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  • FCM: ‘Steady’ Q1 Booking Volume Amid Strong Pricing

    FCM: ‘Steady’ Q1 Booking Volume Amid Strong Pricing

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    Business travel demand has had “gradual, consistent growth” in the first quarter as pricing remains elevated across several categories, according to FCM Consulting’s Global Quarterly Trend Report, released Thursday.

    The report, based on FCM’s corporate booking data in the first quarter, showed global economy airfares in January were up $45, or 11 percent, compared with pre-pandemic levels in January 2019, and business class tickets were up $224, or 12 percent, over the same period. In North America, that increase was 15 percent for economy fares and 9 percent from business class fares.

    Even as fares remain comparatively high, there are signs of moderation. Compared with January 2021, for example, global economy ticket prices were down 16 percent, according to FCM.

    Year-over-year comparisons for airfares were not provided in the report.

    In lodging, rate performance was mixed across global regions in the first quarter, FCM reported. The $244 average room rate in North America for the quarter was the highest of global regions reported, and the rate was up $5 year over year. Rates in Latin America increased $12 year over year to $140 during the quarter, and rates in Asia were up $2 to $174.

    Rates in the rest of the regions were down year over year in the quarter, including a $17 drop to $197 in the Middle East and Africa, a $10 drop to $169 in Europe and a $9 drop to $154 in Australia and New Zealand.

    Car rental rates on a global level, meanwhile, were down $22 year over year to an average daily rate of $51. Suppliers are cutting rates to stimulate demand, according to FCM.

    The report noted booking volume in the first volume was “steady,” and “we’re looking forward to seeing the business travel momentum carry through into the rest of the year,” Ashley Gutermuth, Head of FCM Consulting for the Americas, said in a statement. “Given the increased demand and positive economic outlook, it’s been an encouraging sign to see companies start to increase their corporate travel budgets and further embrace the return to the air.”

    FCM highlighted slight changes in traveler behavior over the past year in the report. Advanced booking has increased by 1.5 days year over year to 23.3 days in the first quarter. Average rip length also has increased by 0.3 days to 4.4 days, according to the report.

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  • Amex GBT Extends Deal Bypassing BA GDS Surcharge

    Amex GBT Extends Deal Bypassing BA GDS Surcharge

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    American Express Global Business Travel has extended its private channel agreement with British Airways, which enables clients to access the carrier’s content without its global distribution system surcharge, the TMC announced. The agreement applies to bookings made on any GDS and bookings in the Amex GBT marketplace, which is “important to customers” as “[New Distribution Capability] and modern retailing capabilities evolve,” according to Amex GBT chief revenue officer Rajiv Ahluwalia. The length of the agreement extension was not disclosed in the announcement.

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    mbaker@thebtngroup.com (Michael B. Baker)

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  • Cirium: LCCs Show Strong April On-Time Improvement

    Cirium: LCCs Show Strong April On-Time Improvement

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    North American carrier on-time performance continued its up-and-down trajectory in April, improving by 4.8 percentage points to 79.7 percent, after dropping 5.1 percentage points in March, according to the latest report from aviation analytics company Cirium.

    Delta Air Lines repeated its first-place ranking once again with an April on-time performance of 85.7 percent. WestJet jumped 18.5 percentage points to come in second at 82.7 percent, followed by Spirit, also at 82.7 percent, with an 11.9 percentage-point increase. United Airlines, in fourth, was the only carrier to post a decrease in April, by 0.6 percentage points to 82.2 percent.

    Delta and United each placed among the global top 10 on-time airlines at seventh and 10th, respectively.

    [Report continues below chart.]

    North American carriers in April canceled 6,217 flights, down 19.5 percent from March.

    Completion factors for North American carriers remained at or above 99 percent, with Delta in the lead at 99.9 percent, followed by Spirit at 99.6 percent, WestJet at 99.5 percent, Alaska Airlines at 99.5 percent and United at 99.3 percent.

    A flight is considered on time if the aircraft arrives at the gate within 15 minutes of the scheduled arrival time.

    RELATED: Cirium: March N. American Air On-Time Performance Dips

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  • IAG: Q1 Corp. Recovery ‘Slow’ But ‘Encouraging’

    IAG: Q1 Corp. Recovery ‘Slow’ But ‘Encouraging’

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    Overall corporate bookings for International Airlines Group carriers are making a “slow recovery,” CEO Luis Gallego said on an earnings call Friday of the group, which includes British Airways, Iberia, Aer Lingus and Vueling. “We had a good January and February in BA and Iberia, but we had a more negative mark mainly due to the timing of Easter.”

    Still, at BA, first-quarter corporate volume increased around 5 percent year over year to 70 percent compared with 2019, Gallego said. BA corporate revenue was at about 72 percent of 2019 levels, IAG CFO Nicholas Cadbury added.

    For transatlantic demand on BA—which is stronger from the U.K. point of sale than from the North Atlantic side—”on corporate, we have seen an expansion in the market in the first quarter on the North Atlantic of about 7 percent, and we see that continuing as we look into the second quarter,” British Airways chairman and CEO Sean Doyle said. “I think that business recovery is also very encouraging.” 

    Gallego added that the company has seen a “very strong recovery versus last year to our network in India,” and an increase in business traffic in the broader region “as we are recovering the network to Asia.” IAG increased its capacity to the Asia-Pacific region during the quarter by 43.4 percent year over year.

