Airlines Strategy
KLM Eyes Air France Jets for JFK Route Amid 787 Shortage
KLM may wet-lease Air France aircraft for Amsterdam-JFK flights due to Boeing 787 groundings, approved by U.S. DOT until 2025.
KLM Considers Wet-Lease Option for JFK Route Amid Fleet Shortage
As global aviation continues to rebound from the turbulence of recent years, airlines are facing unique operational challenges. Among them is the issue of aircraft availability, a concern currently confronting KLM Royal Dutch Airlines. In an effort to maintain its transatlantic operations, KLM has received approval from the U.S. Department of Transportation (DOT) to potentially wet-lease aircraft from its SkyTeam partner, Air France, for service on the Amsterdam Schiphol–New York JFK route.
This temporary measure is being considered in response to a shortage in KLM’s widebody fleet, particularly due to the grounding of seven Boeing 787 aircraft. The permit issued by the DOT allows Air France aircraft to operate on behalf of KLM between July 1 and October 31, 2025. While the Dutch carrier has not confirmed whether it will exercise this option, the approval opens the door to a flexible solution during a critical travel season.
Wet-leasing, a common practice in the aviation industry, enables airlines to rent aircraft along with crew, maintenance, and insurance (ACMI). For KLM, this could be a strategic move to ensure continuity in its long-haul operations while minimizing disruptions to passengers and preserving market share on one of its key transatlantic routes.
Understanding Wet-Leasing and Its Strategic Role
What Is Wet-Leasing?
Wet-leasing involves an agreement where one airline (the lessor) provides an aircraft along with its crew, maintenance, and insurance to another airline (the lessee). This arrangement is typically used to cover short-term capacity needs, seasonal demand spikes, or unexpected fleet shortages. In KLM’s case, the wet-lease would allow it to continue offering scheduled service despite its grounded aircraft.
Air France, the potential lessor in this scenario, has a substantial widebody fleet that includes Airbus A330-200s, A350-900s, Boeing 777-200ERs, 777-300ERs, and B787-9s. This variety gives KLM multiple configuration and capacity options, depending on its operational requirements during the summer and early fall 2025 period.
Such arrangements are not uncommon within airline alliances like SkyTeam, where member carriers often collaborate to optimize fleet utilization and maintain service levels. The existing partnership between KLM and Air France, both part of the Air France-KLM Group, further facilitates this kind of operational flexibility.
“Wet-leasing is an efficient way to bridge temporary fleet gaps without compromising route continuity, especially on high-demand intercontinental sectors,” Aviation Analyst
Impact on KLM’s JFK Operations
The Amsterdam–New York JFK route is one of KLM’s most important transatlantic services, serving both business and leisure travelers. According to ch-aviation data, KLM operates 749 daily flights across 181 routes, with JFK being a critical long-haul destination. Any disruption on this route could have ripple effects on its network connectivity and customer satisfaction.
Currently, the ch-aviation schedules module indicates that KLM plans to operate the JFK route using its in-house fleet during the July–October window. However, this could change if the aircraft shortage persists longer than expected. The flexibility to deploy Air France aircraft provides a contingency plan that can be activated if needed.
Grounding of seven Boeing 787s has significantly impacted KLM’s widebody capacity. The airline’s widebody fleet includes 11 Boeing 787-10s, 13 Boeing 787-9s, 6 A330-200s, 5 A330-300s, 15 Boeing 777-200ERs, and 16 Boeing 777-300ERs. With a portion of this fleet grounded, KLM faces the risk of canceling long-haul flights, a move that could affect revenue and customer trust.
Operational and Customer Considerations
For passengers, wet-leased flights can sometimes result in different cabin configurations, service standards, or loyalty program benefits, depending on the operating carrier. While Air France and KLM share alliance membership and corporate ownership, there may still be subtle differences in onboard experience that frequent travelers notice.
Operationally, integrating wet-leased aircraft into a carrier’s schedule requires coordination across multiple departments, from crew planning and maintenance to customer service and IT systems. Ensuring that these flights are seamlessly booked and managed through KLM’s platforms is essential to avoid confusion and maintain brand consistency.
