ARC NEWS
​Boeing grows Max output in January
February 13, 2025
Boeing increased its 737 production to 40 Max deliveries in January from 18 in December. The US airframer additionally handed to customers four 787s and one 777 Freighter in January, following nine Dreamliners, two 767s and one 777-300ER in December, Boeing data shows. Max deliveries had fluctuated after the Alaska Airlines accident in January 2024 and declined to nine aircraft a month amid industrial action at Boeing in October and November. The manufacturer's Max output across 2024 had halved to 265 jets versus the previous year. Boeing in January received orders from two undisclosed customers, one for 34 Max jets and the other for two 777Fs.


Merger negotiations between Spirit and Frontier break down again
February 13, 2025
Spirit Airlines has reiterated its intention not to merge with Frontier Airlines after the latest proposal and counter-proposal exchanged between the US carriers failed to culminate in an agreement. Dania Beach, Florida-based Spirit – which filed for Chapter 11 bankruptcy protection in November 2024 – in late January rejected merger terms Frontier had presented on 7 January. Spirit chief executive Ted Christie told Frontier counterpart Barry Biffle and chair William Franke in a 28 January letter that Spirit's board had "directed management and advisers to proceed with confirmation of our extremely efficient standalone reorganisation that will position us well for the future". On 11 February, Spirit repeated its intention to proceed with its standalone recapitalisation plan, citing Frontier's 10 February rejection of Spirit's counter-proposal to a revised merger deal proposed on 4 February. Spirit says it will "continue swiftly to advance and conclude its restructuring process, which will significantly deleverage the company and position it for long-term success". A hearing to consider confirmation of Spirit's reorganisation plan has been scheduled for 13 February, the carrier notes. Frontier confirms that it submitted a revised proposal to combine with Spirit and that "no agreement has been reached between the parties in relation to the structure, value or terms of a transaction". It adds: "Further, Spirit has stated in its most recent public disclosure its intention to advance and conclude its standalone restructuring process in lieu of a transaction with the company [Frontier]."


TUI sees sales jump after striking OTA deal with Ryanair
February 12, 2025
TUI has reported that bookings in the UK and Ireland are up a quarter since a deal that enables customers to book Ryanair flights came into force last December. The European travel group reached an agreement to act as an online travel agent for Ryanair last year. This allows TUI's package-holiday customers to fly with the low-cost carrier instead of on its own flights. It is part of what TUI, commenting as it disclosed fiscal-first-quarter results, describes as a move into "dynamically packaged products" that open up "a large range of connections" for customers. "The new partnership is supporting the strong development of our dynamic offering, with sales in UK and Ireland in the last four weeks up +25% against the previous year," says TUI. UK summer-season sales across TUI's airline business are down slightly on last year, but the group reports "positive momentum in the last four weeks supported by stronger bookings" in the country. In Germany, sales are around 6% ahead, with around 30% of seats sold. Average summer-season selling prices across the group are up 4% amid flat capacity. Bookings for this winter season are 2% up on last year, with 85% of TUI airline seats sold. Pricing is around 2% higher, which is "helping to mitigate the higher cost environment", adds the group. Short and medium-haul destinations continue to drive sales, namely winter-sun destinations such as the Canaries, Egypt and Cape Verde. In the long-haul arena, Thailand has had the highest increase in demand, followed by Mexico, Jamaica and the Dominican Republic. The airlines segment's underlying EBIT for the quarter ended 31 December 2024 was down by €30 million at €125 million ($129 million), which the group attributes to "higher investments ahead of the key summer season". It has reported a 13% increase in group-wide underlying EBIT, to €50.9 million, for the period, amid a similar rise in revenue, to €4.9 billion. Guidance for the year has been reaffirmed: the group is projecting that revenue will grow 5-10% and underlying EBIT by 7-10%.


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