    Corporate volume at Iberia was at about 85 percent of 2019 levels. “That is linked also to the number of people coming back to work that is different in Spain than in [the] U.K.,” Gallego said.

    IAG Q1 Metrics

    IAG reported first-quarter passenger revenue of more than €5.6 billion ($6.1 billion), up 11.7 percent year over year. Total revenue was more than €6.4 billion, up 9.2 percent year over year. The company had an operating profit of €68 million, up from €9 million a year prior, but a loss before taxes of €87 million, compared with a €121 million loss reported in Q1 2023.

    Capacity for the group increased 7 percent year over year for the quarter, with Iberia’s growing 15.4 percent, mostly driven by the increase in the number of Airbus A350-900 aircraft in service flying to North and South America, according to IAG. The North Atlantic region accounts for about 28.7 percent of the group’s capacity, with Europe representing 23.6 percent and Latin America and the Caribbean at 21.6 percent.

    IAG projects overall capacity in 2024 to increase 7 percent compared with 2023.

    RELATED: IAG Q4 performance

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  • Dave Harvey to Depart Southwest Airlines

    Dave Harvey to Depart Southwest Airlines

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    Southwest’s Dave Harvey

    After 25 years with Southwest Airlines, most recently heading up Southwest Business as VP and chief sales officer, Dave Harvey on Saturday announced on LinkedIn that he will retire from the carrier. Southwest confirmed the information and added that May 17 will be Harvey’s last day.

    “We are grateful for his 25 years of service, including leading Southwest Business from inception to where it is today,” the carrier said in a statement.

    Southwest in 2016 moved corporate sales to a new business function, headed by Harvey as managing director of business development. Over the next eight years, Harvey oversaw such changes as launching a business version of the carrier’s loyalty program Rapid Rewards, adding Southwest content into the three major global distribution systemslaunching its Business Assist portal and revamping its meetings product

    BTN four times recognized Harvey as one of the 25 Most Influential individuals in business travel, in 2019,20202021 and 2023.

    Harvey on LinkedIn noted that “from a 22-year-old Programmer/Analyst in ‘Systems’ (pre-Technology) to #southwestbusiness today, all I really know is Southwest Airlines.” He also wrote that he’ll share “the next adventure” soon.

    Southwest in the statement said it is “working through transition plans” and did not share additional details. 

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  • Southwest Expands Meetings Product Capabilities, Launches TravelTrack

    Southwest Expands Meetings Product Capabilities, Launches TravelTrack

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    Southwest Airlines recently expanded the capabilities of its
    meetings product, Southwest VP and chief sales officer Dave Harvey confirmed
    earlier in April. 

    Functionality now enables users to request event proposals
    with end-to-end automation, unlimited name changes, new bulk event requests
    with up to 50 meetings at once, faster fare filings, detailed event reporting
    and additional custom offers, according to Southwest.

    Event reporting now includes a user’s history, so they can
    see all their previously executed and completed contracts “at their
    fingertips,” Harvey said. “A lot of these big events happen every
    year. Now they can kind of pick up where they left off. How successful was that
    event? Did they get the utilization out of the meeting agreement that they
    expected for Southwest? It’s one more way they’re not starting from scratch.”

    The data goes back to October 2023, when the meetings
    product was launched, according to Southwest. 


    Now they can kind of pick up where they left off. How successful was that event? Did they get the utilization out of the meeting agreement that they expected for Southwest? It’s one more way they’re not starting from scratch.”

    SWA’s Dave Harvey


    For the custom offers, the tool looks at what a customer’s
    transient agreement is versus the dynamic offer engine, Harvey said. “We
    can actually put the best of both worlds in front of them to see what makes
    sense to give them the best offer,” he added.

    Further, after the release of the meetings product last
    fall, if a customer needed to get assistance from the service team or their
    account manager, “it would kind of punch out and you’d go back to manual
    mode,” Harvey said. “Now, we’ve got the next level of capability
    where you can adjust the proposal digitally and stay in the workflow.”

    Harvey added that the carrier has a high rate of proposals
    that go straight through without any edits or adjustments. 

    The product also allows for what Harvey called a “deep
    link.” No matter what the channel the customer is using, whether the
    global distribution system or an API, a meeting planner or corporate travel
    manager can distribute a booking link to all their travelers. “It makes it
    so much easier for the travelers to just click on the link,” Harvey said. 

    TravelTrack

    Southwest also in April launched a new product named
    TravelTrack. At the time of the joint conference sponsored by ATPCO and Airline
    Reporting Corp. in mid-April, when Harvey spoke with BTN, the carrier was doing
    some “final validations” with travel management companies and a
    booking tool, Harvey said. 

    What is it? 

    “This is going to be the best-in-class product for duty
    of care,” Harvey said. Essentially, it is capturing data when a corporate
    traveler makes a change to their itinerary that differs from their channel of
    booking, including when they make the booking in an online booking tool but then
    change it, say, via the Southwest website or app. The company used to lose visibility
    of that traveler.

    TravelTrack can capture the change data and send messages to
    the TMC in “near real time,” Harvey said. “It’s a tech lift for
    predominantly the TMC, but once the TMC has the capability, they have hundreds
    of accounts that they can service. A lot of [travel] buyers and lot of TMCs wanted
    better, real-time data to understand where their travelers are in the journey,
    and that was really the inspiration.”

