A first quarter that JetBlue Airways would like to forget ended with a $22 million loss, a narrowing of the $32 million deficit posted in the first quarter of 2006 but a result that Chairman and CEO David Neeleman described as disappointing despite the major operational disruptions--and bad publicity--that accompanied the two ice storms in the northeast US. "We learned a great deal following the events and consequently, we're better able to recover from irregular operations and provide the superior service our customers deserve and have grown to appreciate," Neeleman said.
Martinair posted a €7 million ($9.5 million) net loss in 2006, reversed from a profit of €14 million in 2005, as both its cargo and passenger activities were impacted by high fuel prices. Operating loss was €17 million compared to a prior-year operating profit of €22 million. Turnover climbed 9.1% to €1.2 billion. Passenger revenue rose 10% to €377 million but the operation suffered a loss of €15 million, widened from €7 million in 2005. Cargo revenue was up 13% to €798 million on a 6% growth in volume to 3.7 billion CTKs.
Norwegian Air Shuttle signed an MOU with Finnair for acquisition of the latter's Swedish subsidiary FlyNordic, the carriers announced yesterday. The transaction will take place during the second quarter and is subject to regulatory clearance. FlyNordic will maintain its brand and continue to operate a low-fare service.
Aviation Partners Boeing officially launched its 767-300ER blended winglet program this week, saying it has firm orders for 68 shipsets from three airlines on three continents. It expects US FAA certification in the fourth quarter of 2008. AVP said the winglets, available for both passenger and freighter versions, are worth 350,000 gal. in annual fuel savings per aircraft, a payload improvement of up to 12,000 lb. and a range increase of up to 360 nm.
American Airlines yesterday announced plans to upgrade its 124 757s with new seats, new interiors and updated IFE. The first class cabin will increase to 24 seats from 22 while new economy seats, sidewalls, LCD monitors that will replace CRT monitors and new digital media file servers will be added. Work will begin next year and will be conducted in-house, AA said.
British Airways confirmed yesterday that it approached "a number" of unidentified private equity companies about participating in an offer for Iberia, of which BA holds 10%, saying it has ruled out an independent bid. "As well as a private equity partner, this consortium is likely to include one or more Spanish partners," the airline said in a statement, adding that "any consortium bid would not involve further capital investment by British Airways."
FlyAsianXpress, operator of AirAsia's new long-haul, low-cost AirAsia X subsidiary, confirmed its order for 10 A330-300s for delivery starting late next year. The deal also includes five options ( ATWOnline, April 2). The airline had evaluated the 777 but was unable to secure early delivery positions. AirAsia's Tony Fernandes said AirAsia X hopes to be flying 25 A330-300s in the next five years, according to AFX News, which also reported that the aircraft will be configured in two classes.
Delta Air Lines reported a first-quarter net loss of $130 million, significantly narrowed from a net loss of $2.1 billion in the year-ago quarter, but was profitable at the operating level and is eyeing an exit from bankruptcy as soon as the end of this month.
Horizon Air, launch customer for the Q400, placed a firm order for an additional 15 with options on 20 of the 74-seat turboprops. The firm order contract is valued at $393 million with deliveries slated to begin in October 2008. Horizon previously has placed orders with Bombardier for 46 Q400s, 28 Q200s, 21 Dash 8s and 20 CRJ700s, according to Bombardier.
Air Greenland said it posted a DKK75 million ($13.7 million) profit in 2006 on record revenues of more than DKK1 billion. It recorded a 2005 profit of $6.5 million on $137.8 million in revenue, according to ATW's "World Airline Report." The company also announced the election of Greenland Tourism and Business Council Communications Manager Julia Pars as chairman replacing retiring Peter Gronvold Samuelsen.
Dragonair unveiled a revamped website that offers online booking for flights departing from Hong Kong, Beijing, Shanghai and Xiamen. It marks the first time passengers have been able to buy tickets through Dragonair's site.
Norwegian flew 374 million RPKs in March, up 41% from the year-ago month, against a 42% increase in ASKs to 481 million that left load factor static at 78%. SkyEurope Airlines transported 264,621 passengers in March, a 48.5% increase from the year-ago month. Load factor rose 14 points to 88.4%.
