S&P Global has lowered its issuer credit rating on JetBlue to 'CCC+' from 'B-' as it expects the US carrier's operating performance to be "significantly pressured" over at least the next 12 months amid the Middle East conflict and rise in jet fuel prices. The rating agency also lowered its issue-level rating on the carrier's loyalty debt, including the senior secured term loan and notes, by one notch to 'B', with no change to the '1' recovery rating. "Our downgrade reflects our expectation for materially weaker cash flow generation this year due to sharply higher jet fuel prices, further delaying recovery in credit measures. We now project a significantly wider free cash flow deficit of about $1 billion in 2026, nearly double our previous projection, with negative free cash flow continuing into 2027," S&P said on 8 June. It adds that prior to the conflict starting the airline "already had minimal downside cushion in its metrics, with our stable outlook dependent on the airline's substantial liquidity position and our previous expectation for free cash flow generation in 2027." S&P expects that JetBlue's liquidity will decline by around $2 billion and that it will issue around $500 million on incremental debt this year, including a $250 million accordion draw. It notes that while the carrier has "ample borrowing capacity" based on the "considerable size of its unencumbered asset base", an increasing debt service burden "exacerbates an already pressured cost structure". "We view further debt issuance as likely if fuel prices remain elevated or if JetBlue's ability to raise fares does not materialise as expected. In our view, the company's capital structure appears to be unsustainable in the long term based on its significant leverage (several years at double-digit levels), and it is now increasingly dependent on much stronger earnings and cash flow in 2027," S&P says. Amid a demand environment that remains strong, JetBlue recently updated its second-quarter guidance, reflecting better-than-expected unit revenue trends, citing positive demand trends across all cabins and geographies, S&P notes, adding that it is benefiting from Spirit Airlines' closure last month. That is driving a projected 10% growth in unit revenue during the second quarter, which will reduce to 8.5% over the second half of the year. However, despite that improved outlook, it believes that JetBlue's pricing power is limited, especially compared with the network carriers. This is "mainly due to mix of premium cabin, corporate travel, and international routes".

Lufthansa Group carrier ITA Airways will become part of its parent's joint venture with All Nippon Airways from the autumn of 2026. The enlarged co-operation will include ITA's daily flights to Tokyo Haneda from Rome Fiumicino, its domestic network and services to the Maghreb region, Lufthansa says. ITA currently flies to Algiers and Tunis and plans to start flights to Tripoli in September, its website indicates. Lufthansa notes that the partnership will complement ITA's existing joint venture with ANA for the Japanese carrier's flights between Haneda and Milan Malpensa. Customers of ANA, Lufthansa and its group siblings Austrian Airlines and Swiss will be able to book ITA's service on the Rome-Tokyo route and combine it with the other carriers' flights. A joint offer will roll out sequentially from autumn 2026 onward, Lufthansa says. The airlines have signed an agreement about the joint venture's enlargement at IATA's AGM in Rio de Janeiro. ANA and Lufthansa's joint venture was established in 2012. Austrian and Swiss subsequently joined the partnership. Lufthansa intends to grow its shareholding in ITA Airways to 90%, from 41% previously owned. The German airline expects the transaction to be completed in the first quarter of 2027.

All Nippon Airways is taking supply-chain issues in its stride and remains confident in the ability of the major OEMs to deliver the aircraft it needs to fulfil its growth strategy. The Japanese airline's president Juichi Hirasawa projects confidence that, given its large orderbook with Airbus, Boeing and Embraer, it has enough capacity to deliver its plan to grow international capacity 30% by the end of the 2030 fiscal year, even if some of those new aircraft are not delivered on time. "If there is a delay from Boeing or any other [manufacturer], we will delay the retirement of the current fleet so that it will not impact our operational plans," he said through a translator during a 7 June briefing at the IATA annual general meeting in Rio de Janeiro. Fleets data shows that ANA has 117 aircraft on order, including 16 Boeing 777-9s, 15 Embraer E190-E2s and 17 Airbus A321neos. More immediately, Hirasawa says the airline has still been navigating supply-chain and MRO issues, but the situation has been improving with fewer AOGs (aircraft on the ground) in its system. "There are AOGs on certain engines, but it is definitely getting better. So, we are having less AOGs at the moment, so that's one thing," he says. "If, in future, we continue to have an AOG, we have enough aircraft that can actually fly for that AOG aircraft, so we don't think that the supply chain or the AOG or engines will affect our operational plans." The carrier has in storage four A321neos powered by Pratt & Whitney geared turbofan engines, along with three 787s. Hirasawa says passenger demand on both international and domestic networks "is very strong for us, and we expect this to continue, and although the fuel prices are going up, so our fuel surcharge is actually going up", adding: "We don't expect this to have an impact on the demand for both domestic and international routes." He reaffirms ANA's view that fuel costs will start coming down during the second half of its fiscal year, which runs from October to March.