    United
    Airlines in October 2023 also announced a solution
    to this issue of losing
    visibility on travelers who make changes on airline-direct platforms after
    using an OBT for the initial booking.

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  • Delta to Relaunch NYC-Lagos Service

    Delta to Relaunch NYC-Lagos Service

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    Delta Air Lines on Dec. 1 will relaunch service between New York’s John F. Kennedy International Airport and Lagos, Nigeria, the carrier announced Friday. 

    The routes initially will be daily, then beginning Jan. 16, 2025, will operate three times weekly, using Airbus A330-200 aircraft configured with four cabins—Delta One, Delta Premium Select, Delta Comfort Plus and Main. The carrier currently operates daily flights between Atlanta and Lagos.

    In addition, the carrier in October will upgrade its aircraft on flights serving Accra, Ghana, from JFK to the 281-seat Airbus A330-900neo, adding nearly 1,000 more seats each week and providing 30 percent more capacity between Ghana and the United States, according to Delta. The carrier will offer a four-cabin configuration.

    Further, Delta also is upgrading to the Airbus A350-900 on flights between Atlanta and each Johannesburg and Cape Town in South Africa, which will provide an additional eight Delta One Suite seats, bringing the total to 40, according to the carrier. The aircraft will go into service on June 20 for Johannesburg and on Sept. 9 for Cape Town.

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  • Southwest to Pull Out of Four Airports After Downcast Q1

    Southwest to Pull Out of Four Airports After Downcast Q1

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    Southwest Airlines will pull out of four airports, reduce service at Chicago O’Hare and Atlanta and reduce headcount by 2,000 employees as cost-cutting measures, executives announced during a dour Thursday earnings call. Business travel demand nevertheless was a bright spot, with managed business revenue increasing significantly.

    Southwest on Aug. 4 will end service at Houston’s George Bush Intercontinental Airport as well as Syracuse, N.Y., Bellingham, Wash., and Cozumel, Mexico. On the same day, it will reduce capacity at Hartsfield-Jackson Atlanta International Airport and Chicago O’Hare International Airport.

    Southwest announced a first-quarter net loss of $231 million, wider than many analysts expected, and while president and CEO Bob Jordan noted the effects that Boeing’s struggles have had on the carrier’s performance, he said the airport pullouts were necessary to control costs and recalibrate capacity.

    “We are continuing efforts to optimize the network and reduce the number of markets in development that aren’t performing to more historic levels,” Jordan said.

    The carrier also has “essentially frozen and stopped all hiring except for a limited number of critical positions,” Jordan said, and will end 2024 with 2,000 fewer employees than one year prior, with plans for further cuts in 2025.

    “I am disappointed with our first-quarter performance,” Jordan said.

    As for Boeing, Southwest EVP and CFO Tammy Romo on the call said the carrier began the first quarter with the expectation that it would receive 79 of 85 contracted jet deliveries in 2024, but that number since has steadily decreased, and the carrier now expects only 20. Southwest now expects second-quarter capacity to increase 8 percent to 9 percent year over year, with third-quarter capacity up “in the low single digits,” she said, and fourth-quarter “expected to decrease in the low to mid-single digits.”

    Corporate Demand Boost

    In contrast with the downbeat tenor of the rest of Southwest’s call, business travel proved a first-quarter silver lining, with managed business travel revenue up 25 percent year over year, said EVP and chief commercial officer Ryan Green, reaching 2019 levels.

    “That was driven by a double-digit increase in unique travelers traveling under a contract in the managed business space,” Green said. “So that just means we’re penetrating deeper into accounts.”

    Green painted the corporate demand increase as “widespread,” noting “of our top 15 industries, 11 of those had double-digit growth year over year.”

    Southwest is “growing the number of companies under accounts, and we continue to pick up market share there,” Green said. “We expect the performance to continue and to accelerate the sequential performance in the second quarter to be better than the first.”

    Cabin Changes?

    Jordan was short on specifics but alluded to the prospect of changing the nature of Southwest’s passenger cabin and said the carrier was studying possibilities.

    “We are considering more transformational options and follow-on initiatives,” he said. “That includes work previously underway to study customer preference around seating and our cabin. … We are also studying the operational and financial benefits of any potential change.”

    Jordan and other Southwest executives rebuffed all efforts by analysts and journalists to suss out what that meant—No more open seating? Multiple classes? No detail—but said they would reveal more details at its investor day in September.

    Southwest Q1 Metrics

    Southwest reported first-quarter passenger revenue of more than $5.7 billion, an 11.9 percent increase year over year. Total revenue was more than $6.3 billion, up 10.9 percent from a year prior. The comparisons were expected to be positive given the carrier in the first quarter of 2023 still was dealing with fallout from the disruptions it experienced during the end of December 2022.

    Still, the carrier’s net loss for the quarter was $231 million, compared with a loss of $159 million in Q1 2023. 

    First-quarter average fuel costs were $2.92 per gallon. 

    Southwest projects second-quarter capacity to be up 8 percent to 9 percent year over year, with average fuel costs to be $2.70 to $2.80 per gallon. The carrier also provided an updated full-year guidance. Capacity for 2024 is now projected to be up 4 percent year over year, down from the previous 6 percent estimate. Average fuel costs are now expected to be $2.70 to $2.80 per gallon, up from prior guidance of $2.55 to $2.65 per gallon.

