Latest news with #A320neo
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Business Standard
5 days ago
- Business
- Business Standard
IndiGo to restore 80 grounded planes by 2026; airfares may ease slightly
IndiGo is expected to return most of its grounded planes to service by early 2026, boosting its active fleet by nearly 80 aircraft in the financial year 2025–26 (FY26), according to a report by The Economic Times. This increase is about twice the airline's typical annual addition of 40 planes. Grounded aircraft to rejoin operations Currently, around 40 of IndiGo's planes are grounded. With improved engine supply from Pratt & Whitney (PW) and longer engine life between repairs, approximately 30 of these will return to active service. The remaining 10 will be released back to lessors as their lease terms expire. Will fares come down as capacity rises? IndiGo's current operating fleet stands at 434 aircraft. The planned expansion could help moderate airfares, which have remained elevated due to capacity constraints. However, aviation analysts caution that since some of the additional capacity will be used to launch new international routes, any drop in domestic fares may be limited. Engine issues contribute to recent financial pressure IndiGo's financials have been strained due to engine-related groundings. The number of aircraft powered by PW's geared turbofan engines and currently grounded has exceeded 40. Combined with high aviation turbine fuel prices, these issues led InterGlobe Aviation Ltd — IndiGo's parent — to post a ₹987 crore consolidated loss in Q2 FY25, compared to a ₹189 crore profit in the same quarter the previous year. Strong Q4 performance boosts annual outlook Despite the Q2 setback, IndiGo posted its highest-ever consolidated net profit in Q4, with a 61.9 per cent year-on-year rise to ₹3,068 crore. Strong travel demand during the Mahakumbh in Prayagraj, an extended wedding season, fewer grounded planes, and better cost management contributed to the gains. For FY25 overall, IndiGo's profit stood at ₹7,258 crore — an 11.2 per cent decline from FY24. Rare defect detected in A320neo engines Pratt & Whitney previously flagged a rare powder metal defect in engines used on A320neo aircraft, which could cause component cracking. In September, it announced that 600–700 engines would require detailed quality inspections between 2023 and 2026. To mitigate the disruption, IndiGo extended leases on older A320ceo aircraft and secured both narrow-body and wide-body aircraft on wet lease agreements.
Business Wire
15-05-2025
- Business
- Business Wire
Aviation Capital Group Announces First Quarter 2025 Results
NEWPORT BEACH, Calif.--(BUSINESS WIRE)--Aviation Capital Group LLC ('ACG'), a premier global full-service aircraft asset manager, today announced its financial results for the first quarter of 2025. ACG's financial statements and investor presentation for the first quarter of 2025 are available on its website at Financial Results Total revenues of $280.6 million for the three months ended March 31, 2025 Total pre-tax net income of $27.0 million for the three months ended March 31, 2025 Liquidity of $4.5 billion as of March 31, 2025, comprised of $4.3 billion available under our unsecured revolving credit facilities and $0.2 billion in unrestricted cash Net debt to equity ratio of 2.3x as of March 31, 2025 Cash flows from operations of $124.6 million for the three months ended March 31, 2025 Cash flows used in investing activities of $868.1 million for the three months ended March 31, 2025, primarily attributable to nearly $1.0 billion used to purchase aircraft assets partially offset by $131.0 million from sales of aircraft assets Strong sales pipeline, with $336.6 million of aircraft held for sale as of March 31, 2025 Portfolio Highlights Added fifteen new technology aircraft during the first quarter, comprised of twelve Boeing 737 MAX family aircraft, two A350-900 aircraft, and one A320neo family aircraft from a combination of OEM orderbook deliveries and sale-leaseback transactions Sold five aircraft, two engines, and one airframe for a net gain of approximately $31.4 million during the first quarter, which includes $4.1 million recognized in Other income from a gain on the sale of one aircraft on finance lease Weighted average age of our owned portfolio was 5.9 years as of March 31, 2025 Weighted average remaining lease term was 6.9 years as of March 31, 2025 Financing Activity Issued $800 million of senior unsecured notes, compromised of $300 million due April 2027 with a coupon of 4.75% and $500 million due April 2030 with a coupon of 5.125% Unencumbered asset coverage ratio was 1.5x as of March 31, 2025 Material Events Subsequent to March 31, 2025 Entered into settlement agreements with certain of our insurers for cash proceeds totaling approximately $398 million in connection with settling a portion of our insurance claims related to our confiscated aircraft that remain in Russia Signed a definitive agreement with Avolon Aerospace Leasing Limited (Avolon) to acquire a twenty-aircraft portfolio, comprised of sixteen narrowbody and four widebody aircraft, with a weighted average age of approximately 4.1 years and a weighted average remaining lease term of approximately 8.4 years Notes Regarding Financial Information Presented in This Press Release The financial information presented in this press release is not audited. We reference certain metrics in this press release, as well as net debt to equity, which is a non-GAAP number. Net debt is our total outstanding debt less our cash and cash equivalents. Equity is our total equity as determined in accordance with GAAP. We believe this measure may further assist investors in their understanding of our performance. This measure should not be viewed in isolation and should only be used in conjunction with and as a supplement to our U.S. GAAP financial measures. Non-GAAP measures and metrics are not uniformly defined by all companies, including those in our industry, and so this additional information may not be comparable with similarly-titled measures and metrics and disclosures by other companies. Please refer to our Q1 2025 Investor Presentation located at for additional information regarding certain metrics referenced in this press release and a reconciliation of net debt to equity to its most directly comparable GAAP financial measure. Forward-Looking Statements This press release contains forward-looking statements within the meaning of applicable federal securities laws, including our pending purchase of aircraft from Avolon. Any such statements, other than statements of historical fact, are based upon our current expectations and assumptions concerning future events, which are subject to a number of risks and uncertainties that could cause actual results to differ materially from those anticipated. Accordingly, such statements are not guarantees or assurances of any aspect of future performance. Except as required by applicable law, we do not undertake any obligation to, and will not, update any forward-looking statements, whether as a result of new information, future events or otherwise. About Aviation Capital Group Aviation Capital Group is one of the world's premier full-service aircraft asset managers with approximately 500 owned, managed and committed aircraft as of March 31, 2025, leased to roughly 80 airlines in approximately 45 countries. It specializes in commercial aircraft leasing and provides certain aircraft asset management services and aircraft financing solutions for third parties. It was founded in 1989 and is a wholly owned subsidiary of Tokyo Century Corporation. Follow ACG on LinkedIn, and for more information, visit
Mint
15-05-2025
- Business
- Mint
IndiGo's reliance on Pratt & Whitney engines continues to decline amid shift to CFM-powered fleet
IndiGo, India's largest carrier, was the first to induct the A320neo in the country. The aircraft arrived in March 2016, already delayed from its expected induction date. GoAir soon followed with its own induction. No sooner had they started flying than issues emerged, including warnings that required planes to turn around and land, as well as instances of in-flight engine shutdowns. These aircraft were powered by Pratt & Whitney's next-generation technology called GTF, or Geared Turbofan. Operations stabilised over time, aided by limited flying during the pandemic, until the powder metal issue surfaced. Pratt & Whitney identified defects in the powder metal used to manufacture high-pressure turbine and compressor discs in some of their geared turbofan engines. This affected airlines globally, particularly those operating the A320neo family fleet. While IndiGo experienced groundings, Go First ceased operations, blaming the engine manufacturer and initiating litigation in courts in the United States. Over the last few quarters, IndiGo has slowly but steadily phased out Pratt & Whitney-powered aircraft as part of its lease-end timelines with lessors. The Directorate General of Civil Aviation (DGCA) updated its fleet data as of April 30, showing that IndiGo operates a fleet of 411 aircraft. This includes three freighters, 48 ATR 72-600s, and 26 A320ceos. The remaining 360 aircraft belong to the A320neo family, comprising 97 A320neos powered by Pratt & Whitney and CFM. The A321neo fleet includes 24 aircraft powered by Pratt & Whitney, while the remaining 116 are powered by CFM. Pratt & Whitney-powered aircraft now account for less than 30 per cent of IndiGo's total fleet and represent 33.6 per cent of the A320 family fleet as of the end of April. At one point, the airline had as many as 70–80 aircraft grounded, but has since seen a gradual return to service for many of them. According to its most recent guidance, the number of grounded aircraft was expected to reduce to the mid-40s after April. The exact figure may be disclosed in the management commentary following its quarterly results. The results for Q4 FY25 and the full-year FY25 are expected to be announced before the end of June. The shift to CFM-powered