Avio Time – Aviation Industry News

Japan Airlines has unveiled the cabin interiors of its soon-to-be-delivered A350-1000s, the carrier’s future international flagship aircraft.

Expected to commence operations before the year is out, the new plane is expected to launch on Japan Airlines’ Tokyo (Haneda)-New York route.

According to the carrier, the new aircraft will offer a higher level of comfort, with its cabins designed to “immerse customers in the elegance of Japanese aesthetics and envelop them in tranquility, providing a serene ambience that encapsulates the beauty of Japan”.

Sounds promising, and a little like the overall experience one can expect on the ground in Japan too.

The new cabin will also be consistent with JAL’s domestic fleet (A350-900 and 787-8 aircraft).

With each class reimagined, new seats will feature across all cabins – First, Business, Premium Economy and Economy – to provide Japan Airlines’ “most relaxing and comfortable experience to date”.

To start with, First Class and Business Class promise fully private suites, with Premium Economy also providing more privacy and comfort. Economy Class, meanwhile, will feature “spacious seating and ample legroom”.

JAL will also gradually introduce new onboard dining, with tableware and cutlery promoting non-petroleum-derived plastics to reduce their environmental impact.

Elsewhere, Panasonic Avionics Corporation’s (USA) latest inflight entertainment system and inflight wi-fi service will also debut on board the new aircraft, with all classes boasting 4K monitors with Bluetooth connectivity and a full integration of the JAL Mobile App.

First Class

At the pointy end of the Japan Airlines plane, six First-Class suites will create an exclusive cabin environment, with JAL introducing individual doors for the first time and eliminating overhead bins for a more open atmosphere.

Seats will measure an enormous 123cm wide, with a bed length of around 203cm.

Along with wardrobe and storage space, First Class will also feature the world’s first headphone-free stereo with built-in headrest speakers available even in bed mode for the massive 43-inch screen.

Business Class

Unlike First Class, Business Class capacity will grow in the new flagship aircraft (to 54 seats), but brand new doors and electric partitions will offer passengers more privacy than ever before.

The lie-flat bed will measure around 198cm and also features a reclining function that allows for easy viewing of the 24-inch screen even whilst lying down. Business passengers will also fly headphone-free. 

Premium Economy Class

Along with “large” partitions for more privacy, the Japan Airlines flagship will be the first to introduce electronically-operated reclining functionality in Premium Economy.

Other features include a 107cm seat pitch, 48cm seat width and 16-inch monitors, which are around 1.3 times larger than the current offering.

Economy Class

With a seat pitch of 84-86cm, seat width of 46cm and 13-inch monitor size, JAL promises a higher level of comfort for Economy passengers.

The airline has won the “Best Economy Class Airline Seat” by SKYTRAX six straight times.

Inflight dining 

Along with enhanced vegan and vegetarian meals, long-haul Business Class passengers will be able to design their own dining schedule (available from spring 2024).

Meanwhile, Premium Economy Class and Economy Class flyers will have an optional menu (for a fee) that boosts their culinary choices, as well as access to a renewed vegan and vegetarian menu.

With its new dining concept, Japan Airlines hopes to deliver a “healthy inflight meal that satisfies both the body and mind”.

Amenities

Business Class flyers will be able to rent thin, lightweight, 100 per cent cotton “relaxing wear”, while First Class flyers will have similar attire made from 100 per cent organic cotton.

Paper-based amenity kits featuring the artwork of specially contracted artists will also be available to premium passengers.

To mark the launch of the A350-1000, JAL will offer for a limited time an exclusive “MISOKA” toothbrush, which can be used with just water. This will be available for First and Business passengers until June and February 2024 respectively.

In Premium Economy and Economy, JAL will roll out new eco-friendly tableware for inflight meals featuring materials such as paper or 100 per cent recycled plastic.

Details of the new A350 experience can be found here.

In July, Japan Airlines (JAL) and general trading company Sumitomo joined forces to allow visitors to Japan to hire a travel wardrobe from ¥4,000 (about AU$41) per day and fly with less baggage.

American Airlines Group (NASDAQ:AAL – Free Report) had its price target reduced by Jefferies Financial Group from $16.00 to $15.00 in a research note published on Friday, MarketBeat Ratings reports. Jefferies Financial Group currently has a hold rating on the airline’s stock.

