DBA said it made a profit of €1-€2 million ($1.3-$2.6 million) in the 2004-05 business year ended March 31. It had turnover of €265 million and transported 3 million passengers. DBA merged with low-cost airline GEXX earlier this year. For the current year it expects to carry 4.3 million passengers and generate turnover of €400 million. It operates a fleet of 27 737-300s and F100s and offers 125 flights a day.
British Airways reported a net profit of £251 million ($464.2 million) for the financial year ended March 31, a 93.1% increase compared to a net profit of £130 million during the 2003-04 fiscal year. Net debt fell by £1.2 billion to £2.9 billion, its lowest level since 1993, while operating margin improved 1.5 points to 6.9%, the airline's best margin since 1997.
Mesa Air Group reached a five-year agreement with United Airlines to add 30 more 50-seat RJs into the United Express codesharing program beginning in the fall. Mesa did not disclose where the aircraft will come from, but a senior official indicated they will not come from US Airways Express operations currently performed by the carrier. With the new deal, Mesa will operate up to 70 aircraft under the UA designator: 45 CRJ200s, 15 CRJ700s and 10 Dash 8s. It has the right to convert up to 15 CRJ200s to CRJ700s through April 2010.
Luxair Group increased its net profit for financial year 2004 to €13.4 million ($17 million) from €3.6 million in 2003. Operating result progressed from a loss of €4.1 million in 2003 to a €3.9 million profit last year. Total operating income rose 6% to €323.6 million and operating expenses increased 3.3% to €319.7 million. Luxair posted a 3.1% gain in operating income to €177.6 million, while income from other services, including passenger and cargo handling, climbed 10% to €128.4 million.
Union representing UPS pilots, which has been negotiating a new contract with management for more than three years, said more than 99% of its members voted to give its five-pilot executive board authority to call a strike. Of the 2,371 that participated in the vote, just 15 voted against it, according to the Independent Pilots Assn. "The overwhelming outcome of this vote is both a show of IPA unity and a clear signal to UPS management that our crewmembers are serious about closing out this contract over the next two weeks in Baltimore," IPA President Tom Nicholson said.
Singapore Airlines refuted suggestions by Airbus that the delay in its first A380 delivery is by mutual agreement and the airline now is seeking compensation.
President Bush nominated Edmund Hawley as the next head of the Transportation Security Administration to succeed David M. Stone, who announced last month that he will leave the department in June. Hawley currently serves as a supply chain technology consultant and is a member of FAA's Air Traffic Services Committee. Earlier, he was VP-Transportation Services for the Union Pacific Railroad and served in a senior role at US DOT.
United Airlines' successful termination of its defined benefit pension programs will give it a substantial cost advantage over other hub-and-spoke carriers and could lead to further bankruptcies as those rivals strive to achieve the same level of cost savings, according to Standard & Poor's analyst Philip Baggaley. Absent the terminations, United would have had to make at least $4.5 billion in payments over the next five years, or around $900 million per year, equal to 18% of 2004 labor costs and 5% of total operating costs, Baggaley noted.
Despite the challenges created by high fuel prices and a proliferation of new entrants in the local market, Singapore Airlines Group announced a net profit attributable to shareholders of S$1.39 billion ($839.7 million) for the fiscal year ended March 31.
Finnair earned €11.5 million ($14.7 million) in the first quarter ended March 31, much improved over a profit of €1.2 million in the year-ago period, while EBIT was €18.7 million versus negative EBIT of €2.4 million last year. "We are back on track towards healthy growth and we can be pleased with that. Our first-quarter result clearly indicates that profitability has taken a turn for the better. Our demand remains strong and our costs are in check," said President and CEO Keijo Suila.
China Southern and subsidiary Xiamen Airlines signed up for 45 737s consisting of 12 737-700s and 33 737-800s. Deliveries will run from 2006 to 2008 and 15 of the dash 800s will go to Xiamen. In a statement to Shanghai Security News, the airlines said the aircraft will lift China Southern's capacity by 15%.
Singapore Airlines watered down suggestions that the lapsing of options it held for five more A340-500s is an indication it will switch to the 777-200LR for its long-haul operations, currently comprising Newark and Los Angeles.
Just a day after receiving approval to terminate its pension plans ( ATWOnline, May 11), UAL Corp., parent of United Airlines, reported a staggering $1.07 billion net loss for the first quarter ended March 31 including $768 million in one-time reorganization items primarily related to the termination of its pension plans and the rejection of aircraft.
CSA Czech Airlines reported a final net profit of 324.2 million koruna ($13.8 million) for 2004, four times higher than 2003 results. The figure was larger than originally estimated owing to higher earnings from abroad, the company said. "Despite the very turbulent environment of air transport, we managed to increase our profit and operational results and thanks to the modernization of our fleet, we have become a highly competitive airline on the European market," President and Chairman Jaroslav Tvrdik said.
