Korean Air reported first-quarter net income of KRW130.8 billion ($139.2 million), up 2.7% compared to KRW127 billion in the year-ago quarter, on a 10.7% lift in revenue to KRW2.03 trillion.
Hainan Airlines parent HNA Group signed a strategic cooperation agreement with AVIC II under which the parties will cooperate on aircraft purchasing and leasing. At the signing ceremony, HNA Group Chairman Cheng Feng said his company's alliance with AVIC II will further the development of and investment potential in China's rapidly growing air transport industry.
E-190, which seats up to 114 passengers, received ETOPS approval from US FAA allowing the aircraft to operate routes with a diversion airport up to 75 min. from the flight path. Embraer officials said the approval will increase performance capabilities in regions such as Southeast Asia or Australia. It is working on 120-min. ETOPS approval, which it expects to secure early next year.
Air France KLM will be changing its top management structure in line with increasing integration between the two airlines and marking the conclusion of the three-year phase-in period following their merger in May 2004.
Alitalia cabin crew concluded a 24-hr. strike yesterday, forcing the embattled carrier to cancel 356 of approximately 800 flights. Flight attendants are in contract renewal negotiations. The airline said the strike went forward "in spite of the efforts and the willingness shown towards the unions involved."
Southwest Airlines flew 5.92 billion RPMs in April, up 3.3% from the year-ago month. Capacity rose 9.6% to 8.19 billion ASMs, dropping load factor 4.4 points to 72.3%.
ABX Air signed a two-year agreement with ANA to operate two 767-200 freighters to support ANA's cargo operations in Japan, China and Thailand. Effective May 15, the deal is expected to generate $22 million in annual revenue for Ohio-based ABX, an all-cargo carrier that primarily operates flights on DHL's US network but has been seeking to expand its base of services. "This agreement underscores ABX's commitment to grow its presence as an international provider of aircraft and aircraft-related services," President and CEO Joe Hete said. It has 35 767s in service, including 29 for DHL.
Jet Airways will establish a European hub at Brussels Airport, the expanding Indian carrier announced yesterday. Jet anticipates operating up to 10 daily flights through BRU within two years, launching service from Bangalore, Ahmedabad and Chennai to Los Angeles, Chicago O'Hare and New York JFK via its new hub in addition to the daily Mumbai-BRU-JFK and Delhi-BRU-Toronto flights scheduled to start later his year.
JetBlue Airways Tuesday launched daily E-190 service from Boston to Charlotte and Bermuda, the latter operating through Oct. 31. Today it will begin operating BOS-San Francisco flights. WestJet will increase service from Vancouver to Honolulu (to 11-times-weekly from seven) and Maui (to 10-times-weekly from seven) from Dec. 15. Kuwait Airways will fly to Casablanca June 26-Oct. 27 and Malaga July 1-Sept. 2. Frequency was not announced.
PAR Capital Management, which played a key role in US Airways' emergence from bankruptcy and had been its largest shareholder when it sold 6.5 million shares to Goldman, Sachs & Co. in February, ( ATWOnline, Feb. 16), sold off nearly all its remaining shares Tuesday to UBS Securities. The 6.75-million-share transaction leaves PAR with just a 0.29% stake in US, according to a filing with the US Securities and Exchange Commission.
Sabre Travel Network signed an agreement with Interguide Air Ltd. of Nigeria under which the Sabre GDS will be marketed to more than 800 travel agencies across the country. Interguide expects 25% of Nigerian bookings to be on Sabre by year end.
Copa Airlines yesterday announced an order for four 737-800s valued at $282 million for delivery in 2011 and 2012. The Panamanian carrier already operates 24 737NGs and now has 10 on order. Boeing previously listed the order as being from an unidentified customer. Copa operates four of the world's longest 737 routes from its Panama City hub to Buenos Aires, Santiago, Sao Paulo and Los Angeles.
SkyWest Inc., parent of SkyWest Airlines and Atlantic Southeast Airlines, reported first-quarter net income of $34.8 million, up just 0.6% from $34.6 million in the year-ago period. Operating revenue rose 6.3% to $789 million while expenses climbed 7.5% to $709.4 million, sending operating income down 4% to $79.6 million from $82.9 million. The fleet grew by 30 aircraft year-over-year to 425, including six new CRJ900s and 10 CRJ700s "from another operator" added during the recently completed quarter. SkyWest carriers flew 4.02 billion RPMs during the three months, up 10.4%.
