A UK court has ruled that VietJet Air is liable to pay FitzWalter Aviation (FWA) a total of $181.8 million for the termination of leases due to default and owed lease payments. The compensation trial follows a July 2024 judgement ruling that VietJet was liable for breach of contract relating to four Airbus A321s, with FitzWalter seeking more than $300 million in damages. The carrier has also been accused of frustrating the repossession and export process of the aircraft. The aircraft at the centre of the dispute are two A321neos, bearing registration 2-FWCD (MSN 8937) and 2-FWCC (MSN 8906), and two A321ceos bearing registrations 2-FWCA (MSN 8577) and 2-FWCB (MSN 8592). Of the total sum, VietJet is liable to pay $108 million pertaining to the termination value on the two A321neos and $57.1 million for the two A321ceos, according to the 17 April judgement. VietJet was also deemed liable to pay leases for the two A321neos up to the redelivery of the aircraft, which amount to $8.3 million and $8.4 million for MSNs 8906 and 8937, respectively. The carrier had disputed the claims, saying that if these are successful, it “would mean that VietJet would be required not only to hand over the Aircraft but also to pay sums tantamount to their value”. VietJet has 28 days from the ruling to make payment, but Cirium understands the carrier has applied for an extension though it has yet to be determined if the extension will be granted. At the same time, VietJet is expected to start its appeal hearing against the 31 July judgement in May, with the carrier saying it is “confident that justice will prevail”, according to a 18 April statement to the Vietnam stock exchange. “The airline has consistently fulfilled its financial obligations to dozens of banks and aircraft lessors supporting its fleet of hundreds of aircraft. The dispute concerning the four aircraft in this period is isolated and exceptional,” it adds. Speaking to Cirium, a source notes that should the court not grant VietJet an extension on payment and if the airline reneges on payment, the appellate court may be “unwilling to sit for appeals where court orders haven’t been complied with.” Following the conclusion of the quantum amount, another hearing is scheduled to take place in March next year to determine further damages relating to the condition of aircraft upon redelivery, and VietJet’s alleged interference in the export of the aircraft. The trial will concern whether “any delay by FWA exporting any of the Aircraft is because of any culpable acts by VietJet, or because of FWA's own failures, or just the result of the actions of third parties, or events outside the parties' control,” reads the 17 April judgement. “That issue will be the subject of a further (and hopefully final) trial likely to take place in 2026,” adds Justice Picken. Cirium understands from an industry source that the damages could “add an additional roughly $100 million of restitution”. For example, he points out that the last aircraft to leave Vietnam, an A321neo by Pratt & Whitney PW1100G engines, MSN 8937, took a long time because it was missing an engine. The jet was ferried from Ho Chi Minh City to Alice Springs airport on 13 March 2025. He details that the missing engine was found “orphaned” in an engine shop in Singapore, and FitzWalter had to work with the engine maker to rehabilitate the aircraft and put it back on wing, spending about $6-7 million in the process. Cirium understands that VietJet and FitzWalter are in the process of setting up negotiations to settle the dispute. VietJet did not respond to Cirium’s request for comment, while FitzWalter Capital Aviation Services declined to comment.

Air New Zealand expects its full-year profit to decline as a result of lower levels of compensation for its ongoing engine troubles in the second half and the demand uncertainty related to introduction of US tariffs. In a 16 April earnings guidance statement published on the New Zealand stock exchange, the airline forecasts a pre-tax profit for the financial year ended 30 June of NZ$150-190 million ($89-112 million). This compares with a NZ$222 million pre-tax profit in the previous full financial year. Air New Zealand, which has had to ground a number of its Airbus A320neos and Boeing 787-9s amid maintenance issues with its Pratt & Whitney PW1100G and Rolls-Royce Trent 1000 engines, says the amount of compensation it will receive from engine manufacturers in the second half will be "substantially lower" than the NX$94 million received in the first half of the 2025 financial year, a figure which included a NZ$30 million one-off settlement for other periods. The airline says it will receive NZ$35-40 million in the second half, even though 11 of its aircraft will remain grounded because of the engine maintenance delays. "In the first half, the compensation framework included flexibility that allowed certain engines that were not able to be used in commercial service to be treated as unserviceable for the purposes of compensation," says Air New Zealand. "This is despite the airline retaining them on-wing, to allow for things like repositioning of stored aircraft." It adds: "That short-term flexibility has now ended, and only engines that are off-wing for maintenance trigger compensation. Accordingly, decisions made by the airline to retain engines on-wing for the same reasons as in the first half result in lower compensation in the second half.” The carrier notes that it is engaged in "ongoing negotiations" with engine manufacturers regarding "appropriate levels" of compensation for unserviceable engines and "accurate timeframes" for engine returns. In addition to its engine compensation woes, Air New Zealand points to "uncertainty" in the demand environment created by the US government's recent tariff announcements. "While no material changes in bookings or cargo have bene observed, the company is closely monitoring the situation," it notes.

The price that airlines are paying for jet kerosene has fallen sharply over the past several weeks as crude prices have weakened, according to energy intelligence provider ICIS. On 15 April, ICIS assessed the price of jet fuel for delivery to northwest Europe at $658 per tonne. Though this represents a $1 increase over the past week, it is down from $697.50 four weeks ago. At its highest point over the past two years, in September 2023, the figure was close to $1,100. "European jet-fuel spot prices continued downwards trajectory this week, reflecting upstream weakness despite low flat prices supporting trading activity," writes ICIS, which like Cirium is RELX-owned. "Market participants indicated pick-up in buying interest and increased hedging activity," it adds. At $64.61 per barrel, benchmark Brent crude prices are at their weakest in a year, having fallen from nearly $90 at the same point in 2024, ICIS notes. Showing similar price movements, jet fuel at New York Harbor is assessed at 202.50 US cents per gallon, down from 214 four weeks ago. Prices in Singapore were assessed at $79.69 per barrel, down from $84.70. In all three regions, prices were slightly higher on the week. "Jet-kerosene outright prices in the Asia-Pacific region were assessed higher than the previous reporting week, supported by stronger crude and an improvement in refining margins and physical premiums for jet kerosene," says ICIS, noting that prices have been buoyed by exemptions announced by the USA. It adds that a softer dollar has reduced costs for non-US crude and oil products buyers.