Swiss International Air Lines, which became wholly owned by Lufthansa on July 1, posted a net profit of CHF295 million ($244.8 million) in the first six months of 2006, nearly four times higher than the CHF76 million reported in the year-ago period.
GE Aviation said Republic Airways signed a 10-year OnPoint Solutions agreement extending maintenance and overhaul coverage to the CF34-8Es powering the 119 E-170s/-175s in service or on order. GE valued the agreement at more than $240 million.
Aeroflot flew 2.19 billion RPKs in June, up 9.3% on the year-ago month. Load factor was 72.5%. Hawaiian Airlines flew 678.5 million RPMs in June, up 17.9% from the year-ago month. Capacity climbed at the same rate to 779.7 million ASMs leaving load factor steady at 87%. Air Berlin transported 2.2 million passengers in June, up 13.9% on the year-ago month. Load factor was up 0.5 point to 80.3%.
Citing "challenging" competition on its key routes, Hawaiian Airlines parent Hawaiian Holdings reported a second-quarter net loss of $3.9 million, narrowed from $26.4 million in the year-ago quarter, on an 8.8% rise in revenue to $244.2 million.
Aviareps said it is offering passenger revenue accounting as a new service in cooperation with Tiralis Global. Separately, Aircalin extended its cooperation with Aviareps beyond Canada to include Germany.
With domestic capacity growth "starting to slow down" and revenue from its nascent international operations more than doubling, Jet Airways was able to post a INR309 million ($7.6 million) profit in its first fiscal quarter ended June 30 compared to a INR450 million deficit in the year-ago period. The Indian carrier's revenue climbed 19.8% year-over-year to INR19.83 billion, helping boost EBITDAR 8.3% to INR2.24 billion. Passengers dipped 4.6% to 2.7 million as RPKs rose 11.8% to 3.29 billion and capacity grew 17.8% to 4.76 billion ASKs. Load factor fell 3.8 points to 69.1%.
Italian government will not be able to sell its stake in Alitalia through private negotiations, Economy Minister Tomasso Padoa-Schioppa said last week in Cortina D'Ampezzo, according to widespread press reports from Italy. He argued that the courts would investigate why the government negotiated with one suitor rather than another, making the transaction impossible to complete. The government has not revealed its course of action following its failure to sell off its 49.9% stake.
Spirit Airlines said its dispatchers represented by the Transport Workers Union ratified a new labor agreement. No other details were provided. Separately, the carrier will launch daily Fort Lauderdale-Ponce flights on Nov. 1. It will be Spirit's third destination in Puerto Rico.
Midwest Air Group reported second-quarter earnings of $4.9 million, a 44.6% drop from the $8.8 million profit posted during the same period a year ago. Operating revenue rose 10% to $194.5 million, which the company attributed to a 15.8% increase in passenger traffic. "While the pricing environment was challenging, the demand for travel remained strong in the second quarter," CEO Timothy Hoeksema said.
PowerJet, the 50/50 joint venture between Snecma and NPO Saturn developing the engine for the Sukhoi Superjet, named Jean-Paul Ebanga chairman and CEO. He replaces Michel Dechelotte, who is moving to another position within Safran Group.
China Eastern Airlines created a Beijing Branch Company in order to establish itself further in the capital, where its passenger traffic has increased 15% over the past two years but its market share is just 11%. The Shanghai-based carrier noted that Beijing offers greater opportunities due to its location and next summer's Olympic Games. "We can take advantage of our Beijing Branch Company to expand our network in the Beijing-centered northern region," MD Cao Jianxiong said. Expanding in Beijing is becoming an attractive option for Chinese airlines based outside the capital.
A series of one-time charges plus the "sharp decline in traffic and passenger revenue" that President and CEO Jeff Potter said has plagued "much of the industry" during the spring contributed to a $3.5 million first fiscal quarter loss for Frontier Airlines, which posted a $4 million profit in the year-ago period.
Alaska Airlines and Horizon Air parent Alaska Air Group suffered a 16.9% decline in second-quarter profit to $46.1 million compared to the $55.5 million earned in the year-ago quarter, which Chairman and CEO Bill Ayer said represented "a solid performance in view of significantly higher fuel costs and a softer revenue environment."
Lufthansa yesterday released its full first-half and second-quarter financial performance, confirming the €992 million six-month profit announced Wednesday ( ATWOnline, July 26) and its forecast of a full-year operating profit "significantly above" €1 billion. First-half operating profit rose 83.7% to €621 million. Second-quarter profit of €438 million compared to the €183 million posted in the year-ago quarter.
Quintiq's Advanced Planning and Scheduling Suite was selected by Brussels Airport to improve planning and capacity studies of check-in desks and gates.
AirTran Airways parent AirTran Holdings reported a second-quarter profit of $41.5 million on record passenger traffic. The result marked a 29.9% increase from the $32 million earned in the second three months of 2006. Operating revenue climbed 16.3% to $614.1 million and expenses rose 14.9% to $544.3 million. Fuel cost was up 16.5% to $204 million and operating profit rose 28% to a company-record $69.7 million. The airline carried 6.3 million passengers during the quarter, up 16.9%, while flying 4.53 billion RPMs, up 22.3% year-over-year.
Pratt & Whitney announced that its Global Material Solutions subsidiary earned PMA certification from US FAA for the CFM56-3 high-pressure turbine shroud, marking the first certification for the 48 life-limited and gas-path replacement parts it plans to produce for the engine ( ATWOnline, March 30).
China's big three airlines--Air China, China Southern Airlines and China Eastern Airlines--expect to post first-half profits thanks largely to "continuous growth of the domestic market" and the appreciation of the yuan. China Southern yesterday said it expected a reversal from its CNY835 million ($110.4 million) loss in the year-ago semester, while earlier this week Air China said in a filing with the Shanghai Stock Exchange that it expected to report a profit more than 20 times greater than the CNY45.8 million earned in the first six months of 2006.
Northwest Airlines said yesterday that it will reduce domestic mainline capacity by another 1% next month and likely begin hiring new pilots later this year. The carrier previously announced plans to cut domestic mainline capacity by 3% from Aug. 1 ( ATWOnline, July 2) to help mitigate cancellations.
Austrian Airlines Group CEO Alfred Oetsch said the company is "on the right course" as it reported a €7.7 million second-quarter profit that represents a turnaround from a €3.9 million loss suffered in the year-ago period.
Adria Airways said revenues generated by its MRO center in Ljubljana during the first half of 2007 rose 64% over the year-ago period as it serviced 43 third-party aircraft and added that it will start construction of a third hangar this fall.
UPS reported second-quarter net income of $1.1 billion, slightly improved over net earnings of $1.06 billion in the year-ago quarter, citing gains in its air-driven international business including a 14% jump in international export revenue. "Strong gains in our international package segment offset a lack of growth in the US business," Chairman and CEO Mike Eskew said. Revenue increased 3.8% to $12.19 billion as operating profit lifted 4.1% to $1.77 billion.
