AGP Executive Report

Training & Jobs: CAE will permanently close its Pueblo, Colorado training site on Oct. 1, laying off 58, after Air Force contract changes—raising questions about a planned aircraft mechanic program with Pueblo Community College. Safety & Human Factors: UK probe into easyJet EZY2335 found the A320 departed from a shorter runway intersection despite recalculations, with investigators citing habit and “confirmation bias.” Airport Disruption: Inverness Airport shut until about 4pm after an “ongoing incident,” with delays spreading across departures and arrivals. Airline Operations: Max Air says it will resume full schedules June 15 after completing maintenance, following earlier ground-handling disruptions. Aviation Policy & Passenger Rights: EU discussions continue on making compensation easier for flight delays/cancellations, while airlines warn of higher costs. New Routes & Expansion: Riyadh Air completed its first domestic commercial flight RUH–JED; Airlink plans CPT–Mauritius from Oct. 2 with E195-E2 jets. Industry Demand Outlook: IATA expects global air passenger growth to slow in 2026, with fuel costs and regional disparities shaping routes. Aviation Tech & MRO: Hainan FTP launched its first aircraft dismantling project, expanding the region’s maintenance and recycling ecosystem. Regulation & Compliance: South Sudan begins licensing its first air traffic controllers under a new national system.

Aviation Safety & Incidents: American Airlines Flight AA735 was struck by lightning mid-flight from London Heathrow to Charlotte, triggered a “squawk 7700,” and returned to Heathrow for mandatory inspection; separately, SriLankan Airlines’ A330 turned back to Colombo after a lightning strike affected an engine, with all 223 onboard safe. Regulatory & Compliance: easyJet reported an AAIB-detailed serious incident where an A320 took off from an incorrect runway intersection at London Luton; Japan Airlines faced a ministry warning after cabin crew breached alcohol rules, delaying a domestic flight. Airline Labor: Air Canada reached a tentative collective agreement with IAMAW covering 11,000+ employees across maintenance, cabin, airport airside, cargo and admin roles, pending ratification. Demand Outlook: IATA forecasts global passenger demand growth of just 2.1% in 2026, citing Middle East tensions and higher fuel costs. Security & Airspace Control: the FBI and FAA seized drones and cited pilots near SoFi Stadium during World Cup matches for violating temporary flight restrictions. New Routes & Airports: IndiGo will launch inaugural commercial service from Jewar (Noida International Airport) on June 15, starting with about six flights daily and expanding to 20+ destinations from July; Pokhara-Dubai direct flights are set for Sept. 23 with Flydubai. Industry Economics: Russia imposed new limits on foreign airlines’ refuelling “tankering” practices at select airports, while United’s checked-bag fee overhaul continues to reshape loyalty value. Aviation Culture & People: JKIA hosted a water-salute farewell for veteran pilot Jeff Dusang as he completed 49 years in commercial aviation.

MRO Capacity Boost: Tanzania’s Air Tanzania upgrades the Kilimanjaro maintenance hangar to service more aircraft locally, aiming to cut overseas servicing costs and expand training for maintenance specialists. Gulf Network Moves: Etihad and Condor have sealed a strategic partnership for a new Condor Bangkok service via Abu Dhabi, with Etihad Guest miles usable on Condor flights. Route Expansion: Etihad adds direct flights to Kraków and Palma de Mallorca, while Copa extends its Panama stopover program to 15 days at no extra airfare. Passenger Rights Update: The EU agrees to new rules barring airlines from charging parents extra to seat children near them, alongside broader transparency on ticket pricing. Safety & Disruption: IATA urges passengers to follow evacuation instructions and leave bags behind; American Airlines AA735 made an emergency return to Heathrow after a reported lightning strike. Aviation Infrastructure: Sri Lanka will resume construction of Bandaranaike’s second passenger terminal in November, targeting completion within 30 months. Tech Leap: The Helios Horizon completes a milestone crewed flight using solid-state batteries, highlighting a major step toward electrified aviation. Industry Economics: Japan’s ANA and JAL raise international fuel surcharges again in July as fuel costs stay elevated. New Operators/Services: ALMA Air brings Colombia’s first commercial seaplane service in 70 years to Medellín, and Cayman Airways adds extra summer flights to Panama.

