Cathay Pacific Airways expects its first-half profit to increase by up to 76% year-on-year, driven by strong demand for passenger and cargo services, improved contributions from its low-cost subsidiary HK Express and higher earnings from associated companies.

The Hong Kong-based airline group said it expects to report a profit of between HK$6 billion and HK$6.5 billion ($765.4 million to $829.1 million) for the six months ended June 30, compared with HK$3.7 billion in the same period last year.

The projected results include a one-time gain of approximately HK$1.4 billion following the partial dilution of Cathay Pacific's stake in Air China. Excluding the one-off item, the airline said its underlying performance was supported by sustained strength in both passenger and cargo operations.

The earnings outlook comes as airlines worldwide contend with sharply higher fuel costs. The International Air Transport Association (IATA) forecast in June that the industry's fuel bill would climb to around $350 billion this year, up from $252 billion in 2025, with average jet fuel prices reaching $152 per barrel. Cathay acknowledged the cost pressures while reporting stronger financial performance.

Cathay Pacific shares rose more than 3% in afternoon trading after the airline's profit guidance exceeded some market expectations. HSBC had previously forecast first-half profit of HK$5.1 billion.

Cargo operations continued to perform strongly, with Cathay Cargo transporting 9% more freight in June than a year earlier. Cargo volumes for the first half of the year also increased by 9%.

Chief Customer and Commercial Officer Lavinia Lau said demand for semiconductor and pharmaceutical shipments had been a key driver of cargo growth, benefiting the airline's Cathay Expert and Cathay Pharma services. She added that the company is monitoring the potential impact of new European customs duties on low-value e-commerce imports.

Passenger traffic also remained strong. Cathay Pacific carried 12% more passengers in June than a year earlier, while available seat kilometres increased by 6%. Passenger numbers for the first six months of the year were up 17%.

Load factors remained resilient despite June typically being a slower travel period, supported in part by rerouted passenger traffic through Hong Kong amid the ongoing conflict in the Middle East. Demand for premium cabins also stayed strong, driven by corporate travel and high-end leisure passengers.

Lau said the airline remains optimistic about the upcoming summer travel season, particularly across its long-haul network.

HK Express recorded a 4% decline in passenger numbers during June after reducing capacity to offset higher fuel costs. However, Lau said bookings for July are running ahead of the same period last year.

Source: ZAWYA

Boeing finished ahead of Airbus in aircraft orders announced at this year's Farnborough International Airshow, although overall deal activity remained subdued as manufacturers concentrated on easing production constraints and delivering record order backlogs.

According to a Reuters tally, Boeing recorded 173 firm and provisional aircraft orders during the event, while Airbus secured 154 commitments, giving the two manufacturers a combined total of 327 aircraft.

After excluding transactions that had already been included in manufacturers' order books without initially identifying customers, including Boeing's share of a major lessor agreement, the adjusted total stood at 218 aircraft.

The figures broadly matched industry expectations of just over 300 orders but fell well below some forecasts that had projected as many as 800 aircraft. Although slightly higher than the total announced at the 2024 Farnborough Airshow, the order volume remained far below the 1,109 aircraft recorded at the 2018 event.

Analysts said the quieter order activity reflects a changing industry landscape, with manufacturers focusing on increasing production rather than pursuing large order announcements.

"I didn't have high expectations of big commercial orders at the show, not particularly because of the current macro or geopolitical climate, but because a lot of large orders are already out there," airline analyst John Strickland said.

Airbus and Boeing continue to grapple with supply chain disruptions, labour shortages and manufacturing challenges that have pushed delivery schedules well into the next decade.

Boeing Commercial Airplanes President and Chief Executive Stephanie Pope said customer demand remains strong, noting that production capacity, rather than demand, is the industry's biggest challenge.

Airbus used the event to showcase its A350-1000 as it studies a potential stretched version of the aircraft to compete with Boeing's delayed 777X programme. Boeing, meanwhile, did not display any of its main commercial aircraft models, three of which are currently undergoing certification.

The largest commercial transaction announced during the airshow came from SMBC Aviation Capital, the world's second-largest aircraft lessor, which placed an order for 200 single-aisle aircraft equally split between the two manufacturers. The company ordered 100 Boeing 737 MAX aircraft and 100 Airbus A320neo Family jets.

The agreement highlighted continued strong demand for narrowbody aircraft despite limited delivery slots and ongoing supply chain bottlenecks. Other notable deals included widebody aircraft purchases by Riyadh Air and Philippine Airlines from both Airbus and Boeing, while leasing company AerCap expanded its Boeing 787 order book.

Brazilian manufacturer Embraer also secured orders for 50 aircraft, including 20 freighters.

