Flydubai to reinstate Kabul service
October 16, 2023
Middle Eastern budget carrier Flydubai plans to resume flights to Afghanistan's capital Kabul on 15 November. The route will be operated twice daily, says Flydubai. It notes that it serves more than 115 destinations across 54 countries with its fleet of 78 Boeing 737s.
Aerolineas Argentinas to add 12 E195-E2s from 2024
October 13, 2023
Aerolineas Argentinas plans to add 12 Embraer 195-E2s to replace its existing E190-E1s. The Argentinian flag carrier says the E195-E2s will begin to arrive in 2024, with delivery expected to be completed in 2026. This aircraft offers 136 seats compared to 96 seats in the current Embraer fleet of 26 aircraft. Aerolineas Argentinas in late July issued a request for proposals to lease a dozen of E2 aircraft, seeking a lease term of 12 years. It also recently added a new Airbus A330, its tenth in the Airbus fleet. It has also added a Boeing 737 Max, the ninth in the Max fleet. Fleets data shows the airline's fleet of 84 aircraft includes 26 E190s.
EasyJet plans new aircraft order following record profit
October 13, 2023
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.