Although Boeing recorded double-digit revenue growth in both its Integrated Defense Systems and Commercial Airplanes segments for the second quarter ended June 30, special items pushed net income down 6.8% to $566 million from $607 million in the year-ago period.
American Airlines unveiled the first phase of its new $1.1 billion terminal at New York JFK. Operations in Phase I are expected to begin on Aug. 24 and primarily will consist of the domestic flights now in AA's Terminal 9, which will close owing to Phase II construction. Phase I of the new terminal features a 57,000-sq.-ft. ticketing lobby with 67 ticketing positions and offers an automated baggage-handling system with four carousels. It also includes an 11,300-sq.-ft. Admirals Club with seating for 185.
Atlas Air Worldwide Holdings, which emerged from Chapter 11 in July 2004, reported net income of $675,000 for the first quarter ended March 31, reversing a $58.6 million net loss in the year-ago period. Results for the 2005 quarter included $1.6 million in post-emergence costs and related professional fees, while results from the 2004 first quarter included $9.4 million in pre-petition costs. "Our first-quarter net profit, albeit modest, is an important achievement," President and CEO Jeffrey Erickson said.
Alaska Airlines aircraft technicians rejected a new four-year tentative contract reached with the company earlier this summer ( ATWOnline, June 17). According to the Aircraft Mechanics Fraternal Assn., of the 654 eligible voters, 325 voted against the agreement. However, the group did vote to move forward with a new method of profit-sharing.
Rockwell Collins entered into an agreement with Czech Airlines to provide its WXR-2100 MultiScan Hazard Weather Detection System and Airshow 4200 moving map and inflight information product for 12 A320s. The agreement also calls for an option on 12 additional aircraft with deliveries scheduled to begin in March 2006.
Megadata Corp. announced that Hartsfield-Jackson Atlanta International Airport purchased several of its Passur products including the Passur portal, Passur Pulse and Passur inSight.
Mesa Air Group reported net income of $17.1 million for its fiscal third quarter ended June 30, up 77.4% over income of $9.7 million in the year-ago period, which was net of $1.1 million in special charges. Current-period results include net one-time investment gains of $0.7 million. "In spite of the difficult industry environment, we are pleased to have generated these results," Chairman and CEO Jonathan Ornstein said.
Austrian Airlines named Paul Paflik area manager-the Americas for sales and marketing based in New York. He succeeds Herbert Koschier, who becomes the new area manager-Australia, New Zealand and South West Pacific based in Sydney.
GECAS said it reached agreement to lease one A320 and three A319s to United Eagle Airlines of China. GECAS said the A320 is already in service with the Chengdu-based carrier, which launched operations this week ( ATWOnline, July 27). The three A319s will be delivered later this year.
AirTran Airways reported a net income of $11.4 million for the second quarter ended June 30, a 32.3% decline from net income of $16.8 million in the year-ago period. Net income for the first six months also dropped, falling 84.1% to $3.3 million from $20.9 million. "As in the first quarter this year, our financial performance was challenged by continued record high fuel prices, overcapacity on the East Coast and intense price competition," Senior VP-Finance and CFO Stan Gadek said.
United Eagle Airlines, China's latest private carrier, launched operations yesterday with a flight from Chengdu to Shenzhen but resisted the lure of publicity from discounting its fares. It is using a fleet of leased A230s. China's first private airline, Okay Airways, formerly Shenzhen Airlines, started service in March, while privately owned Aukai Airlines, Western Airlines and Eastern Express are expected to fly later this year.
UPS, boosted by a significant gain from international package revenue, reported a 20.5% increase in net income to $986 million in the second quarter ended June 30 compared to net income of $818 million in the year-ago period. "UPS is a company that's on the move," Chairman and CEO Mike Eskew said. "Our US domestic volume climbed well above our expectations.
Impacted by high fuel prices, overcapacity in the market and a weak load factor, Austrian Airlines Group reported a net loss of €79.1 million ($95.1 million) for the six months ended June 30, widened from a net loss of €41 million in the year-ago period.
