United first-quarter profit widens significantly
April 16, 2025
United Airlines has reported an operating profit of $607 million for the first quarter of 2025, a giant step up from the $99 million profit the US major made during the same period in 2024. Operating revenue increased 5% to $13.2 billion. Expenses, at $12.6 billion, were up 1% year on year. United notes that its operation's start of the year has been "stronger than any previous year since 2021". "We will continue to execute our multiyear plan that has allowed United to thrive in any demand environment," United chief executive Scott Kirby states. "It has given us industry-leading margins in the good times and we expect to expand our lead further in challenging economic times." The Chicago-based carrier raised first-quarter capacity by 5% versus the first quarter of 2024. Load factor slid one percentage point, to 79%. United ended the first quarter with $18.3 billion in liquidity, and total debt, finance lease obligations and other financial liabilities of $27.7 billion.
EASA approves Trent XWB enhanced performance variant
April 15, 2025
The European Union Aviation Safety Agency has certificated the Airbus A350-900 with an enhanced performance (EP) version of the aircraft's Rolls-Royce Trent XWB-84 engine. Airbus says that the upgrade features upgraded fan, compressor and turbine aerodynamics and improved turbine blade cooling, all designed to reduce fuel consumption by 1% versus the baseline engine. The Trent XWB-84 is the sole engine available on the A350-900, while the larger -1000 variant is fitted with the more powerful Trent XWB-97. Airbus predicts that EASA's approval of the Trent XWB 84 EP approval will be followed "in the very near future" with a corresponding certification by the US Federal Aviation Administration. "Together with our partner Rolls-Royce, this latest evolution underscores our joint commitment to continuous improvement and innovation," states Airbus's head of widebody programme Julien Puyou. He adds: "The Trent XWB-84 is already among the most efficient widebody engines on the market and this enhanced version will deliver even greater performance and efficiency for our airline customers." Unlike other ongoing improvements for Trent engines, the Trent XWB-84 EP upgrade will not be retrofittable, Rolls-Royce previously said. The upgrade will initially be available as a customer option and become standard over time.
Korean Air first quarter profit hit by maintenance costs
April 14, 2025
Korean Air reported a 19% fall in unconsolidated operating profit for the quarter ended 31 March to W351 billion ($239 million) as maintenance costs and other operating costs overshadowed stronger performance from its passenger business. The SkyTeam carrier's revenue rose 3% to W3.96 trillion, led by a 4% rise in passenger revenue to W12.44 trillion. ASKs in the quarter increased 2.4%, which was outpaced by a 4.3% rise in RPKs that pushed load factors up 1.6 percentage points to 84.9%. Nonetheless, yield slipped by 0.3%, "Despite heightened competition from increased market capacity and various domestic and international uncertainties, strong travel demand during the Lunar New Year and March holiday period supported both revenue and traffic growth," the airline says. Cargo revenue grew 6% to W1.05 trillion as Korean Air implemented "agile capacity adjustments and strategic efforts to secure stable, long-term demand from key clients". Although fuel costs fell in the quarter, that was offset by higher labour, handling and depreciation charges. Net profit for the quarter fell 44% to W193 billion, dragged down by currency losses and other non-operating items. In its outlook, Korean Air says it expects demand to grow as the passenger business heads into the peak season, aided by strong outbound demand from Korea, Southeast Asia, China and Japan. On the cargo front, however, it notes that demand and market volatility are set to "intensify as the US imposes reciprocal tariffs", which it aims to negate by operating flexible routes and developing new shipper relationships.