Alaska Air Group, parent of Alaska Airlines and Horizon Air, reported a $35.9 million first-quarter loss that deepened from a $10.3 million deficit in the year-ago period. Excluding the effect of mark-to-market fuel hedge accounting, AAG lost $36.3 million compared to $15.8 million last year. Chairman and CEO Bill Ayer said the company "is in a good position relative to the rest of the industry," but that "high fuel prices are eroding our profits and revenues are not increasing enough to offset them."
US Airways reported a first-quarter net loss of $236 million, reversed from a profit of $66 million in the year-ago period, and said it increasingly will implement an "a la carte" pricing structure to counter rising fuel costs.
Norwegian posted a consolidated net loss of NOK210.8 million ($42.4 million) in the first quarter, a sharp deterioration from the NOK14.9 million loss suffered in the year-ago period, owing to increased seasonality, introduction of new aircraft, the integration and expansion of the old FlyNordic and the launch of 13 routes from its new base at Rygge. First-quarter revenue rose 47.5% year-over-year to NOK1.09 billion while operating costs (excluding leasing, depreciation and writedowns) soared 77.3% to NOK1.23 billion.
Lufthansa continues to soar despite the difficult environment, posting a €57 million ($90.9 million) first-quarter profit that compared quite favorably to the €55 million it reported in the year-ago quarter minus a €449 million book gain on the sale of its stake in Thomas Cook.
CAE won Level D certification from US FAA and EASA for its A380 FFS, the industry's first. Airbus will use the simulator to offer initial training to A380 customers.
Air Europa pilots represented by SEPLA have called a series of strikes in May and June to protest the carrier's plan to set up a low-cost subsidiary. SEPLA claims the Palma-based airline will violate its 2001 labor agreement if it hires non-Air Europa pilots for the new LCC, Universal Airlines ( ATWOnline, Feb. 8). Talks between Globalia, which controls Air Europa, and SEPLA, broke down this week after five months.
Frontier Airlines yesterday announced that it will terminate its codeshare agreement with Republic Airways and phase out the regional's 12 E-170s by mid-June. Frontier filed for Chapter 11 bankruptcy protection this month but will continue operating as it reorganizes ( ATWOnline, April 14). "Unfortunately, with current economic conditions and other business changes, we have been forced to drastically rethink the use of regional aircraft in our mix," President and CEO Sean Menke said.
UPS reported a first-quarter net profit of $906 million, down 12.2% from $1.03 billion last year, and said second-quarter earnings will be flat at best owing to an "anemic" economy. "US economic activity deteriorated more rapidly than expected during the [first] quarter," Chairman and CEO Scott Davis said. Revenue increased 6.5% to $12.68 billion while expenses grew 6% to $11.18 billion, producing operating income of $1.49 billion, up 9.9% over $1.35 billion last year. International package revenue, which is heavily dependent on UPS Airlines' operations, rose 15.7% to $2.76 billion.
ARINC said it completed installation of 64 new SelfServ check-in kiosks for Flybe at 13 UK regional airports. It already supports Flybe at Manchester, Birmingham, Newcastle and Belfast City.
Northwest Airlines reported a $4.14 billion first-quarter net loss yesterday owing to a noncash goodwill impairment charge of $3.93 billion necessitated after it "compared the carrying value of its equity and the fair value" and similar to the one incurred by merger partner Delta Air Lines (see story above). NWA lost $292 million in the year-ago quarter.
Air Line Pilots Assn. released a statement saying that the chairmen of the Delta Air Lines and Northwest Airlines pilot groups have "jointly discussed. . .the importance of commencing negotiations with Delta management in the very near future" on a single labor agreement "that will include immediate parity in rates of pay" upon the closing of the announced merger. The union said, however, that such a negotiation does not "constitute an endorsement" of the merger by the Northwest Master Executive Council.
Iberia and Consorci Zona Franca of Barcelona launched construction of a 12,100 sq.-m. widebody hangar at El Prat. The facility will accommodate two A340s or four A320s and is expected to increase airport capacity for dispatching and receiving long-haul flights. Specializing in C checks, it will offer MRO to nearly 80 airlines using BCN. Investment is put at €24 million ($38.2 million), with IB positioned to control 75% of the new company.
Delta Air Lines reported a $6.39 billion first-quarter net loss, dramatically widened from a $130 million loss in the year-ago period, owing mainly to a noncash goodwill impairment charge reflecting a decline in its market capitalization related to the sharp increase in fuel prices and the pending merger with Northwest Airlines.