China Eastern Airlines took delivery of the 2,500th A320 family aircraft in Toulouse yesterday. The airline already operates a fleet of 69 of the A320 family and this year will receive an additional 20. Deliveries of the type have soared from 1,000 to 2,500 in the past six years and the production rate is being increased to 30 a month from the first quarter of 2006. The A320, the first of the four-member family, entered into service in April 1988 and pioneered the fly-by-wire flight control system in commercial aircraft.
Cathay Pacific Airways, along with 22 other airlines, received approval from the Hong Kong Civil Aviation Dept. to increase long-haul fuel surcharges from the beginning of August. The new charge will be $42.60 per sector, up from the current $32. The long-haul surcharges apply to all Cathay flights between Hong Kong and Australia, North America, Europe, the Middle East and South Africa. The short-haul surcharge, which applies mainly to the airline's regional flights in Asia, remains at $11 per sector.
Lufthansa yesterday opened a new first class area at its Munich hub for its top frequent travelers, HON Circle and first class passengers. The offering features exclusive curbside service, Fast Lanes and a new 150-sq.-m. lounge. Commenting on the strong demand for first class travel from Munich, Executive VP-Services and Human Resources Carsten Spohr said during the opening ceremony that Lufthansa will again introduce first class on long-haul routes out of the airport.
Northwest Airlines Corp. recorded a net loss of $225 million for the second quarter ended June 30, which included a net one-time gain of $54 million primarily related to the company's sale of shares of Prudential Financial. This compares to a net loss of $182 million in the year-ago period, which included a $104 million charge to write down previously parked 747-200s and related inventory. Excluding unusual items, the company posted a net loss of $279 million in the quarter compared to a loss of $78 million in the 2004 period.
Spring Airlines, the new Shanghai-based budget carrier, raised its lowest fares from Shanghai to Yantai, Nanchang and Mianyang by 100 yuan ($12) to 299 yuan after political pressure was applied by competing airlines, according to China Daily. However, the new fares also include one night's accommodation. The typical fare is 800 yuan.
Short-haul, point-to-point services from secondary destinations in China and India are set to expand dramatically in the next 12 months, according to the Centre for Asia Pacific Aviation. CAPA cited Malaysia Airlines' decision to lease five 737-800s to tap the rapid growth in demand for flights to secondary airports in the two countries ( ATWOnline, July 26). MAS will start service to Fuzhou, Cochin, Trichy, Shenzhen and Guilin. Jetstar Asia will become the first LCC to launch flights to India when it starts thrice-weekly Singapore-Kolkata service Aug. 18.
The Jetstar Asia merger with Valuair ( ATWOnline, July 25) is expected to be more of a takeover that will have a significant upside for the Qantas-controlled low-cost airline. Under the S$60 million ($36.1 million) deal that was finalized Friday, the two LCCs, which both are losing money, will be merged into a single corporate structure of which Qantas will own 44.5%, down from the 49.9% it owns of Jetstar Asia.
Finnair flew 1.44 billion RPKs in June, up 10.4% over the year-ago period. Capacity climbed 5.7% to 1.91 billion ASKs and load factor grew 3.2 points to 75.2%. For the six months ended June 30, RPKs rose 7.9% to 8.28 billion, ASKs increased 6.1% to 11.52 billion and load factor gained 1.2 points to 71.9%.
EVA Air unveiled the first of its 316-seat 777-300ERs, which will begin operations on the London Heathrow-Bangkok-Taipei route from Sept. 15. The aircraft is configured with three new cabins: Premium Laurel, EVA's new business class; Elite Class, its re-launched premium economy product, and an upgraded economy class. It also features a new inflight entertainment system.
Korean Air reported an 11.9% increase in traffic to 4.36 billion RPKs last month on the back of strong international traffic, which rose 12.3%. Passengers were up 7.3% to 1.8 million. The strongest traffic growth was from China, up 28% to 209.5 million RPKs. Domestic traffic rose 6.8% year-on-year to 308.4 million RPKs. Reflecting the usual seasonal dip, freight was down 1.9% to 677.2 million FTKs. Japan and US cargo fell 3% and 5.6% respectively, while Southeast Asia dropped 21.3%.
Qatar Airways inaugurated service to Delhi July 15. It is offering daily flights to the Indian capital, its fifth destination in India. It also boosted its Mumbai service to daily from six times per week.
