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in air passenger traffic worldwide year on year, only marginally behind a 3.7% increase in air capacity. US domestic traffic was down


1.7% year on year and, while North American international traffic rose by 2.5%, capacity increased by 4.3% meaning a fifth month of decline in load factor when international demand globally was up 5.1% in the month. Passenger loads to and


from the Americas fell on most international routes in September apart from between Europe and Central America and Europe and South America, with Indian traffic to North America falling 7.4%. Lufthansa blamed a


“temporary slowdown on the North Atlantic” for a 2.2% fall in its revenue per available seat kilometre – a standard industry measure – in the three months to September. The Global Business Travel


Association (GBTA) reported US government actions “continue to cast a shadow over business travel spending, volume and revenue” as it released its latest poll results. These showed more than


one-third of global buyers (35%) expect travel volumes to fall this year by an average one-fifth due to US government action and 30% of buyers forecast a spending fall. Three out of five


accommodation suppliers (59%) expect turnover to be down. One in three travel management companies (32%) reported a fall in revenue, albeit this was down from 48% in June, and 50% of airline respondents expected a fall – up from 39% in June. GBTA’s poll was conducted


on October 2-15 and drew almost 600 responses from corporate travellers, buyers and suppliers.


Eastern Airways’ failure ‘could have major effect’


Ian Taylor


Eastern Airways filed for administration last week, with the Civil Aviation Authority confirming all flights were cancelled from October 27. The regional carrier sought


administration both under its own name and registered name Air Kilroe. However, parent Orient Industrial Holdings remains in operation. Eastern Airways’ accounts suggest


it could have filed for administration earlier. The most recent accounts for the 12 months to March 2024 show a profit of £140,000 on turnover of £28.6 million – 80% from UK operations and 20% earned in continental Europe – with £11.9 million owed to creditors. The airline remained a going


concern, according to its directors, owing to “a strong statement of financial position” by Orient Industrial and a letter “stating the group will offer working capital support as needed”. The accounts also noted the carrier was “in ongoing


Financial support for Eastern Airways ran out last week despite three narrowly profitable years to 2024


discussions with liquidity providers”. The support ran out last week


despite three profitable years. Eastern recorded a £214,500 profit to March 2023 on turnover of £23.3 million, and £382,000 on turnover of £16.3 million in 2022 as the sector recovered from the pandemic. That followed a loss of £450,000 in 2021. The carrier recorded a £7 million


profit for the 12 months to March 2020, but this was wholly due to £9 million in exceptional items from the disposal of assets and release from “onerous leases” – otherwise Eastern would have lost £954,000. In 2019, the last full year of trading pre-pandemic, Eastern


Airways lost £13.3 million on turnover of £38 million, following losses of more than £30 million to March 2018 – £9.9 million in


operational losses and £20.4 million in exceptional items. It had also lost £9.6 million in 2017 after recording only a £110,000 profit in 2016. Orient Industrial Holdings owns


several other businesses. Its accounts to March 2024 showed a net loss of £4 million on a £63.1 million turnover. Business Travel Association chief


executive Clive Wratten warned the failure “could have a major effect on business and leisure travel”, saying: “Eastern has been hugely valued by the business travel community.”


A brief history: Eastern Airways, 1997-2025


Eastern Airways was headquartered at Humberside Airport and carried 1.3 million passengers last year, including on KLM Cityhopper services, charters and subsidised public service obligation routes. Co-founded by Bryan Huxford


and Richard Lake, Eastern launched in December 1997 with scheduled flights between


Humberside and Aberdeen when KLM UK dropped the route. The airline acquired Manchester-based


46


Air Kilroe in 1999 and took over 12 aircraft and routes from British Airways CitiExpress in 2003. Eastern bought Manchester


Airports Group’s 82% stake in Humberside airport in 2012. Two years later, helicopter operator Bristow acquired a 60% stake in Eastern, refocusing the network on the oil industry and Aberdeen, and adding the remaining 40% in 2018. The airline added services between the Isle of Man and


Glasgow, Newcastle, Belfast City and London City in 2017, and entered a franchise agreement with Flybe. But the Bristow Group sold Eastern back to co-founder Lake in 2019 and Flybe entered administration in March 2020. In March 2024, the carrier took


over Humberside and Teesside links to Amsterdam on behalf of KLM, later flying also from Manchester, Glasgow, Newcastle, Norwich, Bristol, Southampton and Cardiff.


6 NOVEMBER 2025 travelweekly.co.uk


PICTURE: Shutterstock/BD-VIDEO


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