Beyond aircraft sales, CFM International announced a record order for more than 1,000 LEAP-1A engines to power 500 Airbus aircraft previously ordered by IndiGo, underscoring sustained demand for next-generation engines.

The global engine manufacturing sector continues to face pressure from spare parts shortages and extended maintenance times following years of rapid fleet growth. However, both CFM International and Pratt & Whitney said industrial conditions are steadily improving as supply chains recover.

Source: Reuters

The International Air Transport Association (IATA) has appointed Saadia Zahidi, Managing Director of the World Economic Forum, as its next Director General, according to an internal memo.

Zahidi is set to assume the role on November 1, succeeding Willie Walsh, who is leaving the airline industry body to join Indian carrier IndiGo.

The leadership transition marks a new chapter for IATA, the global trade association representing airlines worldwide, as Zahidi takes over at a time when the aviation industry continues to navigate fleet shortages, supply chain constraints and sustainability challenges.

Source: ZAWYA

Oman's Civil Aviation Authority (CAA) has approved Air Tanzania's launch of scheduled direct passenger flights between the Sultanate of Oman and the United Republic of Tanzania.

The new service will connect Muscat International Airport with Dar es Salaam and Zanzibar, providing travellers with a nonstop link between the two countries.

Air Tanzania, the national carrier of Tanzania, will operate the route three times a week.

The inaugural flights are scheduled to begin on July 25, marking a new milestone in strengthening aviation links and enhancing travel connectivity between Oman and Tanzania.

Source: ZAWYA

Saudi Arabian low-cost airline flynas has confirmed the purchase of 25 Airbus aircraft, comprising five A330neo widebody jets and 20 A321neo aircraft, as it continues to expand its fleet and route network.

The latest agreement increases the airline's confirmed Airbus orders to 235 aircraft from a total orderbook of 280. It also raises flynas' confirmed orders for the A330neo to 20 aircraft, while its A320 Family commitments now total 215 aircraft.

Flynas said the additional aircraft will support the continued expansion of its six operating bases across Saudi Arabia and strengthen operational capabilities for its newly launched flynas Syria operations.

Chief Executive Officer and Managing Director Bander Almohanna said the expanded fleet will enable the airline to enter new markets, reinforce its role as a logistics partner and support Saudi Arabia's ambition to become a global tourism and travel hub.

He added that the additional aircraft will also contribute to the Kingdom's Pilgrim Experience Program by improving access to the Two Holy Mosques and increasing the capacity of the national aviation sector.

According to Almohanna, expanding confirmed Airbus orders to 235 aircraft will enhance flynas' long-term growth strategy and position the airline to support Saudi Arabia's economic transformation, major tourism developments and upcoming international events, including Expo 2030 and the FIFA World Cup 2034.

Source: ZAWYA

Airbus is pressing ahead with the development of its next-generation single-aisle aircraft, targeting a 2030 programme launch and entry into service by 2035, as it also advances plans for hydrogen-powered aviation.

Speaking at the Farnborough International Airshow, Bruno Fichefeux, Head of Future Programmes at Airbus, said the manufacturer is making progress on technologies aimed at significantly improving aircraft efficiency, including advanced wing designs, lighter materials and more fuel-efficient engines.

Airbus is aiming to reduce fuel consumption by between 20% and 30% on its future narrowbody aircraft. The company is also modernising its manufacturing processes with greater automation to improve production efficiency and quality.

A key focus is the "Wing of Tomorrow" programme, featuring longer, foldable wings designed to enhance aerodynamic performance. Airbus plans to begin flight testing later this year using an A321 fitted with the new wing technology, with an X-Wing demonstrator expected to fly from Cazaux Air Base in southern France.

The flight tests are intended to validate the aerodynamic benefits of the extended wing design and confirm its contribution to lower fuel consumption.

On propulsion, Fichefeux said Airbus continues to view the open-fan engine being developed by CFM International, the joint venture between GE Aerospace and Safran, as a promising option for its future aircraft because of its projected fuel-efficiency gains. Wind tunnel testing is planned as Airbus works toward making a final technology decision before 2030.

However, he said the company is continuing research with multiple engine manufacturers, including Pratt & Whitney, on advanced enclosed-engine concepts and remains open to alternative technologies if required.

Fichefeux noted that while engines have historically been the primary driver of fuel efficiency improvements, future aircraft performance will depend equally on advances in wing design and overall aerodynamics.

Airbus is also expanding its ambitions in hydrogen propulsion through a newly announced joint venture with Germany's MTU Aero Engines. The partnership aims to develop hydrogen-powered propulsion systems for future electric aircraft and establish a European capability in the emerging technology.

The move comes as Airbus seeks to strengthen Europe's competitiveness in sustainable aviation, with Fichefeux highlighting increasing investment by China in hydrogen technologies and calling for greater European efforts to maintain technological leadership.

Source: QCAA