The airline is looking to shed the tag of being a low-cost one, apart from boosting ancillary revenue through assigned seating, extra-legroom seats and other product enhancements.

JPMorgan Chase will partner with Southwest to open the airline’s airport lounges.

Globally, while flyers prefer airport lounges as quieter places to work or relax, apart from enjoying complimentary food and ⁠drinks and a more seamless airport experience, airlines are equally seeing the arrangement as a winning formula to lock in customers, support premium fares and drive spending on lucrative co-branded credit cards.

Talking about co-branded credit cards, Southwest will roll out a similar product in 2027 that will be issued by Chase to provide customers access to its airport lounge network.

Initially, Southwest will open four lounges in Austin, Baltimore, Honolulu, and Nashville, with more to follow.

American aviation’s premium push comes amid the airlines globally feeling the pinch of a sharp rise in fuel prices ‌stemming ⁠from the Iran war, squeezing their already thin margins.

Carriers with a stronger suite of premium offerings, as per the analysts, are better positioned to weather the pressure, as they can lure travellers willing to pay more for higher-margin services such as premium seating, lounge access and other ⁠upgrades.

Southwest, under the pressure of activist investor Elliott Investment Management, has been overhauling its business to better compete with the network carriers, following post-COVID weaker profit margins.

CEO Bob Jordan, three months ago, signalled that the carrier could add more cabin options, including “true first class,” apart from venturing into long-haul international flying.

Among other budget carriers, Frontier is adding first-class-style seats, while JetBlue is expanding its premium offering with airport lounges.

On the domestic front, weaker economic conditions and competition from high-speed rail and driving holidays have hindered the airlines’ ‌ability to ⁠implement fare hikes.

Jet fuel prices have dropped from their peak in the second quarter, but they are still over 50% higher than they were before the Iran war.

The third quarter, considered to be the most profitable for Chinese carriers, has come with an unusually strong typhoon season disrupting domestic routes during the peak summer travel period.

As per the meteorological data, 21 typhoons have been formed in the northwestern Pacific Ocean and the South China Sea so far in 2026, nine more than the historical average for the same period.

The carriers have underperformed poorly at the stock market front as well, with Shanghai-listed shares of all three carriers falling at least 36% so far in 2026, with weaker domestic travel demand continuing to pressure the companies’ profit outlooks.

The companies haven’t announced dividends either.

The trio, however, has expanded their fleets of domestically made COMAC jets.

China Eastern grew its fleet of the narrow-body planes to ⁠17 after taking three deliveries in the first half. Air China and China Southern, on the other hand, each operated 11 C919s, having taken two and three deliveries, respectively, in the period.

China Eastern said it expected to receive 13 fewer C919 deliveries than previously forecast between 2026 and 2028.

Air China maintained its earlier forecast, and China Southern did not disclose a forecast in its interim report.

Temasek did not say whether it would support any contribution by SIA to the proposed funding round.

The investment has attracted political attention in Singapore. Kenneth Tiong, a lawmaker from the opposition Workers’ Party, has argued that Temasek’s funds should not be used to support Air India through Singapore Airlines.

Tiong has also submitted a parliamentary question asking whether losses from SIA’s foreign associates have been assessed against the airline’s ability to provide essential transport services and whether they trigger notification requirements under Singapore’s civil aviation legislation. The matter is scheduled to be raised in Parliament on September 8.

Temasek, however, highlighted the strategic rationale for SIA’s presence in India. Singapore Airlines has been pursuing the development of a second hub outside Singapore, and Temasek said India, the world’s third-largest air transport market after the United States and China, was well positioned to serve that role.

SIA has had a presence in India for years, including through now-defunct Vistara, which it entered in 2013. Its investment in Air India following the merger with Vistara allows it to deepen its exposure to the country’s expanding aviation market.

The financial performance of Air India has nevertheless made the investment increasingly challenging. Air India and Air India Express recorded combined losses of about $2.33 billion for the financial year ended March 2026, more than double the previous year’s deficits.

The losses have also affected Singapore Airlines. SIA’s net profit fell 57% to S$1.184 billion in FY2025-26, although the decline was also influenced by the absence of a one-off accounting gain associated with the Vistara merger.

