SkyWest Inc., parent of SkyWest Airlines and Atlantic Southeast Airlines, reported 2009 net income of $83.7 million, down 25.9% from a $112.9 million profit in 2008 as yield declined precipitously.
Arlington, Va.-based ARC reported ticket sales through participating travel agencies totaled $5.95 billion in January, up a healthy 10.7% over January 2009. Credit card sales, representing the bulk of agency sales, rose 12.3% year-over-year to $5.37 billion. Total fares excluding taxes and fees grew 11.1% to $5.0 billion. Domestic fares climbed 7.3% to $2.62 billion on a 6.1% gain in transactions, while international fares were up 15.6% to $2.38 billion on a 10% rise in transactions.
AirAsia this week purchased a 30% share in VietJet Air, a proposed Hanoi-based startup that henceforth will be known as VietJet AirAsia. VietJet originally planned to begin flying in the 2009 fourth quarter with either 737-800s or A320s, according to its website. The privately held carrier was launched with VND600 billion ($32.2 million) in capital and is majority held by Sovico Holdings. AirAsia said the airline plans to operate both domestic and international flights and is "currently finalizing" a route network and launch plans.
CSA Czech Airlines put up its entire fleet as a guarantee against loans offered by banks and the Czech Ministry of Industry and Trade, Czech Civil Aviation Authority sources told media in both the Czech Republic and Austria. The airline reportedly is depending on the cash to maintain operations and expects to report a record full-year loss of €115 million ($158.2 million) for 2009.
Norwegian Air Shuttle said it realized "the best annual result" in its history with a 2009 net profit of NOK446 million ($75.5 million) compared to earnings of NOK3.9 million in 2008. "I am very pleased with reporting positive results in a time where the industry is facing challenging market conditions," CEO Bjorn Kjos said. "I am especially pleased with our cost reductions and improved competitiveness."
Air France KLM Group reported a net loss of €295 million ($404.6 million) for its fiscal third quarter ended Dec. 31, 2009, a 41.9% improvement compared to a loss of €508 million in the year-ago period when results were impacted severely by fuel hedge losses.
South African Airways said it is seeking private investors for its SAA Voyager division that administers its frequent-flyer program and its SAA Technical maintenance division. The state-owned carrier would remain in control of the two divisions but wants "equity partners," a spokesperson told Bloomberg News, while denying the move is a precursor to privatizing the airline.
Air Canada reported a 2009 net loss of C$24 million ($22.4 million), significantly improved over a net loss of C$1.03 billion in 2008, as it was helped by C$657 million in gains on foreign exchange that were reversed from C$655 million in losses in the prior year.
Kingfisher Airlines was granted traffic rights from New Delhi to London Heathrow (its first European destination), Hong Kong, Bangkok and Dubai and from Mumbai to Colombo, Bangkok and Dubai. No launch date was announced. Kingfisher will operate A330s to LHR and HKG and A320 family aircraft on the remaining routes. Chairman and CEO Vijay Mallya said it "may even look at inducting new aircraft into our fleet sooner than planned so that we are fully geared to capitalize on the upturn. We are actively pursuing various options for fundraising and our plans are on track."
SAS Group lost SEK2.95 billion ($400 million) in 2009, improved 53.7% from the SEK6.36 billion deficit suffered the year before, but the company felt additional cost cuts were necessary and extended its Core SAS cost reduction program by SEK2 billion to SEK7.3 billion.
Jazz Air parent Jazz Air Income Fund yesterday announced a 2009 profit of C$92.6 million ($86.5 million), reversed from a C$9.4 million loss in 2008, and said it signed a letter of intent to purchase 15 Q400 NextGens plus 15 options for Air Canada's regional partner. Jazz Air parent Jazz Air Income Fund yesterday announced a 2009 profit of C$92.6 million ($86.5 million), reversed from a C$9.4 million loss in 2008, and said it signed a letter of intent to purchase 15 Q400 NextGens plus 15 options for Air Canada's regional partner.
