CAPA Insights

Vietnam Airlines confirmed its intention to launch a dedicated cargo airline in 2026, converting A321 aircraft into freighters.

The first cargo aircraft is expected to enter service on regional routes in 4Q2025.

At the end of Jun-2025, the Global Solidarity Levies Task Force (GSLTF) launched a campaign to expand levies on air transport, particularly targeting premium travellers and private jets.

The coalition launch partners comprised France, Kenya, Barbados, Spain, Somalia, Benin, Sierra Leone and Antigua & Barbuda, with backing from the European Commission under the Pact for Prosperity, People and the Planet.

The GSLTF's stated aim is to "improve domestic revenue mobilisation of developing countries and support international solidarity (in particular with regards to climate change mitigation and adaptation, pandemics and other development challenges)".

The announcement was met with strong criticism from aviation industry bodies, including IATA and Airports Council International, which strongly objected to further levies or taxes on air travel.

The GSLTF's announcement came just as Sweden's Government abolished its aviation tax, in a move broadly welcomed by airlines.

Other European countries, notably Germany and Austria, continue to face industry backlash for their taxes on aviation.

82 new routes launched in the region ... 34 different carriers feature in the list.

Aegean Airlines accounted for the most new routes (10), followed by Norwegian (9) and SAS (6).

Aeroflot CEO Sergei Alexandrovsky announced Aeroflot Group will rely on Irkut MC-21 for fleet renewal, with the aircraft to be operated by both Aeroflot and Rossiya - Russian Airlines.

Aeroflot Group now expects to add 108 MC-21 aircraft by 2030 and a further 92 MC-21s by the end of 2032.

Rossiya plans to transition to an all MC-21 medium haul fleet, with the aircraft to feature a two class comfort and economy class seat configuration.

The first serial MC-21 deliveries to customers including Aeroflot are expected from autumn 2026.

Vietnam is preparing to welcome a sixth airline after the Ministry of Construction granted an air transport license to Sun PhuQuoc Airways.

The proposed airline intends to adopt a hub-and-spoke route model.

Sun PhuQuoc Airways will position Phu Quoc International Airport as its hub, operating charter services to major cities in Vietnam and Asia Pacific, including Japan, South Korea and China.

Speaking to Aviation Week Network at the Paris Air Show in Jun-2025, Airbus executives and engineers revealed progress on some of the manufacturer's efforts to grow the capabilities of its A220, A330 and A350 aircraft families.

Airbus' projects include a larger variant of the A220, increased take off weight for the A330-900 and progress on the upcoming A350-1000ULR.

Incheon International Airport Corporation (IIAC) recently signed an MoU with Guayaquil Airport Authority to support the development of a new airport in Guayaquil, Ecuador.

The USD360 million project will aim to develop an airport capable of handling over seven million passengers p/a, in a bid to address capacity concerns at Guayaquil Jose Joaquin de Olmedo Airport (GYE).

Airbus had a fruitful period at the 2025 Paris Air Show in Jun-2025, chalking up agreements for up to 406 new aircraft, including firm orders, options and MoUs.

The manufacturer secured deals for its A220, A320neo and A350 families, with suggestions of more orders to be announced in the coming months.

55 new routes launched in the region ... 20 different carriers feature in the list.

Eurowings accounted for the most new routes (9), followed by Sky Alps and Volotea (7), and Condor Flugdienst (5).

In 2025 airlines will make an estimated USD36 billion profit on projected revenues of USD979 billion. These are big numbers, but it equates to a net margin of a mere 3.7% or USD7.20 net profit per passenger.

This profitability "is not commensurate to the enormous value that we create at the heart of a value chain supporting 3.9% of global GDP and providing and supporting jobs for 86.5 million people," outlined Willie Walsh, Director General of International Air Transport Association (IATA) at the organisation's 2020 AGM in New Delhi, India, at the start of Jun-2025.