Air India’s transformation has been complicated by airspace restrictions, geopolitical disruptions, fuel-price volatility, and the fallout from last year’s Ahmedabad crash that killed 260 people. The carrier is also undertaking a substantial overhaul of its fleet, technology, workforce, and operating systems.

Temasek said such a transformation could not be expected to follow a straight path, with results influenced by aircraft innovation, fleet renewal cycles, geopolitical developments, and disruptions to airspace.

Outgoing Tata Sons chairman N Chandrasekaran has similarly described Air India’s turnaround as a five- to 10-year journey. He has pointed to supply chain constraints, legacy systems, fleet requirements, organizational culture, and the need to build a larger pool of airline professionals.

SIA’s exposure to Air India dates from the November 2024 merger of Air India and Vistara. In March 2025, SIA injected another USD 131.4 million into the combined airline, taking the total cost of its investment to about SUSD 2.096 billion at that time.

The latest potential capital requirement would therefore represent another significant financial commitment.

For now, Temasek’s position provides strategic backing rather than a funding guarantee. The immediate question is whether Singapore Airlines will participate in Air India’s proposed USD 1.5 billion capital raise and, if so, how much it will invest.

The debate highlights the tension at the heart of SIA’s Air India strategy: India offers a potentially valuable second growth hub, but capturing that opportunity requires substantial capital and patience while the airline undergoes a costly transformation.

Talking about the A380, Airbus developed the four-engine A380 to challenge the dominance of the Boeing 747 in the long-haul market.

The full-length, double-deck aircraft, capable of carrying up to 853 passengers on two decks, first entered commercial service with Singapore Airlines in 2007.

Before ending the aircraft’s production run in 2021, Airbus delivered a total of ⁠251 A380s. While Qantas and Emirates emerged to be the aircraft’s major operators, A380’s high fuel and maintenance expenses, along with the difficulty of consistently filling 500-plus seats, limited its appeal to most airlines outside the Gulf.

While more efficient twin-engine widebodies like the Boeing 787 and Airbus A350 further weakened A380’s operational economics, the Covid pandemic, which grounded almost the entire global A380 fleet due to the global travel disruption, accelerated its decline.

Out of the 251 aircraft delivered, 196 remain in service, according to Airbus July data. Already Air France, China Southern Airlines, and Malaysia Airlines have retired the superjumbo.

During the pandemic, Qantas grounded its ⁠A380 fleet for more than 500 days as international travel collapsed, with aircraft placed in long-term storage in California and Abu Dhabi.

Other operators like Thai Airways, Lufthansa, Korean Air, Singapore Airlines, and Qatar Airways have downsized their A3820 fleet, as per the ⁠Airbus data.

Emirates is the largest A380 operator, with a current fleet of 116 aircraft, representing nearly half of all A380s ever delivered. Singapore Airlines and British Airways each operate 12 A380s, making them the largest non-Emirates operators.

Lufthansa, ⁠Qatar Airways, and Etihad Airways each operate eight A380s. Korean Air, Asiana Airlines, and Japan’s All Nippon Airways also operate the model.

Emirates plans to keep flying the A380 into the 2040s, while other operators expect to phase out the aircraft in the early 2030s.

Qantas reported an underlying profit before tax of AUSD 2.06 billion (USD 1.48 billion) for the year ended June 30, slightly ahead of the Visible Alpha consensus estimate of AUSD 2.00 billion.

As per the carrier’s CEO, Qantas, in 2026, they have encountered two “very different operating environments,” as robust travel demand through much of the year collided with a surge in fuel costs driven by the Middle East conflict that reduced the business’ second-half earnings by AUSD 420 million.

“In the first half, Qantas and Jetstar were both performing strongly, with demand growing across the domestic and international networks. Our new aircraft allowed us to add capacity and open new routes, which helped us to increase revenue. Qantas continued to experience growth in the premium segment of the market, while Jetstar consistently improved and provided value during a time when many were facing cost of living pressures. This performance highlights the benefits of our dual brand strategy,” Hudson stated.

