Latest news with #AengusKelly
CNBC
13 hours ago
- Business
- CNBC
Global airlines to address trade war, net-zero uncertainties at annual summit
An unpredictable trade war and daunting environmental targets are on the agenda for global airline bosses at an annual summit in India, as the industry addresses concerns that geopolitical uncertainty will dent strong travel demand and raise costs. More people are flying than ever before after a full post-pandemic passenger market recovery, but airlines globally are facing rising cost pressures, extended plane delivery delays, supply chain bottlenecks and a setback in recently strong fares. On top of this, U.S. President Donald Trump's evolving trade war has upended the aerospace industry's decades-old tariff-free status and added a new layer of volatility, analysts say. While carriers in Europe and Asia report strong demand for flying, the U.S. sector has been hit by a recent slump in travel demand, with carriers struggling to forecast passenger behavior and operational costs. "You can't say that a fall-off in consumer confidence and higher inflation are not going to mean less money in the wallet for people to spend," Aengus Kelly, CEO of AerCap, the world's largest aircraft leasing company, told Reuters. For now, airlines are filling planes but there are questions over the widely watched yield — or average fare per seat sold — they are able to charge as they tweak fares to fill cabins. Many, however, are also being cushioned from the worst effects of demand by a fall in fuel prices and a decline in the U.S. dollar's value. "Those tailwinds have insulated airlines, to date, from the worst effects" of demand, Kelly said. The influential International Air Transport Association (IATA), which represents more than 300 airlines and over 80% of global air traffic, will hold its annual three-day meeting from Sunday in New Delhi. The summit, hosted by India's largest carrier IndiGo, comes as the world's third-largest air passenger market rapidly expands its aviation industry, and as air travel growth in Asia is expected to outstrip Europe and North America for the next few decades. India's recent hostilities with neighbor Pakistan, which is causing Indian airlines to take large, expensive detours around Pakistani airspace, highlight how conflict zones are an increasing burden on airline operations and profitability. IATA said in February that accidents and incidents related to conflict zones are a top concern for aviation safety requiring urgent global coordination. Aviation safety will also be in focus after a spate of air accidents in Kazakhstan, South Korea and North America over the past six months, and rising concerns about air traffic control systems in the United States. IATA has increasingly been warning that airlines will struggle to meet their sustainability goals, and that it is not clear how the transition to sustainable aviation fuel (SAF) and new technologies will be financed. The broader aviation sector agreed in 2021 to target net-zero emissions in 2050 based mainly on a gradual switch to SAF, which is made from waste oil and biomass and costs more than conventional jet fuel. IATA Director General Willie Walsh has in recent weeks said the industry will need to re-evaluate the commitment, though no change to industry goals is expected at the New Delhi event. Airlines are at odds with energy companies over scarce supplies of SAF, while also pointing the finger at Airbus and Boeing over delays in delivering more fuel-efficient jets. Governments are also likely to get some flak when Walsh delivers an often punchy address to airline bosses on Monday. "Demand for SAF continues to outstrip supply and costs remain prohibitively high. Regulatory frameworks to encourage SAF production are still underdeveloped, inconsistent, or insufficient," said Subhas Menon, director general of the Association of Asia Pacific Airlines.
