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September 7, 2023

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Today's Top Stories

Soaring Fuel Costs Trigger Airline Warnings

Airlines are bracing for a disappointing third quarter as surging fuel costs, driven by rising crude oil prices, eat into their profits. Southwest Airlines reported lower-than-expected August bookings, while United Airlines and Alaska Air Group also issued warnings due to tightening fuel supplies. United Airlines revealed in an SEC filing that jet fuel costs had surged more than 20% since mid-July, with Q3 costs estimated between $2.95 and $3.05 per gallon compared to $2.50 to $2.80 in July. Despite this, some airline stocks, including United Airlines, rose as analysts had already lowered price targets due to rising fuel costs.

Oilprice.com | Related

Airlines warn of higher jet fuel costs as crude prices rise - Yahoo! Finance

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Finnair passengers pioneer “border control without queuing”

Finland is pointing to a possible future of digital, paperless passports, thanks to a trial being conducted at Helsinki Airport, which Finland’s Border Guard calls “border control without queuing.” This innovative trial, involving passengers using a Digital Travel Credential (DTC), began on August 28th 2023 on Finnair flights to London, Manchester and Edinburgh in the UK. It is scheduled to run until February 2024. With the European Union having provided €2.3 million in funding, the Digital Travel Credential trials are due to be rolled out to Zagreb International Airport in Croatia, in the Autumn of this year.

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Lufthansa CEO tells automakers to refrain from using synthetic fuels

Lufthansa CEO Carsten Spohr has urged Germany's automakers to refrain from using synthetic aviation fuels, stating that the airline industry will require all available supplies. At an auto industry event in Munich, Spohr emphasized that sustainable aviation fuels (SAF) are vital for decarbonizing air travel, but their availability is limited. While Germany's automotive sector secured an exemption for e-fuels from the EU's 2035 combustion engine ban, aviation executives like Spohr see SAF as the only practical solution for reducing aviation emissions. Spohr also highlighted that battery-electric vehicles, while suitable for road travel, lack the energy density needed for commercial air travel.

Bloomberg | Related

Lufthansa to reactivate more A380s - Business Traveller

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‘E-fuels’ are catching on as a way to decarbonize air travel

Lydian, a startup based in Massachusetts, has secured $12 million in seed funding to advance its technology for producing "power-to-liquid" fuels, also known as "e-fuels," for aviation. E-fuels are synthetic liquids produced using captured carbon dioxide, hydrogen, heat, and electricity, ideally sourced from renewables. Lydian claims to have developed an energy-efficient process involving electric heat and a catalytic cell to produce jet fuel with lower energy consumption. The funding will enable the company to scale up its technology and build a pilot plant capable of producing over 5,000 gallons of e-fuel per year by mid-2024, contributing to efforts to reduce aviation emissions.

Canary Media | Related

Biden administration to delay aviation fuel subsidy guidance until December, sources say - Reuters

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Australian Govt prepares for airport slot reforms amid airline competition focus

The Australian federal government is gearing up for reforms in airport slot regulations, particularly focusing on Sydney Airport, as part of efforts to address consumer dissatisfaction with high airfares. Transport Minister Catherine King released a green paper outlining the government's vision for Australian aviation until 2050. The green paper highlights the need to modernize the slot allocation framework at Sydney Airport, which is currently criticized for its limited availability and allegations of slot hoarding by major airlines. The reforms aim to make it easier for new entrants in the aviation industry, both domestic and international, to operate at the airport. The government also acknowledges the need to address the concentration of the industry, with two major airlines carrying 95% of passengers, and the potential impact on competition and consumer prices.

Sydney Morning Herald | Related

Qantas’ Troubles Mount With Looming Shakeup of Airport Slots - Bloomberg

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LATAM Reveals Special Pan American Games Boeing 787 Livery

LATAM Airlines Group has revealed a special livery on one of its Boeing 787 Dreamliners in support of the Pan American and Parapan American Games Santiago 2023. The airline will transport the Pan American flame and sponsor Team Chile during the games. As part of its fleet renewal strategy, The Pan American Games are scheduled for October 20 to November 5, 2023, and the Parapan American Games from November 17 to 26, 2023, in Santiago, Chile. LATAM Airlines' special livery Boeing 787-8 Dreamliner will carry the flame across Mexico and Chile, showcasing its commitment to the event and the region's connectivity.

Simple Flying | Related Latam Airlines hands over plane to Santiago 2023 that will carry Flame to Pan American Games - Inside the Games

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Orlando Airport opens Terminal C to the general public

Orlando International Airport in Florida has opened Terminal C to the general public with a pilot visitor pass program. The Experience MCO Visitor Pass Program allows the non-traveling public to explore the architecture, interactive media and services in Terminal C. The pilot program enables guests to visit the terminal’s post-security areas to access the food and retail concessions for leisure purposes. Terminal C has a blend of local and name-brand concessions, providing dining and shopping opportunities.

Passenger Terminal Today | Related

Orlando International Airport Launches Airside Access Without Boarding Pass - Simple Flying

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> PHOTO OF THE DAY

Today’s picture comes from Christopher Wölner-Hanssenn, showing a SWISS 777 in a rainy Zürich. Use #APEXPOTD for the chance to be featured in the APEX Daily Experience newsletter!

> Tweet of the Day

Todays dinner with Abba on the #AvGeek favorite #A321. Picking the main course: “Take a Chance on Me” 🎲 When the meal comes: “Mamma Mia, Here we go Again”👀 After the meal: “Voulez Vous aha & Thank You for the 🍲 🤤” #DiningonVistara #travel #PaxEx #Abba 😂

OntheRoadAJ @OntheRoadAJ

Association News

APEX/IFSA Global EXPO - Register now!

APEX/IFSA Global EXPO, co-located with FTE Global, is where the largest gathering of airline executives from around the world come together to network, forge new partnerships, share unique insights, collaborate and meet with the top exhibitors demonstrating the latest innovation and technology. Join us in Los Angeles for the most comprehensive end-to-end airline passenger experience marketplace in the industry from 19-21 September. Click here for more details.

> Quote of the Day

“With no technology in sight to replace fuels, we really need all the sustainable aviation fuel in the world."

Carsten Spohr, CEO, Lufthansa AG
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ABOUT APEX

The Airline Passenger Experience Association (APEX) encompasses a network of airlines, businesses and professionals that are committed to providing a world-class airline experience for passengers around the globe. Every day, APEX members are improving every aspect of the airline experience, from designing, building and installing seating, entertainment and communications systems on commercial aircraft, to airport lounges and in-flight dining. Visit apex.aero for more information. APEX is professionally managed by Kellen Company, the premier global association management firm with offices and representation in the United States, Europe, China, the Middle East, India and Southeast Asia.

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