Atlas Air Worldwide Holdings, parent of Atlas Air, Polar Air Cargo and Titan Aviation Leasing, continued its strong economic performance in the 2010 first quarter with net income of $33.8 million, up 44.5% from a $23.4 million profit in the year-ago period.
Lufthansa offered more color on its first-quarter loss, with CFO Stephan Gemkow cautioning yesterday that "a recovery in demand is not enough to secure a good result." LH reported Tuesday that it suffered a first-quarter net loss of €298 million ($393.9 million), widened from a €267 million deficit in the year-ago quarter, even though it is seeing "positive demand trends in the cargo and passenger businesses" ( ATWOnline, May 5).
BmiCEO Wolfgang Prock-Schauer told ATWOnline that the carrier's acquisition last year by Lufthansa Group gives it "reason to survive" but cautioned that a strong restructuring process is necessary to turn it around.
Chicago Midway privatization,which collapsed a year ago in the wake of the global financial crisis, is attracting new interest from potential bidders, according to Southwest Airlines VP-Properties Robert Montgomery, who spoke at last month's Phoenix International Aviation Symposium.
Aer Lingus almost halved its first-quarter pre-tax loss to €36.2 million ($47.9 million) from a €67.9 million deficit in the year-ago period. Quarterly revenue declined 1.8% but operating costs fell at a much higher rate of 13.3% owing to lower staff costs and a 42.6% reduction in fuel costs. Consequently, operating loss before net exceptional items dropped 49.5% to €37.8 million from €74.8 million last year.
Lufthansa reported a first-quarter net loss of €298 million ($393.9 million), widened from a €267 million deficit in the year-ago quarter, but said it is seeing "positive demand trends in the cargo and passenger businesses." First-quarter revenue lifted 16% to €5.8 billion and operating loss was €330 million, significantly widened from a €44 million operating deficit last year.
Air New Zealand and Virgin Blue Airlines Group yesterday announced their intention to seek regulatory approval to create an alliance on transtasman routes. Both airlines, which have had legal teams working on the alliance proposal for some months ( ATWOnline, April 30), said applications will be filed with the Australian Competition and Consumer Commission and the New Zealand Ministry of Transport shortly. Regulators are expected to take six months to review the applications.
"Bureaucracy gone mad," is how British Airways CEO Willie Walsh characterized the closure of most Western European airspace by air navigation service providers and aviation authorities last month following the volcanic eruption in Iceland.
EU transport ministers are holding an extraordinary meeting in Brussels today to discuss possible short-term actions and structural measures to respond to the repercussions of the Icelandic volcanic eruption that led to the closure of European airspace for six days last month.
The merger between Continental Airlines and United Airlines announced yesterday will, if consummated, create the world's largest airline by RPKs, serving 370 destinations in 59 countries with 692 mainline aircraft.
In what they described as "a merger of equals," Continental Airlines and United Airlines today announced the two companies will combine in an all-stock transaction in which Continental shareholders will receive 1.05 shares of United common stock for each CO share they own. United shareholders will own approximately 55% of the combined holding company, which will be named United Continental Holdings with United the name of the surviving airline. The transaction has a "combined value of over $8 billion," the companies said.
ANA may take another look at whether it should place an A380 order owing to looming competition from airlines that operate the aircraft through Japan, a senior executive said. Hitoshi Kawahara, ANA's director-international and regulatory affairs, said the carrier has become "more interested" in the A380 because rivals such as Singapore Airlines soon may be able to use it to pick up passengers in Japan and carry them to/from the US and other key markets.
China Southern Airlines reported first-quarter net income of CNY1.42 billion ($208.3 million), a more-than-sixfold increase over a CNY222.2 million profit in the year-ago quarter, on a 30.5% jump in revenue to CNY16.87 billion. It cited domestic market recovery as the key driver of the revenue improvement. Operating expenses climbed 20.5% to CNY16.51 billion.
Hainan Airlines posted first-quarter net income of CNY252.5 million ($37 million), a more-than-sevenfold increase over a CNY31.8 million profit in the year-ago period. Operating revenue rose 36.4% to CNY4.7 billion against a 30.9% lift in expenses to CNY3.5 billion. The Haikou-based carrier credited "domestic market recovery" and its effective "fleet expansion" for the positive performance.
Lufthansa announced yesterday that it will initiate scheduled flights aboard its first A380 on June 11 with thrice-weekly service between Frankfurt and Tokyo Narita.
El Al said yesterday that it is cancelling an order for four 777-200s placed two years ago. "Since the agreement with Boeing was signed in 2008 and the global crisis occurred in world markets, there have been substantial changes in the aviation sector," El Al CEO Eliezer Shkedi said, according to Reuters.
this week took delivery of its first A330-200, the first of 10 slated to join its fleet to replace 767s on flights between Hawaiiand the continental US. The aircraft is leased to the carrier through CITAerospace. HA will take delivery of two more leased A330-200s this year and begin taking delivery next year of seven of the type it has on firm order. The aircraft will seat 294 passengers in a two-class configuration.