RTÉ News
3 days ago
- Business
- RTÉ News
Global airlines to address trade war, net-zero uncertainties at annual summit
An unpredictable trade war and daunting environmental targets are on the agenda for global airline bosses at an annual summit in India, as the industry addresses concerns that geopolitical uncertainty will dent strong travel demand and raise costs. More people are flying than ever before after a full post-pandemic passenger market recovery, but airlines globally are facing rising cost pressures, extended plane delivery delays, supply chain bottlenecks and a setback in recently strong fares. On top of this, US President Donald Trump's evolving trade war has upended the aerospace industry's decades-old tariff-free status and added a new layer of volatility, analysts say. While carriers in Europe and Asia report strong demand for flying, the US sector has been hit by a recent slump in travel demand, with carriers struggling to forecast passenger behaviour and operational costs. "You can't say that a fall-off in consumer confidence and higher inflation are not going to mean less money in the wallet for people to spend," Aengus Kelly, CEO of AerCap, the world's largest aircraft leasing company, told Reuters. For now, airlines are filling planes but there are questions over the widely watched yield - or average fare per seat sold - they are able to charge as they tweak fares to fill cabins. Many, however, are also being cushioned from the worst effects of demand by a fall in fuel prices and a decline in the US dollar's value. "Those tailwinds have insulated airlines, to date, from the worst effects" of demand, Kelly said. The influential International Air Transport Association (IATA), which represents more than 300 airlines and over 80% of global air traffic, will hold its annual three-day meeting from Sunday in New Delhi. The summit, hosted by India's largest carrier IndiGo, comes as the world's third-largest air passenger market rapidly expands its aviation industry, and as air travel growth in Asia is expected to outstrip Europe and North America for the next few decades. India's recent hostilities with neighbour Pakistan, which is causing Indian airlines to take large, expensive detours around Pakistani airspace, highlight how conflict zones are an increasing burden on airline operations and profitability. IATA said in February that accidents and incidents related to conflict zones are a top concern for aviation safety requiring urgent global coordination. Aviation safety will also be in focus after a spate of air accidents in Kazakhstan, South Korea and North America over the past six months, and rising concerns about air traffic control systems in the US. Net-zero doubts IATA has increasingly been warning that airlines will struggle to meet their sustainability goals, and that it is not clear how the transition to sustainable aviation fuel (SAF) and new technologies will be financed. The broader aviation sector agreed in 2021 to target net-zero emissions in 2050 based mainly on a gradual switch to SAF, which is made from waste oil and biomass and costs more than conventional jet fuel. IATA Director General Willie Walsh has in recent weeks said the industry will need to re-evaluate the commitment, though no change to industry goals is expected at the New Delhi event. Airlines are at odds with energy companies over scarce supplies of SAF, while also pointing the finger at Airbus and Boeing over delays in delivering more fuel-efficient jets. Governments are also likely to get some flak when Walsh delivers an often punchy address to airline bosses on Monday. "Demand for SAF continues to outstrip supply and costs remain prohibitively high. Regulatory frameworks to encourage SAF production are still underdeveloped, inconsistent, or insufficient," said Subhas Menon, director general of the Association of Asia Pacific Airlines.
The Hindu
3 days ago
- Business
- The Hindu
Global airlines to address unpredictable trade war, daunting environmental targets at annual summit
An unpredictable trade war and daunting environmental targets are on the agenda for global airline bosses at an annual summit in India, as the industry addresses concerns that geopolitical uncertainty will dent strong travel demand and raise costs. More people are flying than ever before after a full post-pandemic passenger market recovery, but airlines globally are facing rising cost pressures, extended plane delivery delays, supply chain bottlenecks and a setback in recently strong fares. 'On top of this, U.S. President Donald Trump's evolving trade war has upended the aerospace industry's decades-old tariff-free status and added a new layer of volatility,' analysts say. While carriers in Europe and Asia report strong demand for flying, the U.S. sector has been hit by a recent slump in travel demand, with carriers struggling to forecast passenger behaviour and operational costs. "You can't say that a fall-off in consumer confidence and higher inflation are not going to mean less money in the wallet for people to spend," Aengus Kelly, CEO of AerCap, the world's largest aircraft leasing company, told Reuters. For now, airlines are filling planes but there are questions over the widely watched yield — or average fare per seat sold — they are able to charge as they tweak fares to fill cabins. Many, however, are also being cushioned from the worst effects of demand by a fall in fuel prices and a decline in the U.S. dollar's value. 