    RELATED: Southwest Q4 performance

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  • Summer heat is coming. Here’s a new interactive tool to help you deal with your health conditions

    Summer heat is coming. Here’s a new interactive tool to help you deal with your health conditions

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    Despite the cooler temperatures across Southern California, the summer heat is just months away and a new interactive tool is available to help you assess how the impending high temperatures can affect your health and suggest steps to take avoid heat-related illnesses.

    Due to climate change, hot weather is lasting longer and happening more frequently, said Dr. Aaron Bernstein, director of the Centers for Disease Control and Prevention’s National Center for Environmental Health and the Agency for Toxic Substances and Disease Registry.

    Talking about the summer heat with “anyone who has been alive for more than a couple of decades” will typically generate the response, “It is hotter than I remember it,” Bernstein said.

    The European Union’s Copernicus Climate Change Service said 2023 was the Earth’s hottest year on record, with seven consecutive months of above-average temperatures.

    Hotter temperatures can result in heat-related illnesses, and if left untreated, it can lead to death. A recent CDC report found that daily emergency department visits because of heat-related illness in 2023 peaked in several regions.

    To help you prepare for the future high temperatures, the CDC and the National Oceanic and Atmospheric Administration’s National Weather Service have collaborated to create an interactive online tool to help you understand how the heat in your area can affect your health and what you can do to protect yourself. The tool’s availability has been expanded to 48 states in the U.S.

    Understanding heat and health

    HeatRisk is an online dashboard that enables users to check the seven-day forecast according to their ZIP Code. Instead of temperature degrees, the forecast uses a five-level color scale to indicate the health risk imposed by the heat, taking into consideration heat exposure and the role of humidity in the air.

    The five colors are green (no risk), yellow (minor risk), orange (moderate risk), red (major risk) and magenta (extreme risk).

    What separates HeatRisk forecast from other heat-related indicators such as the National Weather Service’s HeatRisk Prototype and heat index is that it combines all of the temperature, air quality and humidity information from previous tools to provide users with actionable guidance to deal with the health risk of rising temperatures.

    The tool will help you answer questions such as:

    • Is it too hot to participate in an outdoor activity? An outdoor activity can be a hike, sport event or running.
    • If I have a chronic medical condition, could I be more sensitive to heat exposure?

    Hotter temperatures can lead to heatstroke, heat exhaustion, heat cramps, sunburn or heat rash, according to the Los Angeles County Public Health Department.

    People who are at greatest risk for heat-related illness include infants and children up to 4 years of age, people 65 and older, people who are overweight and people who are ill or on certain medication, according to the CDC.

    “For example heart disease, we know that many of the medications that are used to treat high blood pressure can also make people more sensitive to heat.” Bernstein said.

    Red indicator or higher

    When the HeatRisk tool displays a particular risk for the day and the rest of the week, it also shares actions the user can take to protect their health.

    As of Wednesday, the tool says there is little to no risk in Los Angeles, but on Saturday, a slight uptick in temperature raises the risk to the “minor” level. The suggested actions are staying hydrated and cool.

    The goal of the tool, Bernstein said, is that users will either take precautions during hotter days and, if needed, work with their doctor to come up with a plan to prepare for high-temperature days, particularly for people with medical conditions.

    For example, someone with a chronic medical condition should take extra precautions during a heat wave such as remain in a room with air conditioning. If that person doesn’t have air conditioning, they should make a plan to be in a cool indoor area, he said.

    The tool isn’t just for vulnerable populations. Everyone should be taking their heat risk into account, especially when the indicator is showing the risk is major (red) or extreme (magenta), said Kimberly McMahon, program manager for the National Weather Service’s public weather services.

    The information can be used by city officials and community organizations to start preparing to “hand out bottles of water or potentially open up cooling shelters,” McMahon said.

    Heat safety reminders

    Most people plan for hazards that can occur during the winter and natural disaster events. McMahon advises people to plan for the heat as well.

    That plan should include having enough drinking water available and a cool place in the house or apartment building.

    If a cool place at home isn’t possible, or the home does not have air conditioning, McMahon and Bernstein suggest finding cool places that are open to the public, such as libraries, malls and cooling centers.

    During these hotter days, make a plan of whom to check-in with and have someone to check on you. There are members of the community — family, friends or neighbors — who might be immobile or don’t have access to transportation and are in need of assistance.

    On top of staying cool and hydrated, people should be aware of the signs and symptoms to the onset of a heat-related illness, such as muscle cramping, heavy sweating, shortness of breath, dizziness, headaches, weakness and nausea, Bernstein said.

    The Los Angeles County Public Health Department has a comprehensive list of heat-related illnesses, their specific symptoms and what to do if someone is having symptoms.

    Some other tips for staying cool are:

    • Eat foods with high-water content, such as watermelon and cucumbers, but limit or avoid sugary, alcoholic and caffeinated drinks.
    • Wear loose, light-colored clothing and hats for protection.
    • Keep your pets indoors if possible. If you have to keep them outside, make sure they have plenty of shade and water.
    • Take a cold shower.
    • If possible, avoid using your stove, oven or other appliances that generate heat.

    The national agencies are taking feedback on the new tool. Users can share their experience by filling out this online survey.

