LAN Airlines managed to keep expense and revenue growth in line in 2008 and reported a full-year profit of $335.7 million, up 8.9% from the $308.3 million earned in 2007. The company credited its "solid and flexible business model and the leadership position it has established in the markets in which it operates" for its ability to produce positive results "despite the various elements that constantly affect the airline industry." It plans to continue its growth this year, increasing ASKs 10%. It will take delivery of four passenger aircraft and two 777 freighters in 2009.
FedEx ATR 42 operated by Empire Airlines crashed on landing at Lubbock, Tex., early yesterday morning, leading to a fire that destroyed the aircraft. Both crewmembers survived. En route from Fort Worth Alliance, the aircraft skidded off the runway after touching down and the right wing caught fire, according to Flight Safety Foundation's Aviation Safety Network. The accident occurred just after 4:30 a.m. in poor weather conditions that included "freezing drizzle and mist," ASN reported. FedEx said the two pilots escaped with only "minor injuries."
Delta Air Lines reported a full-year 2008 net loss of $8.9 billion, a result that represented a major reversal from net income of $1.61 billion in 2007, attributing the huge deficit mostly to noncash charges related to goodwill impairment ($7.3 billion) and its acquisition of Northwest Airlines ($970 million).
Unfettered by a fuel hedge program that it ended 18 months ago, Allegiant Air parent Allegiant Travel Co. took advantage of falling oil prices and finished both the fourth quarter and full year in the black, the latter a $35.4 million profit, up 12.4% from $31.5 million earned in 2007.
Schiphol Group, which operates Amsterdam Airport Schiphol, announced plans to cut 10%-25% of its workforce, currently numbering 2,200, by year end through a combination of natural attrition, outsourcing and layoffs. It cited a "strong decline in traffic and increasing international competition" as the reason and said it agreed to work with trade unions on a short-term redundancy program.
EasyJet announced the cancellation of 12 flights to/from Athens scheduled for today and 16 flights to/from Paris Charles de Gaulle and Orly because of scheduled strikes.
Malev Hungarian Airlines shareholders meeting that began yesterday was suspended until Feb. 10, with the airline citing "the requirement to reach properly grounded decisions," including a possible reduction in the value of its shares. It confirmed that Russia's Vneshekonombank will be its "indirect owner" and that its operation will be "conducted in partnership with Aeroflot" ( ATWOnline, Jan. 27).
Kuwait Airways will receive $300 million from the Iraqi government in compensation for damage incurred during the 1990 invasion. A government spokesperson told the Associated Press that the cabinet "approved a final and comprehensive settlement," although a KU spokesperson said the carrier is claiming $1.3 billion plus interest ( ATWOnline, Sept. 4, 2008).
Turkish Airlines is abandoning its no-fuel-hedging policy and will hedge approximately 10% of its expected 2009 consumption "in order to fix expenses and to minimize the negative impact of spot price fluctuations on total costs," it said. THY transported 22.8 million passengers in 2008, up 15% from 2007, on a 12.9% rise in RPKs to 34.1 billion. Business class passengers climbed 23.2% and overall capacity was up 11.3% to 46.3 billion ASKs, lifting load factor 1.1 points to 73.8%.
Eurocontrol reported that the number of flights in Europe in 2008 rose just 0.1% year-over-year to around 10 million, the smallest increase in five years. Major markets saw significant traffic declines, particularly Italy (2.7%), the UK (1.7%) and Spain (2.1%). Eastern Europe, especially Turkey (up 8.3%) and Poland (up 9.8%), continued to grow. Low-cost traffic fell for the first time in 15 years to 4,600 flights per day in November, down around 6% year-over-year.
CIT Aerospace said it signed lease agreements last year covering 119 aircraft for delivery through 2010 and that it delivered 49 aircraft in 2008. It added five new customers during the year. Aviation Capital Group said it completed 49 lease and sale transactions in 2008, including four purchases, four new leases, three extensions and two sales in the fourth quarter. It ordered 23 A320s and 15 737s last year and plans to take delivery of 10 737s and three A320s this year.