Lufthansa Group reported a net loss of €116 million ($148.5 million) for the first quarter ended March 31 compared to a profit of €62 million in the year-ago period. The 2004 results, however, benefited from a €292 million book profit from the sale of LH's stake in Amadeus, and the company noted that its operating result improved from a deficit of €116 million last year to a negative €26 million in the 2005 quarter.
Cathay Pacific Airways flew 5.04 billion RPKs in April, up 12.3% over the year-ago period. Capacity climbed 11.8% to 6.51 billion ASKs and load factor rose 0.4 point to 77.4%. For the four months ended April 30, RPKs increased 16.4% to 20.55 billion, ASKs grew 12.6% to 26.27 billion and load factor gained 2.5 points to 78.2%.
Seattle-based operating lessor Boullioun Aviation Services was sold by German banking giant WestLB to Aviation Capital Group, a subsidiary of Pacific LifeCorp., parent of Pacific Life Insurance Co. Price was not disclosed. "Included in the agreement are 102 owned or managed commercial aircraft, 11 Airbus airplanes currently on order, employees, and other assets of Boullioun Aviation Services," Pacific LifeCorp said in a statement.
Fares continued to fall, oil prices continued to rise. That sums up the experience for the 11 largest US passenger airlines in the first quarter ended March 31. In aggregate they posted a net loss of $3.2 billion, more than double the $1.54 billion shed in the year-ago period. Losses were not spread evenly, however, as two airlines, Delta and United, spilled $2 out of every $3 in red ink, much of it owing to special charges related to their respective restructurings.
Delta Air Lines, which posted an industry-high $1.1 billion net loss in the first quarter, warned that it expects to report a significant net loss for the remaining nine months of 2005 and warned that it may not have enough cash to meet its liquidity needs for the period. In a filing with the Securities and Exchange Commission, Delta said it does not expect to achieve the full $5 billion in targeted benefits under its transformation plan until the end of 2006. In addition, it is faced with record high fuel prices, low yields and other cost pressures.
Brazilian low-fare carrier Gol reported a 131.1 million reais ($53.1 million) net income for the first quarter ended March 31, up 44.6% over net income of R$90.7 million in the year-ago period, as its strong growth helped offset high fuel prices. "The addition of three aircraft, 88 new flight frequencies and two new destinations--Joao Pessoa and Petrolina--allowed Gol to increase its market share, reinforcing our 'virtous cycle,' which focuses on maintaining low costs, allowing us to offer the lowest fares," commented CEO Constantino de Oliveira Jr.
UPS plans to build five new regional freight hubs at US airports in Ontario, Calif.; Rockford, Ill.; Dallas; Philadelphia, and Columbia, S.C. When completed and brought online next year, the new facilities will support a main freight hub to be constructed in Louisville and will help form the backbone of an expansive air network for the movement of heavy freight for customers of UPS Supply Chain. The company said it anticipates spending roughly $24 million to build and equip the five centers and that initially they will create more than 200 new jobs.
Lufthansa and the UFO union representing 14,000 cabin staff reached a four-year pay deal that includes a no-layoff guarantee through Dec. 31, 2008, in return for increased flexibility and productivity, the airline said in a statement yesterday. The agreement also includes a pay freeze until the end of 2006. However, from Jan. 1, 2007, salaries will be raised by at least 2.5% but by no more than the average wage settlement in western Germany. Staff will receive an "inflationary compensation" from Jan. 1, 2008.
SkyEurope Airlines of Slovakia placed an order for up to 32 new 737-700s. The agreement reached with Boeing and GECAS includes 16 firm orders to be delivered in 2006 and 2007, with options on another 16 aircraft for delivery in 2008-09. Twelve of the 16 firm orders will be financed by GECAS. The deal is valued at $880 million and could go up to $1.7 billion if all options are exercised.
Air-India's recent order for up to 50 777s and 787s has erupted into a bitter war of words with the airline threatening to sue Airbus, which is calling for an anticorruption inquiry into the deal. According to a Times of India report, an Air-India spokesperson said the carrier is seeking its own legal recourse and has "written to the ministry of civil aviation and sought action against Airbus." The manufacturer claims that tender protocols were changed midway through to give Boeing an edge, a charge hotly denied by the airline.
Canadian government said Monday it will adopt a new rent policy for federally owned airports that "is expected to result in close to C$8 billion" ($6.5 billion) in rent relief for Canada's airport authorities over the course of their leases (60 years). The relief affects 21 Canadian facilities including all of the country's largest airports.
