 15.4% to 19.4 billion yen. The airline business, the main earner accounting for about 92% of revenue, saw revenue rise 24.9% to 620.8 billion yen, but operating profit nearly halved, down 48.7% to 18.1 billion yen. International passenger load factor rose 5.7 points to 85.1% and passenger numbers increased 14.3%, and with the addition of revenue from NCA, the dedicated cargo company made a consolidated subsidiary the previous year, international cargo revenue grew 37.9% to 58.3 billion yen, but higher costs, including an 86.9 billion yen increase in fuel expenses and fuel taxes, squeezed profits. The first-quarter exchange rate averaged 159.2 yen per dollar, 9.6% weaker than 145.2 yen per dollar a year earlier, while Dubai crude rose 65.4% from 68.0 dollars per barrel to 112.5 dollars per barrel. The full-year consolidated forecast was left unchanged at revenue of 2.77 trillion yen, operating profit of 150 billion yen, ordinary profit of 137 billion yen, and net profit of 96 billion yen, with an annual dividend of 60 yen per share planned for the current fiscal year.
Wizz Air CEO Sees Limited Opportunity in airBaltic Bankruptcy
Wizz Air expects limited opportunities from airBaltic's bankruptcy and anticipates more European airline failures due to high fuel prices, CEO Jozsef Varadi said Monday. Speaking at a conference hosted by the International Society of Transport Aircraft Trading, Varadi said airlines without fuel price hedges face severe liquidity problems from the recent oil price spike and "will be in a very difficult situation." He said airBaltic, which is state-owned by Latvia, is "just far too big for a tiny little market like Latvia" now that Russian traffic is gone, and that Latvia's location at the periphery of the European Union near the Russian border limits interest given current geopolitical conditions. Varadi said Wizz is hedged at half the market price across 80% of its fuel needs for the next 12 months, and that this year would be challenging as the industry deals with oil prices and geopolitics but could create opportunities, with the airline expanding capacity into Italy, Romania, Albania and other locations.
Oil's 40% Surge Since August Pressures Airline and Cruise Fuel Costs
A 40% spike in oil futures since the beginning of August has put fuel costs back in focus for the airline and cruise industries, with oil futures challenging $110 per barrel. Within the cruise industry, Carnival is the most vulnerable because it buys fuel at current spot-market prices rather than using hedges, and an industry study finds a 10% increase in fuel costs per metric ton can lower Carnival's annual net income by as much as $140M. Royal Caribbean employs the most efficient hedging strategy, with as much as 60% of its fuel needs locked in at below-market prices, so the same 10% increase costs it roughly $50M annually in net income, while Viking Holdings is the least exposed on a fuel consumption basis thanks to its smaller fleet and higher-income, relatively inelastic customer base. In the airline industry, fuel hedges have cushioned some larger European carriers, but legacy U.S. carriers have abandoned the strategy altogether; Delta Air Lines has its own oil refinery in Pennsylvania, while American Airlines and United Airlines stopped hedging to capitalize on lower fuel prices prior to February 2026, leaving them vulnerable. According to Bloomberg research, every one-cent increase in the price of a gallon of jet fuel raises American's annual operating expenses by about $46M and United's by $40M annually, and since the start of August the oil spike has translated into an 18% drop in United's share price, 24% for American, and 16% for Delta.
Ryanair CEO Warns Airfares Could Rise Sharply If Oil Stays High
Ryanair chief executive Michael O'Leary warned at the airline's annual general meeting in Dublin that airfares could rise sharply next year if oil prices stay high. O'Leary said fares should be modestly lower in the July-to-September quarter, but the December and March quarters remain unpredictable, and that a significant uplift in airfares may follow if oil prices remain elevated into next year, though Ryanair has guaranteed no extra fuel charges. Ryanair is Europe's largest low-cost airline, and fuel is one of its biggest expenses; Brent crude has now gone above $100 a barrel due to the U.S. and Iran conflict, and jet fuel has climbed to about $140 a barrel. The airline has secured 80% of its fuel needs up until the end of March 2027 at about $67 a barrel, plus an additional 15% at $85 a barrel for the 2028 fiscal year, and O'Leary said it is better hedged than almost any other airline in Europe. Ryanair cut its full-year passenger target to 214 million from 216 million and expects winter flying reductions to lower winter losses by €70 million to €100 million, after first-quarter profit after tax fell 34% to €538 million even as traffic rose 6% and average fares dropped about 6%.
