China Eastern Airlines enjoyed a first-half turnaround, reporting a CNY984.7 million ($143.9 million) profit based on international accounting standards that compares to a CNY212.5 million net loss in the first six months of 2008. CEA credited a CNY2.79 billion hedging gain and "elimination of the civil aviation infrastructure tax that was imposed in the second half of last year, as well as government subsidies," for the result. Operating revenue dropped 15.8% to CNY17.5 billion while expenses fell 15% to CNY16.86 billion owing to lower fuel prices.
Air France KLM flew 19.45 billion RPKs in July, down 3.3% from the year-ago month. Capacity fell 4.1% to 22.86 billion ASKs, lifting load factor 0.7 point to 85.1%. Alaska Airlines flew 1.79 billion RPMs in July, up 0.1% year-over-year. Capacity fell 5.4% to 2.12 billion ASMs and load factor rose 4.6 points to 84.3%. Hawaiian Airlines flew 745.4 million RPMs in July, a 10.4% increase year-over-year, while capacity rose 1.9% to 874.7 million ASMs. Load factor surged 6.5 points to 85.2%.
Air Arabia posted an AED89.7 million ($24.4 million) second-quarter profit, up 10% from the AED81.5 million reported in the year-ago period, on a 6% rise in revenue to AED458.4 million. "We are pleased with the positive results achieved today amidst the ambiguity of global economy performance and the impact of swine flu on air travel trends. Air Arabia's continuous profitability and growth figures demonstrate the fundamental strength of the airline's dynamic business model," CEO Adel Ali said.
Turkish Airlines said it has decided to lease an A321-200. It revealed no further details. Belavia Belarusian Airlines acquired one ex-Flylal 737-500 from ILFC. It now operates five 737-500s, three 737-300s, three CRJ-100/200s, four Tu-154Ms and one Tu-134.
US Transportation Secretary Ray LaHood said yesterday that he has asked the Dept. of Transportation's general counsel to determine whether Continental Airlines or ExpressJet Holdings "violated any laws" when 47 passengers were held overnight last week onboard an ERJ-145.
Ryanair will open its 34th base at Leeds Bradford in March when it will launch 14 new routes with two based 737s. New destinations will be Carcassonne, Faro, Ibiza, Knock, Krakow, Limoges, Malaga, Malta, Montpellier, Murcia, Nantes, Palma, Pisa and Treviso. It currently serves Dublin, Girona and Alicante from the airport and plans to operate 63 weekly flights to/from LBA next spring. It also announced the launch of four-times-weekly Bristol-Malaga service in October, its fourth "winter sun run" from the airport announced in the past week.
Ethiopian Airlines posted a net profit of ETB1.35 billion ($117 million) in its fiscal year ended June 30, a 165% increase over the prior year's figure and a company record.
London Heathrow officials yesterday unveiled plans for a new £1 billion ($1.67 billion) Terminal 2 construction project that will allow the consolidation of Star Alliance operations and provide capacity for an estimated 20 million passengers each year. Construction will take place in two phases, with the initial creation of a terminal building on the site of the existing T2 and Queen's building, both of which will be demolished later this year. Construction is scheduled for completion in 2013.
Mesa Air Group reported a net loss of $2.7 million in its fiscal third quarter ended June 30, an improvement from the $3.7 million loss suffered during the same period one year ago. Operating revenue was $232.6 million, down 34.3%, primarily owing to capacity reductions and lower fuel revenue under its fee-for-departure agreements. Operating expenses fell 36% to $228.4 million and operating income was $4.2 million, a reversal from the $3.2 million loss in the year-ago quarter.
Airbus has completed a second large test fuselage section for the A350. The demonstrator is 18 m. long and 6 m. in diameter and "closely reflects" the final design, according to the manufacturer. It was used to "develop and validate the complete process change" and will be involved in certification tests focusing on fatigue and damage tolerance of composites. Separately, Airbus said it delivered 34 aircraft in July, including Singapore Airlines' ninth A380, one A340-600 (Iberia), five A330s and 27 A320 family aircraft.
US Airways said July consolidated passenger RASM fell approximately 15% year-over-year while total unit revenue was down around 12%. It flew 5.86 billion consolidated RPMs, down 4.1%, against a 5.6% cut in capacity to 6.83 billion ASMs. Load factor rose 1.3 points to 85.9%. American Airlines flew 11.66 billion system RPMs in July, down 6.4% year-over-year. Capacity fell 8% to 13.36 billion ASMs, lifting load factor 1.4 points to 87.3%.
