Wednesday, December 20, 2023
Due to rising travel demand, major airlines such as Lufthansa Airlines, Ethiopian Airlines, Vietnam Airlines, and EasyJet Airlines are ramping up aircraft purchases and expanding their airline fleets. Lufthansa Airlines has committed $9 billion for 80 new planes, with options for another 120. This is boost global aviation industry in this times of travel
EasyJet Airlines has confirmed the purchase of 157 A320neo aircraft. In addition, Azul of Brazil has purchased four A330-900s, while Turkish Airlines has bought 220 Airbus jets.
Vietnam Airlines expands its fleet
Vietnam Airlines has decided to increase its fleet by ordering 50 Boeing 737 MAX jets. This decision is consistent with Vietnam Airlines’ strategic objective for the years 2025-2030 and 2035. Vietnam Airlines Chairman Dang Ngoc Hoa emphasised the importance of this investment in improving service quality and expanding routes, particularly within Asia. Boeing’s Brad McMullen emphasised the 737 MAX’s fit for Southeast Asia’s fast aviation expansion. This commitment confirms a collaboration that has existed since 1995. With over 5,600 737 MAX orders worldwide, the aircraft’s efficiency, low emissions, and passenger comfort make it an excellent choice for Vietnam Airlines’ regional ambitions.
Transavia Airlines adds flights to tackle surge
Transavia Airlines, a Dutch budget carrier affiliated with the Air France-KLM group, has recently taken delivery of its inaugural Airbus A321neo aircraft through a leasing arrangement with Air Lease Corporation. This plane was received from Airbus’ manufacturing facility in Hamburg and notably employed Airbus’ option to utilize Sustainable Aviation Fuel (SAF) for its delivery flight to Amsterdam’s Schiphol Airport. This acquisition marks Transavia’s entry into Airbus aircraft operation.
Turkish Airlines plans to add nearly 380 planes
Turkish Airlines has ambitious ambitions to expand its fleet to 813 planes by 2033, making it the world’s third-largest carrier. CEO Bilal Ekşi announced plans to negotiate with Airbus for the prospective purchase of 355 new aircraft, a record purchase. With Istanbul Airport playing a key role in aiding expansion, Turkish Airlines wants to increase its passenger count to 170 million over the next decade, with 85 million passengers expected this year alone.
SpiceJet adds 10 planes upto September 2023
SpiceJet intends to add 10 narrow-body Boeing 737 aircraft to its fleet by September 2023, in response to increased passenger demand. This deal comprises leasing agreements for 10 planes, half of which are 737 Max models.
Brussels Airlines increases its fleet
Brussels Airlines is expanding its long-haul fleet with the addition of its tenth Airbus A330, the reintroduction of its Nairobi route, and increased links to Kigali. This strategic decision strengthens the Lufthansa Group subsidiary’s position in Sub-Saharan Africa, a critical market for the company. With operations set to begin in the summer of 2024, travellers may expect enhanced frequency to Rwanda’s capital, Kigali. Furthermore, the expanded fleet allows for additional flights throughout peak and off-peak seasons, assuring more direct connections between Brussels and major African locations. This expansion demands the hiring of about 60 more crew members and supports the airline’s mission to smoothly connecting Europe and Africa.
Major orders from Lufthansa Airlines and EasyJet Airlines
Lufthansa Airlines, the German airline, and EasyJet, the United Kingdom-based low-cost carrier, have lately placed large aircraft purchases, signalling their optimism in a recovering tourism economy. Lufthansa, which currently has a fleet of almost 700 commercial planes, has announced a $9 billion order for 80 new short- and medium-haul planes, with an extra 120 options. Concurrently, EasyJet completed a firm order for 157 A320neo Family aircraft, significantly boosting its operating capacities.
Global Trend of Aircraft Acquisition
The tendency continues beyond European skies. Azul Linhas Aereas of Brazil has committed to purchasing four A330-900s from Airbus. Meanwhile, Turkish Airlines is expanding its fleet with a big order of 220 Airbus jets. On December 12th, international leasing business Avolon entered the battle as well, placing an order for 100 A321neo planes. These purchases reflect a global airline sentiment: a recovery in travel demand is obvious, and carriers are bracing for it.
Upward Trajectory in Profits
The International Air Transport Association (IATA) sees a bright future for the aviation industry. Predictions for 2024 show that airlines’ net earnings might reach $25.7 billion, a small increase over the $23.3 billion predicted for 2023. In depth, operational earnings are expected to increase from $40.7 billion this year to $49.3 billion in 2024. This upward trend is reflected in overall sales, which are predicted to reach $964 billion, a 7.6% rise year on year.
Recovery exceeding pre-pandemic levels
The airline industry’s resiliency is obvious as it approaches a 9.8% YoY increase in revenue passenger kilometres (RPKs). This outpaces the growth pattern recorded prior to the pandemic. According to IATA, “the high demand for travel, coupled with limited capacity due to persistent supply chain issues, continues to create supply and demand conditions supporting yield growth.”
The global aviation environment is seeing a dramatic rebound, with carriers expanding their fleets to meet rising travel demand. Among those undertaking strategic aircraft purchases are Lufthansa, EasyJet, Azul Linhas Aereas, and Turkish Airlines. At the same time, IATA’s estimates show an upbeat prognosis for the sector, with record revenues and profits on the horizon. As the globe adjusts to post-pandemic realities, the skies appear to be preparing for a frantic return to normalcy.
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