Continental Airlines' consolidated RASM lifted 4.1% in December and an estimated 2%-3% in January, the airline said. It flew 7.02 billion consolidated RPMs last month, a 5.9% increase over the year-ago month. Capacity climbed 5.5% to 9.2 billion ASMs, boosting load factor 0.4 point to 76.3%. Domestic traffic grew 4.8% to 3.36 billion RPMs, capacity increased 5.1% to 4.3 billion ASMs and load factor fell 0.2 point to 78.1%.
Reiterating the fact that it considers 2006 an "interim year" in its development, Finnair yesterday reported a full-year net loss of €13 million ($16.8 million), a reversal from the €62 million profit earned in 2005, as one-time expenses related to its €80 million restructuring program, high fuel prices and its loss-making Aviation Services division weighed on the bottom line.
Avion Aircraft Trading, which is partly owned by Air Atlanta Icelandic parent HF Eimskip, signed an MOU with Airbus yesterday for six A330-200Fs with deliveries slated for 2010 and 2011. "Its payload range characteristics will open up new possibilities for our airline customers paired with very attractive operating costs," AAT CEO David Masson said. The -200F can carry up to 64 tonnes of cargo and has a range of 4,000 nm. in standard configuration.
Northwest Airlines Corp. reported a 2006 net loss of $2.8 billion owing to heavy reorganization costs, widened slightly from a $2.56 billion loss in 2005, as it continues to work through Chapter 11 restructuring.
United Airlines made a $972 million cash payment toward its $3 billion bankruptcy exit facility and refinanced the remainder, it announced yesterday. The new facility consists of a $1.8 billion term loan and a $255 million revolving credit line. Refinancing was "significantly oversubscribed," the airline said, enabling it to reduce finance costs by 175-200 basis points over LIBOR.
Delta Air Lines creditors' committee will pick all 10 board members of the reorganized carrier as part of the deal under which the committee approved DL's plan to emerge from bankruptcy at the expense of US Airways' bid ( ATWOnline, Feb. 1), CEO Gerald Grinstein told The New York Times. At least three members of the existing board will stay on. In addition, the committee will limit management's ownership stake to 4%, a total that Grinstein said would be "spread across. . .1,000 people."
Ryanair outperformed market expectations as it reported a €47.7 million ($61.8 million) net profit for the third fiscal quarter ended Dec. 31, a 30% increase from the €36.8 million earned in the year-ago quarter "This exceptional 30% increase in Q3 profits during a period of higher oil prices, intense competition and 21% seat capacity growth demonstrates, yet again, the robustness of Ryanair's lowest-fare model," CEO Michael O'Leary said.
A furor is developing among a growing number of politicians from both sides of Australia's government over a A$300 million ($232.4 million) performance- and time-based sweetener that Qantas senior management would reap if Airline Partners Australia's A$11.1 billion bid for the airline succeeds.
Pinnacle Airlines announced that its newly acquired regional subsidiary Colgan Air will operate 15 Q400s as a Continental Connection carrier ( ATWOnline, Feb. 5). Pinnacle, which flies 127 CRJs as a Northwest Airlink partner, will purchase the turboprops from Bombardier subject to a loan arrangement. Deliveries to Colgan are scheduled to begin in December and run through June 2008.
Austrian Airlines Group will transfer three of its four A330-200s to Star Alliance partner TAP Portugal as part of its long-haul fleet reduction ( ATWOnline, Dec. 12, 2006). Aircraft will leave Austrian by April 29. Separately, OS will launch a thrice-weekly Vienna-Bourgas service on May 15.
UPS said yesterday it ordered 27 767-300ERFs for delivery from 2009 to 2012. The aircraft, valued at more than $3.8 billion, are necessary to keep pace with international traffic demand and for fleet renewal, the company said. UPS was the launch customer for the first 767 freighter in 1995. The -300ERF can carry 24 containers on its upper deck and seven in the lower cargo compartments, according to the airline. It has a maximum payload of 132,200 lb. and a range of 3,000 nm.
