Gol reported second-quarter net income of BRL353.7 million ($191 million), reversed from a BRL166.5 million loss in the year-ago period, citing its revamped route structure focused on shorter-haul flying and the "successful consolidation" of Gol and Varig assets at the end of 2008. It said the strong quarter reflected its "strategic focus on generating consistent operating results. . .based on high frequencies between the main domestic airports, underpinned by punctuality and regularity, and a modern standardized fleet" composed of 737NGs.
AirAsia posted second-quarter net income of MYR139.2 million ($39.6 million), a nearly fifteen-fold improvement over a MYR9.4 million profit in the year-ago quarter. It credited robust traffic growth stimulated by low fares, growing ancillary revenue and "substantially lower" fuel prices for the strong performance. CEO Tony Fernandes noted that the LCC's results "stand in stark contrast to those of most legacy carriers" and pointed to its "three-prong strategy of lowering fares, stimulating travel. . .and capturing market share."
Delta Air Lines and US Airways yesterday announced a massive slot swapping deal that, if approved by regulators, will greatly enhance US's presence at Washington National and enable DL to "create a domestic hub" at New York LaGuardia.
Goodrich and Xi'an Aircraft International Corp. signed agreements to form two 50/50 joint venture companies that will manufacture landing gear and engine nacelle components "focused on the fast-growing Chinese aerospace market," including competing to be selected on Commercial Aircraft Corp. of China's C919 single-aisle transport currently under development. The two JVs will be between XAIC on the one hand and Goodrich Landing Gear and Goodrich Aerostructures on the other.
News from Travel Technology Update: Air Canada suspended activity related to the implementation of a new reservations system under development with ITA Software. The carrier recorded a second-quarter impairment charge of C$67 million (US$61.9 million) related to the development of the system, dubbed Polaris.
Premium Aerotec, the largest aerostructures supplier for the A350, last week began construction of a 25,000-sq.-m. hangar in Augsburg that will serve as the manufacturing plant for the new aircraft's fiber composite components, especially the large side shells of the rear fuselage section. The facility's shell is expected to be completed in November, with production set to begin in the 2010 first quarter, according to Airbus parent EADS.
US Dept. of Transportation announced civil penalties against Continental Airlines, Hawaiian Airlines and US Airways for consumer regulation violations. DOT said CO was fined $75,000 for "violating the Department's requirement that airfare ads must state the full price to be paid by the consumer" on its website. HA and US "failed to disclose to consumers when flights sold by the carriers were being operated under a codesharing arrangement" and were fined $50,000 and $70,000 respectively.
China Eastern Airlines enjoyed a first-half turnaround, reporting a CNY984.7 million ($143.9 million) profit based on international accounting standards that compares to a CNY212.5 million net loss in the first six months of 2008. CEA credited a CNY2.79 billion hedging gain and "elimination of the civil aviation infrastructure tax that was imposed in the second half of last year, as well as government subsidies," for the result. Operating revenue dropped 15.8% to CNY17.5 billion while expenses fell 15% to CNY16.86 billion owing to lower fuel prices.
Air France KLM flew 19.45 billion RPKs in July, down 3.3% from the year-ago month. Capacity fell 4.1% to 22.86 billion ASKs, lifting load factor 0.7 point to 85.1%. Alaska Airlines flew 1.79 billion RPMs in July, up 0.1% year-over-year. Capacity fell 5.4% to 2.12 billion ASMs and load factor rose 4.6 points to 84.3%. Hawaiian Airlines flew 745.4 million RPMs in July, a 10.4% increase year-over-year, while capacity rose 1.9% to 874.7 million ASMs. Load factor surged 6.5 points to 85.2%.
Air Arabia posted an AED89.7 million ($24.4 million) second-quarter profit, up 10% from the AED81.5 million reported in the year-ago period, on a 6% rise in revenue to AED458.4 million. "We are pleased with the positive results achieved today amidst the ambiguity of global economy performance and the impact of swine flu on air travel trends. Air Arabia's continuous profitability and growth figures demonstrate the fundamental strength of the airline's dynamic business model," CEO Adel Ali said.
Turkish Airlines said it has decided to lease an A321-200. It revealed no further details. Belavia Belarusian Airlines acquired one ex-Flylal 737-500 from ILFC. It now operates five 737-500s, three 737-300s, three CRJ-100/200s, four Tu-154Ms and one Tu-134.
Ryanair will open its 34th base at Leeds Bradford in March when it will launch 14 new routes with two based 737s. New destinations will be Carcassonne, Faro, Ibiza, Knock, Krakow, Limoges, Malaga, Malta, Montpellier, Murcia, Nantes, Palma, Pisa and Treviso. It currently serves Dublin, Girona and Alicante from the airport and plans to operate 63 weekly flights to/from LBA next spring. It also announced the launch of four-times-weekly Bristol-Malaga service in October, its fourth "winter sun run" from the airport announced in the past week.