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  • Qantas: Corp. SAF Program Participants Double

    Qantas: Corp. SAF Program Participants Double

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    Qantas’ corporate sustainable aviation program has doubled to 11 participants since it launched in November 2022 with five founding members, the airline announced Tuesday. Those businesses pay a premium to address their air travel emissions by contributing to the cost of sustainable aviation fuel rather than toward traditional carbon offsets, according to the carrier.

    Accenture, Fortescue and McKinsey & Co. have joined as partners, contributing to address 1,000 metric tons of carbon emissions, according to Qantas. Commonwealth Bank, ING Australia, Deloitte, IMC and Raytheon Australia have joined as members, contributing to between 400 and 600 metric tons of carbon emissions.

    The Qantas program allows corporations under a “book and claim” methodology to support the scaling of SAF, even if the fuel does not flow directly in the planes they fly on, according to the carrier. It is aligned with Science Based Targets initiatives guidance. The premium contributes to the incremental cost of the 10 million liters of SAF that Qantas purchases for flights out of London. 

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  • American Postpones ‘Preferred’ Agency Deadline

    American Postpones ‘Preferred’ Agency Deadline

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    American Airlines has postponed to July 11 from May 1 its deadline for changing the ways travelers can earn AAdvantage loyalty program miles and points and announcing its newly designated preferred travel agencies, the carrier confirmed. 

    The airline in February announced changes effective May 1 about earning credits for American flights. To earn points, travelers would have to book direct or through a New Distribution Capability-enabled channel, belong to a firm that has a corporate contract with the carrier or is part of its small and midsize business AAdvantage Business program, or by booking through preferred travel agencies—a new category. 

    To qualify as preferred, an agency would need to book as of April 21 at least 30 percent of its American volume through NDC-enabled channels, 50 percent by Oct. 31 and 70 percent by April 30, 2025. The new date for that first qualification hurdle now is June 5. The 30 percent volume threshold remains the same, and the future dates and volume levels also will remain the same, American said in an email.

    “We’ve seen a great response from agencies increasingly adopting modern retailing technology, and many have already achieved preferred retailer status,” according to an American spokesperson. “The majority of our indirect bookings are now made via an agency with NDC capabilities, and the current list of agencies beyond 30 percent NDC bookings is already impressive.” 

    American added that the extension gives those agencies who are “on the cusp of meeting the threshold” time to complete the transition.

    But according to BTN portfolio mate The Beat, it’s unclear how that 30 percent would be measured. 

    On the surface, the changes might not seem to affect corporate programs very much; however, according to industry sources, American has canceled contracts with some corporations as well as with some agencies, or at least in some cases significantly reconfigured their corporate incentive contracts

    There are two things a travel buyer can do to manage this process and “buy a little time,” said Results Plus Consulting partner Kim Hamer during a Tuesday AmTrav webinar: “If you have a corporate agreement, continue booking through your [travel management company, even if they are not preferred] and earn loyalty and points. If you don’t have a corporate agreement and want to continue using your TMC, then sign up for AAdvantage Business.” 

    Added Garner Advisory founder Cory Garner on the same webinar: “It has been peculiar to me to watch the corporate market have quite as much of a flurry of activity around [this AAdvantage change] considering there is a really easy ‘get out of jail free card’ associated with the strategy,” Garner said, referring to the option for companies to sign up for the SME business program. “Could [American] change down the road? Absolutely. But it’s pretty clear this is more a leisure strategy than a corporate one at this point.”  

    RELATED: American Sets New Loyalty Restrictions, Plans Preferred Agency Status

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  • Alaska Airlines: ‘Stunning’ Corp. Revenue Growth During Q1

    Alaska Airlines: ‘Stunning’ Corp. Revenue Growth During Q1

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    The start to the first quarter for Alaska Airlines was rocky at best, with the Flight 1282 door-plug incident in January followed by the weeks-long grounding of the Boeing 737 Max 9 aircraft. The combined incidents cost the carrier $162 million, “which Boeing has fully compensated us for,” Alaska president and CEO Ben Minicucci said during a Thursday quarterly earnings call.

    But the carrier recovered and had a “positive performance,” minus the grounding impact, in part due to the return of West Coast business travel, particularly among technology companies, Minicucci said. 

    For the quarter, the carrier’s managed business travel revenue grew 22 percent year over year, Alaska CCO Andrew Harrison said, with approximately 50 percent driven from yield and 50 percent from volume. 

    “Tech companies saw the biggest improvement with revenues up over 50 percent year over year, and professional services revenue [was up] an impressive 20 percent,” Harrison added. “To put the speed of recovery into perspective, managed business revenues increased 10 percent [year over year] in January, a stunning 30 percent in February and 24 percent in March. These results were achieved despite the grounding and book-away we experienced.”

    The carrier’s managed corporate revenue has fully recovered to 2019 levels, while the tech sector is approximately 85 percent recovered, Harrison said. “As we’ve said for some time, we expected business travel to come back, which we are clearly seeing today. While we did not bake this into our Q1 forecast, we do not anticipate any step back in corporate travel in Q2.”

    Alaska Q1 Metrics

    Alaska reported $2 billion in first-quarter passenger revenue, up 1 percent year over year, with total revenue at more than $2.3 billion, a 1.6 percent increase. The carrier’s operating loss was $166 million, including the grounding impact.

    Capacity for the quarter was down 2.1 percent year over year, inclusive of an approximate 5.5 percentage-point effect from the grounding, Harrison said. Without that incident, capacity would have been up about 3.5 percent. 

