CSA Czech Airlines said it will avoid entering the high season "in a hole for the first time in several years" thanks to a CZK122 million ($5.8 million) first-quarter loss that was CZK500 million better than forecast in its business plan, which projected a deficit similar to that incurred in the first three months of 2006. "In terms of revenue, the first three months are problematic for all airlines. In that time period we achieved better revenue and greater cost savings than planned," President Radomir Lasak said.
The Alitalia board decided to move forward with a €197 million ($264.9 million) writedown of the value of the carrier's fleet, a step it declined to take in March when releasing its full-year financial results but that became necessary when it decided it had to "draw up a new and reliable business plan" ahead of the Italian government's sale of its AZ stake. The decision deepened the company's full-year loss to €625.6 million from the €405.2 million announced two months ago and the €167.8 million suffered in 2005.
Iberia last week confirmed that it was contacted by a consortium led by TPG Capital, recently joined by British Airways ( ATWOnline, May 23), investigating a formal offer for the Spanish carrier.
Sterling Airlines announced the Oct. 28 launch of flights from Oslo Gardermoen to Paris Charles de Gaulle, London Gatwick and Copenhagen as well as a Stockholm Arlanda-Nottingham East Midlands service. Frequencies were not disclosed. Sterling operates 25 737s. Separately, Sterling signed a labor agreement with its pilots this month that it said represented the final step in the merger of Sterling and Maersk Air.
Frontier Airlines reported a net loss of $20.4 million for its fiscal year ended March 31, widened from a net loss of $14 million for the prior year, with more than half of the deficit ($10.4 million) coming in the fourth quarter as severe winter weather hurt the Denver-based carrier's operations.
Air France KLM's 2.4% decline in consolidated net earnings to €891 million ($1.2 billion) in the fiscal year ended March 31, which compares to a €913 million prior-year profit boosted by the sale of its Amadeus stake, will not slow the airline, which yesterday announced an aircraft commitment worth approximately $7 billion.
Air China flew 5.57 billion RPKs in April, up 12% on the year-ago month. Capacity climbed 11.5% to 7.19 billion ASKs, lifting load factor 0.3 point to 77.5%.
Delta Air Lines yesterday announced an order for 14 CRJ900s valued at $511 million and said it will place the aircraft with regional subsidiary Comair, apparently quelling speculation that it would attempt to sell the Cincinnati-based carrier.
Cebu Pacific Air ordered six 72-seat ATR 72-500s plus eight options in a deal worth more than $250 million, the manufacturer said. The aircraft will enable the carrier to operate into more Philippine airports that are restricted by shorter runways. President and CEO Lance Gokongwei said the order "is a continued manifestation of Cebu Pacific's commitment to bring air travel closer to more Filipinos and to bring them to more destinations which we cannot operate to at the moment."
Spanair named Mexicana de Aviacion Chief Commercial Officer Sergio Allard Barroso CCO, effective in July. Aerospace Industries Assn. said President and CEO John Douglass will retire at year end following nine years at the helm. No replacement was named.
British Airways said it will invest more than £25 million ($49.5 million) for 55 new airport vehicles as part of its March 2008 move to London Heathrow's new Terminal 5. BA said the vehicles "will help. . .reduce its ground emissions at Heathrow and improve its punctuality performance." The order comprises 15 vehicle types. BA said the number of ground vehicles required will fall by just under 40% as the result of the move to T5, from 1,300 this year to fewer than 800 in 2010.
Aeroflot posted a $69.3 million profit in the first quarter under IFRS, more than double the $32.2 million earned in the year-ago quarter, Russia's AK&M reported. Revenue rose 37% to $662.8 million and costs were up 21% to $52.8 million, lifting operating profit to $110 million from $24.4 million in the first three months of 2006.
Avion Aircraft Trading placed a firm order for eight A330-200 freighters, increasing its MOU commitment by two. The order follows finalization of a first leasing arrangement with Icelandair Cargo for four A330-200Fs, Airbus said. Deliveries will start in 2010. No engine type was selected.
AirAsia's high pace of growth and strong profitability continued in its fiscal third quarter ended March 31 with a net profit of MRY86.9 million ($25.6 million), more than five times the MRY14.1 million earned in the year-ago quarter, on a 53% surge in revenue to MRY396.2 million.
