SpiceJet lost INR1.01 billion ($21.5 million) in its fiscal second quarter ended Sept. 30, a 49% improvement from the INR1.98 billion lost in the year-ago period. Operating revenue rose 31% as passenger numbers soared 98%. Capacity measured in ASKs climbed 44%, load factor was up 19 points and unit cost fell 26% year-over-year. "Traditionally, this is the weakest quarter for the industry," CEO Sanjay Aggarwal said. "However, we continue to improve our load factor and today one out of every eight flyers chooses SpiceJet.
Aer Lingus's third-quarter revenue fell 9.7% year-over-year on a 17.6% drop in average fare, it announced yesterday, adding that it has launched the "first phase" of a restructuring aimed at "reduc[ing] any costs within our control so that we can cope with continued falling fares, compete and maintain balance sheet strength."
United Airlines ended its agreement with Mesa Air Group for operation of 26 50-seat CRJs on its behalf, with the aircraft to be phased out by April 30.
Mexicana and its affiliates officially became oneworld's 11th member at midnight last night, adding 24 Mexican destinations, Edmonton and Oakland to the alliance's map. Iberia Chairman and CEO Antonio Vazquez, whose airline sponsored MX's entry, said the alliance's newest member "will considerably strengthen oneworld's long-established position as the leading airline alliance in the Spanish-speaking world and in Latin America." LAN Airlines is oneworld's other Latin American member.
Embraer was certified by EASA as a Part 147 Maintenance and Training Organization for the E-170 and E-190 families. First training customer is KLM cityhopper.
AerCap last week said it signed a series of agreements with China Development Bank covering funding for $86 million of pre-delivery payments and a $272 million "long-term funding facility" covering four new A330s with deliveries scheduled in 2010-11. Aircraft are part of AerCap's order for 30 A330s placed in 2006-07 with deliveries scheduled through 2012.
Feel Air, a new Scandinavian LCC, will begin operations with Stockholm Arlanda-New York JFK and Oslo Gardermoen-Bangkok service in spring 2010 aboard dry-leased A330-200s, it announced yesterday. It currently is raising capital of NOK240 million ($42.1 million) with Norwegian investment bank DnBNOR Markets.
Icelandair Group said third-quarter EBITDA rose 35.5% year-over-year to ISK8.4 billion ($68.2 million) on a 29% surge in revenue to ISK53.7 billion, although release of its full financial report was postponed until December because its financial restructuring "has not been finalized." It warned that depreciation and financial costs "increase[d] considerably" from the 2008 third quarter.
Norwegian will issue up to 1.62 million new shares, corresponding to some 5% of the outstanding total, in a capital raising expected to generate NOK250-NOK260 million ($43.9-$45.7 million) based on Friday's closing price. "We see new opportunities ahead. This combined with Norwegian's positive development makes the timing good for strengthening the company's financial position and flexibility even further," CEO Bjorn Kjos said. HBK Invest AS, a company controlled by Kjos and DY Chairman Bjorn Kise, will reduce its holding in the airline from approximately 32% to around 29%.
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.