Airport Upgrades: Billings Logan International Airport is rolling out a multi-stage renovation aimed at faster check-in and baggage screening, with work starting June 15 and expected to take about two years; officials say the changes should also free space for airline growth and new entrants. Safety Investigation: Fiji’s civil aviation ministry has appointed veteran accident investigator Capt. Norman Walding to lead an inquiry into a Robinson R44 helicopter ditching near Nadi after takeoff; the pilot escaped uninjured and the aircraft stayed afloat. Helicopter Oversight: Japan Airlines faces a regulator push after two cabin attendants drank the day before a May flight, leading to a delay; the transport ministry ordered preventive measures and JAL imposed pay cuts and suspensions. Passenger Rights & Disruption: Phoenix Sky Harbor saw hundreds of flights delayed or canceled amid thunderstorms and heavy traffic, while Las Vegas’ Harry Reid airport earned a top-3 U.S. spot in an AirHelp ranking. Airline Expansion: Harbour Air launched a new Victoria–Seattle seaplane route, and Porter Airlines added nonstop Canada–Turks and Caicos service plus more winter sun links. Premium Product Moves: United will roll out a Polaris business-class menu created by celebrity chefs tied to departure cities, starting Aug. 1. Airline Industry Watch: Wizz Air says it’s gaining confidence that Pratt & Whitney’s GTF issues will be resolved by end-2027, supporting its A321neo delivery plan.

Aviation Policy & Consumer Rules: Britain’s Competition watchdog is investigating Ryanair over an “unfair” family-seat policy that charges about £8 each way for a mandatory seat for children aged 2–11, raising questions under consumer law. Airport Operations: India’s Jammu and Kashmir CM Omar Abdullah urged the Civil Aviation Ministry to reconsider Srinagar Airport’s Oct. 1–16 closure for runway maintenance, proposing phased work or limited flights from Awantipora during the peak tourism season. Airline Finance & Network Changes: Air India is reportedly weighing slower growth—delaying deliveries and trimming routes—as Tata pushes it to cut record losses. Fleet & Expansion: Breeze Airways launched its first Nassau–Tampa nonstop service, with twice-weekly flights starting now and more capacity planned in July. Fuel Surcharges: Japan’s ANA and JAL will raise international fuel surcharges for tickets issued from July, citing still-high fuel costs. Safety & Accountability: One year after Air India AI171, families and officials say the final crash report is still not out, with investigators continuing work. Aviation Security: Kuwait reported Iranian attacks damaged radar at its capital airport, injuring people and disrupting air traffic management systems. Industry Sustainability: IATA warned slow SAF output makes 2050 net-zero harder, with SAF still a tiny share of jet fuel.

Uganda Airlines Fleet Push: Uganda’s flag carrier says it has committed to buy 10 Boeing aircraft—eight new passenger jets plus two converted freighters—to expand Entebbe connections and cargo capacity. FAA eVTOL Approval: The FAA has cleared Honda Research Institute to begin flight testing its fully electric unmanned air taxi, even though the aircraft’s endurance is about 15 minutes. Nigeria Ground-Handling Crackdown: Ground handlers in Nigeria have withdrawn services from Max Air over unpaid debts, throwing domestic operations into uncertainty. APEX Awards Spotlight: Emirates was named Best Overall Airline in the Middle East at the 2026 APEX Best in Airline Awards, citing strong passenger feedback across cabin comfort, service, and connectivity. Regional Network Moves: Finnair will resume Tampere and Turku flights in October with overnight ATR service, while Qatar Airways restarts daily Doha–Philadelphia from Aug. 1 and Singapore Airlines adds a new Singapore–Barcelona–Madrid schedule from Oct. 26. Safety & Ops Watch: The NTSB is urging runway condition reporting updates for heavy rain, and Wizz Air says it will keep its A321XLRs after transfer talks ended. Middle East Aviation Security: Kuwait has filed a third ICAO protest over radar targeting and says air navigation safety is at risk.

