Pakistan International Airlines lost PKR5.38 billion ($64.5 million) in the third quarter, narrowed from a PKR20.4 billion loss in the year-ago period, according to a stock exchange filing cited by Bloomberg News. Revenue dropped 3.5% to PKR22 billion. PIA said the rupee's improved standing against the US dollar buffeted its bottom line. Nine-month loss of PKR10.8 billion compared to a deficit of PKR38.4 billion last year.
IATA reported that September international passenger traffic rose 0.3% year-over-year while cargo traffic fell 5.4%, but warned that the apparent improvement after months of declining passenger traffic and a steep drop in cargo demand is "misleading" because the economic downturn is starting to lap itself.
European Commission adopted a proposal establishing new rules that aim to improve accident investigation coordination, asserting that the current 15-year-old system "functions below optimum efficiency." The new regulation also strengthens victims' rights and increases access to information and the right to assistance. The EC opted not to establish a European Civil Aviation Safety Board, the option preferred by the industry (especially OEMs) but one that was "controversial" among member states that insisted on maintaining their oversight over accident investigation.
Ryanair transported 6.1 million passengers in September, up 17% from the year-ago month. Load factor rose 1 point to 85%. EasyJet transported 4.4 million passengers in September, up 5.3% year-over-year, while load factor rose 1.2 points to 88.1%. Finnair flew 1.6 billion RPKs in September, down 13.7% year-over-year, against a 12.2% cut in capacity to 2.09 billion ASKs. Load factor slipped 1.3 points to 76.6%.
A "steep fall" in fares and weak domestic demand helped sink Finnair to a €20.7 million ($30.6 million) third-quarter loss, widened 16.3% from a €17.8 million deficit in the year-ago period, and left the carrier admitting it "still has a long way to go before its corporate structures and the operating conditions they create are sustainably competitive."
Royal Jordanian reported a JOD25.5 million ($35.7 million) profit through the first nine months of 2009, reversed from a JOD3.8 million loss in the year-ago period, implying third-quarter earnings of approximately JOD17.8 million ( ATWOnline, July 30). It posted a profit of some JOD200,000 in the third quarter of 2008. Operating revenue through the nine-month period fell 16% year-over-year to JOD449 million, but fuel costs plunged 50% and "operational costs" dropped 20% on a 4% cut in capacity.
Lufthansa posted a €184 million ($273.4 million) net profit in the third quarter but remained in the red through the first nine months of 2009 and yesterday issued a warning that its target of a full-year operating surplus now is at risk.
Continental Airlines yesterday signed codeshare agreements with two more Star Alliance members, ANA and Asiana Airlines. CO officially joined Star Tuesday and inked codesharing pacts with United Airlines, Lufthansa, Air Canada and bmi ( ATWOnline, Oct. 28). It said yesterday that it will start codesharing with Asiana in December and with ANA next year.
Hawaiian Airlines flew 647.5 million RPMs in September, an 8.1% increase over the year-ago month. Capacity rose 3.1% to 772.5 million ASMs, lifting load factor 3.8 points to 83.8%. Frontier Airlines flew 709.4 million RPMs in September, down 0.4% year-over-year. Capacity slipped 0.2% to 858.2 million ASMs and load factor was 0.1 point lower at 82.7%. Allegiant Air flew 264.7 million scheduled RPMs in September, a 59.6% increase year-over-year. Capacity rose 63.2% to 294.7 million ASMs and load factor fell 2 points to 89.8%.
Boeing yesterday announced that it will place a second 787 final assembly line in North Charleston, S.C., rather than near Seattle, which Boeing Commercial Airplanes President and CEO Jim Albaugh said would allow the manufacturer "to continue building on the synergies we have established in South Carolina with Boeing Charleston and Global Aeronautica," adding in a not-so-veiled jab at the International Assn.
Air Canada on Tuesday closed its previously announced equity offering, raising net proceeds of C$249 million ($233.3 million) and hinting that the airline, which appeared to be teetering on the edge of bankruptcy last spring, is righting itself financially under new President and CEO Calin Rovinescu.
