Analysis Reports

In its 27-Aug-2025 announcement of its UK winter schedule, Ryanair said that it expected 60 million passengers in the UK this year, making it the UK's biggest passenger airline.

It also claimed that it would carry almost double British Airways' traffic volume to/from the UK this year.

These claims need some fact checking, but the broader truth is - that Ryanair, and low cost airlines in general, have outpaced British Airways' growth in the UK over the past decade and more.

The ultra-LCC is seeking to present its very significant credentials in Europe's biggest aviation market, thereby amplifying the core message to the UK government: scrap air passenger duty and reform air traffic control, or we will slow our growth in the UK.

Now 122 years after the Wright Brother's achieved the first successful powered, controlled, and sustained flight in a heavier-than-air aircraft, an eVTOL (electric Vertical Take-Off and Landing) aircraft flew between two airports in California - for the first time in recorded history.

Perhaps more should have been made of it in the media, because apart from the advent of the turboprop powered aircraft, the helicopter, then the jet engine, the widebody commercial aircraft, Concorde, fly-by-wire and carbon fibre/composite aircraft - there have been few more significant moments in aviation history.

But the world isn't the eVTOLs oyster just yet, apart maybe for the military.

For example, eVTOLs are a lot heavier than air than the 'Wright Flyer' was. That matters for road vehicles, but a lot more so for an aircraft, and until batteries are much lighter it will remain an issue.

And it is one of the reasons that 'hybrid' versions of eVTOLs are already under production; the environmentalists nightmare (and aren't we going to know all about it)?

Technical matters are not the only issue, by any means. There are deep concerns about certification, financing and public image and acceptance of these vehicles.

And much the same applies to the legions of 'vertiports' that are being planned to house them.

And what exactly can they do that helicopters can't?

These and other questions come under the spotlight in this report.

This regular CAPA - Centre for Aviation report provides a summary of major developments in the aircraft interiors sector, supported by data from the CAPA Aircraft Interiors Database and CAPA News.

This edition covers Jul-2025 and Aug-2025 and features:

The rise of Safran Passenger Innovations;

Brief history of Safran Passenger Innovations;

+ Latest global interior updates.

The arrival of Airbus A330neos next year 2026 could enable VietJet Air's first nonstop flights to Europe, although the airline is also still looking at whether to introduce European flights sooner via one-stop flights.

VietJet executives have long discussed the airline's desire to launch European routes, and while specific timelines remain unclear, the airline's appetite to reach the European market appears undiminished.

Such routes could help spur demand for leisure travel from Europe to Vietnam, and would also provide another connecting market for the airline's growing network in Australia.

Any such European incursion would open up a new front in its competition with the flag carrier, Vietnam Airlines.

VietJet's ambition to extend its network is evidenced by the airline's substantial orders for 40 A330neo widebodies, which will allow it to enter more markets and increase capacity on existing trunk routes.

In the first part of this report on the relationship between international multilateral development banks, smaller regional investment banks and airports, the raison d'être for their interest in the airport sector was considered, along with their heavy focus on airports satisfying ever-stricter environmental criteria when applying for loans and grants - not to mention the occasional equity investments they occasionally make.

In this second part more of these institutions come under scrutiny. They are contrasted in several ways.

For example, the projects they support can range from a new baggage-handling unit to a state-of-the-art terminal.

Some are strictly regional, while others have a global brief. At least one of the largest domestic banks is more active abroad than at home, in line with the home country's political objectives.

Some, like the BRICS' New Development Bank, are having to transition rapidly as the market they serve and the bank's needs have grown.

Some are more involved with the sector than might be expected, given other available financing options, while others punch below their weight, where their assistance is required to a greater degree.

Also by image. While all promote themselves as the serious institutions they are - one has a slogan more appropriate to a used-car sales outlet.