Nonetheless, the benefits of maintaining route continuity generally outweigh the drawbacks of temporary service adjustments. For KLM, the priority remains to uphold its schedule commitments and minimize disruptions during a peak travel period.
Wider Implications for the Aviation Industry
Fleet Shortages and Maintenance Delays
KLM’s current situation reflects a broader trend in the aviation industry, where fleet availability challenges have become more pronounced post-pandemic. Aircraft maintenance backlogs, supply chain disruptions, and delayed aircraft deliveries have forced many carriers to explore short-term leasing options to meet demand.
In this context, wet-leasing has emerged as a practical solution. It allows airlines to temporarily scale up capacity without the long-term financial commitments of purchasing or dry-leasing aircraft. This flexibility is particularly valuable as airlines navigate fluctuating demand and operational uncertainties.
The aviation industry is still recovering from the COVID-19 crisis, and while passenger demand is returning, the supply side, particularly in terms of aircraft readiness and crew availability, remains constrained. Airlines like KLM must adapt quickly to these evolving dynamics to stay competitive.
Alliance Collaboration and Strategic Benefits
The potential wet-lease between Air France and KLM also underscores the strategic value of airline alliances. Within the SkyTeam framework, member airlines can leverage shared resources, align schedules, and offer passengers a more integrated travel experience. This collaboration can be a vital asset during times of operational stress.
Beyond operational benefits, such arrangements can also strengthen group-level financial performance. By optimizing aircraft utilization across the Air France-KLM Group, both carriers can reduce idle time, improve asset efficiency, and better manage costs associated with fleet disruptions.
As airline groups continue to seek synergies, intra-group wet-leasing may become a more common practice, especially during seasonal peaks or unexpected fleet constraints. This model offers a glimpse into how future airline operations might evolve to become more adaptive and resilient.
Regulatory and Logistical Considerations
Securing regulatory approval for wet-leases is a critical step in the process. The DOT’s permit ensures that Air France aircraft can legally operate flights on behalf of KLM in the U.S. airspace. Similar approvals would be required from European authorities to complete the bilateral compliance framework.
Logistically, aligning operational standards between the two carriers is essential. This includes harmonizing safety protocols, crew training, and service delivery to ensure a consistent experience. Given their shared corporate structure, KLM and Air France are well-positioned to manage these complexities.
As aviation regulators continue to adapt to new models of airline cooperation, streamlined processes for such temporary arrangements could further facilitate operational agility in the industry.
Conclusion
KLM’s consideration of a wet-lease from Air France for its JFK route highlights the ongoing challenges and adaptive strategies in the global aviation sector. With a temporary shortage in widebody aircraft, the airline is exploring all viable options to maintain service continuity and uphold its operational commitments during a critical travel period.
Looking ahead, this case may serve as a model for how airline alliances can leverage internal resources to navigate disruptions. As the industry continues to evolve, flexibility and collaboration will likely remain key pillars of airline resilience and customer service excellence.
FAQ
What is a wet-lease in aviation?
A wet-lease is an arrangement where one airline provides an aircraft along with crew, maintenance, and insurance to another airline for a specified period.
Why is KLM considering a wet-lease for its JFK route?
KLM is facing a temporary shortage of widebody aircraft due to the grounding of seven Boeing 787s and is exploring a wet-lease from Air France to maintain service on the Amsterdam–New York route.
Will passengers notice a difference on wet-leased flights?
Possibly. While Air France and KLM are part of the same group, there may be differences in cabin configurations and service styles, although efforts are made to maintain consistency.
Sources: ch-aviation, DOT, KLM
Photo Credit: Amadeus
Airlines Strategy
Southwest Airlines to Launch First Airport Lounges in 2027
Southwest Airlines plans to open its first airport lounges in late 2027 at four locations, in partnership with Chase.
Southwest Airlines Co. (LUV) and JPMorgan Chase & Co. announced plans on September 2, 2026, to launch the carrier’s first-ever airport lounge network, with initial locations slated to open in late 2027. The infrastructure investment represents a historic departure for the 55-year-old airline as it aggressively overhauls its business model to capture premium revenue and compete directly with legacy carriers.
