United Airlines expects to record $232 million in cash fuel hedging losses and $138 million in noncash mark-to-market hedging losses in the fourth quarter based on Nov. 20 closing forward curve prices, it said yesterday in a US Securities and Exchange Commission filing.
TAM flew 1.96 billion RPKs in October, up 7.3% from the year-ago month. Capacity rose 15.8% to 3.02 billion ASKs and load factor fell 5.2 points to 64.7%. International RPKs grew 35.2% to 1.41 billion against a 26.3% lift in ASKs to 1.82 billion, sending load factor up 5.1 points to 77.8%. Gol flew 1.79 billion RPKs in October, down 17.5% year-over-year. Capacity was level at 3.14 billion ASKs and load factor dropped 12 points to 56.8%.
Qantas warned that its full-year pre-tax profit may fall 64% from its previous guidance of A$1.4 billion ($888.1 million) to A$500 million for the current fiscal year ending June 30, 2009, nearly halving the $A970 million earned in the 12 months ended last June 30.
ExpressJet Holdings' board authorized an additional $10 million for the company's previously announced securities repurchase program. It said purchases of stock and/or notes will be "made from time to time in the open market or in privately negotiated transactions."
Ryanair will close its two routes from Blackpool (daily to Dublin and thrice-weekly to Girona) on Jan. 4 following the airport's decision to impose a £10 ($14.97) "Airport Development Fee" on all passengers from Jan. 5. Blackpool is the fourth airport from which the LCC has withdrawn or threatened to withdraw all services, following Valencia ( ATWOnline, Oct. 27), Fuerteventura ( ATWOnline, Nov. 20) and Maastricht ( ATWOnline, Nov.
Etihad Airways said it secured $210 million in financing covering the purchase of two new A340-600s. A 12-year, $102 million facility provided by Abu Dhabi Commercial Bank, Standard Chartered Bank and Sumitomo Mitsui Banking Corp. Europe will cover one aircraft while a 12-year, $110 million facility from Al Hilal Bank in Abu Dhabi will cover the other. EY took delivery of one -600 last month and will take the second in December.
Air France KLM remains interested in acquiring 20%-25% in the new Alitalia as well as the Austrian government's 41.6% stake in Austrian Airlines Group, Chairman and CEO Jean-Cyril Spinetta confirmed.
Argentine court appointed an administrator to take over day-to-day oversight of Aerolineas Argentinas's operations as the Argentine government and Spain's Grupo Marsans, the airline's current owner, argue over terms of the carrier's nationalization ( ATWOnline, Sept. 5). Marsans has agreed to sell its holding to the Argentine government but claims the government has violated terms of the deal by not finding a third party to perform a valuation.
Pinnacle Airlines flew 425.3 million RPMs in October, up 5.6% from the year-ago month. Capacity rose 7% to 543.1 million ASMs, dropping load factor 1.1 points to 78.3%. Mesa Air Group flew 476 million RPMs in October, down 12% year-over-year, against a 16.6% fall in ASMs to 604.6 million. Load factor rose 4.1 points to 78.7%.
ILFC Chairman and CEO Steven Udvar-Hazy confirmed last week at the ALTA Airline Leaders Form in Cancun that American International Group "is in the process of selling ILFC to a group of investors, including management."
Aeroports de Paris and Air France last weekend operated a two-day trial program for the A380 at Charles de Gaulle. MSN 001 was piloted by AF crew from Toulouse to CDG. Following tests at the airport's Terminal S3, the aircraft was towed inside AF's new H6 hangar for compatibility tests. Maintenance equipment tests conducted by Air France Industries all produced "satisfactory results," AF said, while tests on noise and luminosity levels were carried out simultaneously with Wi-Fi tests between the aircraft and the hangar's IT network.
Greek Prime Minister Kostas Karamanlis said that the privatization of Olympic Airlines ( ATWOnline, Nov. 7) will mean €150 million ($188.7 million) in additional government revenue annually. The government plans to split the carrier into three units for sale by year end, a move that will "relieve the Greek taxpayer of the burden of paying for their losses," Karamanlis said, according to Reuters.
The slump in fuel prices turned out to be the bad news for Air China, which suffered a CNY3.1 billion (CNY453.1 million) loss on its fuel hedge contract as of Oct. 31, more than three times the CNY961 million forecast.
Aer Lingus averted a potential strike ( ATWOnline, Nov. 11) by reaching a framework agreement with the SIPTU union, which represents thousands of EI employees that had voted to take industrial action over EI's cost-saving plan that included significant outsourcing. "This framework would not involve outsourcing," the airline said. "However, until these savings are verified and confirmed by the union, the outsourcing plans remain on the table.
Air France KLM's decision to slow its growth, revealed last week when it released its fiscal first-half earnings in Paris, is in line "with a greater capacity discipline by most major players," Chairman and CEO Jean-Cyril Spinetta told reporters. AF KLM network-wide capacity will be up just 1.7% year-over-year this winter season and it envisions capacity growth of only 1%-2% in the summer schedule 2009.
Rolls-Royce said it is consulting with its labor unions regarding plans to cut 140 jobs at its Derby Assembly and Test Facility. The proposed job reductions are "the first stage" of a larger downsizing that could see 1,500-2,000 workers laid off on a worldwide basis. Actions are in response to the "current economic uncertainties," delays to specific programs such as the A380 and 787 and "the benefits of the group's continuing focus on efficiency," according to a statement. The reductions account for 4% of the worldwide workforce.
Delta Air Lines said in a regulatory filing Friday that "demand has slowed over the course of the [fourth] quarter. . .As a result, we are evaluating our capacity plans for 2009 on both the domestic and international system and expect to reduce future capacity to better align supply with current levels of demand." It said it will provide more specific 2009 capacity guidance on Dec. 9.
Volaris CEO Enrique Beltranena said the Toluca-based LCC expects to launch its first US service in the 2009 fourth quarter and plans to be operating to 10-12 markets north of the border in the next 3-5 years, which would represent a penetration comparable to that of Aeromexico and Mexicana.
Lufthansa Consulting reached its third contract extension with Petrobras (Petroleo Brasileiro S.A.) to provide technical counsel related to implementation of aviation safety activities. Contract will extend to September 2009 and focus on establishing an Aviation Competence Center within Petrobras as well as improving safety standards, flight operations, maintenance and ground operations and emergency planning. LCG has supported the oil company and its transport division since 2004.
Iberia said it renovated its La Munoza maintenance hangar near Madrid Barajas to improve and extend its painting services for new and overhauled aircraft. The 2,900-sq.-m. facility is equipped for stripping, sanding, painting and drying various aircraft. A Saudi Arabian Airlines 757-200 and an A320 operated by Ural Airlines are the first in line to be painted there.
Air New Zealand called Australia's competition watchdog "inconsistent" following the preliminary rejection of its proposed codeshare with Air Canada on transpacific routes ( ATWOnline, Nov. 21).
Australian Competition and Consumer Commission rejected a transpacific Air New Zealand/Air Canada codeshare pact. ACCC issued a draft determination denying authorization for the two airlines to codeshare on AC's Sydney-Vancouver services and ANZ's Auckland-Vancouver flights, claiming it would lessen competition. The airlines argued that neither operates on the other's routes and both would promote each other's services, bringing more tourists to Australia and New Zealand.
Oneworld yesterday nominated American Airlines Chairman and CEO Gerard Arpey to succeed Qantas CEO Geoff Dixon as chairman of the alliance's governing board for a two-year term beginning in February.
