AirAsia to add 14 new aircraft in 2025, secures financing for 56
March 06, 2025
AirAsia will receive 14 new aircraft deliveries in 2025, in what it calls an “aggressive expansion strategy”, with four directly from airframer Airbus and 10 from lessors. The carrier has also secured financing for its next 56 aircraft, according to Bo Lingam, group chief executive of AirAsia Aviation Group. “We are accelerating towards pre-pandemic growth rates faster than anticipated, and this expansion is a testament to our confidence in the market’s strength. Demand is up, load factors and yields remain strong, and we are laser-focused on route optimisations with a disciplined focus on cost efficiency,” he states in a 5 March announcement. “This positions AirAsia steadily to seize future growth opportunities and with the latest aircraft technology, we are future-proofing our operations for the next decade, setting the foundation for long-term, sustainable growth.” AirAsia has more than 300 A320 family jets on order, Cirium fleets data shows. The carrier had previously agreed long-term leases for 15 A321neos with AerCap, of which five have been delivered, with the remaining scheduled for delivery this year. With the upcoming merger of AirAsia and AirAsia X, the carrier says it is set to “consolidate its network by integrating the efficiency of its short haul routes with the reach of its long-haul operations”. At the same time, it notes that the A321XLRs and A321LRs will be “game-changing in resetting low-cost regional and long-haul connectivity”, as its fleet of A330s “will be optimised for long-haul routes”. AirAsia parent company Capital A had said in its full year financial report that the disposal of its aviation business is expected to be completed by the first quarter of this year.
Turkish's annual profit down as costs rise faster than revenue
March 05, 2025
Turkish Airlines has reported a sharply lower operating profit for 2024, as higher revenues failed to offset increases in a range of costs. Personnel expenses rose 45% to reach $4.71 billion, equating to 23% of the airline’s total expenses. Meanwhile, aircraft ownership costs rose 15% to $2.57 billion and groundhandling costs by a fifth to $1.49 billion. There were also steep rises in costs relating to airport and air navigation, passenger services, and catering and maintenance. Fuel was the only major area of expense in which there was a fall – of 1.1%, to $6.16 billion – but this was overwhelmed by other rises. Total expenses increased 14% to $20.7 billion. On a unit basis, costs per ASK rose 5%. Excluding fuel, they were up 12%. Turkish says this was driven by "wages, GTF groundings and growing cargo operations". The impact of the groundings, necessitated by enhanced maintenance checks on the Pratt & Whitney GTF engines that power some of the carrier's A320neo-family aircraft, was to add around 1.5 percentage points to ex-fuel CASK. Revenue rose 8.2% to $22.7 billion, but EBIT fell 18% to $2.86 billion. Margins have been affected by "cost pressures and intensifying passenger competition", says the airline. It expects further modest declines in 2025. Across the year, the Star Alliance carrier intends to carry 91 million passengers – up from 85.2 million in 2024 – and that its fleet will total 515-525 aircraft by year-end. That compares with 492 jets at end-2024. Turkish adds that its strategic priorities include targeting organic growth, investing in efficiency and sustaining its competitive cost base, while preserving its balance-sheet strength and providing shareholder returns.
Loganair to open new base at Southampton
March 05, 2025
Loganair plans to open its 10th base at Southampton airport, operated by two ATR 72-600s. The UK regional carrier says that the first aircraft will arrive in October. The base will increase the number of seats available by over 140,000 per year, it adds. On 26 October, Loganair plans to launch flights from Southampton to Manchester and from Manchester to Exeter. "We are delighted to be announcing a new base in Southampton, which is a logical and important strategic step for the UK's largest regional airline," states Loganair chief executive Luke Farajallah. "Loganair is very familiar with operations to and from the South Coast, and we feel confident the local market will respond well to our more permanent presence and new routes through the basing of two aircraft later this year."