SAS announced June 9 as the record date for a 1:30 reverse stock split of its shares. The last day of trading in SAS shares before the split is June 4. Following the reverse split, the number of shares will be reduced from 9.87 billion to 329 million. Companies typically carry out reverse splits in an effort to increase the value of outstanding shares.
Virgin Blue Group advised the Australian Stock Exchange of sharply lowered earnings expectations for its fiscal year ending June 30, blaming in part fares that have fallen by 10% in the past month.
AirAsia announced an 8% year-over-year increase in first-quarter net income to MYR224.1 million ($68.7 million) on a 10% rise in revenue toMYR878 million. Passengers carried lifted 17.1% to 3.7 million; the airline did not release RPK and ASK figures. CEO Tony Fernandes said the period's major highlights were the "sustained turnaround" of its Thai and Indonesian operations and an "astounding 31% jump in ancillary income." Ancillary revenue comprised 16% of the carrier’s total revenue.
American Airlines said Friday that it has reached a tentative agreement with its fleet service workers on a new labor contract, but the Transport Workers Union representing the workers cast doubt on whether the accord will win approval from rank-and-file members.
Hainan Airlines is seeing a marked improvement in the China-Europe market, with both demand and yield showing growth, GM-Europe Liang Pubin told this website Friday in Brussels as the carrier launched thrice-weekly BRU-Shanghai Pudong service. Demand for all airlines on China-Europe routes increased 30% in the first quarter compared to the year-ago period, he said, adding, "Hainan witnessed a traffic increase higher than that…Yield is coming back also."
Airbus announced that South African Airways ordered five A320s, boosting an earlier commitment for the type to 20 from 15 previously. Aircraft, which will be delivered from 2013, will be powered by IAE V2500s. SAA recently agreed to lease six A330-200s from Aircastle for delivery in 2011 ( ATWOnline, Dec. 18, 2009). It already operates a fleet of 11 A319s, six A340-200s, six A340-300s and nine A340-600s.
Aegean Airlines reported a first-quarter net loss of €25.6 million, reversed from a €4.6 million net profit in the year-ago period, despite a 3% hike in revenue to €114.8 million and a 17% jump in boardings to 1.4 million. Scheduled flight revenue declined 3.3% to €91.2 million whereas revenue from charter operations heightened 38.5% to €1.8 million and revenue from passengers’ airports charges was up 43.1% to €16.6 million. The €29.5 million operating loss compared with a breakeven result last year.
China Southern Airlines is accelerating its market exploration at Xinjiang with plans to launch a regional airline to serve the Autonomous Region in northwest China. This week CAAC announced a series of measures to encourage air transport development in Xinjiang, including boosting the number of airports from 14 to 21 by 2015, providing financial aid to carriers and increasing regional flight frequencies to domestic hub airports.
Ryanair is increasing its footprint in Spain further and will open its 42nd base at Barcelona El Prat in September with five 737-800s and 20 new routes, a mix of domestic and international destinations. It already has five bases in Spain, at Alicante, Girona, Madrid, Malaga and Reus. The new BCN base represents an investment of more than $350 million, the LCC said.
Continental Airlines yesterday announced plans to serve Auckland from its Houston Intercontinental hub beginning Nov. 16, 2011, using a 787 to operate the 7,400-mi route. CO said it is the first airline to "formally announce specific route plans for its 787 fleet." The carrier, which has agreed to merge with United Airlines, has 25 Dreamliners on order with deliveries beginning in August 2011. Subject to government approval, service will be operated daily, with five-times-weekly service during certain periods in the first year of operation, CO said.
United Airlines Flight 935 en route from London to Los Angeles diverted to Montreal yesterday for medical attention after encountering what UA described in a statement as "severe turbulence over the Atlantic Ocean." The 777 was carrying 196 passengers and 15 crew. Nine passengers and one crewmember received medical attention in Montreal for what are believed to be non-life threatening injuries.
Allegiant Travel Company discontinued the private offering of $250 million in senior unsecured notes due to "adverse market conditions." It had announced the offering last week, the proceeds of which were intended to pay for the purchase and induction of MD-80s and 757s ( ATWOnline, May 20).
Air New Zealand achieved a world first for Airbus, using RNP level 0.1 for Sydney-Rotorua service on May 22 despite cloud cover down to just 400 ft. The RNP 0.1 value is the lowest level approved by Airbus and authority to operate below RNP 0.3 had just been granted to ANZ the previous day. Without the technology, NZ978 would have had to divert to Auckland, causing significant disruption to the inbound passengers and also to the outbound passengers scheduled to depart from Rotorua to Sydney the same afternoon.
