Latest news with #AirlineIndustry
Asharq Al-Awsat
6 hours ago
- Business
- Asharq Al-Awsat
Saudi Arabia's flynas Successfully Completes Final Allocation of IPO Shares
Saudi Arabia's flynas has successfully completed the final allocation process for its initial public offering (IPO) shares, setting a minimum allotment of 10 shares for each individual subscriber. This IPO is considered the first of its kind for a Gulf airline in nearly 20 years. flynas will become the third Gulf airline to go public, following the listings of Air Arabia in the UAE and Jazeera Airways in Kuwait. In a statement, the company confirmed that any surplus subscription funds - if any - will be refunded to individual subscribers no later than June 5. The company will be listed on the Saudi stock exchange once regulatory procedures are completed. Saudi Minister of Transport Saleh Al-Jasser stated on the X platform that the IPO of the first Saudi airline on the stock market, along with the high oversubscription rates, 'reflects the high level of confidence in the Kingdom's aviation sector, which is witnessing remarkable developments and unprecedented annual growth rates, increased air traffic and connectivity, as well as significant investments in infrastructure, all supported by Prince Mohammed bin Salman, Crown Prince and Prime Minister.' 'Congratulations to flynas on the successful IPO and listing. The aviation sector will continue to enhance its developmental role in supporting the national economy and expanding investment and growth opportunities, in partnership with the private sector,' he added. The individual investor subscription period, which began on May 28 and lasted for three days, saw the participation of 666 investors, with a final offering price of 30 riyals per share. Total demand from this segment reached approximately SAR 2.868 billion ($746.5 million), resulting in a coverage ratio of 349.70%. Meanwhile, flynas reported a net profit of SAR 148 million ($39.4 million) for the first quarter of this year, marking a 1% decrease compared to the net profit of SAR 149 million recorded in the same period last year. However, the company's adjusted net profit increased by 78%. In a statement, the company attributed the decline in profit to exceptional gains of 66 million riyals recorded in Q1 2024 from a sale and leaseback transaction, which did not recur in the current quarter. Operating profit rose by 78%, and the company generated revenues of SAR 1.8 billion in the first quarter of 2025, a 6% increase, supported by improved ticket yields and growth in ancillary revenues. The company stated that its revenue increased by 5% to reach SAR 1.8 billion during the first three months of 2025, attributing the growth to stronger ticket yields and increased ancillary income.
Bloomberg
2 days ago
- Business
- Bloomberg
Air France-KLM CEO Says Premium Demand Is Holding
Air France-KLM Chief Executive Officer Ben Smith says "premium demand" for the airline "is holding across all of our sectors." Smith speaks to Bloomberg's Guy Johnson from the sidelines of the International Air Transport Association (IATA) annual meeting in New Delhi, India. He also discusses the potential impact of tariffs and trade uncertainty on the airline, as well as merger and acquisition prospects. (Source: Bloomberg)
Yahoo
4 days ago
- Business
- Yahoo
United Airlines CEO Scott Kirby slams the budget airline model: 'It's dead'
United Airlines CEO Scott Kirby criticized the budget airline model in a recent interview. Speaking at The Wall Street Journal's "Future of Everything" event, Kirby said the model was "dead." His comments came the same day United announced a new partnership with JetBlue. United Airlines CEO Scott Kirby earlier this week took a shot at what he called the "crappy" budget airline model. Speaking at The Wall Street Journal's "Future of Everything" event on Thursday, Kirby said the low-cost carrier model was "dead." "The model was screw the customer," he said. "It was like trick people, get them to buy, and get them to come, and then charge them a whole bunch of fees that they aren't expecting … disclosures buried in legalese," he continued. "Their problem is they got big enough that they needed repeat customers. They don't get them." Kirby's comments came the same day that United announced a new partnership with JetBlue, which many consider to be a budget carrier. The partnership, known as Blue Sky, will allow United to access slots for up to seven daily round-trip flights out of JFK's Terminal 6 as early as 2027. The deal, which is subject to regulatory review, will also allow customers to earn and use frequent flyer miles across both airlines, among other things. Kirby said on Thursday that JetBlue offered something different to traditional budget airlines. "JetBlue was founded in trying to be a better airline for customers. Budget airlines were founded in trying to have the absolute bare bones lowest cost," he said. "They may both be startups, but two polar-opposite business models." The exec was pressed on whether United had considered purchasing JetBlue. Laughing, Kirby said he was asked that "a lot" and that he was "reluctant" to do a merger. "Mergers are hard," he said. Going forward, he said United was focusing on its frequent flyers. "What we're really looking for is to have a bigger presence for our frequent flyers on both sides of the Hudson," he said. "To be bigger in places like Boston." Despite outperforming most of its peers in 2024, United announced in April that it would cut about 4% of its domestic capacity starting in July because of softening demand. Trump's tariffs caused some Canadians and other international travelers to cancel their summer vacations in the United States, which could mean trouble for domestic airlines. "The company's outlook is dependent on the macro environment, which the company believes is impossible to predict this year with any degree of confidence," the airline said. Read the original article on Business Insider Se produjo un error al recuperar la información Inicia sesión para acceder a tu portafolio Se produjo un error al recuperar la información Se produjo un error al recuperar la información Se produjo un error al recuperar la información Se produjo un error al recuperar la información