'Those tailwinds have insulated airlines, to date, from the worst effects' of demand,' Mr. Kelly said. The influential International Air Transport Association (IATA), which represents more than 300 airlines and more than 80% of global air traffic, will hold its annual three-day meeting from Sunday (June 1, 2025) in New Delhi. The summit, hosted by India's largest carrier IndiGo, comes as the world's third-largest air passenger market rapidly expands its aviation industry, and as air travel growth in Asia is expected to outstrip Europe and North America for the next few decades. India's recent hostilities with neighbour Pakistan, which is causing Indian airlines to take large, expensive detours around Pakistani airspace, highlight how conflict zones are an increasing burden on airline operations and profitability. Accidents, incidents related to conflict zones are top concern: IATA IATA said 'in February that accidents and incidents related to conflict zones are a top concern for aviation safety requiring urgent global coordination'. Aviation safety will also be in focus after a spate of air accidents in Kazakhstan, South Korea and North America over the past six months, and rising concerns about air traffic control systems in the United States. IATA has increasingly been warning that airlines will struggle to meet their sustainability goals, and that it is not clear how the transition to Sustainable Aviation Fuel (SAF) and new technologies will be financed. The broader aviation sector agreed in 2021 to target net-zero emissions in 2050 based mainly on a gradual switch to SAF, which is made from waste oil and biomass and costs more than conventional jet fuel. IATA Director General Willie Walsh has in recent weeks said the industry will need to re-evaluate the commitment, though no change to industry goals is expected at the New Delhi event. Scarce supplies of SAF Airlines are at odds with energy companies over scarce supplies of SAF, while also pointing the finger at Airbus and Boeing over delays in delivering more fuel-efficient jets. Governments are also likely to get some flak when Walsh delivers an often punchy address to airline bosses on Monday (June 2, 2025). "Demand for SAF continues to outstrip supply and costs remain prohibitively high. Regulatory frameworks to encourage SAF production are still underdeveloped, inconsistent, or insufficient," said Subhas Menon, director general of the Association of Asia Pacific Airlines.
Time of India
3 days ago
- Business
- Time of India
Global airlines to address trade war, net-zero uncertainties at annual summit
An unpredictable trade war and daunting environmental targets are on the agenda for global airline bosses at an annual summit in India, as the industry addresses concerns that geopolitical uncertainty will dent strong travel demand and raise costs. More people are flying than ever before after a full post-pandemic passenger market recovery, but airlines globally are facing rising cost pressures, extended plane delivery delays, supply chain bottlenecks and a setback in recently strong fares. On top of this, U.S. President Donald Trump's evolving trade war has upended the aerospace industry's decades-old tariff-free status and added a new layer of volatility, analysts say. While carriers in Europe and Asia report strong demand for flying, the U.S. sector has been hit by a recent slump in travel demand, with carriers struggling to forecast passenger behaviour and operational costs. "You can't say that a fall-off in consumer confidence and higher inflation are not going to mean less money in the wallet for people to spend," Aengus Kelly, CEO of AerCap, the world's largest aircraft leasing company, told Reuters. Live Events For now, airlines are filling planes but there are questions over the widely watched yield - or average fare per seat sold - they are able to charge as they tweak fares to fill cabins. Many, however, are also being cushioned from the worst effects of demand by a fall in fuel prices and a decline in the U.S. dollar's value. "Those tailwinds have insulated airlines, to date, from the worst effects" of demand, Kelly said. The influential International Air Transport Association (IATA), which represents more than 300 airlines and over 80% of global air traffic, will hold its annual three-day meeting from Sunday in New Delhi. The summit, hosted by India's largest carrier IndiGo , comes as the world's third-largest air passenger market rapidly expands its aviation industry, and as air travel growth in Asia is expected to outstrip Europe and North America for the next few decades. India's recent hostilities with neighbour Pakistan, which is causing Indian airlines to take large, expensive detours around Pakistani airspace, highlight how conflict zones are an increasing burden on airline operations and profitability. IATA said in February that accidents and incidents related to conflict zones are a top concern for aviation safety requiring urgent global coordination. Aviation safety will also be in focus after a spate of air accidents in Kazakhstan, South Korea and North America over the past six months, and rising concerns about air traffic control systems in the United States. NET-ZERO DOUBTS IATA has increasingly been warning that airlines will struggle to meet their sustainability goals, and that it is not clear how the transition to sustainable aviation fuel (SAF) and new technologies will be financed. The broader aviation sector agreed in 2021 to target net-zero emissions in 2050 based mainly on a gradual switch to SAF, which is made from waste oil and biomass and costs more than conventional jet fuel. IATA Director General Willie Walsh has in recent weeks said the industry will need to re-evaluate the commitment, though no change to industry goals is expected at the New Delhi event. Airlines are at odds with energy companies over scarce supplies of SAF, while also pointing the finger at Airbus and Boeing over delays in delivering more fuel-efficient jets. Governments are also likely to get some flak when Walsh delivers an often punchy address to airline bosses on Monday. "Demand for SAF continues to outstrip supply and costs remain prohibitively high. Regulatory frameworks to encourage SAF production are still underdeveloped, inconsistent, or insufficient," said Subhas Menon, director general of the Association of Asia Pacific Airlines.
