Softening demand in both business and leisure markets is projected to send Virgin Australia’s accounts into the red. In an investor update delivered to the markets on May 17, the Australian carrier announced estimated earnings in 2019 at least A$100 million lower (69 million U.S. dollars) than the A$64.4 million reported for the 2018 financial year. The current weak demand environment is expected to last at least two more months, as uncertainties over the forthcoming Australian political elections will stifle…
Norwegian’s troubled financial situation is no news; as its rapid transatlantic expansion that set pace for an increasingly dynamic and cost-driven market between North America and Europe is passing the bill with fierce competition, volatile fuel prices and underestimating demand, making its current business structure unsustainable. In an attempt of…
Dubai-based Emirates announced that its half-year profits suffered an 86 percent drop on Thursday. The news comes after the carrier, one of the largest in the Middle East, was hit by sudden hikes in oil prices. With fuel costs making up a third of the airline’s expenses and rising by…
Jet Airways is facing a tough scenario, as it is taking heavy losses per a combination of rising costs and steep income deprecation. The tough industry environment in the backdrop of a sharp rise in Brent fuel price by more than 50 percent over Q2 FY18, a depreciating rupee and…
Ryanair is struggling pursuit of profit and the low-cost carrier giant has warned that the full-year profit will be lower than expected. The expected profit was €1.25 billion to €1.35 billion, to a new range of €1.11 billion to €1.2 billion. Ryanair shares have slumped almost 14 percent since the…
South African Airways is yet again looking for help as the airline attempts to get out of its financial hell hole from years of being unprofitable. The carrier, who has taken numerous government cash injections to stay afloat, is currently on what they call the “2021 Path to Profit” in…
The aviation industry is known for having high costs. Multi-million dollar machines fly across the world carrying passengers seeking a bargain. It’s hard to run a consistently profitable airline when so many factors impact profitability; competitors could be waging a fare war, geopolitical events can be killing demand, or the…
$2.2 billion. The net profit of two of the world’s major airlines in 2016. Those airlines, however, have much less in common than their financials might seem to indicate. One operates the truest example of a hub-and-spoke model in the world, with wide-bodied Boeing 777s and Airbus A380s touching every…
Low-cost carrier and India's largest airline by passengers and fleet size, IndiGo, has just posted its highest ever quarterly profit at Rs. 811 crore, or $127 million. The Delhi-based airline is one of few airlines in India which consistently posts profits. Last quarter, IndiGo reported a net profit growth of…