Months of high-stakes jockeying between oneworld's American Airlines and SkyTeam's Delta Air Lines over partnering with troubled Japan Airlines came to an end yesterday when JAL announced it will stay in oneworld and jointly apply for antitrust immunity on transpacific routes with AA.
The Thai Airways board announced plans to lease 15 widebody aircraft over the next five years, requiring an investment of THB35.48 billion ($1.07 billion).
Kenya Airways flew 2.14 billion RPKs in the fiscal third quarter ended Dec. 31, up 1% year-over-year. Capacity rose 5% to 3.18 billion ASKs and load factor slipped 2.2 points to 67.4%. Passenger numbers rose 4.2% to 773,079.
UPS Airlines said it will begin furloughing "at least" 300 pilots in phases beginning in May unless it can "find a solution with the pilots' union that would avert or mitigate the layoffs before they take effect." UPS's 2,800 pilots, represented by the Independent Pilots Assn., agreed with the company last June to take "a variety of voluntary steps" to cut $90 million in costs in exchange for a promise from management that there would be no furloughs through April 1, 2010 ( ATWOnline, June 10, 2009).
Pratt & Whitney announced that Hong Kong Airlines selected the PW4170 Advantage 70 to power the six A330-200s it ordered last week at the Singapore Airshow ( ATWOnline, Feb. 5).
Unable to arrange a purchase of the aircraft leasing giant he founded from parent American International Group, ILFC CEO Steven Udvar-Hazy retired from the company Friday.
SpiceJet reported a company record INR1.09 billion ($23.5 million) profit in its fiscal third quarter ended Dec. 31, reversed from a INR179.6 million deficit in the year-ago period that resulted largely from a INR187.8 million charge related to a dispute with an investor.
Finnair reported a 2009 net loss of €102 million ($142.2 million), more than double the €46.3 million loss it suffered in 2008, citing a "historically difficult year" in which demand and yield plunged.
Chile President-elect Sebastian Pinera on Friday approved the sale of his 26% stake in LAN Airlines, the largest single shareholding in the carrier, clearing the way for the Cueto family, which owns the second-largest share at between 20% and 25%, to buy some or all of the wealthy politician's holding. Pinera takes office next month and has promised to sell his holdings in LAN and other Chilean companies to avoid conflicts of interest. His LAN stake is worth $1.5 billion, according to Reuters.
Gulf Air was transferred from government investment vehicle Bahrain Mumtalakat Holding to the government, which will own it directly, according to a Mumtalakat statement cited by Reuters. The airline expects to post a 2009 operating loss of $510 million.
Virgin Blue estimated that its profit before tax and exceptional items for the fiscal year ending June 30 will be A$80-A$110 million ($69.2-$95.2 million), compared to a loss of A$93 million in the prior year. CEO Brett Godfrey told shareholders in November that Blue expected to return to the black this year ( ATWOnline, Dec. 1, 2009).
British Airways maintained its stark outlook and warned of "record losses" in its fiscal year ending March 31 despite sharp cost cuts and a better-than-expected third-quarter loss of £37.5 million ($58.9 million), narrowed 52% from the £78 million deficit suffered in the year-ago period.
American Airlines flew 9.68 billion system RPMs in January, up 0.4% year-over-year. Capacity fell 2.7% to 12.71 billion ASMs, lifting load factor 2.4 points to 76.2%. American Eagle flew 569.7 million RPMs, up 9.1%, while capacity rose 5.1% to 895.8 million ASMs and load factor climbed 2.4 points to 63.6%. US Airways Group consolidated January passenger RASM rose approximately 2% year-over-year while total RASM was up some 3%, the company said. It flew 4.44 billion consolidated RPMs during the month, down 1.3%, against a 0.6% cut in capacity to 5.96 billion ASMs.