American Airlines to Match $1,000 Federal Contribution for Employees' Children
American Airlines Group Inc. will match the federal government's $1,000 Trump Account contribution with an additional one-time $1,000 for eligible employees' children, the company told CNBC exclusively on August 31. About 1.4 million children currently enrolled in Trump Accounts qualify for the federal seed money, and thousands of children of America's nearly 140,000 employees could be eligible for the company match. CEO Robert Isom said in a statement that "our purpose is to care for people on life's journey, and that includes helping our team members build a strong financial future for themselves and their families." American joins more than 50 companies, including Goldman Sachs and Morgan Stanley, that have committed to contributing to the accounts, and Treasury Secretary Scott Bessent praised the move in a statement. American also plans to let eligible employees make pretax payroll contributions of up to $2,500 annually starting in 2027 once Treasury finalizes the applicable rules, with roughly a third of its workforce expected to have access to that option.
Ryanair CEO O'Leary Warns of Sharp Airfare Hikes if Oil Stays High
Ryanair CEO Michael O'Leary warned Thursday that airfares could rise sharply if oil prices remain elevated into next year, adding uncertainty to the airline's second-half pricing outlook. Speaking to reporters at the company's annual general meeting, O'Leary said Ryanair expects pricing to be modestly lower in its second quarter, which runs from July to September, but that the December and March quarters remain uncertain. Brent crude was trading above $100 a barrel on Thursday as Middle East tensions weighed on energy markets, while U.S. West Texas Intermediate crude futures climbed 1.4% to $97.40 a barrel, and IATA's Jet Fuel Price Monitor put jet fuel at $171 a barrel in the week ended September 4, a 90% jump versus the prior year's average. Ryanair's hedging positions cover its 2027 fuel at $67 a barrel and lock in 15% of 2028 requirements at $85 a barrel, an extension the airline made using a brief ceasefire-related dip in oil prices. The airline's first-quarter profit fell 34% to €538 million for the three months through June 30, as unhedged jet fuel prices soared and the start of the U.S.-Iran war in late February prompted travelers to delay bookings, forcing Ryanair to lower fares; passenger fares dropped 6% year-on-year while total revenue edged up just 1% to €4.38 billion despite a 6% rise in traffic to 61.3 million passengers, and operating costs rose 11% to €3.81 billion. Ryanair declined to issue a full-year profit forecast, saying visibility into second-half bookings remained limited and that final results would depend on close-in booking strength and remain sensitive to further escalation of the Middle East conflict, unhedged fuel prices, and broader economic conditions.
Ryanair warns airfares could surge if high oil prices persist into 2027
Michael O'Leary, chief executive of Ryanair, Europe's largest low-cost airline, has warned that airfares could rise significantly if oil prices remain elevated through next year, as soaring jet fuel costs put pressure on the airline industry. Speaking ahead of the company's annual general meeting, O'Leary said Ryanair expects fares in the second quarter of its financial year, which covers July to September, to fall only slightly, but the outlook for fares in the quarters covering December and March remains highly uncertain. The warning came as Brent crude continued to trade above 100 dollars a barrel, while U.S. West Texas Intermediate rose 1.4% to 97.40 dollars a barrel, amid growing concerns over escalating tensions in the Middle East and the potential impact on global energy supply. Ryanair believes fuel cost pressures could feed through into fares late this year and continue into 2027, with the direction of oil prices set to be one of the key factors shaping the outlook for ticket prices ahead.
Thai Airways heats up as 'Thao Un' applies for CEO position
Thai Airways is heating up as Thao Un, Juthavachara Vivacharawongse, officially announced his candidacy for the CEO position, causing a stir in the industry. The current CEO, Chai Eamsiri, will complete his four-year term on January 31, 2027. Thao Un has over 25 years of international aviation experience, including aircraft technical and maintenance expertise. He currently serves as Director of Strategic Alliances at CAMP Systems, a leading global software provider. The search for a new CEO is open for applications from September 7-27, 2026, with requirements including age not exceeding 65, a master's degree or higher, and prior experience as a senior executive in an organization with annual revenue of at least 4 billion baht or total assets of at least 20 billion baht. Candidates who are Thai Airways employees must have held a position at level 13 or above. Leading internal candidates with full qualifications under scrutiny include: Cherdchom Therdsathirasak, Chief Financial and Accounting Officer; Kittipong Saransomboon, Chief Commercial Officer; Thawirot Songkhamphon, Chief Corporate Strategy Officer; Warangkana Lueworawong, Chief of Aviation Business Unit; Chawal Rattanawaraha, Chief Operations Officer; Cherdphan Chotikun, Chief Engineering Officer; and Chanitrika Chotikasathien, Chief Human Resources Officer. The new CEO's key mission is to continue the 'selective growth, not rushed growth' strategy, focusing on profitable routes and developing into a Network Airline to connect Bangkok as an ASEAN hub, attracting connecting passengers with China and India as core markets. This includes adding 29 new aircraft, bringing the total fleet to approximately 101 by end of 2026, expanding summer routes to over 62, increasing frequencies on popular routes, and collaborating with partners within and outside Star Alliance to expand destinations without operating flights. After Thai Airways fully transitioned to a private company, the new CEO must manage a flexible corporate culture, uphold transparent governance, and erase the past image of intervention problems.