aircraft reflects the airline's preference for CFM engines over Pratt & Whitney for its subsequent orders. IndiGo chose CFM as the engine supplier for its next batch of Airbus aircraft ordered in 2019, following its initial A320neo order in 2011 Even as IndiGo continues to invest in newer aircraft and moves toward a fully CFM-powered A320neo family fleet, the airline has, in the past, renewed leases on Pratt & Whitney-powered planes to tide over aircraft shortages. Some of these planes have been seen flying in non-standard IndiGo livery, bearing only the name and not the full branding. The move to CFM has also been driven by a calibrated delivery schedule favouring A321neo aircraft over the A320neo. IndiGo now operates 194 A320neo and 140 A321neo aircraft. The A321neo, with 232 seats, offers 24.73% more seating capacity per flight than the A320neo. Over the past few years, the airline has significantly expanded its order book. As of the end of April 2025, IndiGo has 791 A321neo and 449 A320neo aircraft on order. A total of 916 aircraft are yet to be delivered from its firm order book, which also includes 30 A350s. The airline has confirmed that it has been receiving compensation from Pratt & Whitney but has remained silent on the extent of the compensation, citing contractual obligations. It classifies this compensation as Income from Operations in its balance sheet. As the number of grounded aircraft declines, the airline has several options: it could retire Pratt & Whitney-powered planes at the end of their lease, or extend the leases for a short duration to account for delays in deliveries from Airbus. This would also help facilitate the return of all damp-leased narrowbody aircraft, depending on how the cost dynamics play out. Last year, Pratt & Whitney introduced the GTF Advantage, the next iteration of its geared turbofan technology. The company claims the new engine offers cost and revenue benefits through lower fuel consumption, resulting in higher payload capacity and extended range. Pratt & Whitney says the engine will deliver 4–8 per cent more takeoff thrust, enabling improved performance in both areas. IndiGo has yet to announce its choice of engine for the 500-aircraft order it placed at the Paris Air Show in 2023. Deliveries are set to begin in the early next decade, giving the airline time to decide. Will Pratt & Whitney be in contention again, or will CFM have a clear path to securing the deal? Business decisions are driven by objectivity and cost, and if Pratt & Whitney can deliver on its promises, it might stage a comeback in Indian aviation deals after a period of decline.
Mid East Info
14-05-2025
- Business
- Mid East Info
Airbus delivers first A321neo for Kuwait Airways - Middle East Business News and Information
Toulouse, France,May 2025 – Airbus has delivered the first A321neo to Kuwait Airways, the national carrier of the State of Kuwait. The delivery marks the first of nine A321neo aircraft on order with the airline and is part of Kuwait Airways' transformation strategy, which includes fleet modernisation to drive growth. Kuwait Airways' A321neo features a spacious and modern cabin with 166 seats across two classes – 16 full-flat business class seats offering premium comfort and 150 economy class seats designed for enhanced passenger space. Passengers will enjoy the award-winning Airspace cabin, which offers a quieter and more relaxing atmosphere, with customisable lighting and the latest generation in-flight entertainment and connectivity systems. The A321neo complements Kuwait Airways' existing A320neo and A330neo fleet, enabling greater flexibility and operational efficiency across its network. The range and capacity of the A321neo makes it ideally suited for regional and medium-haul routes, including seasonal services to South Asian and European destinations. Kuwait Airways currently operates a fleet of nine Airbus A320neo and six of the latest generation A330neo aircraft. As with all Airbus aircraft, the A321neo is already able to operate with up to 50% Sustainable Aviation Fuel (SAF). Airbus is targeting to have its aircraft up to 100% SAF capable by 2030. To date, more than 7,000 A321neo aircraft have been ordered by more than 95 customers across the globe.
Trade Arabia
14-05-2025
- Business
- Trade Arabia
Airbus delivers first A321neo for Kuwait Airways
Airbus has delivered the first A321neo to Kuwait Airways, the national carrier of Kuwait, marking the first of nine A321neo aircraft on order. The aircraft is part of Kuwait Airways' transformation strategy, which includes fleet modernisation to drive growth. The A321neo features a spacious cabin with 166 seats across two classes, including 16 full-flat business class seats and 150 economy class seats. The award-winning Airspace cabin offers a quieter atmosphere, customizable lighting, and the latest generation in-flight entertainment and connectivity systems. The A321neo complements Kuwait Airways' existing A320neo and A330neo fleet, enabling greater flexibility and operational efficiency.
