US airlines are increasingly choosing to leave seats unsold rather than lower ticket prices to attract more passengers, relying on tighter capacity management and pricing discipline to protect profitability as fuel expenses climb.

The approach has helped carriers increase revenue as travel demand has remained resilient despite significant fare rises. However, profits continue to face pressure after jet fuel prices climbed by around 90% since the US-Israeli war on Iran began in February, prompting several major airlines to reduce their earnings forecasts.

Executives at Delta Air Lines, United Airlines, American Airlines, Southwest Airlines and Alaska Air Group have stressed the importance of preserving profit margins rather than pursuing passenger growth at the expense of ticket prices.

Maintaining that strategy could become more difficult in 2027, when airline schedules indicate a faster expansion in capacity. More available seats could intensify competition for travellers, while persistently high fuel prices may limit airlines' ability to repeat the substantial fare increases achieved this year.

American Airlines Chief Financial Officer Devon May told Reuters on Thursday that carriers would need to keep increasing passenger yields if fuel costs remained elevated. Yield refers to the revenue an airline earns for each mile flown by a passenger.

According to Airlines for America, citing Cirium data, six major US carriers plan to increase domestic capacity by 3.0% year on year in the fourth quarter and by 3.8% in the first quarter of 2027. That would represent a marked acceleration from the 0.2% growth recorded in the third quarter.

Source: Reuters

US airlines are increasingly choosing to leave seats unsold rather than lower ticket prices to attract more passengers, relying on tighter capacity management and pricing discipline to protect profitability as fuel expenses climb.

The approach has helped carriers increase revenue as travel demand has remained resilient despite significant fare rises. However, profits continue to face pressure after jet fuel prices climbed by around 90% since the US-Israeli war on Iran began in February, prompting several major airlines to reduce their earnings forecasts.

Executives at Delta Air Lines, United Airlines, American Airlines, Southwest Airlines and Alaska Air Group have stressed the importance of preserving profit margins rather than pursuing passenger growth at the expense of ticket prices.

Maintaining that strategy could become more difficult in 2027, when airline schedules indicate a faster expansion in capacity. More available seats could intensify competition for travellers, while persistently high fuel prices may limit airlines' ability to repeat the substantial fare increases achieved this year.

American Airlines Chief Financial Officer Devon May told Reuters on Thursday that carriers would need to keep increasing passenger yields if fuel costs remained elevated. Yield refers to the revenue an airline earns for each mile flown by a passenger.

According to Airlines for America, citing Cirium data, six major US carriers plan to increase domestic capacity by 3.0% year on year in the fourth quarter and by 3.8% in the first quarter of 2027. That would represent a marked acceleration from the 0.2% growth recorded in the third quarter.

Source: Reuters

The US Federal Aviation Administration (FAA) has granted final approval to Boeing’s 737 MAX 10, clearing a major regulatory hurdle for the aircraft and paving the way for deliveries to begin.

The certification, announced on Tuesday, marks a significant milestone for Boeing as it seeks to recover financially after years of crises and setbacks that delayed the development of the largest variant of its best-selling 737 family.

According to aviation analytics consultancy IBA, airlines have ordered more than 1,550 MAX 10 aircraft. The model represents 31% of Boeing’s outstanding 737 order backlog and is expected to play a key role in the company’s efforts to strengthen cash flow.

The aircraft is also central to Boeing’s competition with European manufacturer Airbus in the lucrative single-aisle jet market, where Airbus’s A321neo has gained ground during the MAX 10’s prolonged certification process. China’s COMAC C919 remains a more distant competitor in the segment.

US Transportation Secretary Sean Duffy highlighted the importance of the approval during a visit to Boeing’s manufacturing facility in Everett, Washington, on Tuesday. He said the United States wanted to maintain its competitive position against European and Chinese aircraft manufacturers, adding that faster certification processes would be important to achieving that goal.

Boeing has been working to secure certification for the 737 MAX 10 since the early 2020s. The company’s shares closed down approximately 0.5% on Tuesday.

In July, Boeing opened a new production line at its Everett facility to increase 737 output. The aircraft family is also assembled at the company’s nearby Renton, Washington, plant.

Further regulatory approvals are still required from Transport Canada and the European Union Aviation Safety Agency. Mike Sinnett, Boeing Commercial Airplanes’ senior vice president overseeing development programmes, said those certifications could be completed in “probably a couple months.”

Once the remaining approvals are secured, Boeing expects to deliver the first 737 MAX 10 to Canadian carrier WestJet, with the handover scheduled for early next year.

The MAX 10 is the largest aircraft in the 737 MAX family, accommodating up to 230 passengers. By comparison, the MAX 9 can carry up to 195 passengers, while the MAX 7 has a maximum capacity of 160.