In a press release issued on September 2, 2026, Southwest Airlines confirmed that construction is already underway at four initial lounge locations. The announcement follows a July 23, 2026, earnings call where CEO Bob Jordan first indicated that airport lounge development was in progress.
Initial locations and Chase partnership
The first phase of the lounge network will debut at four major Southwest operating bases. The confirmed locations are Austin-Bergstrom International Airport (AUS), Baltimore/Washington International Thurgood Marshall Airport (BWI), Daniel K. Inouye International Airport (HNL) in Honolulu, and Nashville International Airport (BNA).
The airline stated that at least seven additional lounges are planned for high-demand business and leisure markets over the next several years. While the specific airports for the subsequent expansion phase have not been officially disclosed, the initial four represent some of the carrier’s most critical nodes for connecting and point-to-point traffic.
The lounge network is being developed in partnership with Chase, expanding a 30-year relationship between the two companies. Access to the facilities will be tied to a new, premium Southwest Rapid Rewards credit card issued by Chase, which is scheduled to launch concurrently with the first lounges in 2027. The physical spaces will draw on the design and operational framework of the existing Chase Sapphire Reserve Lounge Network.
“Southwest Airlines has built one of the most trusted brands in travel by delivering authentic Hospitality that Customers value. Our lounges will be a natural extension of that experience, offering Customers a place to relax and experience the Southwest brand in a new way.”
Tony Roach, Executive Vice President and Chief Customer & Brand Officer at Southwest Airlines, noted in the release that the lounge network represents a strategic investment in the Rapid Rewards program and deepens the financial partnership with Chase.
A radical shift in the Southwest model
The introduction of airport lounges is the latest in a series of fundamental changes to the Southwest Airlines passenger experience. The carrier has been undergoing a radical transformation of its business model to improve profit margins and attract higher-spending premium travelers.
This strategic pivot follows sustained pressure from activist investor Elliott Investment Management, which has pushed the airline’s leadership to adopt industry-standard revenue practices. Prior to the lounge announcement, Southwest abandoned its historic open seating model in favor of assigned seating and introduced extra-legroom premium seats.
The airline also ended its famous “Bags Fly Free” policy on May 28, 2025, introducing checked bag fees to align with competitors and generate ancillary revenue.
AirPro News analysis
We view the introduction of a proprietary lounge network as the final confirmation that Southwest Airlines has entirely abandoned its original low-cost carrier (LCC) identity. By adding assigned seating, premium legroom, bag fees, and now airport lounges, Southwest is transitioning into a hybrid carrier model designed to compete directly with Delta Air Lines, United Airlines, and American Airlines for lucrative corporate and premium leisure traffic.
The partnership with Chase is the financial engine making this infrastructure investment possible. To successfully launch a high-annual-fee premium credit card in 2027, Southwest requires a tangible premium product on the ground. The initial locations in Austin, Baltimore, Honolulu, and Nashville target markets with high volumes of originating traffic where Southwest holds a dominant market share, ensuring immediate utilization of the new facilities upon opening.
Sources: Southwest Airlines Co.
Photo Credit: Southwest Airlines Co.
Airlines Strategy
Riyadh Air and Saudia Launch First Codeshare Phase
Riyadh Air places its RX code on six Saudia domestic routes, launching the first phase of their codeshare agreement.
Riyadh Air and Saudia have officially launched the first phase of a strategic codeshare agreement, allowing the start-up carrier to place its “RX” designator code on six domestic routes operated by the Saudi flag carrier. Announced on August 27, 2026, via the Saudi Press Agency, the partnerships enables passengers to book connecting flights on a single ticket with baggage checked through to the final destination.
The integration aligns with Saudi Arabia’s National Aviation Strategy by linking the networks of its two major national carriers at King Khalid International Airport (RUH). The codeshare launch follows a Strategic Cooperation Memorandum of Understanding (MoU) signed by the two airlines on November 14, 2023.
Domestic network integration
The initial phase of the codeshare agreement covers Saudia-operated flights to Abha, Qassim, Dammam, Jeddah, Madinah, and Tabuk. Both airlines operate from Terminals 1 through 4 at RUH, a setup designed to facilitate seamless passenger connections between the two carriers.
