Etihad Airways has launched its first nonstop service between Abu Dhabi and Calgary, opening a new direct connection between the UAE capital and western Canada.

The inaugural flight, EY29, arrived at Calgary International Airport on October 26. The flight was sold out, according to the airline. The arrival was marked by a ceremony attended by representatives from the Government of Alberta, airport officials and tourism partners.

The new route will operate four times a week using Etihad’s Boeing 787 Dreamliner aircraft. Calgary becomes the airline’s second Canadian destination and its westernmost gateway, complementing its established service to Toronto.

Etihad Airways Chief Executive Officer Antonoaldo Neves said the route would create new opportunities for travellers, businesses and communities in both regions. He highlighted the airline’s continued investment in network expansion, fleet growth and passenger experience, alongside Abu Dhabi’s development as an international destination and travel hub.

Alberta Minister of Jobs, Economy, Trade and Immigration Joseph Schow welcomed the new connection, saying it would help businesses and travellers access markets across the Gulf region and beyond. He also pointed to opportunities to strengthen trade, investment and tourism ties.

Chris Dinsdale, president and chief executive of Calgary Airports, said the service would establish a direct link between two dynamic regions and improve Calgary’s international connectivity.

Alisha Reynolds, president and chief executive of Tourism Calgary, also welcomed the launch, highlighting the city’s diverse population, natural landscapes and visitor experiences. She said the route would help bring more international travellers to Calgary.

The new service adds another direct link between Canada and the Middle East, offering passengers more options for travel between western Canada, Abu Dhabi and destinations across Etihad’s global network.

Source: Trade Arabia News Service

Airlines worldwide faced $24.5 billion in payment processing costs in 2025, as transaction expenses continued to grow faster than sales, according to the International Air Transport Association (IATA).

The costs were incurred against total airline sales of $1.05 trillion, marking a 10.4% increase in payment expenses compared with 2023. Sales rose by 7.7% over the same period, from $977 billion, IATA said.

Average payment processing costs reached $5 per passenger, exceeding the $4.50 net profit per passenger the association expects airlines to earn in 2026.

Sandrine Le Borgne, IATA’s interim director general and chief financial officer, said rising transaction expenses were a growing concern for an industry operating on narrow margins. She called for greater cost efficiency despite advances in payment technology.

Payment fees dominate airline expenses

Direct payment fees accounted for $20.7 billion, or 84.5% of total industry payment costs in 2025. A further $2.9 billion, representing 11.8%, covered operational expenses associated with payment systems, delayed cash flow, staffing and compliance.

Fraud and uncollected sales accounted for the remaining $900 million, or 3.7%.

The payment method also influenced costs. Card transactions carried an average fee of 2.53%, compared with an estimated industry-wide average of 1.97%. The least expensive payment options charged fees as low as 0.01%.

IATA encourages alternative payment methods

IATA is exploring ways to reduce transaction expenses by expanding access to lower-cost payment options. Its 2025 Global Passenger Survey found that 29% of respondents preferred digital wallets, while 8% favoured local instant payment services.

The association’s IATA Pay platform enables passengers to purchase travel using local instant payment systems. It is available in 34 countries and supports 38 payment schemes.

Meanwhile, the IATA Financial Gateway (IFG) helps airlines and travel suppliers manage payments across multiple sales channels. The platform operates in more than 170 countries and supports over 300 payment methods.

IATA is also working to improve transparency in agency card payments through its Transparency in Payments initiative. The system allows airlines to establish payment policies within the IATA Billing & Settlement Plan, helping them assess agency card transactions against customer card payments and alternatives such as IATA EASY PAY.

Corporate travel payment reforms

The association is collaborating with airlines and corporate clients on a new approach to business travel payments as the industry moves towards an Offers & Orders model. The initiative aims to simplify reconciliation, improve data quality and give airlines and corporate customers greater flexibility.

IATA has also introduced the Airline Payment Framework – Management Foundation to help airlines align commercial, financial and operational priorities when assessing payment options.

Beyond lowering costs, alternative payment methods could help carriers recover sales lost when transactions are declined. Le Borgne said IATA research indicated that about one in five attempts to purchase ancillary services was abandoned after an initial payment was refused and no alternative was available.