Bmi Group reported a pre-tax profit of £29.7 million ($59.4 million) for 2006, nearly triple the £10 million generated in 2005. Operating profit before exceptional items increased 85.5% to £10.2 million. Revenues rose 4.2% to £905.4 million while passenger boardings remained static at 10.5 million, 40% of which were carried by its bmibaby low-fare subsidiary. Per its custom, the company did not provide separate financial results for the mainline, bmibaby and bmi regional.
Japan Airlines yesterday revised down its earnings forecast for its 2006 fiscal year ended March 31 to a net loss of ¥16.2 billion ($135.5 million), significantly changed from a February forecast of a net profit of ¥3 billion for the 12 months.
Compass Airlines, Northwest Airlines' new regional subsidiary, launched its maiden flight yesterday out of Washington Dulles. For now, Compass will be operating a single CRJ200 on two daily roundtrips between IAD and Minneapolis/St. Paul. It expects to put the first of 36 E-175s into service by the third quarter.
Shanghai Airlines' 2006 annual profit plummeted 82.2% to CNY8.2 million ($1.1 million) from earnings of CNY46 million in 2005 as revenues rose 24.5% to CNY9.93 billion and costs climbed 27% to CNY8.49 billion. In the 2007 first quarter, SAL remained stuck in its downturn with a CNY95.8 million loss. Operating revenue increased 27.41% to CNY2.55 billion against a 29.5% lift in costs to CNY2.3 billion.
Swelling ancillary revenue and effective seasonal capacity deployment were among the reasons cited by WestJet for a booming first quarter during which the Canadian LCC posted net earnings of C$29.9 million ($26.8 million), more than double the C$12.9 earned in the first three months of 2006.
On the day that Delta Air Lines emerged from 19 months of bankruptcy protection, executives expressed confidence that the reorganized company will develop and thrive as a global carrier. CEO Gerald Grinstein told ATWOnline in Atlanta Monday that while he believes "there is no magic mark" or percentage of DL's business that will come from long-haul operations, "a 50/50 share would be no surprise." Starting with ATL-Prague flights today, the airline plans to launch service to 13 new international destinations in the next two months alone.
Asiana Airlines will launch Busan-Weihei flights on June 1, bringing the number of Chinese cities it serves to 20. It also reached agreement with the Chinese government to operate a Seoul Gimpo-Shanghai Hongqiao service starting as early as next year, which Asiana said will save an hour of travel time between the two cities. Spirit Airlines will operate Fort Lauderdale-San Pedro Sula flights thrice-weekly beginning July 20, becoming daily from Nov. 15. The Honduran city will be Spirit's third Central American destination after San Jose and Guatemala City.
GE Plastics announced the launch of a new line of products specifically designed to reduce aircraft weight and maintenance costs and improve fuel performance.
Volga-Dnepr Group reported sales of $725 million in 2006, up 55% from 2005, and is projecting $1 billion in revenue this year. It said rising turnover resulted from development in its An-124-100 (revenue up 26%) and IL-76 (up 114%) charter freight businesses and expansion at AirBridge Cargo (up 96%), which operates four 747Fs. V-D transported more than 155,000 tonnes of freight last year, 98% of which was flown internationally. AirBridge reported revenues of $227.4 million and transported 78,400 tonnes of cargo, up 79% on the prior year.
Northwest Airlines reported a $90 million profit for March, reversed from a $226 million deficit in the year-ago month, according to a filing with the US Securities and Exchange Commission. Revenue slipped 0.3% to $1.12 billion against a 9.4% fall in expenses to $934 million. Operating profit more than doubled to $174 million from $80 million. The company took $54 million in net reorganization charges during the month, nearly all of which came from rejection of aircraft, including a delivery cancellation claim for 13 CRJ200s.
Bombardier is forecasting demand for some 11,200 aircraft in the 20/149-seat range valued at an estimated $393 billion over the next 20 years. The guidance reflects a shift toward larger aircraft, with a demand for 1,000 with 20-59 seats, 4,200 with 60-90 seats and 5,900 100/149-seaters. With airline capacity expected to double during the period, operators will be seeking modern aircraft with lower operating costs, the manufacturer said.