Pinnacle Airlines Corp. returned to profit in the second quarter, reporting a $6 million surplus compared to a $12.9 million loss in the year-ago period. The company is the parent of both Pinnacle Airlines and Colgan Air and flies for Delta Air Lines, Continental Airlines, United Airlines and US Airways. Second-quarter revenue dropped 4.5% year-over-year to $211.3 million as Pinnacle's block hr. declined 5% and Colgan's were down 15%. Expenses fell 13.5% to $189.1 million and operating income surged to $22.2 million from $2.5 million in the second quarter of 2008.
Hahn Air announced the launch of a redesigned website allowing greater functionality for travel agents seeking to access fares available on Hahn's partner carriers.
AirAsia will defer delivery of eight A320s scheduled to arrive next year to January-August 2014 without penalty. It still plans to take 16 new aircraft next year. In a filing with Bursa Malaysia, the LCC said it has until Oct. 31 to defer eight more aircraft scheduled for delivery in 2011 to 2014. It said it expects "infrastructural constraints with the current airport facilities" that will not be remedied until a low-cost terminal is built at Kuala Lumpur ( ATWOnline, March 13).
Fuel hedges helped boost Malaysia Airlines to an MYR876.3 million ($250 million) profit in the second quarter, which compares to a restated MYR40 million profit in the year-ago period and is the largest quarterly surplus in the carrier's history. MAS gained MYR1.3 billion on its hedges during the quarter compared to a MYR640 million loss in the second three months of 2008. Operating revenue fell 31.8% to MYR2.5 billion and costs were down 19.6% to MYR2.99 billion. Its operational result swung to a MYR420.8 million loss from a MYR62 million profit.
Ryanair said the British Air Line Pilots Assn. "temporarily suspended" its campaign to unionize the LCC's pilots "in the face of massive opposition" from the employee group. BALPA initially "threatened" to go to the UK Central Arbitration Committee, which could require a secret ballot among Ryanair's UK pilots, but opted against it because losing the vote would prevent them from trying again for three years, Ryanair Director-Personnel Eddie Wilson said.
ExpressJet Holdings issued an apology yesterday after 47 passengers were held overnight onboard an ERJ-145 at Rochester [Minn.] International following a weather-related diversion.
Row 44 said it has received a permanent operating license from the US Federal Communications Commission allowing it to provide inflight Internet service in the US.
Air India parent National Aviation Co. of India said in a Draft Restructuring Plan released last Friday that over the next nine months it plans to "enhance [its] focus on [developing an] LCC for high-density domestic/international routes" along with an "aggressive route restructuring" and intends to create subsidiaries for its MRO, ground handling and cargo operations. Within 18-36 months NACIL said it expects "profitable growth" and hopes to spin off "noncore businesses" and prepare for an IPO.
Southwest Airlines yesterday confirmed its submission of a binding cash offer worth more than $170 million to acquire Denver rival Frontier Airlines, which now will be sold at auction because Republic Airways Holdings also has placed a bid. When announcing its nonbinding interest in late July, SWA said its offer would be worth at least $113.6 million, eclipsing Republic's US Bankruptcy Court-approved proposal of $108.8 million ( ATWOnline, July 31).
Boeing sources close to the 787 program told ATWOnline that the "parts are on the way" to Everett that will be used to make fixes to the upper wing join areas on the first flight aircraft and the static test aircraft. The fix will be applied to the upper part of the side of the body on both sides on the center wing box and wing box with the aim of buttressing the structure to reduce stress. Access to the area concerned is challenging but not impossible, the sources said, and will require the draining of fuel and the washing of the tanks.
Gains on foreign exchange of C$355 million pushed Air Canada into the black in the second quarter, for which it reported net income of C$155 million ($144.5 million), up 33% over a C$122 million profit in the year-ago period.
SkyWest Holdings, parent of SkyWest Airlines and Atlantic Southeast Airlines, reported second-quarter net income of $26.2 million, down 28% from a $36.4 million profit in the year-ago period. Revenue fell 26.5% to $698.8 million while operating expenses declined 27.2% to $639 million, producing operating income of $59.7 million, down 18% from $72.9 million last year. During the quarter, SkyWest took delivery of four CRJ900s under long-term lease arrangements.
Boeing renamed its training organization, formerly called Alteon, Boeing Training & Flight Services. "The new name reflects the organization's expanded capabilities," the company said. "With the addition of flight services, the organization's expertise now includes customized flight and dispatch documentation, airplane performance data, operational consulting and safety analysis."
