ARC NEWS
​Emirates swings to $1.2bn first-half profit
November 11, 2022
Dubai-based Emirates Group has posted a bumper first half after pent-up demand bolstered passenger revenues and capacity was ramped up sharply. Revenues across the group, which includes Emirates Airline and ground-based services company Dnata, more than doubled to $13.7 billion in the six months to end-September. The group made a profit of $1.2 billion, reversing a loss of $1.6 billion in the same period of 2021. Emirates says the performance demonstrates its "ability to meet strong passenger demand across regions with capacity ramp-up and high-quality products". Through the period, the company focused on restoring passenger services through its Dubai hub, boosting overall capacity growth 40% but also achieving a load factor of 78.5%, compared with 47.9% a year earlier. In total, the group carried 20 million passengers in the period, an increase of 228%. Newly launched premium-economy cabins were "booked out" to London, Paris and Sydney, ahead of a launch on five further routes before year-end. Emirates Group chief executive, Ahmed bin Saeed Al Maktoum attributes the result to "forward planning, agile business response, and the efforts of our talented and committed workforce. Across the group, our operations recovery accelerated as more countries eased and removed travel restrictions." He adds that the group's short-term focus is on restoring operations to pre-pandemic levels and stepping up recruitment in the expectation of growing demand in the second half. "However, the horizon is not without headwinds, and we are keeping a close watch on inflationary costs and other macro challenges such as the strong US dollar and the fiscal policies of major markets." Costs increased 73% on the back of fuel spending which more than tripled compared to last year. In total, fuel accounted for 38% of operating costs, "one of the highest ratios ever, compared to 20% in the first six months of last year".


Cathay Pacific names new chief
November 10, 2022
Cathay Pacific has appointed chief customer and commercial officer Ronald Lam as its chief executive, effective 1 January 2023.

Lam replaces Augustus Tang, who will retire from the Cathay Pacific Group on 31 December 2022. He will assume a new role at John Swire & Sons from 1 January 2023.

Lam will continue to serve as chair of HK Express, Cathay Pacific Group’s wholly owned low-cost subsidiary.

Cathay Pacific Group chair Patrick Healy states: “Ronald will lead the airline through its post-Covid recovery and the introduction of the Three-Runway System at Hong Kong International airport, as the airline looks to increase its passenger flight capacity and strengthen connectivity at the Hong Kong international aviation hub.” The airline has also appointed Lavinia Lau, who is director of customer travel, as its new chief customer and commercial officer, and executive director on the board of Cathay Pacific, effective 1 January 2023. Alex McGowan, director of service delivery, will be appointed chief operations and service delivery officer and also executive director on the board of Cathay Pacific, effective 1 April 2023 upon Greg Hughes' retirement from the board. McGowan will also be appointed chair of Cathay Pacific's wholly owned all-cargo airline, Air Hong Kong, replacing Hughes. Mandy Ng, currently chief executive of the Cathay Pacific Group's HK Express, will return to Cathay Pacific and succeed Alex McGowan as director of service delivery, effective 1 April 2023. Jeanette Mao, who has been general manager inflight services at Cathay Pacific, will succeed Ng as HK Express’s chief executive, effective 1 April 2023.


​Kenya Airways pilot strike ends after labour court ruling
November 10, 2022
Pilots at Kenya Airways have called off strike action and gone back to work after a labour court ruled that they must resume their duties on 9 November. Kenya Airways has been forced to cancel dozens of flights in recent days following a strike by members of the Kenya Airlines Pilot Association (KALPA), which began at 06:00 local time on 5 November. The Employment and Labour Relations Court in Kenya ruled on 8 November that pilots must return to work at 06:00 local time on 9 November. Following the ruling, KALPA said in a statement that it "hereby withdraws the notice of industrial action", and that pilots would resume their duties as instructed. The union adds that in addition to ordering pilots to resume their duties, the court ruled that Kenya Airways must not take "disciplinary action against KALPA members". The airline had warned on 6 November that rostered pilots who did not report for duty faced disciplinary proceedings. Kenya Airways chief executive Allan Kilavuka states that the airline welcomes the court's decision and can now "resume its normal operations". He adds that the airline commits to "complying with the court's directions". The carrier had earlier said the industrial action was costing it KSh300 million ($2.5 million) a day. Kenya Airways made a first-half operating loss of KSh5 billion. "The path to recovery will be difficult and will require the airline to redouble its efforts to restructure, lower costs and increase staff productivity, as well as recover the time, money and reputation lost," states Kilavuka.


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