AAL has been the subject of a number of other reports. Berenberg Bank cut their price target on American Airlines Group from $26.00 to $23.00 and set an outperform rating for the company in a research note on Tuesday, September 26th. Barclays lifted their price objective on American Airlines Group from $15.00 to $18.00 and gave the company an underweight rating in a research report on Thursday, July 13th. TheStreet raised American Airlines Group from a d+ rating to a c rating in a research report on Thursday, July 20th. Redburn Partners cut American Airlines Group from a buy rating to a neutral rating in a research report on Monday, August 7th. Finally, BNP Paribas raised American Airlines Group from a neutral rating to an outperform rating and set a $20.00 price objective on the stock in a research report on Wednesday, September 6th. Two research analysts have rated the stock with a sell rating, twelve have assigned a hold rating and five have assigned a buy rating to the company’s stock. According to MarketBeat.com, American Airlines Group has a consensus rating of Hold and an average target price of $18.57.

Read Our Latest Analysis on American Airlines Group

American Airlines Group Stock Down 0.5 %

American Airlines Group stock opened at $12.75 on Friday. The business has a 50-day simple moving average of $14.66 and a two-hundred day simple moving average of $15.02. The company has a market cap of $8.33 billion, a P/E ratio of 3.42, a P/E/G ratio of 0.08 and a beta of 1.57. American Airlines Group has a 52-week low of $11.65 and a 52-week high of $19.08.

American Airlines Group (NASDAQ:AAL – Get Free Report) last released its quarterly earnings results on Thursday, July 20th. The airline reported $1.92 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $1.59 by $0.33. The business had revenue of $14.06 billion during the quarter, compared to the consensus estimate of $13.74 billion. American Airlines Group had a negative return on equity of 45.44% and a net margin of 4.98%. The business’s quarterly revenue was up 4.7% compared to the same quarter last year. During the same period in the previous year, the company posted $0.76 EPS. Research analysts anticipate that American Airlines Group will post 2.88 EPS for the current fiscal year.

Institutional Trading of American Airlines Group

Large investors have recently added to or reduced their stakes in the company. ING Groep NV bought a new stake in American Airlines Group in the 1st quarter worth approximately $1,631,000. Janney Montgomery Scott LLC increased its position in shares of American Airlines Group by 190.7% during the 1st quarter. Janney Montgomery Scott LLC now owns 79,608 shares of the airline’s stock valued at $1,174,000 after purchasing an additional 52,226 shares during the last quarter. Bartlett & Co. LLC bought a new position in shares of American Airlines Group during the 1st quarter valued at approximately $27,000. Pacer Advisors Inc. increased its position in shares of American Airlines Group by 3,527.8% during the 1st quarter. Pacer Advisors Inc. now owns 650,182 shares of the airline’s stock valued at $9,590,000 after purchasing an additional 632,260 shares during the last quarter. Finally, CWM LLC increased its position in shares of American Airlines Group by 75.2% during the 1st quarter. CWM LLC now owns 22,453 shares of the airline’s stock valued at $331,000 after purchasing an additional 9,641 shares during the last quarter. Institutional investors own 58.50% of the company’s stock.

American Airlines Group Company Profile

(Get Free Report)

American Airlines Group Inc, through its subsidiaries, operates as a network air carrier. The company provides scheduled air transportation services for passengers and cargo through its hubs in Charlotte, Chicago, Dallas/Fort Worth, Los Angeles, Miami, New York, Philadelphia, Phoenix, and Washington, DC, as well as through partner gateways in London, Doha, Madrid, Seattle/Tacoma, Sydney, and Tokyo.

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United Airlines (NASDAQ:UAL – Free Report) had its price objective reduced by Jefferies Financial Group from $65.00 to $48.00 in a research report sent to investors on Friday morning, MarketBeat.com reports. They currently have a hold rating on the transportation company’s stock.