“Higher fares, a reduction in domestic capacity, and redeploying aircraft to stronger international routes only partially offset the headwinds from rising fuel costs,” she noted further.

Despite easing tensions in the Gulf region, Qantas forecast that its fuel bill would rise by ‌AUSD 1 ⁠billion in the current half relative to a year earlier, despite the hedging options covering 85% of the carrier’s fuel needs.

On the revenue front, the airline expects 8-10% growth per seat flown in the first half of the year.

While the airline had increased fares after the fuel price rose, the strong revenue forecast also included factors like baggage, charter, and other fees, while taking into account the percentage of ⁠seats filled.

The airline said travel demand remained resilient. However, Qantas sees its forecast domestic capacity declining 3% in the H1 2026, while international capacity rises 2%.

“The final four months of the year saw business and consumer confidence fall as the conflict and economic headwinds created uncertainty, and some large corporates and the government responded by managing their costs more tightly, reducing demand for travel. In response to the surge in fuel prices, we quickly adjusted fares and capacity and redeployed aircraft to give customers more options to fly to Europe. These actions, along with other mitigations, limited the net impact on earnings to USD 420 million, despite a USD 610 million increase in our fuel bill,” Hudson told the investors and analysts.

Qantas Loyalty continued to deliver value for frequent flyers with a record number of reward seats booked, with double-digit earnings growth that provided stability while the flying businesses carried a higher fuel bill.

Our fleet renewal continued at pace, with 17 new aircraft arriving during the year and up to 31 more to arrive in the year ahead, the majority of which will join Qantas. Customers are telling us how much these aircraft are improving the flying experience, and they’re a big part of what’s driving our financial performance too. With our first Project Sunrise A350-1000ULR to arrive in April and more A350s and 787s on the way, it’s a new era for Qantas’ international fleet, with these next-generation aircraft set to transform the way our customers travel. This means we can commence the retirement of our A380 fleet from 2028,” Hudson remarked.

“There is a lot for our customers to look forward to. This year we’ll begin direct flights from Sydney to Las Vegas, reopen the Sydney International Business Lounge, continue to upgrade Jetstar’s 787s, and have Wi‑Fi available on the vast majority of Qantas International flights,” she said, while announcing about around 25,000 non-executive employees getting USD 1,000 in shares as part of a share plan.

“Transformation continues to be a priority, helping offset rising costs so we can keep investing in our business for the future. With cost pressures set to continue, transformation will help us manage these increases and keep delivering for our customers and our people, including through the increased use of technology and AI.

“Qantas has seen a rebound in demand for flights between Australia and the US in both directions over the last six months,” International and Freight CEO ⁠Cam Wallace said, following a tougher first half in 2025.

Stephanie Tully, the CEO of budget arm Jetstar (a wholly owned subsidiary of Qantas), said the low-cost carrier had confidence in the outlook, pointing to two months of strong forward bookings.

“We’re seeing tremendous intakes. Jetstar had a record week last week, in fact,” she said.

Apart from declaring a final dividend ⁠of 19.8 Australian cents per share, Qantas will also be scrapping its AUSD 150 million share buyback program announced in February, which it never began after the Iran war began.

Finnair has also avoided flying through the airspace of Iraq, Iran, Syria, or Israel.

With its latest decision, Finnair has now joined the ranks of Air Canada and Virgin Atlantic to delay their return to Dubai International Airport until 2027.

Despite operations continuing as normal at DXB, several foreign-based airlines are yet to return to the UAE.

However, Emirates and flydubai have continued their operations, with regional airlines like flynas, Qatar Airways, Saudia and Gulf Air also following similar patterns.

“Additionally, Indigo, Air India and Turkish Airlines all continue to operate routes to Dubai,” said Dubai Airports CEO Paul Griffiths recently.

“While the majority of major foreign long-haul operators intend to return to the emirate from the end of October as part of their winter schedules, Air Canada and Virgin Atlantic won’t return until 2027,” Griffiths remarked, adding that foreign carriers are finding it difficult to secure insurance allowing them to return to the region.

