aviation economy Archives - Page 2 of 2

India Sees 11 Airline Exits Since 2016 Amid Financial Stress, Structural Challenges

Aviation Today News Desk / April 4, 2026

New Delhi, India: At least 11 airlines have exited India’s aviation sector since 2016, the government informed Parliament, focusing on […]

United Kingdom

UK Aviation Records 302 Million Passengers In 2025, Marking Busiest Year On Record

Aviation Today News Desk / March 29, 2026

London, United Kingdom: The United Kingdom’s aviation sector recorded its highest-ever annual passenger traffic in 2025, with 302 million passengers

India

Govt Removes Fare Caps As Airlines Oppose 60% Seats Free Of Selection Charges

Aviation Today News Desk / March 24, 2026

New Delhi, India: A policy push by the government to strengthen passenger rights and enforce fare transparency has triggered sharp

India

India Aviation Sector Losses Cross ₹24,000 Crore In 3 Years; ₹10,000 Crore More Likely

Aviation Today News Desk / March 20, 2026

New Delhi, India: India’s aviation sector has incurred cumulative losses of ₹24,819 crore over a three-year period from FY2022–23 to

Airports

Union Strike Disrupts Kenya’s Main Airport For Two Days Before Return-To-Work Deal

Aviation Today News Desk / February 18, 2026

Nairobi, Kenya: A strike by aviation workers at Jomo Kenyatta International Airport (JKIA), Kenya’s largest and busiest aviation hub that

Bishoftu, Ethiopia: Ethiopia has formally launched construction of what is set to become Africa’s largest and most ambitious airport project, with the groundbreaking of the $12.5 billion Bishoftu International Airport, led by Ethiopian Airlines in partnership with the Ethiopian government. Prime Minister Abiy Ahmed presided over the groundbreaking ceremony earlier this month near Bishoftu, around 45 kilometres southeast of Addis Ababa, marking a major milestone in the country’s long-term aviation and economic development strategy. Ethiopian Airlines Group executives and senior government officials were also present at the event. Once completed, Bishoftu International Airport is expected to handle up to 110 million passengers annually, far surpassing the current capacity of Addis Ababa Bole International Airport, which is nearing saturation at roughly 25 million passengers per year. The project is designed to position Ethiopia as a global aviation and logistics hub, strengthening its role as a key connector between Africa, Europe, Asia, and the Americas. The airport will be developed in phases. Phase One, targeted for completion around 2030, aims to accommodate approximately 60 million passengers annually with two runways, while the final master plan envisions four runways, expanded passenger terminals, and large-scale cargo facilities. The total cost of the project has been revised to $12.5 billion, reflecting expanded capacity and infrastructure scope. Ethiopian Airlines is expected to finance around 30 percent of the investment, with the remainder being mobilised through international lenders and development partners. The African Development Bank (AfDB) has already committed $500 million and is coordinating additional financing from global partners across the Middle East, Europe, China, and the United States. Bishoftu International Airport is being planned as a fully integrated “Airport City”, incorporating cargo hubs, logistics parks, maintenance facilities, hotels, and commercial zones. To support seamless access, the project includes a 38-kilometre high-speed rail link connecting the airport to Addis Ababa in approximately 20–25 minutes, along with new multi-lane highway infrastructure. The airport is also expected to provide parking capacity for around 270 aircraft, supporting Ethiopian Airlines’ rapidly expanding fleet and growing long-haul network. Ethiopian Airlines, Africa’s largest and most profitable carrier, has described the project as essential to sustaining its long-term growth and maintaining Addis Ababa’s position as the continent’s leading aviation hub. Once operational, Bishoftu International Airport is expected to gradually replace Bole International Airport as Ethiopia’s primary international gateway. Government officials have highlighted the airport’s broader economic impact, citing job creation, increased tourism, enhanced cargo and trade capacity, and improved regional connectivity as key benefits. With construction now underway, Bishoftu International Airport stands as one of the most significant aviation infrastructure projects ever undertaken in Africa, reflecting Ethiopia’s ambition to anchor the future of global air connectivity on the continent.

