Operating lessor AerCap Holdings reported net income of $48.9 million for the second quarter ended June 30, down 13.6% compared to income of $56.6 million in the year-ago period. Excluding the impact of mark-to-market interest rate caps and share-based compensation, however, net income jumped 52.4% to $59.6 million from $39.1 million last year.
China Southern Airlines announced plans to add 800-900 flights for the upcoming Asian Games, hoping to boost its financial performance in the second half of the year. General Manager Tan Wangeng said CZ would introduce more than 10 aircraft in the next three months to operate its Asian routes. “We estimate the Asian Games [scheduled to be held in November in CZ base city Guangzhou] would attract more than 50,000 people," he said.
Mexicana Airlines suspended all ticket sales late Wednesday but insisted it would continue to operate flights "as scheduled" to carry passengers that have already booked tickets, and Air Canada confirmed it seized two of four aircraft that it leases to MX.
WestJet reported C$21 million ($20.6 million) in second quarter net income, more than double the C$9.2 million profit in the year-ago period, citing improved demand and higher commissions from its WestJet Vacations business.
Etihad Airways will reconfigure several of its A320s to an all-economy class cabin fitted with 162 seats, with the first two aircraft set to re-enter service in October.
Air Canada reported a second-quarter net loss of C$203 million ($198.7 million), reversed from a C$155 million profit in the year-ago period, despite being profitable on an operating level.
Continental Airlines and Brussels Airlines announced plans to start codesharing on Continental’s transatlantic services between Newark and Brussels, as well as on selected beyond hub flights operated by each carrier.
SkyWest Inc., parent of SkyWest Airlines and Atlantic Southeast Airlines, yesterday reported second-quarter net income of $18.7 million, down 28.6% from a $26.2 million profit in the year-ago period, in an earnings release overshadowed by its announcement that it will acquire ExpressJet Holdings for $133 million.
SkyWest Inc. reached an agreement to acquire ExpressJet Holdings for $6.75 per share in cash or approximately $133 million and plans to merge the Houston-based regional with its Atlanta-based subsidiary Atlantic Southeast Airlines.
Cathay Pacific Airways posted net income of HK$6.84 billion ($881 million) in the 2010 first half, a more than eightfold increase over a HK$812 million profit in the year-ago period, an earnings jump that was helped by a 33.7% hike in revenue to HK$41.33 billion.
Mexicana Airlines filed for protection from creditors in Mexico and the US late Monday, conceding in a statement that its "financial and labor situation is no longer sustainable."
Continental Airlines said it plans to offer $750 million of senior secured notes due in 2015. The notes will be guaranteed by its Air Micronesia and Continental Micronesia subsidiaries and secured by certain routes, airport slots and gate leaseholds utilized in connection with the routes. Approximately $350 million of the proposed offering will be used to retire an existing secured loan facility that is due in June 2011 with the remainder dedicated to general corporate purposes.
Aer Linguscabin crew, represented by the Impact union, last week announced it would ballot for strike action as part of an ongoing dispute over proposed cost-cutting measures. This would be the third ballot, following an initial 64% vote against the changes that encompass pay cuts, redundancies and productivity increases, and a subsequent 93% vote supporting the restructuring measures ( ATW Daily News, March 29).
Air China subsidiary Shenzhen Airlines has decided to purchase 10 A320s, worth $814 million at list prices, to boost its capacity in the southeast and southern parts of China. CA revealed the transaction in a stock filing released by the Shanghai Stock Exchange. Shenzhen will take delivery of the aircraft in 2012 and 2013. Shenzhen operates a fleet of 134 aircraft, which includes 32 A320 family aircraft.
Northwest Airlines has agreed to plead guilty to fixing prices on air cargo shipments and pay a $38 million criminal fine, the US Dept. of Justice announced.
Thai Airways International Public Company and Tiger Airways Holdings announced Monday that they will jointly launch a new low-fare airline venture, to be called Thai Tiger Airways, to offer service from Bangkok to domestic and international routes.
Virgin Atlantic Airways said Friday that the start of its current fiscal year “has been encouraging despite difficult trading conditions,” with revenue for its fiscal first quarter ended May 31 up 10% on the prior-year period to £513 million ($670 million) despite the impact of April’s volcanic ash cloud. Quarterly cargo revenue was up 36% to £52 million. Passenger load factor increased 5 points to 82%, it said, adding that it had 15% additional first-class passengers. It did not provide passengers carried or ASKs/RPKs.
British Airways reported a net loss of £122 million ($190.5 million) for its fiscal first quarter ended June 30, widened 15.1% from a £106 million deficit in the year-ago period, but noted that operating loss improved 23.4% year-over-year to £72 million.
ANA Group posted a net loss of ¥5.2 billion ($60.2 million) for its fiscal first quarter ended June 30, a significant improvement over the ¥29.2 billion loss in the year-ago period, as deflationary effects continued to exert downward pressure despite a recovery in the Japanese economy.
Southwest Airlines' second-quarter net income rose 23.1% year-over-year to $112 million from $91 million in the year-ago period and the LCC expressed confidence in "continued strong revenue performance" for the remainder of 2010.
