ExpressJet Holdings reported a first-quarter net loss of $11.4 million, narrowed 68.1% from a net loss of $35.7 million in the year-ago period, saying it benefited "from the cost-cutting performed during the second half of 2008 in response to record-breaking fuel prices and its amended capacity purchase agreement with Continental [Airlines]."
US Airways Group announced the sale of 15.2 million shares of common stock and $75 million in convertible senior notes due 2014, which are expected to raise approximately $150 million combined. US said it intends to grant the underwriters an option to purchase an additional 2.3 million shares and $11.3 million in notes to cover any overallotments. Citi and Morgan Stanley are joint book-running managers.
EasyJet nearly doubled its fiscal first-half net loss to £85.9 million ($129.3 million) from the £43.3 million posted in the six months ended March 31, 2008, citing high fuel costs linked to poor hedging and the later Easter holiday.
Foul weather and maintenance problems contributed to a 68% decline in SkyWest Inc.'s first-quarter profit to $9.4 million from $29.1 million in the year-ago period. Revenue fell 22.5% to $672.6 million. The company and its SkyWest Airlines and Atlantic Southeast Airlines affiliates provide regional flying for United Airlines, Delta Air Lines and Midwest Airlines with a fleet of 440 aircraft.
US Dept. of Transportation's Office of Inspector General issued a report warning that the US ATC system is vulnerable to "cyber attacks" because FAA has not adequately protected the commercial software- and IP-based technologies it increasingly is using to collect and disseminate information to facilitate ATC services. "The need to protect ATC systems from cyber attacks requires enhanced attention," the report stated. "Web applications used in supporting ATC systems operations are not properly secured to prevent attacks or unauthorized access.
Turkish Airlines firmed its order for five 777-300ERs announced in March ( ATWOnline, March 26). The aircraft are worth $1.36 billion at list prices, Boeing announced. THY currently operates three -300ERs on lease from Jet Airways. Separately, THY launched a thrice-weekly Istanbul Ataturk-Benghazi flight. The Libyan city is its sixth new destination this year. Its summer schedule features a 24% year-over-year rise in ASKs and a 12% increase in number of flights.
Southwest Airlines said that current revenue and booking trends "continue to be adversely impacted by the weak economic environment" and continuing swine flu concerns, leading the LCC to predict that second-quarter unit revenue will fall more than the 2.8% decrease reported in the first quarter. April RASM is expected "to be in line" with the year-ago month. SWA flew 6.52 billion RPMs last month, up 4.1% year-over-year, against a 1.9% decline in capacity to 8.46 billion ASMs. Load factor rose 4.4 points to 77%.
Citing "specific customer requests for deferrals" as well as the economic and industry downturn, Airbus yesterday slashed its A380 production and delivery schedule this year and next. The manufacturer now expects to deliver 14 A380s in 2009, down from the 18 previously planned and the 21 announced in May 2008. It said yesterday that "more than 20" aircraft will be manufactured and delivered in 2010. An Airbus spokesperson told ATWOnline yesterday that no firm 2010 schedule had been announced, although Bloomberg News reported that it intended to deliver nearly 30.
Finnair and its Helsinki Vantaa-based Northport Oy ground handling subsidiary reached a cost-savings agreement worth some €3.5 million that will include the layoff of 15 employees, the two-week furlough of 87 more and the shift of 183 full-time positions to part-time status. Northport employs 858. Separately, Finnair will launch a seasonal twice-weekly Helsinki-Pisa flight on May 8.
Sabre and Lufthansa signed a four-year global agreement effective July 1 providing Sabre Travel Network-affiliated agencies and corporations continued access to LH's full content.
TAM CEO David Barioni said at a conference in Sao Paulo that the company's "financial result is going to be positive this year" and that "the worst is over," Reuters reported. The carrier posted a BRL1.34 billion ($628.3 million) loss in 2008. Barioni also said, "We might ask [Airbus] to push the deliveries back, but no way would we cancel them."
Republic Airways Holdings reported an 89.3% drop in first-quarter earnings to $2.2 million from $20.2 million in the year-ago period. Revenue was down 10.6% to $325.3 million. The company operates as Chautauqua Airlines, Shuttle America and Republic Airlines in partnership with American Airlines, US Airways, Continental Airlines, Delta Air Lines, United Airlines, Midwest Airlines and Mokulele Airlines. Operating expenses dropped 5.9% to $280.5 million from $298 million a year ago. Expenses included $3.1 million related to the cost of returning CRJ200 aircraft.
Blue Wings had its operating license reinstated by the German LBA Monday and said it plans to restart scheduled flights from its Dusseldorf base to Moscow, St. Petersburg, Karaganda and Beirut, as well as its European charter service, as soon as possible ( ATWOnline, May 5).
China Airlines reported TWD23.08 billion ($698.1 million) in first-quarter sales revenue, down 25.6% from the year-ago quarter. March revenue fell 30% year-over-year to TWD7.62 billion.
Boeing expressed confidence that the 787 will be certified on time for delivery to ANA in the first quarter of next year despite a pessimistic research report released last week. The manufacturer responded to Bernstein Research's cautious assessment ( ATWOnline, May 5), saying it "understood the natural tendency toward skepticism based on past program performance" while claiming that the report included several errors.
China Eastern Airlines signed a five-year, CNY590 million ($86.3 million) sale and leaseback contract with Bank of Communications Finance Lease Co. for two A340s. The aircraft, delivered in 1996, will be leased back for CNY17 million per quarter. "We can not only improve our cash flow and reduce debt ratio by a sale and leaseback of these two A340s but we also can optimize our fleet makeup," CEA Board Secretary Luo Zhuping explained. He said CEA's high debt ratio remains its biggest problem.
Emirates Chairman and CEO Ahmed bin Saeed Al Maktoum told reporters in Dubai that the carrier will report a profit for the fiscal year ended March 31 and that it has no plans to defer any aircraft deliveries scheduled through 2011.
A first quarter that was "difficult in the extreme" ended for Austrian Airlines Group with an €88.1 million ($117.3 million) loss, widened 45.9% from the €60.4 million deficit reported in the year-ago period. The company has said it has enough cash to maintain operations until its anticipated merger with Lufthansa ( ATWOnline, April 8), which executive board member Peter Malanik said is "going ahead as planned" and should close by the middle of this year.
Air Canada is seeking to lessen the burden of its C$3.2 billion ($2.7 billion) pension solvency deficit in order to gain "financial certainty" and is asking unions "for a moratorium" on funding its defined benefit plans.
Southwest Airlines announced a tentative four-year agreement with customer support and services and airport customer service employees represented by the International Assn. of Machinists and Aerospace Workers. Contract is subject to union ratification.
American Airlines launched a third daily Boston-London Heathrow service and a seasonal daily BOS-Paris Charles de Gaulle flight, as well as a daily Dallas/Fort Worth-Madrid service aboard a 767-300. AirAsia Indonesia will launch Bali-Perth service on July 17 aboard an A320. Safi Airways will launch Kabul-Frankfurt service on June 15.
WestJet reported first-quarter net income of C$37.5 million ($31.7 million), down 28.7% from C$52.5 million in the year-ago period, citing a weak demand and pricing environment.