Aviation Capital Group yesterday announced orders for 20 A320 family aircraft, five 787s and 15 737NGs. The Boeing aircraft previously had been listed as unidentified on the manufacturer's orders and deliveries website. The order is worth approximately $1.6 billion at list prices and represents the lessor's first commitment to the 787. It currently owns a combined 138 737 Classics, 737NGs, 757s and 767s and has an additional 52 Boeing aircraft on order. The Airbus order comprises four A319s, 14 A320s and two A321s.
In a desperate bid to gets its A$11.1 billion ($9.29 billion) buyout of Qantas off the ground, Airline Partners Australia announced over the weekend that the May 4 deadline will not be extended while repeating its warning that share prices will fall if its bid fails.
Air Cargo Management Group released its latest 20-year freighter aircraft forecast last week, projecting that the global fleet will more than double in size from 1,801 units currently to 3,883 by 2026. "In addition to freighter fleet expansion. . .more than 1,100 existing freighters will be retired over the next 20 years," ACMG Project Director Robert Dahl said.
Air New Zealand said March load factor rose 7 points to 79.5% on a 8.3% gain in traffic and a 1.3% fall in capacity. ANZ also said it will add a 15th leased 737 this year, a 16th in the first half of 2008, a 15th Q300 this month and a further five by December, replacing Saab 340As. Separately, it will add a fourth and fifth weekly Auckland-Adelaide flight beginning Oct. 29 aboard A320s.
Jet Airways completed its INR14.5 billion ($344 million) acquisition of Air Sahara ( ATWOnline, April 17) Friday with a INR4 billion payment for the remaining shares. Jet appointed a management team led by Garry Kingshott to manage Sahara's transition to a wholly owned subsidiary called JetLite.
Regional airline traffic in the US rose by just 3.1% to 155.5 million passengers in 2006, the slowest rate of growth in seven years, according to new data produced by Velocity Group.
China Eastern Airlines reported a 2006 net loss of CNY2.78 billion ($359.8 million), reversed from a net profit of CNY60 million in the prior year, on a 39% drop in operating revenue to CNY36.8 billion. The carrier attributed the result mainly to "sale of old aircraft. . .In 2006 we sold some old aircraft whose actual sale price was far lower than their book value, which resulted in a loss of CNY2 billion last year," according to Luo Zhuping, secretary to CEA's board. The company also cited rising oil prices.
The disruptions bedeviling the Brazilian air transport market proved to be too much for Gol during the first quarter, with the LCC reporting a BRL116.6 million ($57.3 million) profit that represented a 35.2% fall from earnings of BRL179.8 million in the first three months of 2006.
Aer Lingus flew 1.12 billion RPKs in March, a 9.5% increase from the year-ago month. Capacity was up 12.9% to 1.48 billion ASKs, dropping load factor 2.3 points to 75.5%. Air Berlin transported 1.7 million passengers in March, up 13.6% from the year-ago month. Load factor rose 2.3 points to 74%.
Gol yesterday detailed its fleet plan for Varig in conjunction with its first-quarter earnings release (see story above). It said the Varig fleet, which will continue to operate independently of the new parent company, will comprise 14 737-300s and two 767-300ERs at the end of the current quarter. By year end Varig will operate nine 737-300s, five 737-800s and eight 767-300ERs. The 737-300s will be phased out by 2009, when Varig is scheduled to fly eight 737-700s, nine 737-800s and 16 767-300ERs. By 2012 it will operate 14, 15 and 22 of the respective types.
Northwest Airlines announced that Chairman Gary Wilson will step down from the board when the company emerges from bankruptcy later this spring, ending an 18-year association with the airline that began when Wilson and former Co-chairman Al Checchi led an investment group that carried out a leveraged buyout of NWA in 1989. Wilson had served as sole chairman since 1997. He will be succeeded by Roy Bostock, a board member since 2005.
Aeroflot transported 604,500 passengers in March, up 23.4% from the year-ago month. Traffic grew 20.5% to 1.86 billion RPKs and load factor was 67.2%. Alitalia flew 3.04 billion RPKs in March, up 6.5% from the year-ago month. Capacity was static at 4.36 billion ASKs, lifting load factor 4.5 points to 69.8%. Mesa Air Group airlines flew 630.2 million RPMs in March, up 3.4% from the year-ago month. Capacity rose 2.3% to 801.3 million ASMs and load factor climbed 0.9 point to 78.7%.
