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.
Czech government selected Air France KLM and the Unimex/Travel Service consortium to proceed to the second round of bidding for a 91.5% stake in CSA Czech Airlines ( ATWOnline, March 24). Aeroflot and Odien, a private investor firm, were rejected. AF KLM issued a statement confirming its selection but provided no further details.
Macquarie AirFinance closed the purchase of two CFM56-5B3/P-powered A321-200s from Aercap. Aircraft are on lease to Thomas Cook Airlines Scandinavia through 2015.
Jamaica Defense Force counterterrorism unit stormed a CanJet 737 that had been hijacked on the ground for more than 8 hr. at Montego Bay by a lone gunman early yesterday morning, arresting the perpetrator and freeing six hostages. The ordeal began at around 10 p.m. Sunday night when "a young man armed with a gun. . .forced his way through security checkpoints" and boarded the 737, which was on a stopover en route to Santa Clara, Cuba, from Halifax, according to CanJet. The perpetrator demanded to be taken to Cuba.
Austrian Airlines Group flew 1.24 billion RPKs in March, an 18.1% drop from the year-ago month. Capacity fell 14.3% to 1.72 billion ASKs and load factor was down 3.3 points to 72.1%. Pinnacle Airlines flew 407.1 million RPMs in March, up 0.5% year-over-year, against a 6.4% increase in capacity to 550.4 million ASMs. Load factor dropped 4.3 points to 74%. SkyEurope Airlines transported 307,540 passengers last month, down 39% year-over-year. Load factor rose 2.7 points to 73.6%.
Swiss International Air Lines CEO Christoph Franz confirmed to ATWOnline yesterday that passenger numbers in first and business class dropped at a double-digit rate during the past several months, leading the airline to park one A340-300 until summer. "This is equivalent to a 6% drop in long-haul capacity that we originally planned for the summer of 2009," Chief Network and Distribution Officer Harry Hohmeister said. If the downturn continues, Franz said LX conceivably could ground more aircraft. "But then you ruin your network," he conceded.
Singapore Airlines suffered another record passenger decline in March, a 23% year-over-year plunge to 1.3 million. RPKs fell 21.8% to 6.27 billion against a 9% cut in capacity to 9.03 billion ASKs, lowering load factor 11.4 points to 69.4%. Loads fell in all regions, with the deepest reduction (18 points) on European routes. China Southern Airlines flew 7.29 billion RPKs in March, up 4.8% year-over-year. Capacity climbed 3.3% to 9.65 billion ASKs, lifting load factor 1.1 points to 75.6%.
Austrian Airlines Group confirmed to ATWOnline that it will stay afloat until it is taken over by Lufthansa. AAG Executive Board member and CCO Andreas Bierwirth told shareholders at a meeting last week that €90 million ($118.8 million) is still available from the €200 million in aid granted by the Austrian government and that the amount will be sufficient until LH's acquisition of the struggling carrier is approved ( ATWOnline, March 20).
