Air Arabia annual profit up 4%
February 14, 2025
UAE-based Air Arabia made a pre-tax net profit of Dhs1.6 billion ($436 million) last year, 4% more than in 2023. Revenue rose 11% to Dhs6.63 billion, as capacity was expanded amid strong demand, says the low-cost carrier. Passenger numbers increased 12% to 18.8 million, while load factor was maintained at 82%. Air Arabia chair Abdullah Bin Mohamed Al Thani says 2024, "a record-breaking year" for the group, was "marked by significant expansion and an increased footprint across all key markets", adding: "Building on our strong foundation, we have continued to achieve remarkable financial and operational growth, reaffirming the strength of our business model, the resilience of our management team, and the effectiveness of our strategic vision.” The airline expanded its network with 31 new routes across the year, and increased capacity 13%. It added 10 Airbus A320s to its fleet, bringing the total to 81. In the fourth quarter, Air Arabia made what it describes as a record net profit, of Dhs351 million, up 56% year on year. Passenger numbers grew 11% and the load factor came in at 83%. Al Thani says Air Arabia was able to expand its market "while maintaining solid margins", and that "this strategic growth, coupled with rigid cost control and strong operational efficiency, resulted in an outstanding performance for the quarter".
Boeing grows Max output in January
February 13, 2025
Boeing increased its 737 production to 40 Max deliveries in January from 18 in December. The US airframer additionally handed to customers four 787s and one 777 Freighter in January, following nine Dreamliners, two 767s and one 777-300ER in December, Boeing data shows. Max deliveries had fluctuated after the Alaska Airlines accident in January 2024 and declined to nine aircraft a month amid industrial action at Boeing in October and November. The manufacturer's Max output across 2024 had halved to 265 jets versus the previous year. Boeing in January received orders from two undisclosed customers, one for 34 Max jets and the other for two 777Fs.
Merger negotiations between Spirit and Frontier break down again
February 13, 2025
Spirit Airlines has reiterated its intention not to merge with Frontier Airlines after the latest proposal and counter-proposal exchanged between the US carriers failed to culminate in an agreement. Dania Beach, Florida-based Spirit – which filed for Chapter 11 bankruptcy protection in November 2024 – in late January rejected merger terms Frontier had presented on 7 January. Spirit chief executive Ted Christie told Frontier counterpart Barry Biffle and chair William Franke in a 28 January letter that Spirit's board had "directed management and advisers to proceed with confirmation of our extremely efficient standalone reorganisation that will position us well for the future". On 11 February, Spirit repeated its intention to proceed with its standalone recapitalisation plan, citing Frontier's 10 February rejection of Spirit's counter-proposal to a revised merger deal proposed on 4 February. Spirit says it will "continue swiftly to advance and conclude its restructuring process, which will significantly deleverage the company and position it for long-term success". A hearing to consider confirmation of Spirit's reorganisation plan has been scheduled for 13 February, the carrier notes. Frontier confirms that it submitted a revised proposal to combine with Spirit and that "no agreement has been reached between the parties in relation to the structure, value or terms of a transaction". It adds: "Further, Spirit has stated in its most recent public disclosure its intention to advance and conclude its standalone restructuring process in lieu of a transaction with the company [Frontier]."