Forbes
5 days ago
- Business
- Forbes
Newark Crisis And JetBlue Deal Boost United Airlines In New York
In the New York area, United Airlines has turned a crisis into a benefit at Newark and, taking advantage of American's misfortune, has aligned with JetBlue at Kennedy. It's far too much to say that United has become New York's airline. United has little presence at La Guardia and, for now, none at Kennedy. Nevertheless, United CEO Scott Kirby took a New York victory lap on Thursday, extolling the improved slot control at Newark and the increased presence at Kennedy. Kirby appeared on CNBC in the morning. In the afternoon, he spoke at an investor conference and a Wall Street Journal conference. United announced a deal with JetBlue on Thursday. Last week, the Federal Aviation Administration said it would limit Newark flight operations to 56 hourly, rising to 68 hourly on June 15, when runway construction is complete. The unregulated total had been in the 80s during peak departure times. The Newark crisis reflected a breakdown in air traffic control, ongoing runway construction and a chronic shortage of air traffic controllers. More broadly, it reflected decades of congested air space and frequent weather issues. The crisis enabled Kirby to emerge as the face of the airline industry in the country's largest media market. United took a magnanimous approach to Newark flight limitations, taking the lead in reducing flights. Reliability at Newark benefits everyone, of course, but it most benefits the hub carrier. Kirby has called Newark 'a crown jewel,' noting Thursday that 'The United hub there has more international flights gateway to Europe than any other hub in the United States. It's great. It's great for customers. It's great for the country.' Newark congestion is not a recent problem. The airport 'shares airspace with Kennedy and La Guardia and also Teterboro and even facilities like Islip and Westchester and just 90 miles to the south is Philadelphia, more crowded airspace,' said veteran travel writer Joe Brancatelli. 'So as Newark grew, first with People Express, then Continental and now United, the skies continued to grow more and more crowded. It wasn't too bad when all three of the key airports were slot-controlled.' But slot controls were lifted at Newark in 2016. Weather is also a bigger problem for Newark than for Kennedy. The airport often gets storms before they pass over water, while Kennedy get them afterwards. Also, Brancatelli said, 'Two of Newark's three runways are oriented southwest to northeast. But the winds are often blowing west to northwest. That plays havoc with landings. Even on crystal-clear days, Newark can have substantial delays just because of the wind.' As for Kennedy, the deal with JetBlue includes reciprocal frequent flyer benefits and, starting as early as 2027, United gets access to slots for up to seven daily round-trip flights a day. The arrangement, called 'Blue Sky,' also means that United join a JetBlue program that markets hotels, rental cars and other travel accoutrements. In July 2020 American and JetBlue announced a strategic alliance that came to be known as 'the Northeast Alliance.' It ended due to a federal judge's ruling that it violated anti-trust protections. This year the American/JetBlue relationship became so troubled that American sued JetBlue. The Northeast Alliance enhanced competition in New York among the three major airlines. Blue Sky seems to reduce American s potential. 'We are interested to see how the competitive dynamic shifts in the New York and Boston markets as a result of this relationship,' said Cowen analyst Tom Fitzgerald, in a report issued Thursday. 'We view this as negative for both Delta and American, but more so the latter given it was already challenged in the Northeast corridor and this was the last inorganic option.' Dennis Tajer, spokesman for Allied Pilots Association, which represents American pilots, said that in New York, where it was once the number one airline, 'American took its eye off the ball.' Tajer noted that American CEO Robert Isom, speaking at a 2019 investor conference, referred to New York as 'a boutique-type operation for us in which we run it to serve the corporate clients and high yielding customers that demand access to New York,' especially on the profitable JFK-London Heathrow route. The problem for American, Tajer said, is that New York has become a 'bodega-type' operation, providing limited options to a small group of customers. Kirby 'wants a major presence in the New York area and he's constructing it with this announcement,' Tajer said. 'Where it goes is anybody's guess: we all know they are dating, but we are waiting to see if they will move in together.' At LaGuardia, Delta is the number one carrier with 43% of year-to-date passengers through March, according to airport statistics. American is second with 24%: Southwest third with 9%: Spirit fourth with 7.7% and United fifth with 7.4%. (At JFK, Delta has 30%: JetBlue has 24%, American has 12%, while Avianca ranks fourth with 2%.) Looking at National Hockey League sponsorships, United has the New Jersey Devils; JetBlue has the New York Islanders, who play on Long Island and Delta has the New York Rangers, who play in Manhattan. Perhaps hockey provides the best measure of the regional realities of the New York market.
Zawya
21-05-2025
- Business
- Zawya
Saudi budget airline Flynas sets final price for IPO
Saudi Arabian budget airline Flynas has set the final price for its ongoing initial public offering (IPO) at 80 riyals ($21.33) per share, the top end of the price range. The offering will raise SAR 4.1 billion from the sale of 51.3 million shares, or 30% of share capital upon completion of the IPO. The book-building process for the institutional tranche is complete with a coverage of 99.8x, Saudi Fransi Capital, the lead manager said in a statement. Flynas, backed by Saudi billionaire Prince Alwaleed Bin Talal, is the first airline IPO in the region in nearly 20 years after the UAE's Air Arabia and Kuwait's Jazeera Airways. (Writing by Brinda Darasha; editing by Seban Scaria)