Ethiopian Airlines posted a net profit of ETB1.35 billion ($117 million) in its fiscal year ended June 30, a 165% increase over the prior year's figure and a company record.
US Airways said July consolidated passenger RASM fell approximately 15% year-over-year while total unit revenue was down around 12%. It flew 5.86 billion consolidated RPMs, down 4.1%, against a 5.6% cut in capacity to 6.83 billion ASMs. Load factor rose 1.3 points to 85.9%. American Airlines flew 11.66 billion system RPMs in July, down 6.4% year-over-year. Capacity fell 8% to 13.36 billion ASMs, lifting load factor 1.4 points to 87.3%.
Pinnacle Airlines Corp. returned to profit in the second quarter, reporting a $6 million surplus compared to a $12.9 million loss in the year-ago period. The company is the parent of both Pinnacle Airlines and Colgan Air and flies for Delta Air Lines, Continental Airlines, United Airlines and US Airways. Second-quarter revenue dropped 4.5% year-over-year to $211.3 million as Pinnacle's block hr. declined 5% and Colgan's were down 15%. Expenses fell 13.5% to $189.1 million and operating income surged to $22.2 million from $2.5 million in the second quarter of 2008.
AirAsia will defer delivery of eight A320s scheduled to arrive next year to January-August 2014 without penalty. It still plans to take 16 new aircraft next year. In a filing with Bursa Malaysia, the LCC said it has until Oct. 31 to defer eight more aircraft scheduled for delivery in 2011 to 2014. It said it expects "infrastructural constraints with the current airport facilities" that will not be remedied until a low-cost terminal is built at Kuala Lumpur ( ATWOnline, March 13).
Fuel hedges helped boost Malaysia Airlines to an MYR876.3 million ($250 million) profit in the second quarter, which compares to a restated MYR40 million profit in the year-ago period and is the largest quarterly surplus in the carrier's history. MAS gained MYR1.3 billion on its hedges during the quarter compared to a MYR640 million loss in the second three months of 2008. Operating revenue fell 31.8% to MYR2.5 billion and costs were down 19.6% to MYR2.99 billion. Its operational result swung to a MYR420.8 million loss from a MYR62 million profit.
ExpressJet Holdings issued an apology yesterday after 47 passengers were held overnight onboard an ERJ-145 at Rochester [Minn.] International following a weather-related diversion.
Air India parent National Aviation Co. of India said in a Draft Restructuring Plan released last Friday that over the next nine months it plans to "enhance [its] focus on [developing an] LCC for high-density domestic/international routes" along with an "aggressive route restructuring" and intends to create subsidiaries for its MRO, ground handling and cargo operations. Within 18-36 months NACIL said it expects "profitable growth" and hopes to spin off "noncore businesses" and prepare for an IPO.
Southwest Airlines yesterday confirmed its submission of a binding cash offer worth more than $170 million to acquire Denver rival Frontier Airlines, which now will be sold at auction because Republic Airways Holdings also has placed a bid. When announcing its nonbinding interest in late July, SWA said its offer would be worth at least $113.6 million, eclipsing Republic's US Bankruptcy Court-approved proposal of $108.8 million ( ATWOnline, July 31).
Mesa Air Group reported a net loss of $2.7 million in its fiscal third quarter ended June 30, an improvement from the $3.7 million loss suffered during the same period one year ago. Operating revenue was $232.6 million, down 34.3%, primarily owing to capacity reductions and lower fuel revenue under its fee-for-departure agreements. Operating expenses fell 36% to $228.4 million and operating income was $4.2 million, a reversal from the $3.2 million loss in the year-ago quarter.
Airbus has completed a second large test fuselage section for the A350. The demonstrator is 18 m. long and 6 m. in diameter and "closely reflects" the final design, according to the manufacturer. It was used to "develop and validate the complete process change" and will be involved in certification tests focusing on fatigue and damage tolerance of composites. Separately, Airbus said it delivered 34 aircraft in July, including Singapore Airlines' ninth A380, one A340-600 (Iberia), five A330s and 27 A320 family aircraft.
Gains on foreign exchange of C$355 million pushed Air Canada into the black in the second quarter, for which it reported net income of C$155 million ($144.5 million), up 33% over a C$122 million profit in the year-ago period.
SkyWest Holdings, parent of SkyWest Airlines and Atlantic Southeast Airlines, reported second-quarter net income of $26.2 million, down 28% from a $36.4 million profit in the year-ago period. Revenue fell 26.5% to $698.8 million while operating expenses declined 27.2% to $639 million, producing operating income of $59.7 million, down 18% from $72.9 million last year. During the quarter, SkyWest took delivery of four CRJ900s under long-term lease arrangements.