AirTran Airways yesterday announced an order for 15 737-700s for delivery in 2011-12. The carrier now has ordered 115 of the type. It currently operates 45. Chairman and CEO Joe Leonard said the order "will provide the needed aircraft that will allow the airline to move forward with our strategic expansion while maintaining our business model."
Brussels Airlines, the result of the merger of full-service carrier SN Brussels Airlines and LCC Virgin Express, has established five priorities in its effort to reinforce its profitability, which CEO Philippe Vander Putten said is at an unacceptably low level.
Alaska Air Group, parent of Alaska Airlines and Horizon Air, said in a US Securities and Exchange filing yesterday that it "currently expect[s] our consolidated adjusted net income in the second quarter and full-year 2007 to be below 2006 amounts." The company posted a second-quarter 2006 profit of $55.5 million and a full-year loss of $52.6 million ( ATWOnline, Jan. 26). It also said it has found a buyer for its 20 owned MD-80s and has closed on sale and short-term leaseback transactions for 16 of them.
US State Dept. Deputy Assistant Secretary-Transportation Affairs John Byerly said offering cabotage rights to EU carriers for cargo flights is under consideration and could be in play during the next round of EU-US open skies talks. While noting that no consensus administration policy has been developed, the US's lead air services negotiator said cargo cabotage is "less threatening" and may not encounter the strong opposition from labor and Congress that passenger cabotage will ( ATWOnline, May 23).
Qantas, it turns out, is worth approximately A$17 billion ($13.96 billion), or 53% more than the Airline Partners Australia consortium offered shareholders in its A$11.1 billion bid that collapsed this month ( ATWOnline, May 18). Ironically, the new A$8.57-per-share valuation announced yesterday came from Macquarie Bank, which led APA. Subsequently, QF shares have risen to a high of A$5.43.
Singapore Airlines joined China Eastern Airlines in suspending trading of its shares Tuesday ( ATWOnline, May 23), saying it "is in an advanced stage of discussions for a potential investment," thereby deepening widespread speculation that it is on the verge of acquiring a 25% stake in CEA. According to some Hong Kong press reports, negotiations already have closed and CEA is set to make an announcement by Friday, although its officials continue to say publicly that a deal has not been reached.
Embraer yesterday announced the launch of the Advanced Range versions of the E-170 and E-175 and Northwest Airlines as the launch customer. The first 10 of the 36 175s NWA ordered last fall ( ATWOnline, Oct. 6, 2006) will be the Long Range version and the remainder will incorporate AR structural provisions off the assembly line. The LRs later will be retrofitted to the AR version.
Cathay Pacific Airways and Dragonair flew a combined 6.64 billion RPKs in April, a 2.3% increase on the year-ago month. Capacity rose 1.2% to 8.26 billion ASKs and load factor was up 0.9 point to 80.4%. Hawaiian Airlines flew 662.9 million RPMs in April, up 20% on the year-ago month, against an 18.9% increase in ASMs to 755.4 million. Load factor improved 0.9 point to 87.8%.
Thai Airways reported net earnings of THB4.23 billion ($127.5 million) in the second fiscal quarter ended March 31, a 31.8% plunge from a profit of THB6.21 billion in the year-ago period. It did not offer a full explanation but did say that last year's result was boosted by a strong baht. Revenue climbed 7.6% to THB49.6 billion, costs rose 7.1% to THB43.42 billion and operating profit was up 10.6% to THB6.18 billion. Profit for the fiscal semester fell 17.5% to THB8.26 billion.
Skybus Airlines ( ATWOnline, April 25) launched operations yesterday with a morning flight from its Columbus base to Burbank aboard an A319. It was slated to operate flights later in the day to Kansas City and Portsmouth, N.H. The low-cost startup claims it will sell 10 $10 tickets (excluding taxes and fees) for each flight, but it also will charge at least $5 per checked bag.
Lufthansa yesterday announced a partnership with TACA that will further the German giant's Latin American reach. LH unveiled a codesharing deal with Brazil's TAM Monday ( ATWOnline, May 22). The TACA deal is similar and will comprise codesharing on both domestic and international routes and the possibility of future links between loyalty programs, flight schedules and lounges.
