Low-cost airlines in the USA are being squeezed by heightened competition from legacy carriers that threatens the viability of their business models, warns Alex Cruz, vice-chair of Canada's WestJet. Speaking to the Future Skies podcast from insurer AIG, former British Airways chief Cruz observed that the performance of many US low-cost carriers, specifically Frontier and Spirit Airlines, had "taken a turn" since the pandemic and that they were "not really delivering the results that would be expected of them". He attributes this to issues with their cost structures, but also pressure from legacy airlines which have "come up with products that are very, very competitive". He cites the popularity of "super-basic" fares that enable customers to stay within legacy airlines' ecosystems and frequent-flyer programmes. Such changes in the airline market have "been interesting to [watch] develop", he comments, adding: "There are question marks about all the [low cost] airlines that are within that segment, and fewer questions about the long-term strategies of the legacy airlines." Cruz's remarks echo those of Breeze Airways founder David Neeleman, who in early October said that ultra-low-cost carriers in the USA were being forced to dramatically reshape their business models as the country's largest airlines had "figured out how to deal with them", likewise citing problems faced by Spirit and Frontier, plus JetBlue. "The ultra-low-cost carriers thought that if they just got bigger and bigger planes and they drove down their cost enough that the big guys could never compete with them," Neeleman said at an industry event in Amsterdam. "But then the big guys said: 'Well, if I got bigger [aircraft] my incremental costs on that airplane cost less than [ULCC's]. And with all the benefits I have with frequent-flyer and credit card and all of that, nobody will fly [ULCCs] if they can fly with me.'" He described this "restructuring" as having left many ULCCs without a clear business model that protected them from their larger competitors. Spirit said in recent days that it was unable to file a quarterly earnings report and "exploring strategic alternatives and other ways to improve liquidity". As for US low-cost carriers' European peers, Cruz said he "couldn't possibly critique" their performance given their competitiveness post-Covid. Ryanair is performing strongly, he notes, while EasyJet has successfully branched out into package holidays and Wizz Air has continued to expand, "and there is little doubt they are going to continue looking at ways to grow". Meanwhile, the three main European legacy airline groups have exceeded expectations post-pandemic, he believes, having generally underperformed them prior to 2020. In part, this success has driven demand for premium leisure travel. "The [airline] landscape in Europe seems slightly more stable [than the USA], and it would be difficult to question the low-cost model," says Cruz. "I'm confident the [expanding] supply of airline seats [in Europe] will continue."

ATR will stop development of its ATR 42-600S variant optimised for short take-off and landing (STOL) operations, allowing it to give more focus on breaking into emerging markets, including North America. The manufacturer says that the decision came after a review of market conditions and the current shortages in its supply chain. It notes that the ATR 42-600S is now facing a "reduced addressable market" as several runways in Southeast Asia and other key markets for the variant are being extended, reducing the need for STOL performance. "While this reduces the addressable market for the ATR 42-600S, it means that our current product line can operate at its full capacity," the OEM states. ATR launched the 'S' programme in 2019 which is based on the standard 50-seat ATR 42-600 but modified with a larger rudder, an option to symmetrically deploy spoilers during landing, and an autobrake system to ensure full braking immediately after touching down. Data shows that the ATR 42-600S amassed orders for 16 units from Toki Air, Abelo, PNG Air and Air Tahiti, plus letters of intent for another 17 from Feel Air Holdings and an unannounced customer. Chief executive Nathalie Tarnaud Laude says that the decision to halt the programme "reflects our dedication to operational efficiency and long-term sustainability". "As part of this commitment, we have identified a series of product improvements which aim at further reducing the costs of operations and increasing the availability of our aircraft. These improvements directly reflect the needs and insight shared with our customers. To achieve these goals, we are working closely with our key suppliers and have developed comprehensive action plans to drive progress on these enhancements." The manufacturer says that the end of the STOL programme will allow it to move its efforts towards enhancing its current product lineup and address areas of emerging market demand. "This includes further breaking into North America, where the manufacturer is looking to replace ageing fleets of regional jets and boost point-to-point regional connections," ATR adds. Earlier this month Canadian operator Rise Air became the North American launch customer for the -600 series with an order for three ATR 72-600s.

Iberia is set to operate on 14 November the first commercial transatlantic Airbus A321XLR flight, between Madrid and Boston. The service is scheduled to depart the Spanish capital at 12:35pm local time and have a flight time of 8.45h, the airline says. Iberia completed a number of European flights to Paris and Stockholm since it took delivery of the first A321XLR on 30 October, it notes. Parent IAG opted for CFM International Leap-1A engines on incoming A321XLRs. Iberia has another seven A321XLRs on order and its sibling Aer Lingus five. Airbus in June said that the alternative Pratt & Whitney PW1100G-powered variant would be certificated during the fourth quarter of 2024. Iberia has configured its A321XLR cabin with 14 Thompson Aero Seating Vantage Solo business and 168 Recaro CL3810 economy seats. As additional galley equipment for the single aisle, the airline lists food heaters and "an espresso machine capable of preparing a cup of coffee in less than 35 seconds". The carrier previously revealed Washington DC as a second destination for its A321XLR fleet and says the variant will be used for routes "with a special focus on America". Its remaining seven on-order jets will be delivered in coming months, it says. "We are very proud to be the first airline in the world to start flights with the A321XLR," states Iberia president Marco Sansavini. "This new aircraft model allows us to strengthen our network and plan to fly to new destinations in an efficient and comfortable way for all our customers," he adds.