Kenya Airways reported a KES860 million ($11 million) profit in the fiscal semester ended Sept. 30, up 16.8% from the KES736 million earned in the year-ago period thanks to relatively stable operating results and gains on its fuel hedges. Six-month revenue fell 1.7% year-over-year to KES33.5 billion while costs inched up 1.7% to KES33.3 billion, resulting in an 8% fall in operating profit to KES162 million. KQ said the "volatile" political climate, an August strike and the "global economic meltdown" all impacted the results.
Brussels Airlines is seeing a "very slight and progressive" improvement in the business environment, with higher load factors and a stabilization of the decrease in yield occurring thanks to solid sales of its business class and b-flex economy tickets, co-MD Bernard Gustin told ATWOnline.
Bmi suffered a €10 million ($14.8 million) operating loss in the first nine months of 2009, according to the interim report released last week by Lufthansa. The UK carrier reported €301 million in revenue during the period and EBITDA of -€14 million. Comparisons with the year-ago period were not provided. Lufthansa was scheduled to become bmi's sole shareholder Sunday following the purchase of SAS's 20% stake ( ATWOnline, Oct. 2).
A Jetstar Airways A330-200 with 209 passengers and crew onboard suffered momentary erratic speed data indications from its computers in apparent bad weather and possible icing conditions on an Oct. 29 flight from Tokyo Narita to Gold Coast. The scenario bears similarities to that which investigators believe may have been a factor in the loss of an Air France -200 over the Atlantic Ocean five months ago ( ATWOnline, Sept. 1).
Hainan Airlines parent HNA Group launched a business jet subsidiary in Shanghai last Friday in an attempt to tap the increasing potential of the high-end business and general aviation market. Deer Business Jet Co. has registered capital of CNY300 million ($43.9 million), with HNA subsidiaries Deer Air and Yangtze River Express the main stakeholders. The ownership structure has not been made public. It initially will operate two Hawker 800s. China currently has no more than 30 business jets, but it is estimated the country will need 600-1,200 over the next 10 years.
Hungarian government is preparing to provide financing or purchase a stake in Malev Hungarian Airlines, the Finance Ministry said yesterday. Minister Peter Oszko met in Moscow with Russian First Deputy Prime Minister Viktor Zubkov, according to press reports, after which the Hungarian Finance Ministry said, "Hungary indicated that in order to ensure continued operation of the company it is ready to take an ownership or financing role in the national airline." Russia's Vneshekonombank holds 49% of Malev owner AirBridge.
Lufthansa warned yesterday as it released its nine-month interim report that "revenues remain at rock bottom despite record load factor" and that "all business segments are working hard. . .to adjust their structures to the altered competitive environment."
Japan Airlines yesterday said it is seeking guidance on a turnaround plan from Enterprise Turnaround Initiative Corp. of Japan, a move that represents a formal first step toward a likely government-backed restructuring.
China Southern Airlines intends to expand its international network as it faces potentially damaging competition from the expansion of high-speed rail within China. "Most of China's big cities and secondary cities will be connected by high-speed rail by 2020, which will have a big impact on domestic carriers," CZ Chairman Si Xianmin was quoted as saying. The Guangzhou-based airline is expected to be hit hardest by the rail expansion, as domestic routes account for 80% of its total.
Pakistan International Airlines lost PKR5.38 billion ($64.5 million) in the third quarter, narrowed from a PKR20.4 billion loss in the year-ago period, according to a stock exchange filing cited by Bloomberg News. Revenue dropped 3.5% to PKR22 billion. PIA said the rupee's improved standing against the US dollar buffeted its bottom line. Nine-month loss of PKR10.8 billion compared to a deficit of PKR38.4 billion last year.
Ryanair transported 6.1 million passengers in September, up 17% from the year-ago month. Load factor rose 1 point to 85%. EasyJet transported 4.4 million passengers in September, up 5.3% year-over-year, while load factor rose 1.2 points to 88.1%. Finnair flew 1.6 billion RPKs in September, down 13.7% year-over-year, against a 12.2% cut in capacity to 2.09 billion ASKs. Load factor slipped 1.3 points to 76.6%.
A "steep fall" in fares and weak domestic demand helped sink Finnair to a €20.7 million ($30.6 million) third-quarter loss, widened 16.3% from a €17.8 million deficit in the year-ago period, and left the carrier admitting it "still has a long way to go before its corporate structures and the operating conditions they create are sustainably competitive."
Hawaiian Airlines flew 647.5 million RPMs in September, an 8.1% increase over the year-ago month. Capacity rose 3.1% to 772.5 million ASMs, lifting load factor 3.8 points to 83.8%. Frontier Airlines flew 709.4 million RPMs in September, down 0.4% year-over-year. Capacity slipped 0.2% to 858.2 million ASMs and load factor was 0.1 point lower at 82.7%. Allegiant Air flew 264.7 million scheduled RPMs in September, a 59.6% increase year-over-year. Capacity rose 63.2% to 294.7 million ASMs and load factor fell 2 points to 89.8%.
Air Canada on Tuesday closed its previously announced equity offering, raising net proceeds of C$249 million ($233.3 million) and hinting that the airline, which appeared to be teetering on the edge of bankruptcy last spring, is righting itself financially under new President and CEO Calin Rovinescu.
Australian Competition and Consumer Commission yesterday launched legal proceedings against Thai Airways, alleging that the carrier engaged in price-fixing on cargo carriage over a five-year period. Thai is the 11th airline targeted by ACCC in its ongoing investigation of antitrust irregularities in air cargo pricing. Six have paid penalties totaling A$41 million ($37.6 million) and four cases are pending ( ATWOnline, Sept. 4).
Singapore Airlines CEO Chew Choon Seng believes the traffic downturn largely has bottomed out. Speaking to ATWOnline at this week's Star Alliance event in Newark, Chew cited "signs. . .that market demand has stabilized," adding that SIA has observed that some corporations are easing their travel policies.
American Airlines will close its Kansas City Maintenance Base next September as part of a downsizing of its maintenance and engineering "footprint" that will result in up to 700 management and union job losses.
Kingfisher Airlines suffered a INR4.19 billion ($88.8 million) loss in the fiscal second quarter ended Sept. 30, a 13.3% improvement from the INR4.83 billion deficit suffered in the year-ago period, according to a filing with the Bombay Stock Exchange cited by numerous press reports from India. Revenue dropped 13.7% to INR11.42 billion
Royal Jordanian reported a JOD25.5 million ($35.7 million) profit through the first nine months of 2009, reversed from a JOD3.8 million loss in the year-ago period, implying third-quarter earnings of approximately JOD17.8 million ( ATWOnline, July 30). It posted a profit of some JOD200,000 in the third quarter of 2008. Operating revenue through the nine-month period fell 16% year-over-year to JOD449 million, but fuel costs plunged 50% and "operational costs" dropped 20% on a 4% cut in capacity.
Lufthansa posted a €184 million ($273.4 million) net profit in the third quarter but remained in the red through the first nine months of 2009 and yesterday issued a warning that its target of a full-year operating surplus now is at risk.
