Finnair says it may have to cut nearly a tenth of its pilots unless unions agree to proposals on wages and working practices. Discussions on a new collective labour agreement with the Finnish Transport Pilots' Association (SLL) have been taking place since last year, with pilots launching industrial action including a standby ban which is threatening the future of an agreement with Qantas. Under that deal, two Finnair Airbus A330s are wet-leased to the Australian airline to fly between Sydney and Bangkok and Singapore, but the two carriers have discussed cancelling it as talks and industrial action drags on, Finnair says. Ending the deal would leave Finnair with a surplus of around 90 pilots, 9% of its total, who would face furlough or being let go permanently. "It is sad that the pilot union’s prolonged industrial action has led to a situation where we have to start change negotiations. Today is a tough day for all of us at Finnair," says Kaisa Aalto-Luoto, Finnair's chief people officer. "In our 101 years of history, we have never needed to reduce pilot positions due to operational reasons. Even when the Russian airspace closed and fundamentally changed our operating environment, we succeeded in securing employment for our pilots with collaboration arrangements." Talks set to start on 12 February will discuss the possible need for staff cuts as well as mandatory stand-by duty in employment contracts. Finnair says the pilot union has refused to agree on stand-by duties collectively, instead proposing that it should be voluntary. "Stand-by is an established practice in the industry and I believe that every Finnair pilot recognises it as part of their job. As the union has declined to agree on this, we are now preparing to include stand-by duty in the employment contracts of all pilots in order to secure regular and reliable flight operations,' Aalto-Luoto says. Finnair adds that collective agreement negotiations with the SLL have taken place under the leadership of Finnish mediator the National Conciliator since November, with the union rejecting several settlement proposals that it would have accepted. The SLL has been approached for comment.

Air New Zealand has become the latest airline to join the Association of Asia Pacific Airlines (AAPA) . "Aviation is a complex and evolving industry, with airlines around the world navigating similar challenges and opportunities in the coming decades," says Air New Zealand chief Greg Foran. "Joining the AAPA will ensure we can share learnings with our regional counterparts, to ensure a thriving Asia Pacific aviation industry into the future." It follows Qantas joining the industry group in January, while Indonesia's Lion Air became the first low-cost carrier to join AAPA in November 2024.

Fitch has upgraded Turkish Airlines’ debt to "BB" from "BB-" with a stable outlook, citing its expectation that the airline will maintain a solid financial performance in the coming years. A "BB" rating classes the company’s debt as speculative with an “elevated vulnerability to default risk,” although recognising that it has the financial flexibility to supports its financial commitments. The upgrade covers its long-term default rating and its standalone credit profile. Fitch believes that Turkish Airlines will continue to generate healthy cash flows and manage its debt burden effectively going forward, while noting its “strong market position” in Europe and the Middle East with EBITDAR margins close to 20%. Furthermore, the upgrade reflects Turkish Airlines' debt capacity which provides the airline with the flexibility to pursue strategic goals and weather potential economic headwinds. While acknowledging the inherent challenges posed by the airline's forex exposure and its reliance on Turkey as a core market, Fitch emphasises the airline's market position as, in its view, one of the top five carriers in the region encompassing Europe and the Middle East, a testament to its network, brand recognition, and operational efficiency. It adds its expectation that Turkish Airline’s performance should “normalise” after a strong post-pandemic rebound which pushed earnings above 2019 levels. Going forward, it expects annual revenue growth in the high single digits, mostly driven by capacity growth, while the benefits from increased pricing will be limited. Fitch nevertheless expects pressure on margins due to continuing supply chain issues and increase in other costs. It forecasts EBITDAR at around $5 billion in 2027, up from an estimated $4.7 billion in 2024.