Gulf Airspace Update: Kuwait reopened its airspace and returned flights to normal after lifting precautionary restrictions, with Kuwait International Airport resuming operations under approved schedules. Middle East Pressure on Aviation: A fresh US strike threat against Iran raised uncertainty for oil and jet-fuel markets, keeping airlines on edge as fuel costs remain a key summer risk. New Routes & Connectivity: Harbour Air launched daily seaplane service between Victoria and Seattle for summer, while Etihad added a 3-times-weekly Abu Dhabi–Krakow route (with First cabin) for June–September. New Entrants & Expansion: Riyadh Air brought its London Heathrow debut forward, operating a daily Riyadh–Heathrow service on a newly delivered 787-9, and will start daily Riyadh–Dubai flights June 18. Regulation & Safety: Armenia moved to tighten “air tax” exemptions, requiring airlines to operate at least 40 flights per year to qualify. Consumer & Competition: UK watchdog scrutiny hit Ryanair over a mandatory fee for parents to sit with children, with the CMA investigating potential unfair contract terms. Market Outlook: Industry research projects the instrument landing system market to reach $2.43B by 2030 as airports modernize navigation for safer landings.

Vertical Aerospace: Valo eVTOL’s latest full-scale prototype completed a maiden piloted flight, doubling Vertical’s flight-test capacity as it heads toward Critical Design Review and pre-production assembly. Otto Aerospace: Phantom 3500 clean-sheet business aircraft cleared a key FAA step after closure of the G-1 Issue Paper, setting the certification basis under 14 CFR Part 23. Airbus Helicopters: Unveiled the autonomous, uncrewed U145 derived from the H145, with a safety-pilot maiden flight planned for end-2026 and service targeted for the next decade. Electra (NASA AACES 2050): Released a hybrid-electric turboelectric airliner concept claiming up to 17% efficiency gains by 2050 projections. Eurofighter: ECRS Mk1 radar moved into live operational evaluations with Germany and Spain aiming for 2027 deliveries. Airline ops & safety: SAS suspended India operations until June 16 after DGCA rejected operational authorization; EU updated its Air Safety List with 154 airlines banned, including adding Air Express Algeria and removing Kyrgyz carriers. SAF & fuel: Twelve opened AirPlant One in Washington state, producing ASTM-certified E-Jet fuel from captured CO2 and renewable electricity; American Airlines and Google signed a record SAF certificate deal for 35 million gallons. New routes: Qatar Airways resumes daily Doha–Philadelphia from Aug 1 with A350-900s and Qsuite; Qantas and Jetstar launch domestic services from Western Sydney International starting Oct 25. Industry pressure: IATA-linked coverage continues to warn fuel shocks could halve airline profits in 2026.

New Cargo Start: Sri Lanka’s WEAIR launched June 6 to boost air-freight capacity and regional connectivity, backed by Luxembourg-based IOTC Investment. Route Expansion: Qatar Airways will resume daily Doha–Philadelphia flights from Aug. 1, using A350-900s with Qsuite and Starlink, adding oneworld connections via American Airlines. MRO & Jobs: Bombardier plans to nearly double its Singapore footprint with a Seletar Aerospace Park facility, targeting 200+ skilled jobs and 24/7 AOG support from 2028. EU Safety Crackdown: The EU Air Safety List now bans 154 airlines; Air Express Algeria was added for serious safety concerns, while Kyrgyz carriers were removed after oversight improvements. Pilot Licensing Scandal: Canadian police arrested former Air Canada captain Geoffrey Wall, accused of flying 900+ trips for nearly 17 years with a fake/insufficient license. Fuel Shock on Fares: Jet fuel costs after the Iran war have more than doubled, pushing summer ticket prices up sharply and delaying any near-term relief. Market/Brand Moves: Southwest signed a multiyear marketing partnership with Foundation Media Partners to refresh brand storytelling and customer engagement. Safety Incident: A Pakistan Army Mi-17 crashed near Muzaffarabad during take-off due to a technical fault; all onboard died and an inquiry is ordered.