    Average Q1 fuel costs were $3.08 per gallon, and the carrier expects Q2 cost of $3 to $3.20 per gallon, according to CFO Shane Tackett. 

    Alaska projects second-quarter capacity to be up 5 percent to 7 percent year over year, with full-year 2024 capacity up less than 3 percent. The carrier does not expect to receive all 23 Boeing deliveries on the books for this year and has “extended the retirements of several of our older aircraft over the next few months and pushed utilization slightly higher across the mainline fleet, where we had opportunity,” Harrison said.

    Also during the first quarter, Alaska received a second request for information from the U.S. Department of Justice regarding the carrier’s proposed acquisition of Hawaiian Airlines. Alaska is working to respond as quickly as possible, and “granted the government an additional 60 days to review its responses,” Minicucci said. “We will continue to work with them to advance the process as swiftly as possible.”

    RELATED: Alaska Q4 performance

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  • JetBlue Names Shurz Head of Revenue, Network

    JetBlue Names Shurz Head of Revenue, Network

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    JetBlue on Thursday continued to make changes to its leadership organization, naming former Frontier Airlines executive Daniel Shurz its new head of revenue, network and enterprise planning. 

    Shurz will report to JetBlue president Marty St. George and will take over from Dave Clark, who will head finance and strategy and report to JetBlue CFO Ursula Hurley. Clark had headed revenue and planning for the carrier since January 2022.

    Shurz until September 2023 was SVP of commercial for Frontier, where he worked for more than 14 years, according to LinkedIn. Prior to Frontier, he was VP of network planning at Air Canada.

    JetBlue did not immediately respond to a request for the start dates for either executive.

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  • United: Q1 Corp. Travel ‘Strong Across the Board’

    United: Q1 Corp. Travel ‘Strong Across the Board’

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    United Airlines’ managed corporate travel in the first quarter was up 14 percent year over year, United chief commercial officer Andrew Nocella said during a Wednesday morning earnings call. 

    Nocella did not specify whether he was referring to corporate bookings or revenue, and United did not immediately respond to a request for clarification.

    “Yields for managed travel grew faster than non-managed travel due to stronger close-in pricing and refined discounting guidelines,” Nocella said. “The strength of the business traffic rebound is a nice development for an airline like United.”

    The increase in corporate travel came during a quarter that is typically the carrier’s “most challenging financially,” Nocella noted, and where “post-pandemic Q1 seasonality worsened due to decreases in corporate business.”

    Despite that, “corporate was strong across the board” during the quarter, domestically and around the globe, Nocella said. “We saw nine of our top 10 corporate booking days this year in our history. The strongest industries were professional services, tech and industrials. But every sector was up in the numbers this year. Q1 corporate is really important to us, and the fact that Q1 is gaining strength, corporate is really very good for our outlook for future Q1s.”

    FAA, Aircraft Delivery Delays

    United CEO Scott Kirby addressed the U.S. Federal Aviation Administration’s recent increased oversight of the carrier. “We welcome the FAA’s engagement, and we are embracing this review as an opportunity to take our safety culture standards to an even higher level,” Kirby said. 

    Through the FAA safety review, certain certifications will be delayed, United president Brett Hart said, and the carrier expects a “small number” of aircraft scheduled for delivery in the second quarter to be delayed, though this will have a “minimal impact to our 2024 capacity plans.”

    Further, Boeing’s “repeated delivery delays” has created an “impractical bow wave” of deliveries that United had to address, United CFO Mike Leskinen said. The carrier in 2024 now expects to take delivery of 61 narrowbody aircraft and five widebody aircraft, compared with the “contractual deliveries of 183 narrowbody aircraft at year-end and the 101 aircraft we were planning for at the start of the year,” he added.

    United also converted a portion of its Boeing 737 Max 10 orders scheduled through 2027 to Max 9s, Leskinen said. The carrier also plans to lease 35 new Airbus A321neos scheduled for delivery in 2026 and 2027. With those changes, United expects to take delivery of about 100 narrowbody aircraft on average each year during the 2025 through 2027 period, and has “the ability to fly some of our older aircraft longer,” he added. 

    United Q1 Metrics

    United reported first-quarter passenger revenue of more than $11.3 billion, up 10.1 percent year over year. Total revenue was more than $12.5 billion, representing a 9.7 percent increase compared with a year prior. 

    Domestic first-quarter passenger revenue was more than $6.9 million, up 6.6 percent versus Q1 2023 on increased capacity of 0.5 percent. International passenger revenue was up 16 percent on increased capacity of 21.1 percent. Total network capacity grew 9.1 percent year over year.

    The carrier reported a Q1 net loss of $124 million, down from the loss of $194 million in Q1 2023. United executives said that the grounding of the Boeing 737 Max 9 aircraft in January cost the carrier about $200 million, and without that grounding the airline would have been profitable during the first quarter.

    RELATED: United Q4 performance

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  • Buyers Alliance Commits $200M to SAF Certificates

    Buyers Alliance Commits $200M to SAF Certificates

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    Several companies have committed to investing close to $200 million into the sustainable aviation fuel market by agreeing to purchase SAF certificates for nearly 50 million gallons of the fuel, the Sustainable Aviation Buyers Alliance announced Wednesday.

    The certificates would represent about 500,000 tons of abated CO2 emissions, according to SABA.

