Chinese government cut the domestic fuel price by an additional 5.7% to CNY5,440 per ton, a move that will help airlines save about CNY4 billion this year, according to Haitong Securities Aviation Analyst Ma Ying. Fuel currently accounts for more than 40% of Chinese carriers' operating costs ( ATWOnline, Dec. 22, 2008).
EasyJet reported a 31.5% year-over-year increase in fiscal first-quarter revenue to £550 million, which it said reflected a "flight to value" environment in which an increase in business and long-haul leisure travelers "is more than compensating" for a softening in demand.
Air France KLM yesterday said the projected operating loss for its fiscal third quarter ended Dec. 31 will be "to the tune of" €200 million ($258.3 million) ( ATWOnline, Jan. 21). It reiterated that its "objective is to generate a positive operating result" for the full year but that the amount will depend on "how the economic situation evolves, particularly in the cargo business which is facing a tough operating environment."
LAN Cargo reached a plea agreement with the US Dept. of Justice and will pay an $88 million fine over five years to settle its portion of the wide-ranging global investigation into price-fixing and collusion that has ensnared a host of high-profile carriers. In addition, Campinas-based ABSA Cargo Airline, in which LAN holds a majority stake, struck a similar deal and will pay a $21 million fine over five years.
Southwest Airlines followed up its first quarterly loss in 17 years with another in the fourth quarter of 2008, but it maintained its record of full-year profitability with a $178 million surplus that represented a 72.4% plunge from the $645 million earned in 2007.
Aer Lingus and United Airlines announced creation of a transatlantic partnership intended to "capitalize on the growth opportunities presented by the [EU-US] open skies agreement. . .by opening new transatlantic nonstop services." First joint route will be a daily Madrid-Washington Dulles service scheduled to launch in March 2010. EI and UA said it is "intended" that they will share equally commercial and operating benefits and risks, with EI managing operations and UA managing revenue generation.
Thales will supply Air France with a 777-300ER FFS under a deal announced this week. Technology includes Thales' eM2K motion system featuring hydraulic mass compensation and transmission. US FAA Level D certification is expected.
Continental Airlines said it will report $234 million in special charges for the full year, including $170 million in the fourth quarter, when it releases its 2008 financial results on Jan. 29.
Finnair flew 1.92 billion RPKs in December, up 7.8% from the year-ago month. Capacity rose 4.5% to 2.47 billion ASKs, lifting load factor 2.4 points to 77.6%. Spanair flew 441 million RPKs in December, down 25% year-over-year, against a 28.2% fall in ASKs to 704 million. Load factor rose 2.7 points to 62.6%. Allegiant Air flew 342.6 million RPMs in December, up 9.6% year-over-year. Capacity fell 2.6% to 386.1 million ASMs and load factor rose 9.8 points to 88.7%.
United Airlines parent UAL Corp. kicked off the current reporting season yesterday with a troubling $5.35 billion net loss, reversed from a $403 million profit in 2007, and a pledge to cut an additional 1,000 positions from its roll of salaried and management employees. The company suffered a $4.44 billion operating loss, compared to a $1.04 billion profit the previous year, on a 0.3% rise in revenue to $20.19 billion that was dwarfed by a 28.9% surge in expenses to $24.63 billion.
Thai Airways is seeking THB19 billion ($540.6 million) in working capital from state-owned banks and an additional THB15 billion for refinancing short-term loans, according to an airline statement cited by press reports.
Kuwaiti startup Wataniya Airways took delivery of the first of seven leased A320s. Aircraft will seat 122 passengers. Wataniya plans to fly next month.
American Airlines parent AMR Corp. reported a net loss of $340 million for the fourth quarter of 2008, propelling it into a full-year loss of $2.07 billion, its largest annual deficit since 2002 and a significant reversal from net income of $504 million in 2007.
Singapore Airlines yesterday took delivery of the first of six A330-300s on lease from AWAS. Aircraft is powered by Trent 700s, will seat 285 passengers in two classes and will be used initially on flights to Australia and Japan. Remaining aircraft will be delivered this year.
Baboo reported an 87% year-over-year increase in 2008 revenue to CHF56 million ($49.1 million) on a 75% rise in passenger numbers to 295,000. The Geneva-based carrier took delivery of three E-190s this year, increasing its fleet from two (Q400s) to five aircraft, and added seven destinations to bring its scheduled network to 18.
ILFC announced the following lease agreements: One used 737-800 to Vision Airlines for five years, delivery in March; three used A319-100s to WindJet (two for six years each delivered in December, one for 6.5 years with delivery this month); one used 767-306ER to Flyglobespan for five years, delivery in February; two used A330-200s to Atlasjet for five years each, delivery in April; two used A320-200s to Ural Airlines for six years each, delivery in May; two used 737-300s to Belavia for five years each, delivery in May and June; one used 737-300 to Boliviana for five years, delivered in
Swiss International Air Lines presented its new first class product yesterday in Zurich, part of a CHF1 billion ($876.6 million) rollover of its 25-strong widebody fleet that will include replacement of nine A330-200s with the same number of -300s.
Ukraine International Airlines said it "exceeded its projected targets" in 2008 and will report a full-year profit for the eighth consecutive year when it releases audited financial figures in April. It said passenger numbers rose 16.5% year-over-year to 1.7 million on an 18.5% lift in RPKs to 3.2 billion. Load factor climbed 3 points to 74.8%. It operates 17 737s.
Air China and Shanghai Airlines joined China Southern Airlines and China Eastern Airlines in announcing that they expect to report losses for 2008. Both CA and SAL cited "the decline in market demand" that was exacerbated by the impact of May's Sichuan earthquakes, stricter security measures surrounding the Beijing Olympics, the global financial crisis and "much higher fuel expenses" until the recent fall in oil prices. The resulting fuel hedge losses then became a culprit ( ATWOnline, Jan. 16).
Singapore Airlines will launch A380 service to Paris Charles de Gaulle on June 1. The daily flight will replace the existing 10-times-weekly 777-300ER service. The SIA A380 is configured with 471 seats. CDG is the carrier's fourth A380 destination after London Heathrow (twice-daily), Sydney and Tokyo Narita (each daily). It has six A380s in service and a further 13 on order. The CDG route will follow the delivery of the seventh and eighth aircraft.
European Commission authorized what it called "rescue aid" for Austrian Airlines Group in the form of a €200 million ($265.2 million) loan facility guaranteed by Austrian state holding company OIAG. The EC said the loan was issued at market rates and the amount was limited to what is needed to maintain the company ahead of its privatization ( ATWOnline, Dec. 8, 2008).
CSA Czech Airlines should be privatized this year following a Monday decision by the government to sell 91.5% of the national carrier by September. The sale reportedly is expected to generate up to CZK5 billion ($238.7 million) and will consist of a two-round tender.
Air France KLM warned that its operating result in the fiscal third quarter ended Dec. 31 "likely" will be negative, although it said the full-year result "should remain positive." "The deterioration in the economic environment during the third quarter has led to a slight weakening in passenger unit revenues and a strong decline in cargo revenue," AF KLM said yesterday, adding that unit costs "were not able to benefit from lower oil prices because of the negative effect of the oil hedges."