Lufthansa Cargo to Acquire German Terminal Operator LUG
Lufthansa Cargo, the logistics arm of Deutsche Lufthansa Group, has agreed to acquire LUG air cargo handling GmbH, a German airport service provider, to boost its ground handling capacity and diversify revenue. LUG, currently owned by the Dettmer Group, operates at Frankfurt, Munich, and Hamburg airports, employs about 400 people, and manages over 538,000 square feet of warehouse space. The deal, subject to regulatory approval, will keep LUG operating independently, with no service changes for customers. Lufthansa Cargo, the world's 14th-largest carrier by traffic, is also building a $682 million, 3.5 million-square-foot cargo terminal at its Frankfurt hub as part of its premium strategy focusing on high-margin sectors like pharmaceuticals and semiconductors. Financial terms were not disclosed.
AAV Expected to Turn Profitable in Q4 on Peak Season and Rising Fares
Kiatnakin Phatra Securities (KKPS) has revised up its core loss forecast for Thai AirAsia (AAV) in 2026 to 1,625 million baht from 900 million baht, and cut its 2027-2028 profit forecasts by 7-8% to reflect higher jet fuel costs. However, it expects the loss in Q2/2026 to be the trough, with a chance of returning to profit in Q4/2026, supported by peak tourism season, less capacity reduction, and ticket prices surging nearly 30% year-on-year. In Q3/2026, AAV plans to cut capacity by 23% year-on-year after suspending all domestic routes from Suvarnabhumi and international routes to Hong Kong. Meanwhile, jet fuel prices have surged from an average of $87 per barrel in Q2/2025 to approximately $135-140 per barrel in Q2/2026, leading to continued losses in Q3 but narrowing from the 2,100 million baht loss in Q2/2026. In Q4, it is expected to return to profit after cutting capacity by only 10% and with accelerating ticket prices. At the same time, AAV plans to sell and lease back two aircraft and terminate leases early for another 2-4 aircraft in the second half of 2026 to boost liquidity and reduce lease costs. Although maintenance costs will rise temporarily, the analyst is not concerned about cash flow as EBITDA turned positive in Q2/2026. A key point to watch is receivables from parent company AAGB, which rose to 14,600 million baht in Q2/2026 from 9,000 million baht in Q4/2025. AAGB plans to raise $1 billion and an additional 700 million Malaysian ringgit in credit facilities. KKPS expects AAV to post a net loss of 1,625 million baht in 2026 before turning to a profit of 1,370 million baht in 2027 and 1,829 million baht in 2028. It has also downgraded its recommendation to "Hold" and cut its target price to 1.20 baht from 1.30 baht.
KKPS upgrades THAI to 'Buy' with new target of 9.20 baht
Kiatnakin Phatra Securities (KKPS) has upgraded its recommendation on Thai Airways International (THAI) from 'Hold' to 'Buy', and raised its target price to 9.20 baht from 7.00 baht. The brokerage expects core profit in the third quarter of fiscal year 2026 to be 2,000-3,000 million baht, up from 1,200 million baht in the second quarter of fiscal year 2026, with momentum accelerating into 2027. This is supported by higher fares, with passenger yield up 20% in the first quarter of fiscal year 2026, and market share gains from low-cost carriers and Middle Eastern airlines, from about 30% to 40% of international passengers. KKPS also raised its earnings estimates for 2026-2028 by 1-5%, projecting net profit of 19,332 million baht in 2026, rising to 23,973 million baht in 2027, and 27,623 million baht in 2028. Key risks include Middle East conflicts that could push oil prices higher than expected.