Pilot Licensing Fraud: Peel Regional Police arrested former Air Canada captain Geoffrey Wall, alleging he flew 900+ flights for 17 years without the required Airline Transport Pilot Licence, using forged documents and misrepresenting credentials to both Air Canada and Transport Canada. Middle East Escalation: The U.S. carried out “proportional” strikes on Iranian air-defense and radar sites after an Apache helicopter shootdown, with two crew members rescued using a drone-assisted operation near the Strait of Hormuz. Route Restarts: Sun Country is bringing back Duluth–Fort Myers nonstop service for the 2027 winter season (starting Jan. 29, 2027), and also plans to restore Fort Myers flying from Eau Claire. New Airport Momentum (Australia): Western Sydney International Airport opens for commercial service on Oct. 25, with Jetstar launching domestic routes from day one. Fuel Shock Backdrop: A Reuters report at the IATA AGM says ANAC expects FAA certification of the Boeing 737 MAX 10 this year, a key input for growth plans at carriers like Brazil’s Gol. EU Safety List Update: Kyrgyzstan carriers were removed from the EU Air Safety List, while Air Express Algeria was added and banned from operating in the EU.

Jet Fuel & Costs: Airbus CEO Guillaume Faury said he’s not seeing jet order cancellations despite fuel pressure tied to the Iran war, as airlines keep holding their order books. Fuel Price Stabilization (India): India’s government set a locked jet fuel rate of Rs 115/litre for up to three years under a price-stabilisation scheme, aiming to smooth airfare volatility. In-Flight Connectivity: Wizz Air will become the first European ultra-low-cost carrier to offer Starlink high-speed Wi-Fi from 2027. Network Growth (Middle East): Etihad doubles Abu Dhabi–Kabul to twice daily from July 15, citing demand beyond expectations. Travel Rules (Batteries): Thailand updates power-bank rules for flights to/from the country: store in hand luggage, limit to two, and don’t use onboard. Passenger Experience (India): Air India is considering a “no-meals” fare option to cut costs amid rising expenses. Safety & Compliance (Canada): Air Canada says a former captain was fined by Transport Canada for lacking the proper licence, while police probe a wider “Project Icarus” case. Partnerships: Southwest and Singapore Airlines/Scoot launch a single-ticket interline connection to nearly 120 U.S. destinations via SIA Group hubs.

Fuel Shock & Profit Outlook: IATA says global airline profits are set to halve in 2026 as Middle East conflict and soaring jet fuel costs bite, with net profit forecast cut to about $23B and profit per passenger dropping to ~$4.50. Cost Pressure in the US: U.S. carriers paid nearly $6.5B in fuel in April, up 78% year on year, according to BTS. Middle East Disruption: Iran-Israel escalation has triggered airspace restrictions and diversions across the region, though Iraq has reopened airspace and Iran says operations are back to normal; flights also resumed at Tehran’s Imam Khomeini Airport. Airline Tech & Passenger Experience: Wizz Air will roll out Starlink on “new generation” aircraft from 2027, joining a broader in-flight connectivity push. Operations & Infrastructure: American Airlines opened nine new DFW Terminal C gates with electronic boarding gates as part of a major expansion. Industry Tensions: Airline CEOs at IATA’s Rio meeting renewed pressure on engine makers over delays and grounded aircraft, warning constraints could last for years. Canada Support Debate: Ottawa’s loan plan for airlines facing fuel volatility is drawing pushback, with WestJet “strongly” opposing the government offer. Alliance Moves: Philippine Airlines is set to join oneworld, expanding the alliance’s Southeast Asia footprint. Safety/Incidents: FAA is investigating a South Haven, Michigan crash after a pilot reported power loss during takeoff; no fire and the pilot walked away.

Fuel Shock & Profit Warning: IATA says 2026 airline profits are set to halve to about $23bn as jet fuel costs jump and Middle East disruptions hit routes, with jet fuel bills expected to rise sharply and margins squeezed. SAF Shortfall: IATA warns sustainable aviation fuel remains stuck at under 1% of demand, making net-zero timelines harder and raising the risk of compliance penalties. Drone Disruptions: A German Aerospace Center report links drone incidents near airports to major losses—tens of millions of euros—and frequent partial closures. Middle East Route Cuts: European carriers keep suspending or limiting flights to Gulf destinations, while some services begin to return selectively. Network Moves: Riyadh Air launches Manchester–Riyadh from July 23 (3 weekly flights), and Condor plans an unusual Frankfurt–Cairo run using an Embraer E190. Tech for Passengers: Wizz Air confirms Starlink in-flight internet rollout across its “new generation” aircraft from 2027. Labor & Safety: A UK union pushes for better protection for airport workers exposed to fumes and dust, including a workplace exposure register. Local Disruption: The Philippines’ CAAP limits operations at General Santos Airport after a 7.8 earthquake, restricting flights to government, military and humanitarian use.