Vincent Coste, Chief Commercial Officer of Riyadh Air, highlighted the technological focus of the partnership in the official announcement.
“Integrating different technology environments has been a fundamental principle of Riyadh Air’s digital model since its inception. This first major step in our cooperation with Saudia represents a significant milestone for the aviation sector. By bringing our strengths together, we are redefining the travel experience within the Kingdom,” Coste stated.
Broader expansion and global strategy
As a Public Investment Fund (PIF) company, Riyadh Air is building its operational framework ahead of its planned commercial launch. While the Saudia partnership secures domestic feed, the airline is simultaneously establishing its international footprint.
International regulatory approvals
Beyond domestic integration, Riyadh Air is rapidly securing international access. According to reporting by Aviation Week, the carrier recently obtained regulatory approval for flights to Beijing, Shanghai, and the United States. To build its global network, the airline has also signed strategic agreements and MoUs with multiple international operators over the past two years, including Delta Air Lines, Virgin Atlantic, Air China, and Turkish Airlines.
AirPro News analysis
We view this codeshare implementation as a critical operational test for Riyadh Air’s IT infrastructure before it begins operating its own aircraft. By utilizing Saudia’s established domestic network, Riyadh Air can market a comprehensive Saudi destination portfolio from day one of its commercial operations without needing to immediately deploy its own aircraft on short-haul domestic routes. This dual-carrier strategy effectively splits the market focus, allowing Saudia to maintain its domestic and religious traffic dominance while Riyadh Air concentrates on building RUH into a global transit hub to compete with neighboring Gulf carriers.
Sources: Riyadh Air
Photo Credit: Riyadh Air
Airlines Strategy
IATA Issues Aviation Policy Briefing for Italy in 2026
IATA released a policy briefing for Italy on Aug 27, 2026, addressing competitiveness, EU EES concerns, and aviation priorities.
The International Air Transport Association (IATA) issued a comprehensive policy briefing on August 27, 2026, outlining strategic priorities for the Italian government to bolster the competitiveness and resilience of the country’s Airlines sector.
Italy currently ranks as the world’s fifth-largest air transport market by passenger departures. In a statement accompanying the release, IATA emphasized that the briefing serves as a guide for Italian policymakers navigating growing Regulations hurdles, environmental commitments, and geopolitical tensions. The organization noted that Italy “derives huge benefits from aviation” and possesses multiple opportunities to strengthen its sector performance.
Navigating regulatory and operational challenges
The publication of the policy document follows months of coordinated advocacy by IATA and domestic aviation stakeholders. On May 21, 2026, IATA partnered with major Italian airport and airline associations, including Assaeroporti, Aeroporti 2030, the Italian Board Airline Representatives (IBAR), and Associazione Italiana Compagnie Aeree Low Fares (AICALF).
The coalition submitted a joint letter to the Italian Ministry of the Interior addressing operational concerns surrounding the European Union (EU) Entry Exit System (EES). The groups requested increased flexibility at the European level to manage passenger flows and mitigate e-gate congestion during the peak summer travel season.
Strategic priorities for the Italian market
The new briefing builds upon themes highlighted earlier in the summer regarding the short and medium-term prospects for Italian aviation. On July 13, 2026, Nicoletta Masi, IATA Manager Campaigns and Policy Southern Europe, noted the necessity of guiding the market through a global landscape marked by uncertainty and concerns over European competitiveness.
The policy briefing consolidates these concerns into actionable priorities for the Italian government, aiming to align national aviation strategies with broader European and global industry Standards.
AirPro News analysis
We view IATA’s targeted briefing for Italy as a proactive measure to secure stability in one of Europe’s most critical aviation markets. As the fifth-largest market globally for passenger departures, Italy’s infrastructure and regulatory framework disproportionately impact the broader European network. The ongoing friction regarding the EU Entry Exit System highlights a persistent disconnect between European regulatory ambitions and ground-level operational realities at major hubs. By aligning with domestic organizations like Assaeroporti and IBAR, IATA is attempting to leverage local political channels to influence broader EU policy implementation.
Photo Credit: Roma Fiumicino
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