Delta Air Lines flew 15.3 billion system RPMs in October, a 6.5% decrease year-over-year. Capacity dropped 8.3% to 18.18 billion ASMs and load factor rose 1.6 points to 84.2%. American Airlines flew 10.24 billion system RPMs in October, down 2.6% from the year-ago month. Capacity dropped 7.3% to 12.33 billion ASMs, lifting load factor 4 points to 83.15%. American Eagle flew 680.1 million system RPMs, up 6%, against a 0.7% lift in capacity to 927.4 million ASMs. Load factor was up 3.7 points to 73.3%.
AerCap Holdings and Aircastle Ltd., two midsized operating lessors, each reported solid third-quarter financial results and cited positive signals pointing toward a market recovery.
Air Canada reported third-quarter net income of C$277 million ($260.2 million), reversed from a net loss of C$132 million in the prior-year period, noting that it was helped significantly by a C$295 million foreign exchange gain that compared to an C$87 million loss last year.
Thai Airways President Piyasvasti Amranand said the airline "certainly" will post a net profit in 2010, although he remains unsure about this year's result, according to Reuters. It was THB2.47 billion in the black through the first half ( ATWOnline, Oct. 20). Separately, it named director Woranate Laprabang as VP-corporate strategy and planning, director Jirawan Chiasakul as VP-information technology services and director Ruangyos Pamonmontri as VP-sales and distribution.
Claiming that "aviation remains in recession," British Airways posted a £102 million ($168.8 million) net loss in the fiscal second quarter ended Sept. 30 that pushed its first-half deficit to £208 million, a nearly fivefold deepening of the £42 million loss incurred during the year-ago period, when it lost £76 million in the quarter ended Sept. 30, 2008.
Alitalia reported a €15 million ($22.3 million) operating profit in the third quarter, its first since the mid-January re-launch under new ownership with backing from Air France KLM. The surplus followed a €210 million operating loss in the first quarter and a €63 million deficit in the second, leaving AZ €258 million in the red on an operating level since the takeover by the Compagnia Aerea Alitalia consortium ( ATWOnline, July 31).
Republic Airways Holdings felt the pinch of rapid expansion in the third quarter, reporting net income of $3.3 million, an 80.8% drop from $17 million earned in the year-ago period. Republic owns Republic Airways, Shuttle America, Chautauqua Airlines, Midwest Airlines, Frontier Airlines and Lynx Aviation. Midwest, Frontier and Lynx were acquired during the third quarter. Revenue fell 6.7% to $359.6 million while expenses were down 0.6% to $323 million. The operating loss of $32 million was about level with the $32.5 million deficit suffered last year.
WestJet flew 1.09 billion RPMs in October, a 0.3% lift from the year-ago month. Capacity fell 1.8% to 1.41 billion ASMs, lifting load factor 1.5 points to 77.3%. Republic Airways Holdings airlines flew 1.76 billion RPMs in August, up 121.8% year-over-year as the company added Frontier Airlines, Midwest Airlines and Mokulele Airlines. Capacity was up 104.4% to 2.23 billion ASMs and load factor climbed 6.3 points to 79.3%.
United Airlines will launch its first flights to Africa next spring when it begins serving Accra and Lagos daily from Washington Dulles. It also announced extension of its daily IAD-Kuwait City 777 service to Bahrain and a new Chicago O'Hare-Brussels flight. The daily IAD-Accra-Lagos flight will commence May 2 and be operated by a 767. The KWI-BAH leg will begin April 2, while the ORD-BRU 767 service will launch on March 28. UA currently serves BRU from IAD.
Emirates appears to have flown untouched through the industry downturn, reporting a AED752 million ($204.7 million) profit in the fiscal semester ended Sept. 30, more than double the AED284 million earned in the year-ago period.
SkyTeam officials said Vietnam Airlines and Tarom will join the alliance as full members in June, according to a statement from the group's Incheon board meeting cited by Bloomberg News. The Romanian carrier signed an associate agreement with the alliance in May 2008 ( ATWOnline, May 8, 2008), while VN was invited formally last April ( ATWOnline, April 16). SkyTeam also is interested in Japan Airlines, currently a member of oneworld.
Aeroflot reported a RUB5.98 billion ($204.5 million) profit in the first nine months of 2009, up 8% year-over-year according to Russian accounting standards, on a 9% drop in revenue. It carried 6.5 million passengers in the first nine months of 2009, down 8.9% year-over-year, while RPKs dropped 8% to 19.21 billion. Load factor was 69%. SU board approved the lease of six A321s, the airline said.
