Kenya Airways reported a KES1.97 billion ($29.5 million) profit in the six months ended Sept. 30, down 18.8% from the KES2.43 billion earned in the year-ago semester. Revenue rose 6.4% to KES30.3 billion while costs climbed 10.3% to KES26.88 billion. Operating profit fell 16.3% to KES3.42 billion from the KES4.09 billion reported in the six months ended Sept. 30, 2006.
JAL Group reported a better-than-fivefold increase in net income for the first half of its fiscal year ended Sept. 30 to ¥7.3 billion ($63.7 million) compared to ¥1.5 billion a year earlier, crediting "cost reforms" such as aircraft downsizing, reduced spending on personnel and the elimination of money-losing routes for the improvement.
Northwest Airlines flew 6.47 billion consolidated RPMs in October, down 0.2% from the year-ago month. Capacity dropped 1.3% to 7.73 billion ASMs and load factor rose 1 point to 83.8%. Air Canada and Jazz flew 4.06 billion RPMs in October, a 2.7% increase from the year-ago month. Capacity rose 2.4% to 5.16 billion ASMs and load factor was up 0.2 point to 78.6%. JetBlue Airways flew 1.99 billion RPMs in October, up 7% from the year-ago month. Capacity climbed 11.1% to 2.52 billion ASMs, dropping load factor 2.9 points to 75.9%.
Airports Council International elected Aeroports de Montreal President and CEO James Cherry chairman for a two-year term. He replaces Ghanem Al Hajri, who held the role on an interim basis following the August retirement of Niels Boserup.
Lufthansa, which is set to take delivery this week of the first of 60 A320 family aircraft to be used on European flights, will feature a new cabin design with increased "usable. . .width which will especially benefit passengers in window seats, giving them more room at shoulder height," the airline said. Also included will be new window surrounds that "make the windows appear larger" and enlarged overhead bins, LH added.
Jordan Airline Training and Simulation signed an agreement with S7 Airlines under which the Russian carrier will send 20 pilots to train on JATS' two A320-200 full flight simulators with JATS instructors ( ATWOnline, Sept. 6). The pilots also will receive safety and emergency training, while one will take a simulator instructor course. S7 ordered 25 A320s at last summer's Paris Air Show ( ATWOnline, June 19).
Citing "targeted management of sales and marketing," CSA Czech Airlines said yesterday that its ability to sell higher-priced tickets was the primary driver behind a profit of CZK563 million ($30.2 million) in the first nine months of 2007, reversed from a CZK323 million deficit in the year-ago period.
News from Travel Technology Update: EasyJet will participate in Amadeus and Galileo, becoming the first major European low-fare carrier to sign deals with GDS companies. The carrier said the move is designed to tap into the $90 billion corporate travel market in Europe. EasyJet said it will add a point-of-sale fee to fares booked through the GDSs, ensuring that its Web site "remains our primary distribution channel and fares will always be cheapest when booking direct online."
Finnair Group ground handling subsidiary Northport Oy signed an agreement to sell the entire share capital of its Swedish and Norwegian subsidiaries, Finnhandling AB and Northport Norway AS, to Menzies Aviation. The sale will create a slightly more than €5 million one-time boost to Finnair's fourth-quarter results.
Air Arabia reported third-quarter net income of AED165 million ($44.9 million), more than triple the AED48 million earned in the year-ago period, as revenue rose 65% to AED369 million on a 49% increase in passengers to 729,745. The carrier operated nine A320s at the end of the quarter to 35 destinations, flying 1.3 billion RPKs against a capacity of 1.5 billion ASKs. Load factor was 92%.
Mesa Air Group appointed VP-Finance William Hoke as interim CFO. He replaces former CFO Peter Murnane, who was terminated after it was revealed that he deleted confidential records related to the carrier's recent legal problems with Hawaiian Airlines ( ATWOnline, Sept 28).
Chinese carriers responded to climbing oil prices by raising fuel surcharges on domestic services 20%-25% from yesterday. The levy on flights of fewer than 800 km. increased to CNY60 ($8.04) from CNY50 per ticket while the fee on flights of 800 km. or more went from CNY80 to CNY100. China raised the domestic price of jet fuel by CNY500 per ton starting Nov. 1, a move that industry insiders said was the catalyst for the surcharge hike. The fourth quarter is considered the domestic low season.
Ryanair yesterday released yet another set of stunning results, with net income for the second fiscal quarter ended Sept. 30 rising 26% year-over-year to €268.7 million ($389.9 million) on a 25% increase in total revenue to €861.3 million. The LCC also raised its full-fiscal-year forecast. Its half-year profit climbed 24% to €407.6 million from €329 million earned in the year-ago period.
