EasyJet intends to place a huge additional order for Airbus aircraft, enabling growth deep into next decade, following quarterly profits it expects to rank as its highest ever. In a trading update, the UK low-cost carrier says pre-tax profit should come in at £650-670 million ($800-824 million) for its fourth quarter to end-September, helping drive a full-year result of £440-460 million. Although this is slightly below what analysts had pencilled in, EasyJet feels financially stable enough to propose a dividend of around 10% of pre-tax profit, payable next year. Quarterly passenger numbers were up 8% on a year ago and revenue per seat rose 9% on higher fares, albeit that this is below previous guidance of 10%. Cost per seat excluding fuel was flat. Ancillary earnings climbed 14%. The airline says it will seek shareholder approval to order 157 new Airbus aircraft for delivery between 2029 and 2034 and to take100 purchase rights, as an addition to existing orders for 158 aircraft. EasyJet will also convert 35 A320neos from its existing order to larger A321neos. Should the deal receive approval, EasyJet will have 315 aircraft on order for delivery by end-2034, and hold options on another 100. This will enable it to replace its A319s and around half of the A320ceos in its fleet with the newer and more efficient Neo versions. The airline is negotiating with CFM International to supply engines for the aircraft to be ordered. The logic behind the deal is that delivery slots from Airbus are extremely tight going forward, and that therefore, by placing this order now, EasyJet can secure new jets between 2029 and 2034. The proposed deal and conversion provides the airline with "the opportunity to grow its capacity through a combination of incremental aircraft and accelerated upgauging", it says. "This flexible fleet planning means EasyJet will have the opportunity to utilise the firm orders and the extension of leases of aircraft within the existing fleet to increase the size of the airline should market conditions support growth." The average age of EasyJet's fleet will reduce from 9.9 years in 2023 to 8.4 in 2033, says the airline. At list prices, the proposed new order plus the conversion amount to $19.9 billion, it notes, adding: "The aggregate actual price for the aircraft would be substantially lower because of certain price concessions granted by Airbus." EasyJet's move places it back in expansionary mode over the longer term. It has taken a relatively cautious approach coming out of the pandemic, only peaking above its pre-Covid capacity levels this summer, in stark contrast to its main low-cost competitors Ryanair and Wizz Air. Instead of pursuing rapid expansion, it has instead used the pandemic to reduce costs and sharpen its business model, including through the growth of services such as EasyJet Holidays, which it foresees delivering around £120 million in profit this year. "We have delivered a record summer with strong demand for EasyJet's flights and holidays with customers choosing us for our network, value and service," states chief executive Johan Lundgren. "This performance has demonstrated that our strategy is achieving results, and so today we have set out an ambitious roadmap to serve more customers and deliver attractive shareholder returns, underpinned by a continued focus on costs and operational excellence." The carrier is now targeting per-seat pre-tax profit of £7-10 and further growth in its holidays business, as part its wider ambition to achieve £1 billion in profit before tax. "This will be driven by reducing winter losses, upgauging our fleet and growing EasyJet holidays," adds Lundgren. Analysis from investment firm Goodbody notes that performance fell short of its expectations in some areas, including revenue per seat and capacity. However, costs and the cash position easily beat expectations. "Overall, FY23 numbers are slightly below consensus and the guidance for Q1 2024 remains largely unchanged," writes Goodbody. "This may be a slight disappointment to shorter term investors. However, the reintroduction of the dividend, the new medium-term targets and the new aircraft order should be welcomed." At 11:10 UK time, EasyJet shares were trading over 5% lower at £4.14.

Airlines in the Asia Pacific are continuing to suspend flights to Tel Aviv in Israel as an armed conflict rages on. In an announcement on 11 October, Cathay Pacific says it has cancelled flights to Tel Aviv until 29 October. Meanwhile, Korean Air has cancelled flights to Tel Aviv for the rest of the week, according to its flight status checker. The carrier had advised passengers to check their flight status for updates earlier this week, as "flight delays and possible cancellations are expected". In a reversal, Hainan Airlines says it will now suspend flights to Tel Aviv from Beijing and Shanghai from 12-31 October but will continue twice weekly flights to the Israeli city from Shenzhen.

Boeing has inaugurated an engineering and technology centre in Sao Jose dos Campos as part of wider investment in Brazil. Around 500 engineers are employed at the centre, one of 15 Boeing has internationally, the US airframer says, noting that its operations in Sao Jose dos Campos, Embraer's home city, began in 2014. Prior the pandemic, Boeing and Embraer had agreed a merger proposal under which the Brazilian airframer's commercial aircraft and aftermarket activities would be established as a joint venture 80% owned by its US counterpart and named "Boeing Brasil". However, Boeing abandoned the plan amid the Covid outbreak in 2020. Beyond the new engineering centre, the US airframer has signed a memorandum of understanding with the state of Sao Paulo to support education focused on science, technology, engineering and mathematics, and to further strengthen talent development throughout the Brazilian aerospace ecosystem. Under the accord, Boeing and the state intend to establish a joint agenda of industrialisation and innovation. "Sao Paulo has all the conditions to strengthen aerospace technological development, an important sector that drives the economy of the state," asserts the regional government's secretary of economic development Jorge Lima. "With this MoU, we aim to generate more jobs and income for our state, which is one of the main purposes of the partnership with the private sector." Boeing will also establish an internship programme in Brazil for students in their final year of engineering studies. Under an existing partnership with the State University of Campinas, meanwhile, Boeing will provide additional funding for development of a web-based database called SAFMaps, focused on the feasibility of sustainable aviation fuel production in Brazil. The project, led by the university, includes 13 Brazilian states with the greatest potential for biomass production, Boeing says. Its president for Latin America and the Caribbean and vice-president of global policy, Landon Loomis, describes Brazil as a "strategic partner in solving some of the biggest challenges in the global aerospace industry. "By expanding our collaboration in Brazil," he states, "the country also can play a larger role in meeting global demand for commercial airplanes valued at $8 trillion over the next 20 years." Citing the 90-plus-year history of Boeing's links with South America's largest nation, the airframer's vice-president of engineering, strategy and operations Lynne Hopper, states: "We have collaborated with the Brazilian aerospace industry and community to tap into the incredible technical abilities and problem-solving skills of Brazilian engineers."