ANA and JAL to Coordinate Schedules for First Time, Cooperate to Maintain Domestic Routes
All Nippon Airways and Japan Airlines, which have been fiercely competing for passengers, are set to coordinate their flight schedules for the first time. From late October, on routes connecting Haneda Airport and Okayama Airport, the two carriers will adjust their flights to avoid overlapping departure times, aiming to enhance convenience for passengers and improve load factors. This is part of efforts to improve profitability on struggling domestic routes, and the cooperation between the two rivals could expand further to maintain regional routes, which are vital transportation infrastructure. On the Haneda-Okayama route, for the winter 2025 schedule, ANA will move its first departure from Haneda from 7:45 a.m. to 7:25 a.m., while JAL will shift its first departure from 8:05 a.m. to 8:20 a.m. Domestic routes have seen deteriorating profitability due to a decline in business travelers amid the spread of online meetings and rising costs such as fuel. According to the Japan Tourism Agency, the number of Japanese day-trippers on domestic flights for business purposes fell from approximately 3.17 million in 2019 to about 1.03 million in 2024, a drop of nearly 70%. In fiscal 2024, the six major domestic airlines posted operating losses on domestic routes, excluding public support. In May, a transport ministry expert panel released a report stating that schedule coordination would not violate antitrust laws if conditions such as not reducing flight frequencies are met. This could pave the way for similar coordination on other routes competing with shinkansen services, such as the Haneda-Komatsu route. The two carriers have already been cooperating on ground handling services at regional airports, and at Okayama Airport, they have begun integrated operations for passenger assistance services.
Google's AI Cuts Contrail Warming 40% in Cathay Pacific Trial
Alphabet's Google has expanded its contrail-fighting AI program with Cathay Pacific, following a real-world trial on more than 80 flights that delivered an estimated 40% reduction in contrail-related warming. The partnership marks the first time Google's technology has been applied in the Asia-Pacific region and on ultra-long-haul routes. The platform combines satellite images, weather intelligence, and AI-generated forecasts to identify atmospheric zones where pilots can adjust altitude to reduce persistent contrail formation. Alphabet's latest quarter generated $119.8 billion in revenue, with Google Cloud contributing $24.8 billion, and the stock trades 32.75% above its GF Value estimate of $252.58. Cathay has not disclosed a contract value or commercialization plan, so the initiative remains a demonstration of AI utility rather than a significant revenue source.
Ryanair warns airfares will rise if fuel prices stay high
Ryanair, one of Europe's largest low-cost airlines, warns that airfares will keep rising if jet fuel prices remain high into 2027, and that some carriers may struggle to survive. The warning follows an escalation in the U.S.-Iran war, which has heightened fears of supply disruptions in the Strait of Hormuz, a key route for about one-fifth of the world's seaborne jet fuel trade. Jet fuel prices have neared $140 a barrel, and the global average jet fuel price is 74.2% higher than last year's average, according to IATA. Ryanair, which has hedged about 80% of its fuel costs at $67 a barrel, is cutting winter traffic targets by about 2 million passengers to reduce exposure to unhedged fuel. Unhedged U.S. carriers like American, United, and Delta each face about $400 million in additional monthly fuel costs, according to DWU Consulting, and may raise ticket prices or cut routes. Travelers are advised to book sooner rather than later, consider hedged airlines for international trips, and avoid basic economy tickets to maintain flexibility.
JetBlue Airways has announced BlueFirst, a new domestic first-class experience designed to attract customers seeking premium travel. The service includes specially designed seating, advanced seatback technology with Bluetooth connectivity, complimentary Fly-Fi high-speed internet, and charging points. Passengers will also enjoy Group 1 boarding, two free checked bags, priority baggage delivery, and access to fast-tracked security lanes at more than 30 airports. CEO Joanna Geraghty said the offering is part of JetBlue's JetForward strategy, which aims to provide elevated, customer-centric experiences. The announcement follows the recent opening of JetBlue's second BlueHouse airport lounge at Boston Logan International Airport, both initiatives reflecting the airline's broader push to expand its premium products.
Thai Airways partners with CHAMP Cargosystems to elevate cargo business with Cargospot neo
Thai Airways (THAI) has signed a contract with CHAMP Cargosystems to implement the Cargospot neo air cargo management system, elevating its cargo transport business into the digital era, with full operation starting in July 2027. The system covers sales, space reservation, space and pricing management, operations, and real-time shipment tracking, complemented by the Cargospot neo Revenue Management module, which uses Machine Learning and Dynamic Pricing to enhance revenue management and cargo capacity utilization. Executives from Thai Airways and CHAMP noted that this collaboration will increase visibility across the operational chain and enhance the customer experience.