American Airlines flew 11.53 billion system RPMs in October, up 3.6% from the year-ago month. Capacity fell 0.2% to 14.31 billion ASMs, lifting load factor 3 points to 80.6%. Continental Airlines flew 7.69 billion system RPMs in October, a 6% increase over the year-ago month. Capacity rose 5.7% to 9.68 billion ASMs and load factor improved 0.2 point to 79.5%. Consolidated unit revenue was up an estimated 6%-7% year-over-year.
Australia's Rex said it is suspending its recently announced Brisbane-Maryborough service because of its ongoing pilot shortage. "This suspension is the result of a network review to identify the routes that have the lowest load factors so as to inconvenience the least number of regional travelers and follows similar initiatives that we have undertaken on the Cooma and Wagga Wagga services in New South Wales," MD Geoff Breust said.
LAN Airlines finalized its July order for 32 787s, with 26 purchased directly from Boeing and an additional six leased from ILFC ( ATWOnline, July 16). Boeing said the Chilean company also has committed to acquiring four 777 freighters, two from the manufacturer and two from GECAS. The purchased 787s are a mix of -8s and -9s and are valued at around $4.5 billion at list prices, while those leased from ILFC will be -9s. The 777Fs are valued at approximately $250 million apiece.
China Eastern Airlines suspended trading in its stock yesterday, saying its deal to sell a 24% stake to Singapore Airlines is pending ( ATWOnline, Oct. 12). CEA said its stock will not resume trading until the SIA deal is sealed. In September, SIA and parent Temasek agreed to purchase stakes of 15.7% and 8.3% respectively, giving them a combined 24% holding valued at HK$7.15 billion ($921.8 million).
Emirates appears to be evaluating an IPO on the Dubai bourse, according to comments from Chairman Ahmed Bin Said al-Maktoum and CEO Tim Clark. According to London's The Times, al-Maktoum suggested that an IPO is in EK's immediate future and that 25% of the carrier initially will be offered to the market, reducing its dependence on the country's oil income. He said the airline has no interest in using the proceeds to fund a merger and instead will be focused on its own growth.
Air Transport Assn. said the composite Airline Cost Index through the second quarter rose to 185.7, up 5.6% year-over-year. In comparison, the Consumer Price Index climbed 2.4% year-over-year. Fuel accounted for 25.4% as average cost rose 2.2% to $2.02 per gal. while labor accounted for 23.6% even as the average cost of a full-time equivalent employee dropped 2%. Overall unit operating cost per ASM declined 1.1% to 12.46 cents. "Soaring fuel prices, among other pressures, leave little room for error in maintaining today's modest profit margins," ATA Chief Economist John Heimlich said.
Having rejected a takeover offer from Astar Air Cargo just a little more than three months ago, Ohio-based ABX Air yesterday became the acquirer, reaching a deal to purchase Cargo Holdings International of Orlando in a transaction valued at approximately $350 million.
JetWorks Leasing on behalf of a group of institutional investors arranged the sale of a 767-300 to Ryan 767, a company affiliated with Illinois-based Ryan International Airlines.
Frontier Airlines will build a new heavy maintenance base at Colorado Springs and plans to launch the $25 million construction project in late spring 2008. When completed in 12-18 months, the facility will employ around 225 and feature approximately 30,000 sq. ft. of hangar space, 45,000 sq. ft. of offices and support shops and 25,000 sq. ft. of warehouse and tool room space. Frontier, which currently leases space at Denver International, said it spent more than a year researching the site and that Colorado Springs "has proven. .
Air China will issue up to 400 million new A shares to finance the acquisition of 54 aircraft and provide a CNY1.5 billion ($200.8 million) supplement to its working capital, according to widespread press reports from China. The carrier has 15 787s, 24 A320 family aircraft and 15 737s on order. The plan is subject to regulatory approval. Shares, which will not be available to most foreign investors, will amount to 5.1% of CA's existing A-share capital, Reuters reported.
Jeppesen named Senior VP-Training and Alteon COO Brad Thomann senior VP and COO, effective Jan. 1, and Senior VP-Rail, Logistics and Terminals Greg Bowlin senior VP-business and general aviation, effective immediately.
British Airways reported net income of £487 million ($1.01 billion) in the six months ended Sept. 30, up 21.1% from the £402 million it earned in the year-ago period, but it revised downward its forecast for both revenue and expenses for the full year ending March 30 due to the weak US dollar.
