Cyprus Airways lost €3.3 million ($4.4 million) in 2009, reversed from a €1.7 million profit in 2008, as traffic and yield fell sharply. The carrier attributed the result to the "world economic crisis that adversely affects the airline industry." Revenue dropped 20.1% to €249 million and the operating loss of €5.7 million compared to a €2 million surplus the prior year. CY said it has sufficient liquidity to meet its obligations. It sold three older A320s last year and hopes to find buyers for its remaining four owned A320s.
Turkish Airlines will introduce a new class and service product in between business and economy on its new widebody aircraft, CEO Temel Kotil told ATWOnline last week in Istanbul. The class is unnamed but "will exceed the premium economy standards of most other carriers and will be close to the business class of some other carriers," he said.
Air New Zealand lifted its net profit for the six months to Dec. 31, 2009, to NZ$56 million ($38.6 million), more than double the NZ$24 million reported in the year-ago semester, despite fuel hedge losses and a significant decline in revenue.
Japan Airlines posted a net loss of ¥177.9 billion ($1.99 billion) for the first three quarters of its fiscal year ended Dec. 31, 2009, considerably widened from a ¥1.9 billion loss for the prior-year period.
Thai Airways reported 2009 net income of THB7.34 billion ($222.8 million), reversed from a net loss of THB21.38 billion in 2008, citing "cost control" and a foreign exchange gain as the main reasons it returned to the black.
American Airlines and China Eastern Airlines are negotiating the latter's possible entry into oneworld, AA CFO Tom Horton said this week in comments cited by Reuters. CEA is in the market for an alliance and was hoping to make a decision by last week ( ATWOnline, Jan. 26). Horton also said that oneworld is talking with a Brazilian airline about oneworld membership. TAM is committed to Star Alliance but Gol remains in play and currently codeshares with AA.
American Eagle Airlines is installing nine first class seats on each of its 25 CRJ700s and will offer "the same level of outstanding service customers experience on American Airlines" beginning July 2. By that time it also will have taken delivery of two of the 25 CRJs it has on order, all of which will be equipped with the new product
Tiger Airways and Tiger Airways Australia parent Tiger Aviation Group posted a net profit of S$14.1 million in the fiscal third quarter ended Dec. 31, reversed from a S$7.9 million loss in the year-ago period. Third-quarter operating profit was S$23.5 million, boosted by a 29% year-over-year increase in revenue to S$139.5 million. President and CEO Tony Davis said the turnaround was "driven by traffic growth across both our airlines, increasing ancillary revenues and a focus on cost containment." Unit cost fell 16% and CASK excluding fuel was cut 4%.
Air China and Cathay Pacific Airways yesterday signed a framework agreement in Beijing establishing a jointly owned, Shanghai-based cargo airline built on the assets of Air China Cargo. Air China will hold a 51% stake in the new carrier while Cathay will acquire a 25% stake and fund an offshore trust, in the form of a loan, to hold an additional 24%. CX's total investment in the new venture will be CNY1.67 billion ($244.1 million).
AirAsia earned a MYR549.1 million ($161.1 million) profit in 2009, reversed from a restated MYR496.6 million loss in 2008, as it opened four new bases and grew market share "in every market we serve," according to CEO Tony Fernandes.
Iberia Group ended what may be its final year as an independent carrier on a sour note, reporting a consolidated net loss of €273 million ($369.8 million) for 2009, reversed from a €32 million surplus the prior year. The deficit also ended a 13-year annual profit streak for the Spanish airline that is merging with British Airways. Operating revenue plunged 19.2% to €4.46 billion and operating expenses declined 10.9% to €4.93 billion. IB's operating loss widened sharply from a €79 million deficit in 2008 to €464 million last year.
Lufthansa Cargo and Austrian Airlines Cargo announced increased cooperation that will eliminate about 25% of the latter's 200 employees. Beginning July 1, the companies said they will "optimize" traffic through their Frankfurt, Munich and Vienna Hubs, merge global distribution services and "harmonize" product portfolios and production processes. LHC and OSC will integrate handling and distribution in Austria while freight activities in all other countries will be combined under LHC.
AerCap Holdings reported net income of $165.2 million for 2009, up 8.8% from $151.8 million in 2008. "We're delighted to report that 2009 is truly behind us," Klaus Heinemann, CEO of the Amsterdam-based operating lessor, told analysts during a conference call. He described it as "an extremely challenging year for the aviation and financial services industry," but noted that AerCap did not need to repossess any aircraft, "which came as a surprise to us." Total revenues declined 21% to $1.0 billion on a 47% drop in sales revenue to $324.8 million.