UAL has been the topic of a number of other research reports. Evercore ISI decreased their price objective on shares of United Airlines from $65.00 to $58.00 and set an in-line rating on the stock in a report on Monday, August 28th. Morgan Stanley boosted their price target on United Airlines from $75.00 to $80.00 and gave the stock an overweight rating in a research note on Friday, July 21st. JPMorgan Chase & Co. raised their price objective on United Airlines from $70.00 to $93.00 and gave the company an overweight rating in a research note on Friday, July 21st. Citigroup boosted their target price on United Airlines from $75.00 to $84.00 and gave the stock a buy rating in a research report on Monday, July 24th. Finally, Sanford C. Bernstein dropped their price target on United Airlines from $71.00 to $69.00 and set an outperform rating for the company in a research report on Tuesday, September 26th. One research analyst has rated the stock with a sell rating, three have given a hold rating and eleven have issued a buy rating to the stock. According to MarketBeat.com, the stock has an average rating of Moderate Buy and a consensus target price of $68.93.

View Our Latest Research Report on UAL

United Airlines Stock Performance

NASDAQ UAL opened at $41.62 on Friday. The stock has a market capitalization of $13.65 billion, a price-to-earnings ratio of 5.16, a PEG ratio of 0.08 and a beta of 1.44. The business’s 50 day moving average is $48.93 and its two-hundred day moving average is $49.08. United Airlines has a 12-month low of $31.58 and a 12-month high of $58.23. The company has a current ratio of 0.91, a quick ratio of 0.86 and a debt-to-equity ratio of 3.49.

United Airlines (NASDAQ:UAL – Get Free Report) last announced its quarterly earnings data on Thursday, July 20th. The transportation company reported $5.03 earnings per share for the quarter, topping analysts’ consensus estimates of $4.03 by $1.00. The firm had revenue of $14.18 billion for the quarter, compared to analyst estimates of $13.90 billion. United Airlines had a return on equity of 48.89% and a net margin of 5.24%. United Airlines’s quarterly revenue was up 17.1% on a year-over-year basis. During the same quarter in the prior year, the company posted $1.43 earnings per share. Research analysts expect that United Airlines will post 10.7 EPS for the current year.

Insider Activity at United Airlines

In other United Airlines news, CFO Gerald Laderman sold 4,491 shares of United Airlines stock in a transaction that occurred on Monday, July 24th. The shares were sold at an average price of $57.05, for a total value of $256,211.55. Following the completion of the sale, the chief financial officer now directly owns 133,213 shares of the company’s stock, valued at approximately $7,599,801.65. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Insiders own 0.37% of the company’s stock.

Hedge Funds Weigh In On United Airlines

Several institutional investors and hedge funds have recently bought and sold shares of UAL. Capital International Investors acquired a new stake in United Airlines during the first quarter worth about $351,299,000. Renaissance Technologies LLC increased its position in United Airlines by 247.3% during the 4th quarter. Renaissance Technologies LLC now owns 6,025,263 shares of the transportation company’s stock worth $227,152,000 after purchasing an additional 4,290,600 shares in the last quarter. Arrowstreet Capital Limited Partnership raised its holdings in United Airlines by 1,613.1% in the fourth quarter. Arrowstreet Capital Limited Partnership now owns 3,695,977 shares of the transportation company’s stock valued at $139,338,000 after buying an additional 3,480,233 shares during the period. Altimeter Capital Management LP acquired a new position in United Airlines during the first quarter valued at approximately $115,175,000. Finally, Envestnet Asset Management Inc. grew its stake in United Airlines by 1,054.3% during the first quarter. Envestnet Asset Management Inc. now owns 2,472,998 shares of the transportation company’s stock worth $16,151,000 after buying an additional 2,258,757 shares during the period. Institutional investors and hedge funds own 70.37% of the company’s stock.

About United Airlines

(Get Free Report)

United Airlines Holdings, Inc, through its subsidiaries, provides air transportation services in North America, Asia, Europe, Africa, the Pacific, the Middle East, and Latin America. The company transports people and cargo through its mainline and regional fleets. It also offers catering, ground handling, training, and maintenance services for third parties.

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Ozempic could help AIRLINES profits’ rocket as passengers who use it slim down – as it’s claimed United could save $80MILLION a year if every passenger lost 10 pounds

By Harriet Alexander For Dailymail.com

Published: 06:46, 3 October 2023 | Updated: 06:51, 3 October 2023

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United Airlines could save $80 million a year on fuel costs if more passengers lost weight thanks to Ozempic and other ‘miracle’ weight loss treatments, according to a new report.

A lighter plane full of slimmer people would significantly reduce the cost of flying, found Sheila Kahyaoglu, a Jefferies Financial analyst.

She concluded, in a report released on Friday and obtained by Bloomberg, that the drugs could be a game-changer for airlines, where fuel and labor are the biggest costs.

