Latest news with #jetliners
Yahoo
02-06-2025
- Business
- Yahoo
Global airlines trim 2025 profit forecast over trade tensions and supply woes
By Shivansh Tiwary and Tim Hepher NEW DELHI (Reuters) -Global airlines shaved a key forecast for 2025 industry-wide profits on Monday, blaming trade tensions and declining consumer confidence, while hitting out at "unacceptable" delays in jetliner deliveries that have hindered their growth plans. The IATA industry body now expects global airlines to post a combined profit of $36.0 billion this year, down slightly from a previous forecast of $36.6 billion in December, before U.S. President Donald Trump took office. He has since launched a trade war and tightened enforcement of U.S. border controls. But airline profits are still set to rise from $32.4 billion last year, helped by lower oil prices and record passenger numbers. The International Air Transport Association issued the widely watched forecasts, which give clues to the wider economy, at an annual meeting of its more than 300 member airlines in New Delhi. "Earning a $36 billion profit is significant. But that equates to just $7.20 per passenger per segment," IATA Director General Willie Walsh said in a statement. That is a thin buffer against any future demand shocks or taxes as the industry returns to a more normal regime after a sharp bounceback in air travel from the pandemic, he said. Strong employment and easing inflation are expected to push revenues up 1.3% compared to last year. But airlines will have to wait a little longer to hit the $1 trillion mark after IATA trimmed its prior forecast for industry-wide revenues by 2.1% to $979 billion, which would still be an all-time record. Trump's sweeping tariffs have stoked fears of an economic slowdown and squeezed discretionary spending, prompting many consumers especially in the United States to delay or scale back travel plans. Meanwhile, aircraft delivery delays have hampered airlines' ability to meet soaring travel demand in certain regions, while driving up operating costs as carriers are forced to keep older jets in service or pay more for the dwindling number of available spare parts. "It's been something that has frustrated everybody, particularly airlines who are waiting to take delivery of aircraft or have aircraft sitting on the ground that they'd love to see in service,' Walsh told Reuters in an interview. In a statement on the new outlook, Walsh called predictions of delays throughout this decade "off-the-chart unacceptable". Total expenses for the industry are forecast to reach $913 billion in 2025, up 1.0% from 2024 but below earlier projections of $940 billion, as lower fuel prices help offset rising aircraft maintenance costs. IATA predicted that cargo revenues would drop 4.7% to $142 billion in 2025, mainly due to reduced global economic growth and trade-dampening protectionist measures, including tariffs. Amid a tug of war over who should absorb the tariffs, Walsh recognised that some manufacturers would be tempted to pass them on to their customers, but warned this would also push up fares. "Ultimately, when I look at this, I see consumers are going to have to end up paying for any higher costs that the industry faces," he told Reuters. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Bloomberg
29-05-2025
- Business
- Bloomberg
Boeing Aims to Review Move to 47 Max Jets a Month Near Year End
Boeing Co. aims to begin working toward boosting output of its 737 family of jetliners to 47 per month by later this year, a move that would mark a significant improvement in its factories and help put its finances on firmer footing. The planemaker is quickly approaching producing the cash cow jet at a rate of 38 planes per month, the maximum allowed by US regulators, Chief Executive Officer Kelly Ortberg said on Thursday. That's the first milestone toward returning the narrowbody jet to a pre-Covid manufacturing pace.
Zawya
15-05-2025
- Business
- Zawya
Qatar Airways orders 160 Boeing twin-aisle jets during Trump visit
DOHA/SEATTLE: Boeing landed its biggest deal for widebody airplanes on Wednesday when state carrier Qatar Airways placed firm orders for 160 jetliners plus options to buy 50 more during President Donald Trump's visit to the Gulf Arab country. The deal for Boeing 777X and 787 planes with GE Aerospace engines was worth $96 billion, according to the White House. It is a win for Trump on a high-profile visit to the region, even though it will be years before the jets are delivered. The sale is also a boost for Boeing and its biggest engine supplier at a time when large versions of rival Airbus' A350, powered by Rolls-Royce engines, have struggled with maintenance problems from operating in the world's hottest climates, including the Gulf region. The agreement is for 160 firm orders - 130 787s and 30 777Xs - and options for another 50 of the two long-haul airplanes, according to Boeing. The company's shares rose 0.6% in New York, while GE Aerospace stock gained 0.7%. For the 787s, Qatar opted for GE Aerospace's GEnx engines rather than Rolls-Royce's Trent 1000, according to the administration. GE Aerospace's GE9X is the only engine option for the 777X. The deal for 400 GE engines is the largest ever for GE Aerospace, the company's CEO Larry Culp said in a statement, a point echoed by Qatar Airways, which told Reuters in March that it was working on a large order for widebody jets. Trump and Qatar's Emir Sheikh Tamim bin Hamad Al-Thani joined a signing ceremony with Boeing CEO Kelly Ortberg and Qatar Airways CEO Badr Mohammed Al-Meer. Trump said Ortberg told him it was the largest jet order in Boeing's history. The deal was signed during Trump's second stop on a tour of Gulf states after he struck a string of deals with Saudi Arabia on Tuesday. The 777X is still in development and slated to start deliveries in 2026, six years behind schedule. Qatar Airways already has orders for 94 777Xs. Its competitor, Emirates, has orders for 205 777Xs. The two airlines were among the first customers when Boeing launched the program in 2013. Boeing's order book included 521 777X orders and 828 787 orders as of April 30, according to the company. (Reporting by Andrew Mills; Additional reporting by Allison Lampert in Montreal, Tim Hepher in Paris and Dan Catchpole in Seattle; Writing by Federico Maccioni and Yousef Saba; Editing by Ros Russell, Rod Nickel and Diane Craft)
Japan Times
15-05-2025
- Business
- Japan Times
Qatar Airways orders 160 Boeing twin-aisle jets during Trump visit
Boeing landed its biggest deal for wide-body airplanes on Wednesday when state carrier Qatar Airways placed firm orders for 160 jetliners plus options to buy 50 more during U.S. President Donald Trump's visit to the Gulf Arab country. The deal for Boeing 777X and 787 planes with GE Aerospace engines was worth $96 billion, according to the White House. It is a win for Trump on a high-profile visit to the region, even though it will be years before the jets are delivered. The sale is also a boost for Boeing and its biggest engine supplier at a time when large versions of rival Airbus' A350, powered by Rolls-Royce engines, have struggled with maintenance problems from operating in the world's hottest climates, including the Gulf region.