    The purchase agreements span five years and were made by nearly 20 companies including AstraZeneca, Autodesk, Bain & Co., BCG, Deloitte, J.P. Morgan Chase, McKinsey & Co., Meta, Morgan Stanley, Netflix, Novo Nordisk, Samsung Biologics, Watershed and Workday, along with SABA founding organization RMI, according to the alliance.

    The amount of the purchase agreements “is roughly equivalent to the emissions of 3,000 fully loaded passenger flights from New York City to London,” according to SABA.

    The alliance through this transaction is “advancing new models for buying and selling SAF certificates,” with SABA members working with carriers including Alaska Airlines, JetBlue and Southwest Airlines. SABA also is securing certificates through SAF solutions provider SkyNRG and by purchasing them directly from fuel providers, including World Energy, according to the alliance.

    The deals “demonstrate the power of corporate demand to scale up investments in promising sustainable fuels that can drive decarbonization of the aviation industry,” said SABA, which added that many of the participants are new to the SAF certificate market.

    This new set of agreements through SABA follows last year’s pilot procurement program, which purchased SAF certificates for nearly 850,000 gallons of SAF. Still, the SAF volumes that met SABA’s requirements “came nowhere close” to meeting SABA customer demand in 2024 and 2025, according to the alliance.

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  • Air New Zealand Buys 9M Liters of SAF from Neste

    Air New Zealand Buys 9M Liters of SAF from Neste

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    Air New Zealand has agreed to purchase 9 million liters of
    neat sustainable aviation fuel from producer Neste, the carrier announced
    Monday. Neither company disclosed the value of the deal. 

    The fuel will be produced at Neste’s Singapore refinery and
    will be blended with conventional jet fuel and supplied to Los Angeles
    International Airport between April 1 and Nov. 30, 2024, according to the
    carrier. Air New Zealand expected its total fuel uptake during that period to
    be about 850 million liters across its network.

    The carrier said the deal is the “largest purchase of
    SAF from Neste by any airline outside of North America and Europe for delivery
    before the end of 2024.”

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  • Delta Preparing to Unveil NDC Strategy

    Delta Preparing to Unveil NDC Strategy

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    Delta Air Lines is the last of the big three U.S. carriers to implement a New Distribution Capability strategy, but the wait soon may be over. 

    The company is preparing to unveil its NDC strategy—or at least some of it—at a corporate showcase event scheduled for next week, Delta managing director of sales technology and global sales support Sara Reid said this week at the joint Elevate and TravelConnect conference in Washington, D.C., held by ATPCO and Airlines Reporting Corp.

    She didn’t let any NDC secrets out of the bag, but instead noted the strategy would be an “iterative process” with some of the plan’s “first milestones” to come out toward the end of 2024. 

    “We are committed to the ecosystem, committed to creating value for our partners, and we want to make sure that our journey is to be customer-oriented,” Reid said. “It’s important to know we remain committed to business travel on this journey and remain committed to the third-party partners.”

    Reid added that Delta “right now has no plans to follow other airlines’ strategies to remove content [from EDIFACT] or impose surcharges at this point.” She also reiterated the need to focus on servicing, not just selling Delta products. “If we can only sell our products and not service them, then we’re missing something. The key to our journey is better servicing.”

    Over the past six months, Delta has pulled together an interdepartmental team to meet with travel agencies, online booking tools, global distribution systems and corporate travel buyers to assess current processes, Reid said. 

    Delta also has heard what isn’t working with NDC and what stakeholders want, she said, such as making sure what is offered in NDC is the same as what is found on an airline’s dot-com site, with even better deals if there’s a corporate discount.

    AmTrav CEO Jeff Klee, who was on stage with Reid, is among the participants in Delta’s research. 

    “I really appreciate the thoughtful approach that Delta is taking to this,” Klee said. “To be fair, they’re coming at this a little late, but really trying to get the benefit of that hindsight. They sent a team to our offices, and to many of their other partners, and they are diving into and dissecting every little detail about our operations, so that when they release this product or build this product, they are not leaving any stone unturned.”

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  • Cirium: March N. American Air On-Time Performance Dips

    Cirium: March N. American Air On-Time Performance Dips

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    North American carrier on-time performance has zig-zagged through the first quarter of 2024, nosediving in January, recovering in February, and dipping again in March, according to the latest report from Cirium, an aviation analytics company. 

    The March average on-time performance was 74.9 percent, down 5.1 percentage points month over month, but it was up from the 71.7 percent reported in January. Each of the 10 carriers included in the report posted on-time performance declines, the inverse of February’s changes. 

    Delta Air Lines once again had the highest on-time performance at 85.5 percent, followed by United Airlines at 82.8 percent. Alaska Airlines rounded out the top three with 78.8 percent. Delta was the only North American carrier to place in the global top 10 at sixth.

    [Report continues below chart.]

    Frontier Airlines’ drop of 11.7 percentage points was the largest decline reported, followed by Spirit with a loss of 7.5 percentage points. Air Canada had the smallest decline, at 0.2 percentage points, and managed to move up to sixth place from eighth in February, with an on-time performance of 75.1 percent that was above the weighted average.

    North American carriers in March canceled 7,721 flights, compared with the 5,803 flights canceled in February.

    Completion factors for March remained steady at 99 percent or higher. Delta led with 99.8 percent, followed by Alaska at 99.4 percent, Southwest Airlines at 99.3 percent, American Airlines at 99.1 percent and United at 99.1 as well.

