Simon McNamara’s Post

Our Head of Aviation Finance, Joe O'Mara, and the AerCap CEO, Aengus Kelly, in discussion on stage at the Airline Economics Dublin conference where they discussed the positive outlook for lessors and the expectation that global airline demand should remain robust through this year.   Download our Aviation Leaders Report here for more insights from industry leaders: https://lnkd.in/eWvTE6pr Aviation News #AEDublin24

Navigating Turbulence: A Look at Air France-KLM's Q1 Performance Amid Rising Challenges ☁️📉 In the ever-fluctuating world of aviation, Air France-KLM, Europe's largest airline group, has recently unveiled its financial performance for the first quarter of 2022, and the numbers tell a story of ongoing challenges. The airline reported a steep net loss of €1.1 billion, worsening from the previous year's €812 million loss. This outcome was more severe than the anticipated €932 million loss projected by industry analysts. Amidst the storm, revenue plummeted to €3.5 billion from €5.5 billion year-over-year, reflective of a significant 46.3% dip in passenger traffic from the pre-pandemic levels observed in 2019. Fuel costs, a critical component of airline operations, surged by an additional €1.1 billion, further straining the financial stability of the group. In response to these turbulent times, shares saw a 3.5% decline in early trading. Despite these headwinds, the company remains cautiously optimistic about a gradual revival in travel demand in the latter half of the year. However, they also stressed the looming uncertainty brought forth by ongoing global health crises and geopolitical tensions. In light of these results, Air France-KLM is doubling down on stringent cost-cutting strategies and enhancing operational efficiency to weather the storm. 🤔 How do you see the future of the aviation industry with such dynamic and uncertain variables at play? 🔄 Feel free to share your thoughts or experiences related to the evolving landscape of global travel. #AirFranceKLM #Aviation #TravelIndustry #EconomicRecovery #InvestmentAnalysis

Watch this short interview with Aengus Kelly, AerCap CEO, and CNBC’s Phil LeBeau on ‘The Exchange’ where they discuss the underlying demand for international travel which remains robust globally with many airlines reporting record profits in 2023. Aengus shares his insights on the supply challenges facing airlines with the shortage of aircraft and durability of new technology assets, which he believes will result in supply shortages for the rest of the decade. Watch the video here: https://ow.ly/8azn50Qj30I

Over the past couple of days, key members of the BGS team attended the 𝐈𝐀𝐓𝐀 𝐀𝐯𝐢𝐚𝐭𝐢𝐨𝐧 𝐄𝐧𝐞𝐫𝐠𝐲 𝐅𝐨𝐫𝐮𝐦 in Vienna, Austria 🇦🇹 , where we met with over 30 clients spanning multiple airlines and fuel suppliers. One of the major talking points from the conference was the supply of SAF fuel to EU airports from 2025, aligning with the "ReFuelEU Aviation” initiative. We also informed our clients about our plans for SAF fuel delivery in the Baltic region. From 2025, aviation fuel that’s sold will need to contain a minimum of 2% SAF molecules if the airport's passenger traffic exceeds 0.8 million passengers or freight traffic exceeds 100,000 tons during the reporting period. This will be BGS's responsibility to ensure in the future and a challenge we are coordinating with just 6 months to go ahead of adoption. 😉 With key industry changes imminent, our future plans, current business challenges, and solutions to improve efficiency were also hot topics, with the fuel tender process a priority for us. It’s been an extremely productive few days and we’d like to say a big thanks to both the organizers and the industry delegates in attendance. 👏 Vitalis Dudys Vytautas Čekanavičius Marius Grigaliūnas #BGS #IATAAviationEnergyForum #GroundHandling #Aviation

The new European Commission can use #aviation to boost EU competitiveness. Mario Draghi's report into EU Competitiveness presents an opportunity to revitalize the role of aviation sector. Draghi's policy proposals, if implemented, could enhance Europe's competitiveness by reducing regulatory burdens, encouraging innovation, and optimizing transport infrastructure. His key recommendations include: ☑️ Using ETS (Emissions Trading System) revenues and grants to support alternative fuels and de-risk investments, for a just transition to decarbonization ☑️ Modernization and integration of Europe's air traffic management system through the Single European Sky (SES) initiative to reduce inefficiencies and emissions. In addition, we believe proposed Transport Commissioner Apostolos Tzitzikostas should prioritize reforms of the EU 261 consumer regulation and strengthen the regulation of airport and air navigation services charges. Read the opinion of IATA DG Willie Walsh ▶️ https://bit.ly/3XQvGMs

This European summer season is coming to an end, and it has once more served as a stark reminder that flight delays continue to represent a critical challenge to efficient and sustainable air transport. While multiple factors contribute to this frequent source of disruption, Air Traffic Management (#ATM) inefficiencies play a significant role, with increased demand during peak seasons causing even further pressure on an already strained European ATM system. Outdated infrastructure, limited capacity, and coordination challenges often lead to bottlenecks, causing delays and frustration for passengers and airlines alike, in addition to increasing CO2 emissions. For instance, an analysis by EUclaim on airlines serving UK airports during the summer period showed that Ryanair had 789 delayed flights, while EasyJet followed closely with 722 delays. With the failure of the Single European Sky initiative, mitigation remains crucial, including investing in modernizing ATM systems, enhancing coordination between states, and adopting innovative technologies. This will be one of the main topics featured at the IATA Wings of Change Europe. Register now to join the discussion on how to solve the ATM puzzle on November 20-21 in Rome! 

SATX is reaching greater heights in air service, connecting the region to more destinations. Our five-year greater:SATX regional economic development plan, implemented in 2021, identified air service development as a crucial area of support to continue fueling our region’s economic growth. Originally slated as an initiative for years four and five, we recognized its immense importance to the region and fast-tracked how we leaned in. Together, with our private sector investors and partners at San Antonio International Airport (SAT) and Visit San Antonio, and the leadership of our elected and municipal officials, this collaborative approach is already yielding impressive results. This summer, SAT has welcomed new routes to Frankfurt, Philadelphia, Burbank, CA, and Torreón, Mexico. We are optimistic that in the coming weeks the U.S. Department of Transportation will award a slot to American Airlines that will connect SAT to DCA, which has been decades-long endeavor to link Military City, USA, with the nation's capital. This growth is possible when we work toward a common goal. When you choose to fly out of SAT, you are helping elevate our region to greater heights. https://hubs.li/Q02JqWnT0

Airbaltic CEO Martin Gauss, the Latvian Transport Minister Kaspars Briškens, MEP Christophe Grudler and Breakthrough Energy’s Julia Reinaud are exchanging now on European aviation’s destination at a time of political and regulatory change. We need the next European Parliament and European Commission to ensure Europe has a strong and sustainable airline sector that can compete on the global stage. #AviationSummit2024 

Heading into the first panel discussion of the day focusing on the future of Canadian Aviation, check out part one of our two part report on plans of the Canadian government for investment into Canadian airports. Read more: https://bit.ly/3yk1tuJ

Many years ago, airline alliances were seen as a major part of the aviation industry, and airlines clamored to find suitable partners with compatible networks. But fast forward to the new world with low-cost airlines growing rapidly and new start up carriers appearing - what place and relevance do alliances have? Data shows that in South Asia and Latin America, non-aligned airlines operate over 80% current capacity, and in total, airline alliances account for 42.5% of all capacity. Is the power of airline alliances diminishing? John Grant's recent #OAG blog takes a look https://lnkd.in/egY9fgRb #aviation #data #travel