Free Malaysia Today
14-05-2025
- Business
- Free Malaysia Today
The former MAS man who approved billions of ringgit in transactions
Former MAS finance chief Suppiah Subramaniam showing airline staff the ropes when computers were introduced in the 1980s. (Suppiah Subramaniam pic) PETALING JAYA : The pen is mightier than the sword. This adage certainly rang true for former Malaysia Airlines (MAS) finance chief Suppiah Subramaniam during his 30-year tenure with the national carrier. Suppiah, who last served as MAS's executive vice-president of group finance, was at one point entrusted to approve financial transactions worth hundreds of millions of ringgit – all with a stroke of his pen. Recalling those historic moments in the late 1980s and '90s, Suppiah said MAS had been rapidly expanding its global routes with the purchase of Boeing and Airbus jetliners. The carrier had reportedly ordered up to 72 jetliners worth US$3.5 billion in the late '80s and, in the following decade, 25 Boeing 747 and 777 aircraft to the tune of US$3 billion. 'The purchase packages also included aircraft engines, spares, logistics support, and technical and flight-crew training. 'Aviation for the country was booming; so, too, it did for MAS,' he said at the launch of the book 'The Malaysia Airlines We Built' at the Subang National Golf Club recently. The event was officiated by former MAS deputy chairman Sulaiman Sujak, in the presence of former managing director Kamaruddin Ahmad, former engineering division deputy director Sitham Nadarajah, and MAS Retirees Association president Shulhameed Marican. The book chronicles MAS's golden era through personal stories, historical insights, and reflections on the collective mission to transform it into a world-class airline. As the head of finance, Suppiah had had a heavy responsibility to ensure all payments made were not only transparent and accounted for, but air-tight in conforming with strict fiduciary regulations. Former MAS deputy chairman Sulaiman Sujak officiating the launch of 'The Malaysia Airlines We Built' at the Subang National Golf Club on April 12. With him are (from left) Suppiah, Sitham Nadarajah and Kamaruddin Ahmad. (Adrian David pic) 'There was no margin for error as our accounts were scrutinised by an internal audit department and reputable external chartered accountants. 'This was to ensure there were no malpractices that could lead to corruption and tarnish the reputation of MAS and the country,' said Suppiah, who rose through the ranks as a technical cost accountant in 1973 and retired after 27 years with the carrier. The 83-year-old was also among those who had been instrumental in the management of the MAS cooperative society that benefited 12,000 employees through loans, insurance, financing of household items, and laundry services. He recalled that the early years of MAS, which began operating on its own from Oct 1, 1972 following the split of Malayia-Singapore Airlines, had been turbulent and very challenging. 'We had a mammoth task with very limited aircraft and assets in Kuala Lumpur. The staff made sacrifices when relocating from Singapore to kickstart a fledgling new airline. 'Fortunately, Australia's Qantas and New Zealand Airways provided experienced resources by seconding their staff in engineering and flight operations. 'Over time, driven by the team's strong desire to learn through established giants, we achieved rapid success. We were able to quickly produce among the best airline pilots, inflight crews with golden service, and aircraft maintenance engineers.' Suppiah (right) in conversation with former MAS general manager of flight operations Shulhameed Marican, who is also the president of the MAS Retirees Association. (Adrian David pic) He noted that many of MAS's in-house talents were later recruited by other airlines for their exemplary services. Suppiah added that he is proud to have been part of MAS's pioneering team that nurtured the national carrier to become an international icon and award-winning outfit. 'We proved that, as Malaysians, we could successfully build an international brand and showcase the country's capability of moulding a well-respected and talented workforce.' Meanwhile, Shulhameed said 'The Malaysia Airlines We Built' offers first-hand insights into how Malaysia's homegrown aviation workforce built an airline that once flew across six continents. 'I hope the book will serve as inspiration for future generations, even as we recognise that changes are needed in several areas to keep pace with technological advances in aviation and related sectors,' he said. The former general manager of flight operations (services and infrastructure) stressed that local talents made up the dedicated team that supported the nation's aspiration for a world-class airline, surpassing the expectations of both Malaysians and the global aviation community.