    A flight is considered on time if the aircraft arrives at the gate within 15 minutes of the scheduled arrival time.

    RELATED: Cirium: February N. American Air On-Time Performance Improves

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  • Industry Orgs Urge Gov’t to ‘Pause’ New Chinese Flights

    Industry Orgs Urge Gov’t to ‘Pause’ New Chinese Flights

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    Representatives from four U.S. aviation-related organizations on Thursday urged the Biden administration to “pause additional passenger flights” between the United States and China until “U.S. workers and businesses are guaranteed equality of access in the marketplace, free from the existing harmful anti-competitive policies of the Chinese government,” according to a joint letter sent Thursday to Secretary of State Antony Blinken and Secretary of Transportation Pete Buttigieg.

    The signatories included presidents of Airlines for America, the Air Line Pilots Association, the Allied Pilots Association and the Association of Flight Attendants–CWA.

    In February, the U.S. Department of Transportation allowed the number of weekly passenger flights by Chinese carriers to the U.S. to increase to 50 from 35 beginning March 31. U.S. carriers are allowed the same number, but currently are not operating that many flights.

    After China suspended bilateral air services agreements and closed its market to U.S. carriers following the outbreak of Covid-19, its government implemented “strict limits on market access,” and imposed rules “affecting operations, customers and the treatment of our airline crew,” according to the letter, which added that this “competitive disadvantage” is harmful to the 315,000 workers employed by U.S. passenger airlines that serve China.

    The letter also cited the advantage Chinese carriers have in continuing to fly through Russian airspace, which U.S. carriers stopped in March 2022, shortly after Russia invaded Ukraine, thereby making Chinese-carrier flights shorter than U.S.-operated ones.

    Congressional Request

    Also on Thursday, Rep. Mike Gallagher (R-Wis.) and Raja Krishnamoorthi (D-Ill.), chairman and ranking member, respectively, of the House Select Committee on the Strategic Competition Between the United States and the Chinese Communist Party, sent a joint letter to Blinken and Buttigieg to “urge caution in the approval of new flights” between the two countries. It, too, noted an “anti-competitive commercial advantage” for China.

    The representatives’ letter also stated that “American passengers must not be exposed to unnecessary security risks by traversing Russian airspace. … Should the U.S.-China passenger carrier market expand without the U.S. government addressing these significant issues, U.S. aviation workers, travelers and airlines will pay a hefty price tag.”

    DOT declined comment. The State Department declined to comment directly on the letter.

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  • ATPCO Unveils ‘Product Catalog’ for Dynamic Air Offer Filing

    ATPCO Unveils ‘Product Catalog’ for Dynamic Air Offer Filing

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    ATPCO has created a new solution that will “dramatically increase” the speed with which airlines will be able to move toward dynamic offers, the company announced Thursday at its Elevate + TravelConnect conference in partnership with Airlines Reporting Corp. in Washington, D.C.

    Dubbed Product Catalog, the solution is an electronic record of airline products and services that ATPCO can create for each airline client so that they “can differentiate offers beyond price,” with more detail on offer attributes.

    “Today, an airline can only sell what they send through ATPCO, and what they send is fully formed—the price, the attributes.” ATPCO CEO Alex Zoghlin told BTN. “What we are doing with Product Catalog is we are breaking down all those component parts into their individual pieces, so that you can assemble them independently of having to file every possible permutation a customer may want.”

    The solution, which also can be used by sales channels, also will help move the industry toward building the framework necessary to achieve a goal that ATPCO set in October 2022 for airlines to dynamically generate 80 percent of offers sold by 2026.

    Product Catalog was “created after months of industry collaboration in ATPCO’s dynamic offers design team,” which includes members from several of its airline and technology clients, and is currently in the proof-of-concept stage. ATPCO plans to build a Product Catalog for each of its 450 member airlines by the end of the year, Zoghlin said, adding that “this is a 2024 work, not a ‘sometime in the future.’ “

    “Long-term, I think this is really good for corporate travel buyers. They will be able to procure exactly what they’re looking for and might even be able to negotiate deals around attributes and things harder to do today,” Zoghlin added. “Some airlines do file fares specific for corporations, but think about a Product Catalog world where I can create nearly a bespoke offering for your company that might be a unique offering.” The catalog also could create different levels of offerings for travelers within the same company, he noted, based on whether the traveler is an executive or a conference attendee, for example.

    The solution’s first iteration is backwards-compatible, Zoghlin said: “We can take the fare filings you have right now, and we can create your Product Catalog for you,” he said of airlines. ” Then technology providers and others can take those and create dynamic offers on them. … But you can also take that Product Catalog and go backward and create fare filings. If you’re an airline that is further ahead in dynamic offer creation, but you have a codeshare or [joint venture] partner not quite there, we can make the ecosystem still work, going backward and forward.”

    In other words, the product will work with both EDIFACT and New Distribution Capability channels, Zoghlin said. ATPCO also is working on another product that would allow carriers to file fares in global distribution systems after building them in their Product Catalog. 

    Multiple airlines have asked ATPCO if this new product means that they can train their fare-filing staff on Product Catalog and “not have them learn all the arcane fare rules,” Zoghlin said. “That is exactly what we are saying. We can move beyond all the complicated rules. We think this is really good for even carriers that don’t think or care about moving past traditional fare filings. We think this will be a simpler way to manage everything.”

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