Finnair typically operates a seasonal route between Helsinki and Dubai. Air Canada, on the other hand, will not operate its Dubai route until mid-January 2027. The latter was supposed to return in October as part of its winter schedule but has now decided to delay the operations.

“The airline expects to return to the region in mid-January, and is also expected to resume its route to Tel Aviv around the same time,” Griffiths mentioned.

Virgin Atlantic, which typically operates a seasonal route between London Heathrow and Dubai, put a pause on its operations immediately after the Iran war began.

“The daily service between the two global travel hubs will return for the 2027 winter season,” stated the latest information on the Virgin Atlantic website.

While Virgin Atlantic’s year-round flights covering Dubai have remained available with its codeshare partner airlines like China Eastern, IndiGo and Kenya Airways, its joint venture partner airlines, KLM and Air France, are expected to resume flights to the DXB later this year.

Roughly 10,000 flights pass through the airspace during trial hours each year, and a small proportion that would otherwise cross contrail-sensitive zones will be slightly diverted or have altitude adjusted to prevent persistent, warming contrails forming.

Contrails form when water vapor in jet engine exhaust condenses and freezes around soot particles in the cold, humid upper atmosphere at cruising altitude. While many dissipate quickly, persistent contrails trap outgoing heat and account for roughly a third of aviation’s total climate impact.

The trial builds on previous work where Google worked with airlines like American Airlines, navigation providers like EUROCONTROL’s MUAC, and flight-planning software companies like FlightKeys to test AI-based contrail forecasting for individual airlines, showing that crews and controllers could make specific adjustments while still following normal procedures.

Operation Blue Skies expands that approach to an entire oceanic airspace for the first time.

It brings together a UK-led group that includes NATS, which will handle airspace operations and safety; Contrails.org, a non-profit that will lead the forecasting and trial design; Imperial College London and the University of Cambridge, which will evaluate the results; and the Met Office, which will create new contrail forecasting tools for the UK.

The 5 million pound program is partly funded by the 2.65 million pounds from the UK government’s Department for Transport, via the “Aerospace Technology Institute Programme,” with all administration grant funding directed to academic, non-profit, and aviation partners.

Google UK is participating on a pro bono basis, contributing 1.4 million pounds in-kind through AI research expertise, engineering time, and high-performance computing infrastructure.

Aviation minister Keir Mather said the government was looking for practical ways to make flying cleaner, adding that testing small tweaks to flight paths over the Atlantic could help cut the vapor trails left behind by aircraft.

Marc Stettler, professor of transport and the environment at Imperial College London, said a 2020 study had found that small changes to flight paths could reduce the climate impact of contrails and that the trial offered a chance to test that finding at a scale not previously attempted.

Stettler further remarked that Imperial’s role would be to independently assess the effects, from airline operations to climate benefits, and to provide the evidence needed to determine whether the approach could become part of routine aviation practice.

Research cited by Google suggests that contrail avoidance could be among the most cost-effective ways to cut aviation’s climate footprint, though addressing the issue at a meaningful scale requires combining scientific modelling, AI forecasting, and close operational coordination across air traffic management systems industry-wide.

The tech giant said it was inviting further participation from the aviation industry as the program develops, with the trial intended to provide a validated blueprint for reducing aviation’s climate impact more broadly.

Production is not the only challenge. COMAC must also persuade airlines and passengers that it can provide the 24-hour, year-round technical support and reliability expected from established aircraft manufacturers.

Beijing confirmed an order for 200 Boeing aircraft in May, along with engines and spare parts, highlighting the continued importance of Boeing even as China promotes its domestic alternative.

COMAC has nevertheless expanded its international profile. The C919 and smaller C909 appeared at the Dubai Airshow in November 2025, while the C919 has also participated twice in the Singapore Airshow.

The Ulaanbaatar service therefore represents more than a new route. It is an early test of whether China can turn a successful domestic aerospace programme into a globally competitive commercial aircraft business.

The C919’s achievement is significant because integrating the components, systems and software required to build a modern passenger jet is an engineering feat achieved by only a small number of manufacturers.

COMAC must also build global customer confidence, establish maintenance networks and demonstrate dependable performance across international operations over time.