Middle East Shock to Profits: IATA says global airline net profit for 2026 will be cut nearly in half to about $23B, driven by Iran-linked fuel spikes and regional airspace disruptions, with net margin falling to ~2% and profit per passenger to ~$4.50. Airspace Turmoil: Iraq shut airspace for 72 hours and Syria closed southern corridors and suspended Damascus operations for 12 hours; Qatar and its civil aviation authority denied social-media claims of a Qatar shutdown, saying NOTAMs only reroute traffic. Route Cuts Under Fuel Pressure: American Airlines will temporarily pause six domestic routes in Aug–Sep amid higher fuel costs tied to the Iran conflict. Industry Leadership Update: IATA’s board won’t pick a new director general at this AGM; it will review candidates and aim to decide by end of June after Willie Walsh’s planned August departure. Fleet & Product Moves: Cathay expects Boeing 777-9 deliveries by end-2027 (subject to certification) and plans new Hong Kong–Almaty service in early 2027; Riyadh Air welcomed its first two 787-9s. Safety & Security: A man allegedly used a fake boarding pass to board a United flight in Houston and was charged; separately, two pilots were killed in a Gulfstream G200 crash during an emergency landing attempt in the Dominican Republic.

Alliance Moves: Philippine Airlines will join oneworld as its 16th member, with integration expected next year—potentially boosting alliance-wide loyalty earning, lounge access, and smoother multi-carrier bookings. Fuel & Fares Pressure: IATA warns jet fuel costs tied to the Middle East conflict are squeezing airlines and could trigger more failures and consolidation; in parallel, Bangladesh’s BERC cut Jet A-1 prices again, easing costs for carriers. EU Passenger Rights: EU negotiators struck a compromise on air passenger rights reform, keeping the main delay compensation thresholds but adding clearer, faster claim submission rules for travellers. Boeing Updates: FAA cleared Boeing to start the next major certification step for the 777-9 (TIA 4b), while Southwest says it will debut the 737 MAX 7 in early 2027 after certification. Sustainability Reality Check: IATA says SAF production in 2026 will reach only about 0.8% of aviation fuel use, calling for faster scale-up. Regional Disruption: Kuwait reopened airspace after an Iranian attack, resuming flights after a brief closure. Tech & Safety: Malaysia’s MASSA signed an MoU with Braindrop to assess fire-control tech for lithium batteries and power banks onboard.

Oneworld Expansion: Philippine Airlines signed an MoU to join oneworld as the alliance’s 16th member, with full integration expected in 2027, adding 30+ Philippines destinations and boosting Southeast Asia connectivity. Fuel Shock & Demand: IATA says airline demand fell 3.4% in April year-on-year for the first time since Covid, as jet fuel costs and geopolitical turmoil force carriers to cut flights and rethink schedules. Aircraft Orders Under Pressure: Embraer CEO said some airlines are delaying decisions on aircraft purchase options amid Iran-war uncertainty and higher fuel prices, even as E2 sales campaigns continue. Fleet Strategy Watch: Southwest told Reuters it will stick with Boeing’s 737 MAX family, expecting MAX 7 revenue service in 2027 despite certification delays, while continuing Starlink rollout. Airport Chaos Warning: IATA warned Europe airport disruption could worsen, with border processing delays now stretching to several hours and compounding missed connections. United Digital Push: United is turning seatback screens into a broader onboard digital platform, aiming to deepen loyalty and drive revenue via connectivity. Regional Disruption: Air Canada, Air Transat and Sunwing will suspend flights to Cuba indefinitely, citing the current geopolitical situation.