German engine specialist MTU and the European Union Aviation Safety Agency are jointly exploring ways of certificating hydrogen-powered fuel cells for propulsion of future aircraft. "When it comes to the approval of a flying fuel cell, all parties involved are entering uncharted territory, which is why we are seeking dialogue with the certification bodies at such an early stage," states MTU head of quality Thomas Frank. Munich-based MTU describes fuel-cells as a "very promising propulsion concept" and says the technology is an integral part of its "Clean Air Engine" roadmap. Studies with EASA will cover development of new standards, approval regulations and verification procedures, MTU notes. Chief engineer flying fuel-cell Barnaby Law states: "We rely on a strong network of partnerships and research collaborations. Together with EASA, we are breaking new ground for a sustainable orientation of aviation." EASA chief engineer Alain Leroy says MTU is one of the first companies to co-operate with the regulator in this area. Together with German aerospace research centre DLR, the engine subassembly manufacturer and MRO provider is developing a fuel-cell powertrain demonstrator that will be tested in flight on a Dornier 228 utility aircraft. One of the twin's turboprop engines will be replaced with an electrically powered propeller.

British Airways has secured an additional £1 billion ($1.37 billion) five-year committed credit facility, guaranteed by UK Export Finance (UKEF). The IAG-owned carrier disclosed in a 1 November London Stock Exchange filing that it had reached agreement with UKEF and a syndicate of banks for the guaranteed loan facility, which BA "intends to draw down only if and when required". IAG did not identify the banks that make up the syndicate. Earlier this year, BA drew down a separate £2 billion loan facility that was also partially guaranteed by UKEF. A source told Cirium in February that HSBC, Deutsche Bank, Credit Suisse, Standard Chartered, Santander and Citi were among the 11 banks in the syndicate behind that £2 billion facility. IAG says the latest facility "further bolsters liquidity", which stood at €10.6 billion ($12.3 billion) at the end of September. "Similar to the previous facility, British Airways is entitled to repay any drawn loan at any time on notice, and there are similar non‐financial covenants, including restrictions on dividend payments to IAG," states the group's chief financial officer, Stephen Gunning. IAG will report its third-quarter results on 5 November.

Ryanair Group saw load factors and revenues surge through its first half, as the low-cost carrier approached breakeven for the period and raised its guidance for full-year passenger numbers. The company carried 39.1 million customers during the six months to end-September, a 128% increase on the corresponding period of 2020. Load factors rose from 72% to 79%, although the group acknowledges that the ongoing recovery will require "continuing price stimulation" as booking windows remain tight. "This, coupled with rising costs for the small unhedged balance of our fuel needs, means that visibility for the remainder of FY22 is very limited. It is therefore difficult to provide meaningful FY22 guidance," it states. Briefing investors, chief executive Michael O'Leary added that capacity in the second half to end-March would be around 90% of pre-Covid levels, with load factors "in the low 80s compared to the low 90s" prior to the first quarter of 2020. He says that while costs rose 63% as the airline ramped back up capacity, this was below the 83% gain in revenues, demonstrating that Ryanair had been able to enact permanent efficiency improvements amid the crisis. The carrier is hedged for the majority of its fuel requirements until March 2023 at around $60 barrel, O'Leary highlights. He is bullish on prospects for next summer, noting "materially" reduced short-haul capacity across Europe as some carriers have shrunk while others have disappeared altogether. In contrast, Ryanair has planned 14 new bases for next year, to be serviced by 29 aircraft, "but more important than this is that we have much more aircraft going into existing bases", says O'Leary, citing an additional 20 allocated to Italy alone. In total, the carrier has launched over 560 new routes, aided by lower airport costs and the extension of many low-cost airport growth deals. "The growth opportunity has never been so exciting," O'Leary asserts, describing it as "the most in my 30 years in the business" amid little competitive pushback. Nevertheless, the group has pencilled in an overall full-year loss of €100-200 million, dependent on the continuing vaccine rollout and the development of Covid-19. O'Leary also broached the subject of a delisting from the London Stock Exchange, something he expects within six months. As a result of Brexit the carrier has, in common with several European carriers, found itself in danger of contravening EU rules about national ownership under which European airlines must be majority held by the bloc's nationals. Ryanair Group is roughly 40% owned by US stockholders, with the remainder mostly held by UK and EU investors. With the EU's share being below 50%, "the European Commission wants action", notes O'Leary, adding that trading of Ryanair shares in London has diminished sharply since Brexit. Ryanair Group had already forced some investors to sell their shares in September to abide by the rules, but expects the delisting to further boost its European ownership stake. In a note to clients following the results announcement, investment firm Davy comments that Ryanair "is clearly prioritising volume growth" over short-term profits "and has the balance sheet [and] airport/aircraft/employee base to expand market share and grab opportunities in what we believe will be a rapid recovery into summer 2022 and beyond".
It notes that net debt is set to fall below €2 billion by year end and that 90% of the carrier's fleet is unencumbered.