Atlas Air and Polar Air Cargo parent Atlas Air Worldwide Holdings reported 2009 net income of $77.8 million, up 22.1% from a $63.7 million profit in 2008, as the company reaped the benefits from turning Polar into a DHL Express carrier in October 2008 and its decision to retire 14 less efficient 747-200 freighters in 2007 and 2008.
Benefitting from its merger with Clickair, Vueling Airlines reported a 2009 net profit of €27.7 million ($37.6 million), a more-than-threefold increase from the €8.5 million it earned as a standalone company in 2008. Turnover rose 36.3% to €601.6 million, including a 42.9% jump in passenger ticket revenue to €456.8 million. Expenses increased 12.4% to €530.2 million. Vueling's €71.4 million operating profit (excluding restructuring costs) compared to negative EBIT of €30.5 million in 2008.
Virgin Blue Airlines Group, which comprises Virgin Blue, Pacific Blue and V Australia, signed an in-principle agreement to buy 50 737s after recording a net profit of A$62.5 million ($56.1 million) in the fiscal first half ended Dec. 31, 2009, reversed from a A$101.4 million loss in the year-ago period. CEO Brett Godfrey told ATWOnline yesterday that the company also will upgrade its premium economy product and introduce a new "economy Lite" class on its 737s with less legroom in an effort to compete with Jetstar Airways and Tiger Airways.
Delta Air Lines flew 13.81 billion system RPMs in January, a 5% decline from the year-ago month. Capacity was cut 5.6% to 18.01 billion ASMs and load factor rose 0.5 point to 76.6%. Alaska Airlines flew 1.47 billion RPMs in January, up 9.5% year-over-year, against a 1% lift in capacity to 1.9 billion ASMs. Load factor rose 6 points to 77.7%. Hawaiian Airlines flew 661.6 million RPMs in January, up 2.2% year-over-year, while capacity was cut 2.7% to 804.9 million ASMs. Load factor rose 3.9 points to 82.2%.
Tiger Airways yesterday took delivery of its 19th aircraft, an A320 that is the second of two purchased directly from Airbus. It leases its remaining fleet and currently serves 33 airports. It said yesterday it is "exploring the feasibility" of expanding its Indian service and mentioned Trivandrum, Kochi and Trichy as potential destinations. It currently flies from Singapore to Chennai and Bangalore.
Chile President-elect Sebastian Pinera yesterday agreed to sell an 8.6% stake in LAN Airlines to the Cueto family for around $500 million, according to multiple news reports. The purchase brings the Cuetos' holding in the airline to 31.75%, eclipsing Pinera as the largest single shareholder, according to a release issued by the family cited by Reuters. Pinera, who at one point owned a 26% stake in LAN but is attempting to offload his entire holding before taking office next month to avoid a conflict of interest
ANA will make one lavatory on international widebody flights available to women only beginning March 1 under a plan announced yesterday. The airline said it received "numerous requests" for the service. Lavatories will be located in the rear of the aircraft and will be available to passengers in all service classes. It said men will have access to the facilities in certain circumstances, such as illness, "personal emergency" or if the crew lifts the restriction because there are "very few female passengers" onboard.
US Air Transport Assn. reported yesterday that US airlines' passenger revenue rose 1.4% year-over-year in January, marking the first time since October 2008 that monthly revenue did not fall, while full-year 2009 cargo numbers revealed the largest one-year decline in history at 11%. The organization said that 0.4% fewer passengers traveled on US airlines for the month but the average price to fly 1 mi. rose 0.6%, the first such increase since November 2008. "Growth was strongest on transatlantic routes, where passenger revenue rose 3.4%," ATA said.
ExpressJet Airlines parent ExpressJet Holdings reported a 2009 net loss of $3.31 million, narrowed 96.5% from a $95.1 million loss in 2008, with the 2009 result helped considerably by a one-time income tax benefit of $47.6 million recorded in the fourth quarter.
Lufthansa yesterday confirmed that the pilots strike launched Monday has ended and that it expects to resume normal operations on Friday "at the latest," with 400 additional flights added to today's reduced schedule.
Buoyed by Japan Airlines' decision to maintain its membership in the alliance and the US Dept. of Transportation's tentative approval of transatlantic antitrust immunity, oneworld yesterday announced that its Asian presence will be expanded further with the 2011 addition of India's Kingfisher Airlines.
