Swiss International Air Lines will raise its fuel surcharge again on July 1. The surcharge will jump to CHF53 ($41.40) from CHF48 per leg on long-haul flights and to CHF20 from CHF18 for European flights.
US Airways posted a $37.9 million net loss and an operating loss of $10.4 million in May, the carrier said in a filing with the US Securities and Exchange Commission. Total operating revenue for the month was $625.3 million and total operating expenses came in at $635.7 million. According to the filing, the company actually spent more on fuel ($141.4 million) than on personnel costs ($140.1 million) during the month.
International airline traffic (RPKs) rose 8.8% in May compared to the same month last year, according to IATA. With capacity (ASKs) up 7.3%, passenger load factor improved to 71.9%. However, May freight traffic (FTKs) declined 1.6% year-on-year on a 6.9% increase in capacity. "As a leading economic indicator, the slowdown in cargo traffic demonstrates that the high price of oil is slowing the global economy faster than expected," said IATA DG and CEO Giovanni Bisignani.
Rockwell Collins issued a Service Information Letter certifying that Blue Sky Network's Iridium satellite phone system is a qualified data channel for its Airshow 4000 moving map and inflight information system. The Blue Sky Network system is also certified for the current fleets of Airshow Network (Genesys) customers.
Although its previous attempts have failed, Northwest Airlines again is boosting fares to try to offset rising fuel prices. According to a recorded message to employees, effective Tuesday the carrier raised its fares that match low-cost competitors by $5 each way, raised business fares that have been capped at $499 by $50 each way and expanded the minimum stay for fares not specifically matching an LCC from one to two nights.
SAS Technical Services AB will cut about 120 jobs in its medium and heavy maintenance organizations in Norway and Sweden and 80 jobs in its line maintenance operation in Norway out of a total workforce of 3,700. The layoffs are part of SAS Group's Turnaround 2005 program.
Milan Linate and Malpensa operator SEA will not be the subject of an IPO, the City of Milan governing authority has decided. However, a plan to sell off a 34% stake in the company to financial and institutional investors in Italy and abroad was approved. The city holds 84% of SEA and had considered listing it this year. The full municipal authority is scheduled to clear the sale on July 10 with sale proceedings starting in September, AFX reported. "The operation will amount to €600 million ($725.9 million).
Aviapartner began ground handling French scheduled carrier Aigle Azur in Marseille, Lyon, and Toulouse this month. Aviapartner already handled the airline in Lille and Mulhouse. The new deal also covers Aigle Azur's charter flights at Nantes, operated with A321s.
Korean Air reported a 5.5% increase to 4.04 billion RPKs in May. Despite a drop in domestic traffic and slowing passenger flow to Japan and Southeast Asia, traffic between Korea and China jumped 32% to 204.4 million RPKs. Capacity between the two countries also climbed, rising 14.5% to 292.5 million ASKs. Capacity on European operations was up 24.1% while RPKs increased 15.9%. To the US, ASKs grew 14.9% and RPKs 7.1%.
Air New Zealand is planning to make radical changes to its short-haul operations in the Tasman and South Pacific markets to cut losses in a move that is expected to have an impact on Qantas's cost-cutting plans. Over the next 18 months, the airline will integrate its ANZ brand and low-cost Freedom Air leisure carrier under one operational umbrella built around the latter's cost model, with the two airlines' A320 fleets placed on the same AOC "to gain efficiencies from a single fleet type." The move will not affect ANZ's regional and long-haul operations.
United Airlines parent UAL Corp. reported a net loss of $93 million for May, which included $36 million in reorganization items. This is on par with the $93 million net loss the company reported for May 2004, of which $58 million represented reorganization expenses. UAL posted an operating loss of $21 million for the month compared to an operating profit of $9 million in the year-ago period.
Virgin Atlantic said business-class travel increased 26% in its last financial year. During the 12 months ended Feb. 28, the airline carried 352,095 Upper Class passengers, up from 279,714 in the previous 12 months. This produced an Upper Class load factor of 56%, "the highest enjoyed by the airline since 2000," it noted.