The findings highlight the growing importance of payment management as airlines seek to control expenses, protect profit margins and make purchasing easier for passengers.

Source: TradeArabia

Abu Dhabi Airports has welcomed the launch of Air India Express flights connecting Zayed International Airport with Amritsar, alongside the resumption of direct services to Goa.

Both routes began operations on October 25, with each operating three times a week.

The latest additions follow Air India Express’s expansion in Abu Dhabi over the past year, during which the airline introduced services to six Indian cities. It now operates around 160 weekly flights between Abu Dhabi and India, linking the emirate directly with 17 Indian cities.

The expanded network is expected to offer passengers more travel options while strengthening connections between the UAE and India.

Carsten Norland, chief commercial officer of Abu Dhabi Airports, said India remained one of Abu Dhabi’s most important markets. He said the Amritsar launch and the return of Goa flights would further strengthen ties between the two countries and broaden passenger choices as the airport deepens its partnership with Air India Express at Zayed International Airport (AUH).

Nipun Aggarwal, chairman of Air India Express and chief commercial officer of Air India, said the new Amritsar service and the resumption of Goa flights reinforced Abu Dhabi’s role in the airline’s expanding international network.

He added that the developments reflected the airline’s continued commitment to improving connectivity between India and the UAE, while providing greater convenience for travellers and supporting stronger community, cultural and economic links between the two countries.

Source: TradeArabia

Etihad Airways has launched its first nonstop service between Abu Dhabi and Calgary, opening a new direct connection between the UAE capital and western Canada.

The inaugural flight, EY29, arrived at Calgary International Airport on October 26. The flight was sold out, according to the airline. The arrival was marked by a ceremony attended by representatives from the Government of Alberta, airport officials and tourism partners.

The new route will operate four times a week using Etihad’s Boeing 787 Dreamliner aircraft. Calgary becomes the airline’s second Canadian destination and its westernmost gateway, complementing its established service to Toronto.

Etihad Airways Chief Executive Officer Antonoaldo Neves said the route would create new opportunities for travellers, businesses and communities in both regions. He highlighted the airline’s continued investment in network expansion, fleet growth and passenger experience, alongside Abu Dhabi’s development as an international destination and travel hub.

Alberta Minister of Jobs, Economy, Trade and Immigration Joseph Schow welcomed the new connection, saying it would help businesses and travellers access markets across the Gulf region and beyond. He also pointed to opportunities to strengthen trade, investment and tourism ties.

Chris Dinsdale, president and chief executive of Calgary Airports, said the service would establish a direct link between two dynamic regions and improve Calgary’s international connectivity.

Alisha Reynolds, president and chief executive of Tourism Calgary, also welcomed the launch, highlighting the city’s diverse population, natural landscapes and visitor experiences. She said the route would help bring more international travellers to Calgary.

The new service adds another direct link between Canada and the Middle East, offering passengers more options for travel between western Canada, Abu Dhabi and destinations across Etihad’s global network.

Source: Trade Arabia News Service

Qatar Airways has announced a new codeshare agreement with Canadian airline WestJet, expanding travel options across Canada and improving connections to destinations worldwide.

Under the partnership, Qatar Airways will place its QR flight code on selected WestJet services, allowing passengers to connect through Toronto Pearson International Airport (YYZ) and Montréal-Trudeau International Airport (YUL) to Vancouver, Calgary, Edmonton, Halifax, Ottawa, Regina, Saskatoon, St. John’s and Winnipeg.

WestJet passengers will also gain access to Qatar Airways’ global network of more than 170 business and leisure destinations. These include New Delhi, Nairobi, Singapore and Jeddah, providing travellers in Canada with additional international connection options.

The agreement comes as Qatar Airways increases its own services to Canada. From October 25, 2026, the airline will raise its weekly frequencies from 12 to 14, with daily flights to both Toronto and Montreal.

The addition of WestJet to Qatar Airways’ expanding network of airline partners reflects its strategy of strengthening international connections and offering passengers more flexible travel options.

Source: Qatar Airways

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