European regional airlines have cautioned they are nearing "breaking point" and urged policymakers to halt the planned revision of EU passenger rights rules, arguing that the changes risk destabilising an already fragile sector. In an open letter to European policymakers, 35 chief executives from across the regional airline industry warn that carriers are facing an "unprecedented fuel crisis" linked to instability in the Middle East, which has driven a sharp rise in jet fuel prices. This, they say, is placing additional strain on operations already hit by pandemic losses, rising labour and energy costs, and increasing regulatory pressure. The proposed update to EU261 passenger rights legislation, first promised in 2013, risks becoming "the last straw" for the sector, rather than the relief initially envisaged, the group suggests. Revisions to EU261 compensation legislation are intended to provide stronger passenger protection amid travel disruption while also regulating airline costs and clarifying legal definitions, according to the European Parliament. There will be a defined list of scenarios that exempt airlines from paying compensation, and potentially a mandate allowing passengers to carry one free personal item and one small hand-luggage item free of charge. The European Parliament's transport and tourism committee is fighting to preserve existing rights, such as keeping compensation active for delays over three hours, cancellations, or denied boarding, with standardised amounts of up to €600 ($700) based on flight distance. Changes to the legislation were agreed by the European Parliament in January, but the EU Council, which represents member states, rejected these amendments in March. They are currently in a conciliation committee. Regional airline leaders stress that they support "strong and fair passenger rights", and highlight their own role in serving communities across Europe. They note that they operate many routes that are commercially marginal, providing essential connectivity between remote regions and major economic centres, as well as links to international hubs. Their position is that the current revision proposals fail to reflect operational realities. Regional airlines typically run smaller fleets, often from a single base, with limited access to spare aircraft, maintenance facilities and replacement parts. When disruption occurs, the time and resources available to resolve it differ significantly from those available to larger network or low-cost carriers. Under the proposed rules, compensation thresholds and rates would impose costs that can exceed the total revenue of a flight, the chief executives assert. At a time of high fuel prices and geopolitical uncertainty, this could push many operators beyond viability, they posit. The letter cautions that the immediate consequences would be cuts to thin air links connecting islands, remote regions and smaller communities. Some routes would become unviable, aircraft could be grounded, and certain airlines may not survive. In many cases, once a regional service is lost, it is not restored. This, the airline leaders add, would result in fewer travel options, higher fares and reduced access to education, healthcare and economic opportunities for affected regions. "Passenger rights should protect and connect citizens, not isolate them," write the chiefs.

US carriers American Airlines and Southwest Airlines have separate updates to their term-loan programmes. Southwest said in a 19 May filing to the US Securities and Exchange Commission (SEC) that it was increasing its senior secured term loan facility with French Bank BNP Paribas by $1 billion. The original size was $500 million, bringing the deal to $1.5 billion. The term loans are backed by Southwest aircraft and other assets, and mature on 11 March 2029. Southwest has the right "at any time to prepay the term loans, in whole or in part, without premium or penalty, upon at least three business days' prior written notice". It may not reborrow prepaid amounts. Separately, Fitch Ratings says it has assigned a 'BB' rating with a recovery rating of 'RR2' to a proposed term loan from American. Proceeds from the term loan, together with "other secured debt issuance", will be used to repay the company's $1.1 billion 2014 term loan, with the remaining funds allocated to general corporate purposes, Fitch says. The rating agency expects the airline's credit profile to remain weak as higher jet-fuel prices strain profitability and delay deleveraging, although Fitch's "stable outlook" for the company reflects the fact that Fitch expects the fuel-price pressure to be temporary. "American's credit profile may improve over time as margins recover from resilient travel demand, stronger loyalty revenues, and premium product expansion," Fitch says.

Lufthansa Technik has secured Airbus as a partner for the planned application of drag-reducing surface film on A330ceos. Last year, LHT disclosed its intent to develop a supplemental type certificate for application of the AeroShark riblet film on the fuselage and engine nacelles of A330-200/300s. Now, the MRO group has entered a technical collaboration with Airbus to apply the technology to the aircraft's wings, vertical and horizontal stabilisers too, it says. Airbus will provide aircraft data and safety assessments, while LHT leads certification activities with the European Union Aviation Safety Agency and serves as the modification's STC holder. The certification programme will assess the surface film's effects on flight dynamics, lightning strike protection, structural loads, maintenance and aircraft systems, LHT notes. It predicts that full application on an A330 will deliver fuel savings of at least 2%. LHT jointly developed the sharkskin-inspired surface film with BASF and previously introduced it on Boeing 777 variants: the -300ER, -200LR and Freighter. Lufthansa Cargo and group siblings Austrian Airlines and Swiss have adopted the surface film on 777s in their fleets. LHT has additionally gained LATAM Airlines, All Nippon Airways and EVA Air as customers for 777 applications. Henning Linnekogel, senior director of OEM partner management at LHT, says the collaboration with Airbus will "pave the way for a completely new application of riblet technology on the A330ceo".