Kahyaoglu looked at United, but said the benefits would apply to all airlines.

If the average passenger lost 10 pounds, she calculated that it would reduce 1,790 pounds from every United flight – a fuel saving of 27.6 million gallons a year.

At an average 2023 fuel price of $2.89 a gallon, United would save $80 million a year.

‘This benefit should be recognized similarly across airlines,’ Kahyaoglu wrote.

Jet fuel prices in New York harbor have climbed 39 percent, or 89 cents a gallon, over the past three months, reaching $3.19 on Friday, Bloomberg reported.

Every 10 cent increase per gallon in jet fuel costs the airlines $2 billion annually.

Airlines have long sought to make their planes weigh less, with schemes to reduce the weight of carts, utensils and dishes.

But she found the weight-loss drugs could have a significant impact.

Kahyaoglu wrote that the demand for rapid weight loss drugs could see the drugs balloon into a $100 billion market.

One in three adults in the United States are considered obese, according to the Centers for Disease Control and Prevention.

Worldwide, 41.5 percent of the population will be classed as overweight by the end of this year – up from 36.4 percent a decade ago.

Kahyaoglu found that the weight loss drugs will also boost the pharmaceutical, clothing and cosmetics industries – but could harm restaurants.

The high cost of the drugs could also see people spending less on items such as furniture and travel.

In August, the Danish drugmaker behind Ozempic raised its full-year profit and sales forecasts for a second time. 

Wegovy and Ozempic are different brand names for semaglutide, which works by tricking the brain to suppress appetite and reduce calorie intake, resulting in substantial weight loss. 

It does this by mimicking the hormone glucagon-like peptide-1 (GLP-1), which is released after eating.

It was previously nicknamed Hollywood’s worst kept secret, with fans including Elon Musk and Jeremy Clarkson.

Even Kim Kardashian was rumored to have used it to rapidly lose 16lbs to fit into Marilyn Monroe’s ‘Happy Birthday Mr President’ dress at the 2022 Met Gala.

Novo Nordisk’s financial report for the first half of 2023 shows it made a net profit of 39.2 billion Danish kroner ($5.72 billion) up from 27.5 billion kroner ($4 billion) the previous year.

The company said the trend was ‘mainly driven by’ a 49 percent boost in sales for GLP-1 diabetes drugs. 

In total, sales for these drugs came to 99 billion kroner ($14.4 billion).

Lars Fruergaard Jørgensen, president and chief executive of Novo Nordisk, said: ‘We are very pleased with the sales growth in the first half of 2023. 

‘The growth is driven by increasing demand for our GLP-1-based diabetes and obesity treatments, and we are serving more patients than ever before.’

He added that obesity is a ‘serious chronic disease’ and weight-related conditions ‘can be significantly reduced by treating people with semaglutide’.

OPINION:

Lawmakers in Washington were able to avoid a government shutdown over the weekend with a bipartisan deal made in the House. The can has been kicked down the road until November, when Congress is set to clash yet again on keeping the federal government’s lights on.

While I am certainly concerned about runaway government spending, as we approach the new funding deadline, which is Nov. 17, it’s important to remember the ripple effects of a shutdown would extend well beyond roping off national parks and monuments.

For example, a perfect storm is brewing for the country’s bustling travel infrastructure — notably affecting Americans hitting the skies. Consumers should be prepared for turbulence that could be created by an impasse in Congress later this year.

If a shutdown comes to fruition, Transportation Security Administration officers will be among those affected by pay delays, which could result in longer lines at security checkpoints. While TSA officers are considered essential personnel and therefore must still report to airports in the event of a shutdown, working without pay will inevitably slow the pace of getting travelers to their gates safely.

During the 35-day shutdown in late 2018 and early 2019, for example, the TSA saw an increase in officers taking sick days when paychecks didn’t show up. It’s not difficult to imagine why.

But these are far from the only problems. The U.S. Travel Association estimates that a government shutdown would cost the economy as much as $140 million per day — compromising tourism dollars and the communities that prop up travel hubs. According to another new survey, 6 in 10 Americans would cancel or avoid air travel if the federal government turns out the lights.

On top of immediate disruptions and a short-term economic plunge, Transportation Secretary Pete Buttigieg also recently warned of the long-term consequences of a shutdown.

