Copa Airlines converted two options on Embraer 190s to firm orders. The Panamanian carrier previously announced an order for 10 advanced range versions of the 190. Deliveries of the additional aircraft are scheduled for October and November 2006. Copa serves 31 destinations in 20 countries with a fleet of 737s.
Despite the challenges created by high fuel prices and a proliferation of new entrants in the local market, Singapore Airlines Group announced a net profit attributable to shareholders of S$1.39 billion ($839.7 million) for the fiscal year ended March 31.
Finnair earned €11.5 million ($14.7 million) in the first quarter ended March 31, much improved over a profit of €1.2 million in the year-ago period, while EBIT was €18.7 million versus negative EBIT of €2.4 million last year. "We are back on track towards healthy growth and we can be pleased with that. Our first-quarter result clearly indicates that profitability has taken a turn for the better. Our demand remains strong and our costs are in check," said President and CEO Keijo Suila.
Luxair Group increased its net profit for financial year 2004 to €13.4 million ($17 million) from €3.6 million in 2003. Operating result progressed from a loss of €4.1 million in 2003 to a €3.9 million profit last year. Total operating income rose 6% to €323.6 million and operating expenses increased 3.3% to €319.7 million. Luxair posted a 3.1% gain in operating income to €177.6 million, while income from other services, including passenger and cargo handling, climbed 10% to €128.4 million.
Union representing UPS pilots, which has been negotiating a new contract with management for more than three years, said more than 99% of its members voted to give its five-pilot executive board authority to call a strike. Of the 2,371 that participated in the vote, just 15 voted against it, according to the Independent Pilots Assn. "The overwhelming outcome of this vote is both a show of IPA unity and a clear signal to UPS management that our crewmembers are serious about closing out this contract over the next two weeks in Baltimore," IPA President Tom Nicholson said.
As the US Congress, the Bush Administration, airlines and other interested parties discuss how to fund the daily operation of the US air traffic control system while also maintaining investment in technology to meet forecast growth in operations ( ATWOnline, May 5), FAA confronts a major challenge whose outcome is central to the debate yet which until recently has received relatively little attention.
Singapore Airlines refuted suggestions by Airbus that the delay in its first A380 delivery is by mutual agreement and the airline now is seeking compensation.
President Bush nominated Edmund Hawley as the next head of the Transportation Security Administration to succeed David M. Stone, who announced last month that he will leave the department in June. Hawley currently serves as a supply chain technology consultant and is a member of FAA's Air Traffic Services Committee. Earlier, he was VP-Transportation Services for the Union Pacific Railroad and served in a senior role at US DOT.
United Airlines' successful termination of its defined benefit pension programs will give it a substantial cost advantage over other hub-and-spoke carriers and could lead to further bankruptcies as those rivals strive to achieve the same level of cost savings, according to Standard & Poor's analyst Philip Baggaley. Absent the terminations, United would have had to make at least $4.5 billion in payments over the next five years, or around $900 million per year, equal to 18% of 2004 labor costs and 5% of total operating costs, Baggaley noted.
Boeing and GE marked the one-year anniversary of service entry of the 777-300ER. The first aircraft, leased to Air France by ILFC, entered service on May 10, 2004. A total of 17 777-300ERs are in service currently and their GE90-115B engines have completed more than 64,000 hr., 4,100 departures and 8,200 cycles with no unscheduled engine removals and no inflight shutdowns, GE said. Boeing noted the type has achieved a 99.2% average schedule reliability rate.
China Southern and subsidiary Xiamen Airlines signed up for 45 737s consisting of 12 737-700s and 33 737-800s. Deliveries will run from 2006 to 2008 and 15 of the dash 800s will go to Xiamen. In a statement to Shanghai Security News, the airlines said the aircraft will lift China Southern's capacity by 15%.
LOT Polish Airlines converted four Embraer 170 options from its original contract to four firm orders for 175s. Deliveries of the 82-passenger aircraft are scheduled to begin in the second quarter of 2006. LOT was the first carrier in Europe to operate the Embraer 170, which went into service in March 2004, and it recently took delivery of its 10th. It also flies 14 ERJ-145s. It retains seven options for 170s that could be converted to 175s, 190s or 195s.
Singapore Airlines watered down suggestions that the lapsing of options it held for five more A340-500s is an indication it will switch to the 777-200LR for its long-haul operations, currently comprising Newark and Los Angeles.
Just a day after receiving approval to terminate its pension plans ( ATWOnline, May 11), UAL Corp., parent of United Airlines, reported a staggering $1.07 billion net loss for the first quarter ended March 31 including $768 million in one-time reorganization items primarily related to the termination of its pension plans and the rejection of aircraft.
CSA Czech Airlines reported a final net profit of 324.2 million koruna ($13.8 million) for 2004, four times higher than 2003 results. The figure was larger than originally estimated owing to higher earnings from abroad, the company said. "Despite the very turbulent environment of air transport, we managed to increase our profit and operational results and thanks to the modernization of our fleet, we have become a highly competitive airline on the European market," President and Chairman Jaroslav Tvrdik said.
Lufthansa Group reported a net loss of €116 million ($148.5 million) for the first quarter ended March 31 compared to a profit of €62 million in the year-ago period. The 2004 results, however, benefited from a €292 million book profit from the sale of LH's stake in Amadeus, and the company noted that its operating result improved from a deficit of €116 million last year to a negative €26 million in the 2005 quarter.
Cathay Pacific Airways flew 5.04 billion RPKs in April, up 12.3% over the year-ago period. Capacity climbed 11.8% to 6.51 billion ASKs and load factor rose 0.4 point to 77.4%. For the four months ended April 30, RPKs increased 16.4% to 20.55 billion, ASKs grew 12.6% to 26.27 billion and load factor gained 2.5 points to 78.2%.
Seattle-based operating lessor Boullioun Aviation Services was sold by German banking giant WestLB to Aviation Capital Group, a subsidiary of Pacific LifeCorp., parent of Pacific Life Insurance Co. Price was not disclosed. "Included in the agreement are 102 owned or managed commercial aircraft, 11 Airbus airplanes currently on order, employees, and other assets of Boullioun Aviation Services," Pacific LifeCorp said in a statement.
United Airlines' International Assn. of Machinists-represented employees overwhelmingly authorized a strike if, as expected, US Bankruptcy Judge Eugene Wedoff allows the company to reject current labor contracts. The airline's flight attendants also have authorized strike action if contract changes are imposed. According to IAM, the union has the right to strike if the carrier changes the terms of the contract currently in place. However, United has claimed that strikes would be illegal.
Fares continued to fall, oil prices continued to rise. That sums up the experience for the 11 largest US passenger airlines in the first quarter ended March 31. In aggregate they posted a net loss of $3.2 billion, more than double the $1.54 billion shed in the year-ago period. Losses were not spread evenly, however, as two airlines, Delta and United, spilled $2 out of every $3 in red ink, much of it owing to special charges related to their respective restructurings.