SriLankan Airlines Cargo Center at Bandaranaike International Airport handled an all-time high 146,883 metric tons of cargo in 2004. Previously, the highest total the carrier handled was 127,116 tonnes in 2000. The company said it expects to handle even more cargo this year.
Qatar Airways will add 11 weekly frequencies to India following the recent successful round of bilateral discussions between the countries. Qatar currently operates 19 scheduled flights a week between Doha and Cochin, Trivandrum, Hyderabad and Mumbai. From July 14 it will add New Delhi with seven services a week, flown initially with A320s in a 144-seat, two-class configuration and later with A330s offering three classes of service. From July 15, the Mumbai route will increase from six services a week to daily with the introduction of a new Friday night flight from Doha.
Volga-Dnepr Group signed a 15-year financial agreement with Ilyushin Finance Corp. to become launch customer for the IL-96-400T with an order for two of the freighters. The first is due to be delivered in late 2006. The IL-96-400T will have a cargo capacity of 92 tonnes and a range of 5,000 km. It will be powered by four PC-90A1 engines. It will be used by AirBridge Cargo, Volga-Dnepr's scheduled cargo airline, to enhance its expanding network. The contract was signed by Volga-Dnepr Group President Alexey Isaikin and IFC General Director Alexander Rubtsov.
US House of Representatives voted Friday to prevent any federal appropriations from being used by the US Pension Benefit Guaranty Corp. to assume United Airlines' pension obligations. Since PBGC is funded by premiums paid by US companies, it is not clear that the bill can have any impact on the situation at the carrier, which has defaulted on all of its defined benefit pension plans. Furthermore, a similar bill would need to pass in the Senate and then the two bills reconciled and signed by the President in order to become law.
Iberia will increase capacity between Madrid and Beirut by almost 59% in July and August by using 200-seat 757s instead of the 126-seat A319s it now flies on the route. The change is in response to the success of the new thrice-weekly service that launched March 28, the carrier said in a statement.
Alteon Training signed a long term agreement to provide Aerosim Technologies' PC-based training tools in conjunction with its own training services. The trainers will be used with existing training solutions. Aerosim products covered under the agreement include Flight Management System Trainer, Virtual Flight Deck, Virtual Procedure Trainer and Flight Training Devices.
Alitalia shareholders yesterday approved the group's accounts for 2004; net loss for the year was revised slightly, falling to €810.4 million ($980.6 million) from €812 million, and shareholders approved using €235.3 million from reserves to partly cover the loss.
Allegiant Air took delivery of an MD-83 on operating lease from SAS in a transaction arranged by Sigma Aircraft Management. It is the last of five MD-82s/83s contracted for by Allegiant in September. The aircraft was operated by SAS as an MD-82 and was upgraded to MD-83 status as part of the transactions with Allegiant. Separately, Aerovias de Mexico agreed to extend the lease on an MD-87 from International Aircraft Holdings Corp. The lease extension was arranged by Sigma Aircraft Management.
Cargolux is raising its fuel surcharge on all cargo shipments to €0.45 ($0.55) per kilo or the equivalent in local currency from July 8. Last week, British Airways and Virgin Atlantic also announced fuel surcharge increases. Separately, Cargolux said it will launch a new weekly service to Doha on July 4 offering main deck capacity primarily to the oil and gas industry. From Doha the flight will continue to Hong Kong before returning via Baku to Luxembourg.
Air Bosnia, which went bankrupt nearly two years ago, resumed services last week. The airline, which is majority controlled by the government, is expected to be renamed BH Airlines and plans to operate to Turkey, Switzerland and Germany. It operates two 66-seat ATR 72s. It agreed last month with Hypo Alpe Adria bank on a settlement for most of its 20 million marka ($12.4 million) debt.
Air Mauritius placed an order for three CFM56-5C4/P-powered A340-300Es, with deliveries to begin in the last quarter of 2006. The airline also took two options. The aircraft will be configured with 36 premium-class seats and 264 seats in economy. At present, the carrier's fleet includes five A340-300s and two A319s for its long- and medium-haul routes respectively.