The certification is expected to help Boeing advance its delivery plans, although the extended delays have already allowed Airbus’s A321neo to capture a larger share of the market for larger single-aisle aircraft.

Source: Reuters

Dubai-based low-cost carrier flydubai is nearing completion of its new aircraft maintenance centre at Dubai South, with construction scheduled to finish by the end of the year.

Covering 32,600 square metres, the purpose-built facility is one of the airline’s largest investments in aviation infrastructure. Following construction, the project will undergo an extensive phase of operational preparation and technical commissioning.

Chief Executive Officer Ghaith Al Ghaith announced the progress during a site inspection at the Mohammed bin Rashid Aerospace Hub (MBRAH), where construction began in 2025. He was accompanied by senior executives, including Chief Commercial Officer Hamad Obaidalla, Chief Procurement and Technology Officer Mohammed Hareb AlMheiri, Chief Operations Officer Mick Hills and Chief Financial Officer Francois Oberholzer.

Al Ghaith said the project marks an important step towards greater operational independence and the development of the airline’s long-term technical capabilities.

As flydubai expands its fleet and destination network, establishing in-house maintenance facilities is expected to improve operational flexibility, strengthen resilience and increase efficiency, he added.

The $190 million investment also supports the airline’s long-term plans for Dubai World Central (DWC) over the coming decade. According to Al Ghaith, the facility will play an important role in Dubai South’s aviation ecosystem and contribute to the objectives of the Dubai Economic Agenda D33.

The initiative aligns with Dubai’s broader ambition to strengthen its position as a leading global centre for aviation, logistics, trade and tourism.

Source: TradeArabia

Jordan is set to strengthen its air links with Russia as Royal Jordanian (RJ) prepares to launch a direct route between Moscow and Aqaba on December 20.

The Aqaba Special Economic Zone Authority (ASEZA), Royal Jordanian and the Jordan Tourism Board (JTB) signed an operational support agreement on Tuesday to establish the service, according to the Jordan News Agency, Petra. The airline will operate two flights per week between the Russian capital and the Jordanian coastal city.

Thabet Nabulsi, ASEZA commissioner for tourism and youth affairs, said the initiative supports the authority’s strategy to expand Aqaba’s international connections, attract more visitors and generate economic and tourism growth.

He described Russia as an important potential source market, highlighting Aqaba’s coastal attractions and its proximity to prominent destinations such as Petra and Wadi Rum.

Royal Jordanian Chief Commercial Officer Karim Makhlouf said the new service represents a major step in expanding the airline’s operations from Aqaba. It will be the city’s first long-haul international route and Royal Jordanian’s fourth direct international destination from Aqaba, joining Cairo, Riyadh and Abu Dhabi.

Makhlouf said the route, developed in partnership with ASEZA and the JTB, is intended to attract more tourists and position Aqaba as a gateway to Jordan’s wider tourism offerings.

The initiative forms part of ASEZA’s broader strategy to expand international air connectivity and reinforce Aqaba’s standing as a regional centre for tourism and investment.

The new flights are expected to improve access to the city’s coastal and marine attractions, diving sites, hotels and resorts. They will also make it easier for visitors to combine stays in Aqaba with trips to other destinations across Jordan.

Tourism-related businesses, including hotels, restaurants, transport operators and commercial services, are expected to benefit from increased visitor spending. The initiative could also support employment and wider private-sector activity.

ASEZA said it would continue collaborating with public and private sector partners to secure more direct air services, diversify tourism source markets and establish Aqaba as a year-round gateway for tourism and economic activity.

Source: The Jordan Times

Dubai Aerospace Enterprise (DAE) has delivered the tenth and final Boeing 737-9 aircraft to United Airlines under a sale-and-leaseback agreement signed in 2026.

The transaction brings DAE’s total portfolio of Boeing 737 and Airbus A320 family aircraft leased to United Airlines to 26.

DAE Chief Executive Officer Firoz Tarapore said the airline had again entrusted the company with executing a transaction following the success of a similar mandate the previous year. He noted that the latest deal was completed within three months of document execution, highlighting the efficiency and expertise of both teams.

DAE said the transaction was carried out in partnership with Equator and Mustang, with its DAE Capital division providing servicing and an integrated customer experience.

The company expects the deal to expand its portfolio of next-generation, fuel-efficient aircraft while supporting United Airlines’ fleet growth.

Boeing’s 737 MAX family is designed to deliver improved fuel efficiency, reduced emissions and enhanced passenger comfort. According to DAE, the aircraft can reduce fuel consumption and emissions by 20% compared with the aircraft it replaces.

DAE currently owns, manages or has commitments to own or manage approximately 1,000 aircraft. Its portfolio includes 367 Boeing aircraft, of which 206 are from the 737 MAX family.

The lessor plans to continue expanding its fleet amid growing demand for aircraft.

Source: Trade Arabia News Service