British Midland, parent of bmi, announced Friday that it acquired control of London Heathrow-based British Mediterranean, a BA franchise partner since 1997, subscribing to approximately £30 million ($59 million) of new shares in BMED. "Bringing BMED into the bmi group creates a business with a turnover in excess of £1 billion with substantial growth opportunities. The acquisition enables the bmi group to accelerate its strategy of expansion into medium-haul markets," group CEO Nigel Turner said.
American Airlines flew 10.9 billion system RPMs in January, a 1.2% decline from the year-ago month. Capacity fell 1.3% to 14.49 billion ASMs and load factor dipped 0.1 point to 75.2%. Domestic RPMs were down 2.7% to 7 billion against a 2.3% fall in capacity to 9.27 billion ASMs, dropping load factor 0.3 point to 75.5%.
British Airways reported a £107 million ($210.3 million) net profit for the third fiscal quarter ended Dec. 31, a 13.7% drop from the £124 million earned in the year-ago quarter thanks to a "raft of external factors" that cost the carrier an estimated £40 million in revenue, CEO Willie Walsh said Friday.
Fraport appointed Matthias Zieschang CFO. He succeeds Stefan Schulte, who was appointed vice chairman effective April 1. Zieschang comes from DB Netz, a subsidiary of Deutsche Bahn.
SkyTeam announced that it signed agreements with Air Europa, Copa Airlines and Kenya Airways "indicating the carriers are on track for official Associate Airline status." Signing ceremonies were held in the capital of each airline's home country. The trio will add 25 destinations to SkyTeam's network.
Pinnacle Airlines, which operates 127 CRJs as a Northwest Airlink partner, is in the market for large turboprops that may be placed with Colgan Air, which Pinnacle acquired last month for $20 million in cash and stock ( ATWOnline, Jan. 19). Pinnacle CFO Peter Hunt said the company is looking at both ATR 42s/72s and Q400s and a decision on an order for 20-25 70-seat aircraft could be placed within weeks.
Oneworld confirmed yesterday that Royal Jordanian, Japan Airlines and Malev Hungarian Airlines will join the alliance as full members on April 1. Five additional subsidiaries of JAL Group will join the same day as affiliates: JALways, Japan Asia Airways, JAL Express, J-AIR and Japan Transocean Air. At the same time, Aer Lingus will withdraw from the alliance ( ATWOnline, May 31, 2006). Three other airlines are lining up to join as affiliates in 2007: Dragonair, LAN Argentina and LAN Ecuador.
LAN Airlines is providing $17.1 million in financing to VRG Linhas Aereas, the "new" Varig. The loans may be converted into shares of the new airline, LAN said, which would make it a minority owner.
European Commission's proposal to include non-EU airlines in its Emissions Trading Scheme is "unlawful and unworkable," US State Dept. Deputy Assistant Secretary for Transportation Affairs John Byerly said at Thursday's American Bar Assn. forum in Washington.
AirTran Holdings said yesterday that it has extended the deadline on its exchange offer for shares in Midwest Air Group to March 8 from Feb. 8 "so that Midwest's shareholders can receive all the information they need." AirTran filed suit in the New York Supreme Court last week to force Midwest to release shareholder names ( ATWOnline, Jan.
Allegiant Air parent Allegiant Travel Co. reported a 19.9% rise in full-year net income to $8.7 million as the rapidly expanding company continued to build its leisure travel business. Allegiant increased its MD-80 fleet to 24 from 17 during 2006 and added 19 destinations including a new base at St. Petersburg-Clearwater and 29 new routes. Revenue soared 83.7% to $243.3 million against a 78.1% climb in expenses to $220.8 million, nearly tripling operating profit to $22.6 million from the $8.5 million earned in 2005.
American Airlines Maintenance Services and the Transport Workers Union, which represents AA's 27,000 maintenance workers, said yesterday that $175 million in customer revenue in 2007 is an attainable goal following the generation of $95 million worth of third-party maintenance in 2006.