The Federal Aviation Administration is racing against the clock to address an air traffic controller shortage that’s plaguing U.S. airspace. Mr. Buttigieg acknowledged that a shutdown could throw a wrench into these staffing recovery plans, saying it could “set us back by months or more because of how complex that training is.”

While air traffic controllers currently on the job would remain at their posts without pay if the federal government shuts down, training programs for 2,600 new controllers would be paused.

Shutdown-related staffing gaps would only exacerbate a sticky situation for the FAA.

According to the National Air Traffic Controller Association, the U.S. has 1,200 fewer controllers than it did 10 years ago, despite busier skies. And less staffing inevitably leads to more delays, an uptick in flight cancellations, and heightened stress for those responsible for guiding planes safely. This not only squeezes airline logistics but also creates chaos for passengers.

Currently, air traffic control towers are just 81% staffed nationwide, and key facilities across the country are experiencing even worse worker shortages. One in the New York area, for example, has roughly half of the controllers it needs. Lack of qualified personnel is such a concern that 10% of flights at three major airports in the Northeast Corridor were cut over the summer — a flight diet that will be extended for yet another year.

The FAA is facing a mounting crisis. The government agency is juggling a litany of issues, including a tumultuous history of budgetary crises, leadership gaps and outdated technology. And while we were able to avoid a government shutdown this time around, the new looming November deadline threatens to pile on and compromise air travel further for millions of Americans.

• Jamey Bowers is an owner and partner at Berman and Co.

Air Malta is dead, long live KM Malta Airlines? The Maltese government has outlined its plans to replace Air Malta with a new flag carrier next spring.

Air Malta Will Be Replaced By KM Malta Airlines DBA Air Malta

State-owned Air Malta has struggled financially for years and fallen behind Malta Air, a budget carrier partially owned by Ryanair that is now the largest carrier to the island nation. Unable to meet its debt obligations, the Maltese government wanted to inject hundreds of millions of Euros into the carrier, but the European Commission vetoed the plan on competitive grounds.

In reality, the government will proceed anyway by shutting down Air Malta, forming a new company called KM Malta Airlines, utilizing the same fleet and employees, and calling the new airline Air Malta…

Earlier today the government outlined its vision for a new flag carrier of Malta, promising to slash unprofitable routes and reach profitability in two years.

Let’s go over some key details.

The new Air Malta will fly to 17 destinations, including:

• Amsterdam (AMS)
• Berlin (BER)
• Brussels (BRU)
• Catania (CTA)
• Dusseldorf (DUS)
• London Heathrow (LHR)
• London Gatwick (LGW)
• Lyon (LYS)
• Madrid (MAD)
• Milan (MXP)
• Munich (MUC)
• Paris (CDG)
• Prague (PRG)
• Rome (FCO)
• Vienna (VIE)
• Zurich (ZRH)

Air Malta also plans to add service to Copenhagen (CPH), a route that SAS suspended during the pandemic and has not resumed.

Air Malta will discontinue service to six destinations, including:

• Geneva (GVA)
• Lisbon (LIS)
• Naples (NAP)
• Nice (NCE)
• Palermo (PMO)
• Tel Aviv (TLV)

In terms of its fleet, all eight Airbus A320 aircraft will be retained (contrary to the wishes of the European Commission). The government will spend €300 million on buying three of the A320 aircraft it currently leases.

Passengers might not notice much of a difference in terms of branding, as the government intends to “rent” the Air Malta brand and maintain current logos and aircraft liveries.

Existing workers will be rehired, but government officials were not clear whether they would need to accept a reduction in wages (a government minister said that wages would be “according to the international market”). Early retirement will be offered for existing workers and the new airline is not expected to offer a defined benefit retirement plan.

All bookings for flights on Air Malta for travel on or after March 31, 2024 will be cancelled and Air Malta will refund customers the full cost (including taxes) of any tickets already issued with travel dates on or after 31 March 2024. Tickets for the new Malta Airlines will go on sale on December 1, 2023.

Quite frankly, it does not sound like much will be changing at the beleaguered state carrier…

CONCLUSION

Air Malta will cease operations on March 30, 2024 and a new company, KM Malta Airlines, will begin operations are Air Malta on March 31, 2024. The carrier will trim its route network and promises to be leaner and reach profitability in two years, but it is not clear to me the business model is changing much at all.

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