Aerospace and Defence Industries Assn. of Europe supported calls from Airbus and ATR for both EU and national authorities “to provide financial support to the industry’s customers, in particular through the implementation of funding schemes aimed at facilitating airlines’ access to liquidity for the purchasing of new aircraft.”

Austrian Airlines Group confirmed to ATWOnline that it will stay afloat until it is taken over by Lufthansa.

Shenzhen Airlines reported a first-quarter net profit of CNY160 million owing to a strong rebound in the domestic market; the year-ago result was not available and the carrier did not disclose its first-quarter revenue, expenses, passenger or cargo traffic.

On the heels of a HK$8.56 billion ($1.1 billion) 2008 loss that represented its first full-year deficit in a decade, Cathay Pacific Airways said Friday that it will confront a “toxic combination” of challenges with measures including an 8% capacity cut beginning next month and unpaid leave for employees.

Eroding international premium traffic showed no signs of recovery in February, plunging 21.1% year-over-year following January’s 16.7% drop, IATA reported.

Air China joined its “big three” rivals in suffering a significant 2008 loss, reporting a CNY9.15 billion ($1.34 billion) deficit under Chinese accounting standards that marked a reversal from the CNY3.7 billion profit in the previous year.

Southwest Airlines’ stretch of unprofitability continued with a first-quarter net loss of $91 million, reversed from a $34 million profit in the year-ago period and the LCC’s third consecutive quarter in the red, leading it to initiate a “systemwide voluntary early-out program” as part of an effort to “align headcount to current capacity.”