Airports

Ethiopia Launches Construction Of Africa’s Largest $12.5Bn Airport At Bishoftu

Aviation Today News Desk / January 16, 2026

Bishoftu, Ethiopia: Ethiopia has formally launched construction of what is set to become Africa’s largest and most ambitious airport project,

Beijing, China: Air China and Rolls-Royce have completed their USD 315 million engine maintenance, repair and overhaul (MRO) facility in Beijing, marking a major expansion of Rolls-Royce’s service network in mainland China. The joint venture, Beijing Aero Engine Services Ltd (BAESL), will induct its first engine in December 2025, with full commercial operations scheduled for early 2026. The Beijing site will overhaul Trent 700, Trent XWB-84, and Trent 1000 engines, which power A330, A350 and Boeing 787 fleets operated by Chinese carriers. Rolls-Royce said BAESL is designed as a “digitally enabled, next-generation” shop with advanced tooling and automation. According to official Beijing investment authorities, the facility spans more than 80,000 sq. m and will employ up to 800 staff once fully ramped up. It is expected to reach an annual capacity of 250 engine shop visits by the mid-2030s. This is Rolls-Royce’s first MRO joint venture on mainland China and its fourth globally, complementing HAESL in Hong Kong, SAESL in Singapore, and N3 in Germany. For Air China, the project strengthens domestic overhaul capability for high-thrust wide-body engines, reducing dependency on overseas shops. Air China executives said the facility will support the “industrialisation and localisation” of China’s engine maintenance ecosystem. Rolls-Royce leaders noted that China’s expanding wide-body fleet with nearly 600 Trent engines in service requires long-term, locally available maintenance capacity. BAESL is situated in Shunyi District, inside the Beijing Capital International Airport Economic Zone. Infrastructure includes overhaul bays, advanced engine testing facilities, parts warehousing and digital monitoring centres. With the JV now structurally complete, Rolls-Royce and Air China will begin progressive operational readiness checks before the first Trent engine arrives later this year. The facility is expected to significantly cut turnaround times for Chinese operators and reinforce China’s position as a major MRO hub in the Asia-Pacific region.

Airlines

Air China And Rolls-Royce Complete $315 Million Engine MRO Facility In Beijing

Aviation Today News Desk / November 25, 2025

Beijing, China: Air China and Rolls-Royce have completed their USD 315 million engine maintenance, repair and overhaul (MRO) facility in

New Delhi, India: India’s aviation industry is bracing for a difficult FY2026, with ICRA estimating sector-wide losses to climb to Rs 95–105 billion, almost double the Rs 55 billion loss expected in FY2025. Softening passenger growth, upcoming fleet inductions and ongoing global and domestic disruptions are set to pressure financial performance. Even so, ICRA has maintained a stable outlook for the year, supported by steady travel demand, though influenced by cross-border tensions, accident-related caution and tariff-linked challenges on the commercial side. Domestic passenger traffic in October 2025 reached 142.8 lakh, up 4.5% from October 2024 and 12.9% higher than September 2025. Capacity deployment grew 1.7% year-on-year to 99,816 departures, with passenger load factor rising to 84.7%, compared with 82.4% a year earlier. For April–October 2025, domestic traffic stood at 944.5 lakh, a 1.6% year-on-year increase. ICRA expects full-year FY2026 domestic travel to grow 4–6%, reaching 172–176 million passengers. International traffic carried by Indian airlines rose 5.8% year-on-year in September 2025, touching 28.3 lakh, though sequentially down by 5.7%. In H1 FY2026, international traffic reached 175.6 lakh, marking 9.1% growth. ICRA projects further expansion of 13–15% in FY2026. Aviation turbine fuel (ATF) remains a key cost concern. ATF prices in November 2025 were 4.4% higher year-on-year and 0.8% higher month-on-month. FY2025 had seen average ATF prices fall to Rs 95,181 per KL, about 8% lower year-on-year, but recent months have reversed that relief. Fuel constitutes 30–40% of airline operating expenses, while 35–50% of major costs are dollar-linked. The rupee’s depreciation in Q2 FY2026 led to notable forex losses for several carriers, though most remain unrealised. Fleet shortages persist. Pratt & Whitney engine problems and broader supply-chain delays resulted in around 133 aircraft being grounded across various airlines by March 2025, representing 15–17% of total industry capacity. IndiGo had 70 aircraft grounded in March 2024 due to powder-metal contamination, which reduced to about 40 by September 2025. Go Airlines, hit by similar issues, eventually grounded half its fleet in FY2024 and suspended operations. These constraints have increased operating costs through replacement leases, poorer fuel efficiency and higher spot-rental rates. Despite strong PLFs and firmer yields, profitability remains limited. The industry’s interest coverage ratio is expected to remain at 1.5–1.7 times for FY2026. Large carriers benefit from parent backing, while others continue to face liquidity stress and stretched balance sheets. The DGCA has proposed new passenger-centric norms allowing customers to cancel or modify tickets within 48 hours of booking without charges, provided the travel date is beyond five days (domestic) or fifteen days (international). Refunds are to be processed within 21 working days.