SkyWest Inc., parent of SkyWest Airlines and Atlantic Southeast Airlines, reported third-quarter net income of $28.6 million, a 9.2% increase from $26.2 million earned in the year-ago period. Quarterly revenue fell 31.7% to $637.7 million while expenses decreased 34.3% to $574.5 million, resulting in operating income of $63.3 million, up 5% from $60.3 million last year. It attributed the revenue drop to a $296.4 million decrease in fuel passthroughs as well as a transition to third-party customer service handling at several stations.
V Australia, the international arm of Virgin Blue, is understood to be close to announcing an order for 777-200LRs for new nonstop Sydney-New York JFK and Perth-London Heathrow service beginning in 2011. CEO Brett Godfrey is in the final stages of negotiations with Boeing for an order of up to 70 aircraft that will include six 300-seat 777-200LRs, 737-800s and 737-900ERs for fleet replacement and expansion ( ATWOnline, Sept. 22).
SAS Group posted its first quarterly profit since the 2007 third quarter, a SEK152 million ($21.5 million) surplus in the three months ended Sept. 30 that represented a reversal from the SEK1.99 billion deficit suffered in the year-ago period.
AirTran Airways stepped up the competition at Milwaukee yesterday, announcing a new marketing partnership with SkyWest Airlines under which the regional will operate five 50-seat CRJ200s under its own brand and livery to six destinations out of General Mitchell International starting Dec. 4.
ExpressJet Airlines parent ExpressJet Holdings reported a third-quarter loss of $9 million, reversed from net income of $4.4 million in the year-ago period, although it narrowed its operating loss considerably. Revenue dropped 31.7% to $179.2 million. The company attributed the fall to "softness in passenger demand," according to President and CEO Jim Ream. Expenses were down 35.7% to $187.3 million and operating loss narrowed to $8.1 million, a 71.9% improvement over the $29 million suffered last year.
AirBaltic will start charging a €5 ($7.36) fee per passenger for airport check-in on Nov. 16. Internet check-in will remain free of charge. The airport fee will not be levied against loyalty program members, passengers with reduced mobility, children younger than 12 and those departing from airports at which Web check-in is unavailable.
Bmibaby will reduce its 737 fleet by five aircraft to 12 next year as part of a restructuring plan "that will see it focus its activities and efforts on routes where there are clear indications and prospects for future growth and development."
Gol announced a management restructuring: CFO Leonardo Pereira now will be responsible for the technology, business development and strategic planning departments in addition to finance, controls and investor relations. The unnamed VP-market will head cargo, commercial, corporate communications, marketing, yield management and alliance departments, while new VP-Customers, Employees and Management Ricardo Khauaja will run the human resources and management, customer service, airport and commercial crew departments.
WestJet yesterday acknowledged that installation of the SabreSonic Customer Sales and Service reservation system last month has led to numerous complications, including a temporary website shutdown and ongoing difficulty in making changes to passengers' reservations, and asked customers for "patience" while it works out the kinks.
Continental Airlines said October consolidated unit revenue fell an estimated 14%-15% year-over-year, while mainline RASM was down 15%-16%. It flew 7.26 billion consolidated RPMs, up 1.7%, against a 2.6% cut in capacity to 8.8 billion ASMs. Load factor rose 3.5 points to 82.5%. United Airlines flew 9.68 billion consolidated RPMs in October, down 1.6% from the year-ago month. Capacity dropped 4.3% to 11.64 billion ASMs, lifting load factor 2.3 points to 83.1%.
KLM will conduct a biofuel test flight on Nov. 23 using a 747 with one engine powered by a 50/50 blend of camelina-based fuel and traditional kerosene. A "select group of passengers" will be onboard, which the carrier said is a world first.
Shanghai Airlines suffered a CNY42.7 million ($6.2 million) loss in the third quarter, narrowed 90.2% from a CNY437.5 million deficit in the year-ago period. Operating revenue jumped 14.9% to CNY3.62 billion while expenses rose 6% to CNY3.81 billion. SAL cited a decline in passenger boardings caused by the global financial crisis, stricter security measures taken prior to China's Oct. 1 national holiday and falling fares as the culprits.
Single European Sky prospects took another step forward last week following the signing of an eight-year, €50 million agreement by Eurocontrol and SITA to launch the Pan European Network Service, which will allow air navigation service providers from 38 countries to exchange operational data and voice communications across a common network for the first time.