The common factor to most of them, though, is the one pointed out in part one of this analysis - the ever-growing demand that any airport investment project owner that has asked to be supported by these banks must tick every single box where the environment is concerned.

Turkish Airlines (THY) is investing EUR300 million in Air Europa, a small to medium sized Spanish airline whose fleet is little more than a tenth of that of the Istanbul-based global super-connector. In the week of 25-Aug-2025 THY ranks as Europe's number three airline by seats, whereas Air Europa is 36th.

THY announced on 19-Aug-2025 that its binding offer for a minority stake in Air Europa had been accepted. The "vast majority" of THY's investment will be by way of a capital increase, and its exact percentage stake will be determined at closing. The transaction, which requires regulatory approval, is expected to complete in six to 12 months.

The rationale is based on the complementary nature of the two networks. THY's short haul network is underweight in Spain, which is one of Europe's biggest markets. In long haul, Latin America is THY's smallest market, while Air Europa is third by seats and first by number of destinations between Europe and Latin America.

There are still some uncertainties - not the least, the future for IAG's 20% shareholding in Air Europa.

Nevertheless, THY's investment should pave the way to a close commercial partnership with Air Europa and benefits for both.

Condor Flugdienst's lobbying campaign against Lufthansa has failed to bring about the result that it sought. The final frayed thread in ties between the two airlines that go back 70 years may now have snapped.

A 20-Aug-2025 high court ruling in Duesseldorf upheld Lufthansa's terminating of a long term agreement that had given favourable rates to short/medium haul passengers transferring onto Condor's long haul network.

After Lufthansa ended the agreement in Oct-2024, the German leisure airline cut some long haul routes that it says were no longer viable. Condor's argument that its much larger competitor (and one-time shareholder) was abusing its dominant position in the market has not been successful.

There have been previous twists and turns in this story, and a further twist could still change the decision once more, but for now it seems that Lufthansa cannot be forced to reinstate the SPA once more.

However, Condor is currently pursuing strong capacity growth, upgrading its fleet and contemplating a doubling of its aircraft numbers. Cutting the ties may be good for it in the long run.

The main organisations that are involved with investment into the airport sector have been identified in previous CAPA - Centre for Aviation reports across the classification of pension funds, private equity funds and sovereign wealth funds, while some of the principal operator/investors have also come under scrutiny.

Now it is the turn of the leading International and Regional Development Banks.

In this, the first of two parts, the raison d'être for their interest in this sector is considered, along with their heavy focus on airports satisfying ever stricter environmental criteria when applying for loans and grants - not to mention the occasional equity investments they occasionally make.

This report then moves on to look at some of the larger scale financiers among their ranks, such as the World Bank and its partners, also the Islamic Development Bank and the European Bank for Reconstruction & Development.

One prominent theme emerging from Canada's airline sector in 2025 is a push by the country's airlines into Latin America during the northern hemisphere's winter season.

The pivot towards Latin America is largely in response to dampened demand from Canada to US leisure destinations, resulting from trade policy and geopolitical tensions.

It is not clear that the wave of new service could spur over capacity in some markets, or if the latest US tariff adjustments will trigger more economic uncertainty. But for now, Canadian airlines are moving full steam ahead to bolster their presence in Latin America.

Wizz Air's planned expansion in Italy in the forthcoming winter 2025/26 schedule signals the continued importance of the group's biggest market. It ranks third by seats in Italy in the week of 18-Aug-2025, behind Ryanair and easyJet, but has improved from sixth in the equivalent week of 2019.

Italy has outpaced Europe in the post-pandemic capacity recovery. This has been driven largely by low-cost airlines, in particular by the two ultra-LCCs Ryanair and Wizz Air.

Second-ranked easyJet has not grown capacity by very much since 2019, and Alitalia's successor ITA Airways is still smaller than its predecessor as the national flag carrier.

Nevertheless, backed by Lufthansa, ITA is better placed than Alitalia was to steer a path through, and around, low-cost competition.