The US Department of Transportation has approved complaints from JetBlue and Airlines for America (A4A) against the Dutch government and European Union in relation to flight curtailments at Amsterdam's Schiphol airport (AMS) related to noise and emissions. "The department finds that, because the Netherlands has failed to follow the balanced approach, the phase 1 capacity reduction measures being undertaken at AMS constitute unjustifiable and unreasonable activities under IATFCPA, and are in violation of the of the US- EU Air Transport Agreement," it states in a 2 November filing, referring to the International Air Transportation Fair Competitive Practices Act of 1974. The DOT says it will require Dutch carriers – namely, KLM, Martinair, and TUI Airlines Nederland – to file schedules for all of their services to and from the United States. New York-based JetBlue joined an earlier complaint against the Dutch government and European Union lodged on 22 September by trade group A4A, and later lodged its own complaint because it feared losing the ability to serve Schiphol altogether, and thought the DOT should take action sooner. JetBlue noted that it is "uniquely situated among US carriers because it faces actual expulsion from Amsterdam Airport Schiphol at the end of the winter 2023/2024 scheduling season". The DOT said at the time it was considering the complaints. On 2 November the department said it had raised "significant concerns and objections" to the Dutch government’s methodology for implementing noise reduction plans at Schiphol and argues the Dutch side has "yet to put forward any persuasive argument" that its actions are in conformity with the US-EU Air Transport Agreement. The department goes on to say that it remains concerned that opportunities for new entrants to operate at Schiphol will be precluded. "Indeed, we find particularly alarming that JetBlue, a relative new entrant at AMS, has been notified that it will receive no slots for the summer 2024 season," the DOT says. "While we are careful to not conflate slots with traffic rights under the US-EU Agreement, we are deeply troubled by the notion that new entrants will be completely foreclosed from slot access at AMS, without any secondary or alternative means to obtain access at AMS, particularly if those alternative options are precluded on a basis that is discriminatory toward unaligned or unaffiliated carriers." The DOT will consult with the Dutch government and European Commission on 13 November. "It is our hope that these consultations will result in meaningful progress towards resolution, without our needing to pursue further regulatory action," it says. "However, should consultations fail to produce a meaningful path toward resolving this matter in a timely and satisfactory fashion, the department stands ready to consider any further action that may be appropriate."

A combination of consolidation, OEM production delays and problems with the Pratt & Whitney geared turbofan engines will constrain Europe's capacity to regain pre-Covid levels of flight activity in 2024, in the view of Ryanair group chief executive Michael O'Leary. Briefing analysts on 6 November, O'Leary said the trio of issues facing the European airline industry meant it was unlikely that intra-European capacity would get above the 94% of pre-Covid levels, where it now stood, until as late as 2026. O'Leary believes Airbus and Boeing are unable to accelerate production of new aircraft and remain "materially behind" in terms of deliveries. Boeing is contracted to deliver 57 737 Max jets to Ryanair between now and the end of April, but O'Leary expects production delays to cut that figure down by around 10. "We are not sure that they will deliver all 57, but we are certainly confident we will get 45 to 50 of those by the end of June," he says. O'Leary describes issues with Pratt & Whitney geared turbofan engines as representing a "large and not well-factored-into capacity story" for summer 2024 in Europe. He suggests that Ryanair's rivals could see 5-10% of their fleet capacity taken out by the issues, and that Wizz Air may be even more exposed. Neal McMahon, Ryanair's chief operations officer, foresees that the lack of MRO capacity in Europe will cause groundings. "We expect there to be material groundings of competitor capacity through the summer of 2024, and we think that will roll into 2025 as well, due to the pressure on engine shops," he says. McMahon says this will push up engine leasing costs due to scarcity. He also expects winter turnaround times for engines to be "significantly slower" and to materially impact capacity in 2024. O'Leary sees events such as Lufthansa's progress in acquiring ITA Airways, Air France-KLM's recent investment in SAS and interest from airlines in acquiring TAP Air Portugal as evidence of continuing consolidation in Europe. He posits that the continent is "inexorably moving" towards having four large airline groups. This, along with OEM production problems and the GTF issues, will help to keep capacity constrained in Europe and will continue to buttress strong pricing achieved by Ryanair and its rivals, he adds. McMahon adds: "We see very little prospect of Europe returning to its pre-Covid capacity between 2024 and 2026 and we think therefore that will continue to underpin strong pricing, even if consumer demand is challenged."

Lufthansa Group's adjusted operating profit increased 31%, to €1.47 billion ($1.56 billion), during the third quarter of 2023 amid what chief executive Carsten Spohr describes as "the highest revenue and profit ever achieved in one summer". Group revenue grew 8%, to €10.3 billion, during the quarter ended 30 September versus the period last year, Lufthansa says. Its passenger airline business delivered an adjusted EBIT of €1.4 billion, up 91%, with all operators across the group improving their results. Lufthansa attributes the growth to strong demand, increased capacity and high yields. "At 25% above the 2019 third-quarter level, yields reached a new record high," the company says, adding that leisure travel demand was particularly strong in the premium segment. The number of passengers grew to 38 million, from 33 million, with Lufthansa noting that more than 70% of travellers began their journey outside Germany. Passenger capacity across the group was lifted 13% versus last year and reached 88% of its pre-crisis level. Lufthansa plans to lift capacity to 91% during the fourth quarter, and to 95% in 2024. Fourth-quarter bookings are currently up by double-digit percentage terms, the company says. Unit cost declined 0.9% year-on-year, which Lufthansa describes as a "significant improvement" versus the second quarter of 2023. "Despite high inflation, we were able to reduce our unit costs," states finance chief Remco Steenbergen. "However, we need to further improve our operational reliability and thus also our productivity and efficiency, which are still below pre-crisis levels." Lufthansa Cargo's adjusted EBIT meanwhile shrank to €1 million, from 331 million last year. The airline attributes the decline to an air cargo market normalisation since the pandemic, challenging macroeconomic conditions and seasonally weak demand. "For the fourth quarter, a slight year-on-year increase in transported volumes is expected," the airline says. Adjusted EBIT at maintenance arm Lufthansa Technik declined to €168 million, from €188 million. The group asserts that last year's adjusted EBIT had benefited from a more favourable US dollar exchange rate, and that LHT still delivered a "new record result" amid high MRO demand. Lufthansa says that a review of a proposed sale of a minority stake in LHT is expected to be completed by year-end. The company previously had a target for a decision by September. Group operating free cash flow was at €1.2 billion during the third quarter. After deducting net capital expenditure, primarily for new aircraft, adjusted free cash flow came to €592 million. Net debt was reduced to €5.4 billion, from €6.9 billion at the end of 2022. Lufthansa has confirmed an adjusted EBIT target of at least €2.6 billion for 2023. Next year, Lufthansa says it is due to receive around 30 new aircraft "according to current schedules". The group predicts "above-industry-average and profitable growth" for 2024, citing better access than its peers to MRO capacity through LHT and success in recruiting flight operations staff. "It is paying off for all of us that we have combined our successful multi-airline and multi-hub strategy with strengthening the private travel segment, setting the right strategic course," states Spohr. "Even though the geopolitical situation remains challenging, our booking outlook gives us reason to be positive – not only for a very good group result this year, but also beyond."