Saudi Arabian Airlines took delivery of its first A320 purchased directly from Airbus, the manufacturer announced. It ordered 22 A320s in December 2007 but already had taken delivery of a leased aircraft this month ( ATWOnline, Nov. 13, 2007). Saudi's A320s will be powered by CFM56-5B engines and will seat 112-132 passengers. It eventually will operate 50 of the type (including 28 on lease).
Australian Competition and Consumer Commission yesterday launched legal proceedings against Thai Airways, alleging that the carrier engaged in price-fixing on cargo carriage over a five-year period. Thai is the 11th airline targeted by ACCC in its ongoing investigation of antitrust irregularities in air cargo pricing. Six have paid penalties totaling A$41 million ($37.6 million) and four cases are pending ( ATWOnline, Sept. 4).
US Airways announced yesterday that it will cut 1,000 jobs in the first half of 2010 and implement a "realignment" of its flight network to focus on its "core network strengths," resulting in nearly all of its capacity operating to/from three hubs, one focus city and on its Northeast US shuttle service by the end of next year. US said the job cuts will include 600 airport passenger and ramp service workers, 200 pilots and 150 flight attendants. It will close crew bases at Las Vegas and New York LaGuardia on Jan. 31 and at Boston on May 2.
Singapore Airlines CEO Chew Choon Seng believes the traffic downturn largely has bottomed out. Speaking to ATWOnline at this week's Star Alliance event in Newark, Chew cited "signs. . .that market demand has stabilized," adding that SIA has observed that some corporations are easing their travel policies.
American Airlines will close its Kansas City Maintenance Base next September as part of a downsizing of its maintenance and engineering "footprint" that will result in up to 700 management and union job losses.
Kingfisher Airlines suffered a INR4.19 billion ($88.8 million) loss in the fiscal second quarter ended Sept. 30, a 13.3% improvement from the INR4.83 billion deficit suffered in the year-ago period, according to a filing with the Bombay Stock Exchange cited by numerous press reports from India. Revenue dropped 13.7% to INR11.42 billion
Etihad Airways will launch service from Abu Dhabi to Nagoya (via Beijing, four-times-weekly from Feb. 1 increasing to five-times-weekly on March 27) and Tokyo Narita (five-times-weekly on March 27) aboard A330s. They will be its first Japanese destinations. Air New Zealand and South African Airways reached a codeshare deal under which SAA will place its code on ANZ's daily Auckland-Perth flight and ANZ will put its code on SAA's daily Perth-Johannesburg service. Agreement also covers internal flights to principal cities.
A five-day pilot strike combined with "a lean season and lower yields" dragged India's Jet Airways to a INR4.07 billion ($86.6 million) loss in its fiscal second quarter ended Sept. 30, deepened 5.8% from the INR3.85 billion deficit reported in the year-ago period.
Science Applications International Corp. of Virginia said it was awarded a $106 million contract by US FAA "to provide program management and technical services" in support of the NextGen transition. SAIC said its involvement will include work on safety management, aeronautical communications and weather programs.
Air China, China Eastern Airlines and China Southern Airlines enjoyed a financial turnaround in the third quarter owing to a strong recovery in the domestic market and gains on their fuel hedges. CA earned net income of CNY885.3 million ($129.5 million) in the quarter, a significant reversal from the CNY1.94 billion loss suffered in the year-ago period, on a 1.3% lift in operating revenue to CNY14.05 billion. Expenses dropped 10.6% to CNY13.45 billion and the Beijing-based airline reported a CNY554 million profit on its fuel hedges for the period.
Turkish Airlines flew 29.22 billion RPKs through the first nine months of 2009, up 14.2% from the year-ago period. Capacity rose 20.6% to 41.21 billion ASKs, dropping load factor 4 points to 70.9%. Iberia flew 4.07 billion RPKs in September, down 8.1% year-over-year, against a 6.3% cut in capacity to 5.16 billion ASKs. Load factor slipped 1.6 points to 79%. Transaero Airlines flew 2 billion RPKs in September, a 12.2% increase year-over-year, while passenger numbers climbed 4% to 595,000.