Free Malaysia Today
4 days ago
- Business
- Free Malaysia Today
Aircraft leasing giant calls on Trump to expand zero-tariff plane pact
AerCap CEO Aengus Kelly said the US would gradually cede aerospace manufacturing in any prolonged trade war. (Ardlinn pic) PARIS : The head of the world's largest aircraft leasing company has called on US President Donald Trump to renegotiate and expand a duty-free trade agreement for the aircraft industry to include newcomers like China in a new lobbying twist to the trade war. The aerospace industry has for weeks been pushing for exemptions to tariffs introduced by Trump, or to any foreign retaliation, and wants a return to the status quo represented by a 1979 deal between some 30 nations to ban tariffs on jetliners. However, Aengus Kelly, chief executive of AerCap, said the current trade crisis also represented a chance to expand and improve the decades-old pact to ensure a level playing field under what he termed a 'Trump trade accord' for aviation. 'It would be a fantastic win for the president if he could enhance and significantly improve the 1979 aerospace treaty, which has only got (33) countries signed up to anything, while countries like India and China are not in it,' Kelly said. The call for a Trump-led renegotiation marks a shift of emphasis by the aviation industry, which has so far focused mainly on restoring the existing tariff-free regime. Dublin-based AerCap is the world's largest aircraft owner. 'If the president could convince other countries to join this zero-for-zero tariff agreement, that'll be an enormous win for high-tech manufacturing and engineering jobs in the US,' Kelly told Reuters in an interview. The White House said it was in regular contact with industry groups about trade policy. 'The only special interest guiding President Trump's decision-making, however, is the best interest of the American people,' spokesman Kush Desai said. A coalition of aerospace companies was expected to meet officials at the commerce department later today. US Surplus The Agreement on Trade in Civil Aircraft came into force in 1980 and eliminated tariffs on aircraft and parts. It is one of a handful of side deals that survived from an earlier round of trade talks when the World Trade Organization was formed in 1995. Current members include the US and EU – home to Boeing and Airbus – while China, India and several other fast-growing aerospace nations, such as South Korea and Turkey only have observer status. Brazil is in the process of becoming a full member, but Mexico – with its growing supply chain – is not a signatory. The AIA aerospace association has said the 1979 pact supports a US$75 billion trade surplus for the US aerospace sector, which includes manufacturing giants like GE Aerospace and RTX. Analysts say a renegotiation would not be simple, however. Trump has shown a preference for bilateral deals over broad alliances from trade to security and a new aircraft pact would include nations already embroiled in a larger jigsaw of trade disputes, making it harder to isolate specific issues. Washington did however grant a carve-out to jet engines in a recent trade deal with Britain, benefiting Rolls-Royce. The call for an expanded pact comes as China is increasing production of a home-grown competitor to Boeing and Airbus, the C919, though it has yet to win Western approvals. Boeing deliveries to China were effectively frozen after the two largest economies imposed triple-digit tariffs on each other last month, before agreeing a pause in trade tensions. Trump also briefly floated heavier tariffs on the EU, which has placed Boeing on a list of possible reprisals. Kelly said the US would gradually cede aerospace manufacturing in any prolonged trade war. 'With very high tariffs, if they're retaliatory, then of course we're going to see the rest of the world move over time towards Airbus,' he said, though 'It won't happen overnight,' he added.