A 34.2% surge in revenue helped JetBlue Airways fare somewhat better than its US rivals in a difficult first quarter as its net loss narrowed to $8 million from $22 million and its operating result improved to a $17 million profit from a $13 million deficit in the year-ago period.
Boeing and Airbus, on the sidelines of the Aviation & Environment Summit in Geneva, signed off on an agreement to work together "to ensure global interoperability in air traffic management in an effort to reduce the impact of aviation on the environment." They will seek to speed up improvements to air traffic management systems to "increase efficiency and eliminate traffic congestion."
AirTran Airways parent AirTran Holdings said "very strong" first-quarter revenues were not enough to overcome "the effects of record high fuel costs" as the company sank to a $34.8 million net loss that compared to a $2.2 million profit in the first three months of 2007. "We remain committed to serving our customers, reducing costs and profitably managing our company going forward," President and CEO Bob Fornaro said.
Asiana Airlines is preparing to place a significant order for 787s or A350 XWBs, bringing one of the year's most intense sales battles to a close. Speaking to ATWOnline in Seoul, Vice Chairman and CEO Chan Bup Park said an announcement is expected by the end of June. Asiana is looking to both buy and lease aircraft and in the interim is seeking two more 777-200ERs, a similar number of A330-200s as well as A321s. It will take delivery of two -200ERs this year. It also is weighing the A380 and 747-8 for replacement of its three 747-400Cs and two 747-400 passenger aircraft.
Lufthansa Technik won a significant contract from Qantas for technical support of GE and CFM56-7 engines powering the carrier's 737, 767, 747 and A330 aircraft.
Reno-based AeroTech Services announced the availability of its wing modification for the 737 Classic family, which it claims "reduces fuel consumption by up to 4%" by increasing lift-to-drag ratio. The modification "relocates the aft segments of the trailing edge flaps aft and below their standard locations when the flaps are retracted [resulting] in increased wing area, increased airfoil camber and a lengthened wing chord." The device also has multiple flat droop settings "to optimize results for each carrier's individual operating needs." It takes approximately 300 man hr.
FlightSafety International announced construction of an 80,000-sq.-ft. learning center for regional carriers in St. Louis that is expected to open in December. It will accommodate up to nine full flight simulators and offer classrooms, customer service and support areas. FSI already maintains a 40,000-sq.-ft. facility in St. Louis and together the pair will offer up to 18 simulators for BAe, Bombardier, Embraer, Fairchild, Saab and Sabreliner aircraft. It also announced that its sixth Q400 FFS and its fourth E-170 FFS have been qualified to Level D by US FAA.
Pacific LifeCorp. subsidiary Aviation Capital Group placed an order yesterday for 17 additional 737NGs valued at more than $1 billion, Boeing announced. No delivery date was announced for the order, which previously was attributed by the manufacturer to an unidentified customer. The aircraft will be equipped with blended winglets and lift ACG's Boeing commitment to 76 737s and five 787s. Its portfolio currently contains 129 Boeing aircraft.
Cathay Pacific Airways and Dragonair flew 7.94 billion RPKs in March, up 17.2% on the year-ago month. Capacity rose 13.7% to 9.67 billion ASKs and load factor climbed 2.4 points to 82.1%. Hawaiian Airlines flew 679.1 million RPMs in March, down 1.6% from the year-ago month, against a 2.1% capacity increase to 774.6 million ASMs. Load factor fell 3.3 points to 87.7%. Midwest Air Group flew 435.7 million RPMs in March, up 7.9% from the year-ago month. Capacity climbed 11.8% to 552.3 million ASMs, dropping load factor 2.8 points to 78.9%.
Tiger Airways CEO Tony Davis told reporters this week that the LCC will be looking to grow through a merger or acquisition and that it has set aside approximately $17 million for that purpose, Reuters reported. He added that "an IPO will occur when all the circumstances are aligned, and when we have a need for funds to be injected, but not right now." Davis said he was in talks with six Asian parties regarding potential partnerships or acquisitions, according to the news service.
TUI said that Monteray Enterprises, which is wholly owned by shipping magnate John Fredriksen, acquired an 11.7% stake in the company with the purchase of 29.5 million shares. Fredriksen now is the largest shareholder in the travel company.
US FAA named Air Force Reserve Brig. Gen. Robert Tarter VP-safety services for the Air Traffic Organization. He also was a pilot for Delta Air Lines. Swiss International Air Lines elevated Bernd Bauer to head of sales and marketing-Europe. He succeeds Alexander Arafa, who become head of cabin crew last week.