Aviation Forecast

ICRA Warns Of Rs 105 Billion Loss For Indian Aviation In FY2026 Amid Slowing Growth

Aviation Today News Desk / November 21, 2025

New Delhi, India: India’s aviation industry is bracing for a difficult FY2026, with ICRA estimating sector-wide losses to climb to

Singapore: The Asia-Pacific region has officially surpassed its pre-pandemic aviation capacity, marking a significant milestone in the industry’s recovery from COVID-19. According to aviation data provider OAG, total seat capacity in the region now stands 0.5% higher than in 2019, driven primarily by robust domestic markets in countries such as India, China, and Indonesia. Independent aviation analyst Brendan Sobie described the rebound as “delayed but now very strong,” emphasizing that Asia-Pacific’s recovery trailed behind other global markets due to prolonged travel restrictions and uneven reopening policies. However, once borders reopened, pent-up demand for air travel surged, supported by economic resilience and a growing middle-class population. “The younger population and the expanding middle class are fundamental drivers of aviation growth in this region,” Sobie said. “These demographic factors are creating long-term, sustainable demand for air travel.” Domestic travel has been the engine behind the region’s growth. Data from OAG shows that China’s domestic capacity is 14% higher than 2019 levels, while India’s domestic seat capacity is up by 13%, reflecting the strength of internal connectivity and economic activity. Singapore Airlines, Cathay Pacific, and China Eastern are leading the growth in international seat capacity. Singapore Airlines is one of three Asia-Pacific carriers that have exceeded their 2019 international capacity, operating 14.1% more seats than in 2024. The other two are Scoot (+13.8%) and EVA Airways (+4.5%). The ticket prices across the region have dropped because of rapid capacity growth and tougher competition. Fares on 17 of the 20 fastest-growing routes have fallen by over 20%, with Bangkok–Shanghai (BKK–PVG) seeing the steepest decline of 71% year-on-year. Even as international capacity continues to recover more gradually, the rapid expansion of domestic networks has allowed airlines to stabilize operations and rebuild financial strength. The recovery is also being shaped by rapid technological transformation across airlines and airports. In Singapore, Scoot, the low-cost subsidiary of Singapore Airlines, has embraced digital solutions to improve operational efficiency. The airline’s virtual Operations Command Center (OCC), developed in partnership with OutSystems, enables real-time monitoring of flight operations and proactive disruption management. According to Leonard Tan, Regional Vice President at OutSystems, the system has improved data visibility by 90% and reduced manual processing by 60%, allowing Scoot to respond faster to operational challenges. “By digitizing core operational workflows, airlines can make better decisions, reduce costs, and enhance passenger experience,” Tan explained. The Asia-Pacific region’s aviation growth is now outpacing global averages, reflecting both market resilience and structural shifts toward efficiency. As emerging economies expand and infrastructure improves, analysts expect further growth in capacity and connectivity across the region.

Airlines

Asia-Pacific Aviation Crosses Pre-Pandemic Milestone, Outpacing Global Growth

Aviation Today News Desk / October 30, 2025

Singapore: The Asia-Pacific region has officially surpassed its pre-pandemic aviation capacity, marking a significant milestone in the industry’s recovery from

aviation economy

UK Aviation Records 302 Million Passengers In 2025, Marking Busiest Year On Record

Govt Removes Fare Caps As Airlines Oppose 60% Seats Free Of Selection Charges

India Aviation Sector Losses Cross ₹24,000 Crore In 3 Years; ₹10,000 Crore More Likely

Union Strike Disrupts Kenya’s Main Airport For Two Days Before Return-To-Work Deal

Ethiopia Launches Construction Of Africa’s Largest $12.5Bn Airport At Bishoftu

Air China And Rolls-Royce Complete $315 Million Engine MRO Facility In Beijing

ICRA Warns Of Rs 105 Billion Loss For Indian Aviation In FY2026 Amid Slowing Growth

Asia-Pacific Aviation Crosses Pre-Pandemic Milestone, Outpacing Global Growth

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