Alaska Airlines and Horizon Air parent Alaska Air Group lost $19.2 million in the first quarter, narrowed from a $37.3 million deficit in the year-ago period, and announced a $15 charge for the first checked bag.
Air Nostrum unveiled a comprehensive "action plan" as it posted a pre-tax first-quarter loss of €22 million ($28.5 million) on a 9% drop in passengers and a 16% decrease in revenue. A year-ago figure was unavailable. The plan could lead to the loss of 589 jobs, or 26% of its workforce, and includes a reduction of its fleet by up 10 aircraft to 59 and an 18% cut in flights. Unprofitable routes will be abandoned and the level of free services in economy will be reduced. Cabin crew on its 50-seat aircraft will be halved to one.
Vietnam Airlines posted a first-quarter pre-tax profit of VND24 billion ($1.3 million), according to a statement cited by Dow Jones that provided no year-ago comparisons. VN's 2008 pre-tax profit was $14 million ( ATWOnline, Jan. 9). First-quarter 2009 revenue was VND6.12 trillion on a 5% fall in passenger numbers to 2.3 million. Load factor rose 11 points to 88%.
China Eastern Airlines, which reported a company-record loss of CNY13.93 billion ($2.04 billion) in 2008, is committed to engineering a turnaround through cost control, targeted expansion and SkyTeam membership despite the threat of insolvency.
AirTran Airways parent AirTran Holdings posted record first-quarter net income of $28.7 million, reversed from a $35.4 million loss in the year-ago period, signaling "the first steps in a long recovery for our company and our industry," Chairman, President and CEO Bob Fornaro said.
EADS and Airbus signed a contract with Russian Technologies State Corp.'s VSMPO-Avisma Corp. for the supply of titanium to Airbus and other EADS divisions until 2020. Deal covers die forging parts for all existing Airbus aircraft plus the A350 and finalizes an agreement reached last summer ( ATWOnline, July 16, 2008).
Pratt & Whitney signed a five-year Engine Management Program agreement with Vietnam Airlines covering on-wing performance monitoring services for 58 PW4000 and V2500 engines.
Ryanair yesterday threatened to close its base at Dusseldorf Weeze, where it bases six aircraft and handles 2.5 million passengers per year, if a decision by the OVG Court in Munster to restrict the airport's operating hours is not overturned by April 29. The LCC said it stopped accepting bookings yesterday on all flights affected by the change in operating hours. It opened the base in 2007 and added a fifth and sixth 737-800 last winter.
ATR announced the launch of its Door-2-Door support service, a program under which it will take "full responsibility for the management of the airlines' requests for spares and technical documentation, up to and including the completed handover delivery process." Customers will have one point of contact for all parts and services while the manufacturer will "deliver spare parts on the very doorstep of where they are needed," it said.
Cargolux reported a net loss of $61 million in 2008 owing to markdowns in its interest rate and fuel derivative portfolio and a $119 million fine owed to the US Dept. of Justice for its role in fixing cargo rates ( ATWOnline, April 10). It lost $47.1 million in 2007. The airline improved on an operating level, however, posting an operating profit before financing costs of $13.8 million, reversed from a loss of $33 million the prior year.
Drops in both business travel and economy class yields dragged Continental Airlines to a $136 million first-quarter loss, widened 65.9% from an $82 million deficit in the year-ago period. "It was a very tough quarter, no matter how you look at it," Chairman and CEO Larry Kellner said yesterday in a conference call with analysts and reporters. But the carrier sees some light on the horizon as it firms its plans to join Star Alliance by Oct. 25 and "the rate of decline in RASM appears to be decelerating compared to the first quarter," according to President and CFO Jeff Smisek.
Boeing incurred four more aircraft cancellations than orders booked and customers deferred delivery of 60 aircraft in the first quarter, for which it reported net income of $610 million, down 49.6% from $1.21 billion in the year-ago period.
United Airlines promoted VP-Pacific Mark Schwab to senior VP-alliances, international and regulatory affairs and named James Mueller, leader of the customer solutions team, to succeed him. Schwab succeeds Mike Whitaker, who is leaving the company.
Mxi Technologies announced that its software supporting the first three A380s within the Qantas fleet has gone live. Implementation of the Maintenix software "provides Qantas with such features as Field Loadable Software configuration management and Civil Aviation Safety Authority-approved electronic certification and recordkeeping," Mxi said.
Aeroflot said the Czech government's decision to pass on its bid for CSA Czech Airlines "objectively corresponds with the interests of Aeroflot's management" because SU "detected considerable risks in the bid, which would have entailed serious financial obligations at a time of a global financial crisis." The Russian airline said it came to that conclusion "following a thorough examination of CSA's financial and operational situation." Air France KLM and the Unimex/Travel Service consortium were chosen to advance to the second round of bidding for a 91.5% stake in CSA
Nordam Repair Group of Tulsa announced a three-year contract with Boeing to provide MRO on 737NG CFM56-7 thrust reversers. A service bulletin calls for inspection of the thrust reverser inner walls and insulation blankets and correction of any heat-related issues.
Delta Air Lines yesterday announced the imposition of a $50 fee for a second checked bag on international flights and the grounding of its 14 747-200 freighters, as well as 36 additional aircraft by year end, in response to a $794 million first-quarter loss, narrowed from a $6.39 billion deficit in the year-ago period when heavy goodwill impairment charges dragged on the bottom line.
United Airlines parent UAL Corp. reported a first-quarter net loss of $382 million, narrowed from a deficit of $549 million in the year-ago period, but conceded that its net loss for the three months ended March 31 would have been $579 million absent noncash mark-to-market fuel hedge gains and accounting changes.
Japan Airlines applied for a ¥200 billion ($2.03 billion) loan from the Development Bank of Japan, a spokesperson confirmed to Bloomberg News, which said the carrier has ¥35 billion in bonds maturing over the next four months. JAL forecast a ¥34 billion net loss for the fiscal year ended March 31 ( ATWOnline, Feb. 9).
Alaska Airlines said it became the first airline approved by US FAA to conduct its own Required Navigation Performance flight validation, which could lead to faster RNP procedure approvals.
Chicago Midway's privatization plan collapsed after a group of private investors failed to raise the funds needed to secure a $2.52 billion long-term lease for the facility. City officials said Monday that Midway Investment and Development Corp., the group that made the successful bid on the 99-year lease, was unable to raise the required financing. The consortium included Vancouver Airport Services, Citi Infrastructure Investors and John Hancock Life Insurance ( ATWOnline, Oct. 16, 2008).
Azul Linhas Aereas Brasileiras, the Campinas-based startup, expects to be operating in the black by year end and is flying at more than 70% capacity this month. It posted a 67% load factor in March, founder David Neeleman told Bloomberg News, and currently flies nine E-190s/195s. "People can afford to fly," Neeleman said. "They just have not been in the habit of doing it because fares have been so high in the past and service hasn't existed."
China Southern Airlines subsidiary Xiamen Airlines posted a net profit of CNY210 million ($30.7 million) in 2008, its 22nd consecutive year in the black despite the collective loss suffered by Chinese carriers last year. Xiamen did not disclose its revenue or expense figures but cited the "effective cost control" facilitated by its all-Boeing fleet and "proper capacity adjustments" for the result.
Allegiant Air parent Allegiant Travel Co. reported first-quarter net income of $28.3 million, nearly three times the $9.7 million earned in the year-ago period, citing rising load factors and an increase in ancillary revenue. "We held our own in a challenging revenue environment, more than offsetting fare weakness with increased load factors," CFO and MD-Planning Andrew Levy said.