Assn. of European Airlines announced that Croatia Airlines President and CEO Ivan Misetic will chair the organization this year, succeeding KLM President and CEO Peter Hartman. US Airways promoted Senior VP and CFO Derek Kerr to executive VP (he will remain CFO) and named Sabre Holdings Senior VP-Air Services Brad Jensen as senior VP and CIO.
The Metropolitan Airports Commission, which manages Minneapolis-St. Paul International, yesterday voted to approve an agreement with Delta Air Lines under which MSP will become the "Delta North" headquarters and the airline will retain many of the financial benefits that subsidiary Northwest Airlines enjoyed by basing its headquarters there.
Pinnacle Airlines flew 407.3 million RPMs in December, up 11.9% from the year-ago month. Capacity rose at the same rate to 537.3 million ASMs, leaving load factor at 75.8%.
British Airways warned yesterday that it expects to report an operating loss of "around" £50 million ($69 million) in its third fiscal quarter ended Dec. 31 and a £150 million operating loss for the full year, largely owing to foreign exchange losses.
France's government is set to lend French banks €5 billion ($6.49 billion) with the understanding that the funds will be used to finance aircraft purchases, a measure aimed at preventing airlines from cancelling orders with Airbus, according to widespread reports in Europe. The government apparently is seeking a way to assist Airbus without directly subsidizing the manufacturer, which has warned that 2009 will be "a very challenging year" ( ATWOnline, Jan. 16).
Kelowna Flightcraft signed a six-year contract with Air France Industries and KLM Engineering & Maintenance to maintain the CF6-50C2 engines on its fleet of DC-10-30 freighters. Work will take place in KLM E&M's Schiphol engine shop.
CIT Aerospace announced the lease of one A320-200 to Swiss International Air Lines. Aircraft is powered by CFM56-5B4/Ps and scheduled for delivery in April.
Lufthansa Systems reached a three-year extension on its contract with KLM cityhopper to streamline crew management and operations control using its NetLine/Crew, NetLine/Ops and NetLine/Ops Maintenance Control technologies.
FlyLAL Lithuanian Airlines filed for bankruptcy Friday, less than a week after shutting down following its failed sale to a Swiss investment group ( ATWOnline, Jan. 21). "We looked at all possible options to continue operations, but being unable to continue flights and without seeing any real chances to renew operations, we were forced to file for bankruptcy," CEO Vytautas Kaikaris said in a statement. The carrier previously had said it was "open for further proposals" but that they must come quickly.
Okay Airways, the Tianjin-based carrier that was suspended last month following a dispute between management and shareholders, was approved to resume operations Saturday. According to CAAC, Okay is permitted to operate passenger services from Tianjin to Harbin, Chengdu, Sanya, Kunming via Changsha, Sanya via Zhuhai, Chongqing via Taiyuan and Quanzhou via Nanjing this week. From Feb. 1 it is expected to resume operating approximately 20 routes. It is estimated that the company has suffered a CNY100 million ($14.6 million) loss due do the suspension.
El Al agreed to plead guilty to colluding on cargo shipping charges and will pay a $15.7 million criminal fine, the US Dept. of Justice announced. The Israeli carrier joined LAN Cargo and subsidiary ABSA Cargo Airline, which also pleaded guilty last week and will pay a combined fine of $109 million ( ATWOnline, Jan. 23).
Lufthansa cancelled 46 domestic and European flights out of its Frankfurt hub owing to a 3-hr. warning strike staged by flight attendants Friday morning. The UFO trade union had issued a warning of industrial action following a breakdown in negotiations over a wage increase ( ATWOnline, Dec. 18, 2008).
Continental Airlines said December consolidated RASM rose 3.5%-4.5% year-over-year. Traffic fell 6.7% to 7.11 billion RPMs against a 8.1% decline in capacity to 8.9 billion ASMs. Load factor rose 1.2 points to 79.9%. Frontier Airlines said December yield rose 1.7% year-over-year to 11.75 cents and unit revenue climbed 11.3% to 9.34 cents. RPMs fell 9.7% to 721.2 million while capacity dropped 17.5% to 907.2 million. Load factor was up 6.9 points to 79.5%.
