ARC NEWS
Myanmar National Airlines ATR 72 damaged in ground attack
February 23, 2026
A Myanmar National Airlines ATR 72-600 has sustained damage to several parts of the fuselage on 20 February, reportedly caused by a drone attack while the aircraft was parked at Myitkyina airport. A statement from Myanmar's Ministry of Information says that the aircraft came under attack around 20:12 while it was preparing to operate a scheduled flight to Mandalay, which it blamed on two "terrorist groups using FPV suicide drones". Pictures carried on Myanmar news websites indicate that at least one of the drones struck the rear fuselage, just below the vertical stabiliser and to the aft of the passenger door. Other damage is shown to the middle of the fuselage and the windscreen. The aircraft involved bears registration XY-AMI. Fleets data shows that the aircraft, MSN 1368, is nearly 10 years old and has been operated by the carrier since new. DAE Capital is listed as the manager and owner, having purchased it in a sale-and-leaseback transaction on delivery.


Air France‑KLM incurs penalty after missed bond emissions target
February 20, 2026
Air France-KLM will incur costs of €7.5 million ($8.83 million) after missing emissions targets connected to two sustainability-linked bonds it issued in 2023. The carrier group says in its full-year results that its emissions intensity as measured by grams of CO2 equivalent per revenue tonne kilometre (gCO₂eq/RTK) stood at 913 for the year ending 31 December 2025. This represents a 1.6% decrease in gCO₂eq/RTK compared to 2024 and means that Air France-KLM Group "has not achieved the sustainability performance target of reduction of its GHG emission intensity by 10% from a 2019 baseline by 2025 as defined in the final terms of the sustainability-linked bonds issued in January 2023". The SkyTeam group raised €1 billion ($1.07 billion) in January 2023, composed of one €500 million bond with a 3.3-year maturity and a coupon of 7.250%; and a €500 million with a 5.3-year maturity and a coupon of 8.125%. The bonds’ coupons were indexed on Air France-KLM Group’s target to reduce its well-to-wake Scope 1 and 3 jet fuel greenhouse-gas emissions by 10% per revenue tonne-kilometre by 2025 compared with 2019, as part of its wider decarbonisation roadmap. In its latest results Air France-KLM and its airlines blame "headwinds to its GHG intensity progression", including delays in its fleet renewal plan due to constraints in the supply chain; engine issues with part of its new generation aircraft fleet, such as several Airbus A220s. These issues meant that the group was not able to operate the A220s to their "maximum capacity", while it also incurred higher fuel consumption due to longer flight time on certain routes caused by "different geopolitical circumstances", adding that: "These headwinds were faced by several actors in the airline industry". As a result Air France-KLM is obliged to make a payment of a €750 redemption premium on the bonds maturing on 31 May 2026. For bonds maturing on 31 May, 2028 a 0.375% "step-up" on the coupons will be paid on 31 May 2027 and on 31 May 2028.


Covid's impact on stressed airlines continued in 2025: Fitch
February 20, 2026
Lingering disruptions caused by the Covid-19 pandemic led to airline restructurings in 2025, in the view of Fitch Ratings. The ratings agency notes that despite a recovery in travel demand, "pandemic-era disruptions, elevated operating costs, and overleveraged capital structures" are continuing to drive restructurings in commercial aviation. "In 2025, airlines faced deferred obligations that accumulated during the pandemic and came due in a higher interest rate and tighter credit environment," states Fitch senior director Joshua Clark. He adds: "Spirit Airlines returned to bankruptcy for the second time in a year as it struggled to reduce operating costs amid intensified competition, while Brazilian airlines such as Gol and Azul also faced foreign exchange volatility, lack of direct government support, and a more challenging operating environment." In May 2025, Azul filed for Chapter 11 bankruptcy protection in the USA. A month later, in June, Gol exited Chapter 11. US carrier Spirit in August 2025 filed for Chapter 11.


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