Strong performance of its international operations, including the first annual profit since it began operating international services in 1986, propelled ANA Group to a consolidated net profit of ¥26.9 billion ($254.2 million) for the 2004 fiscal year ended March 31. This represents the second-highest result in the company's history and a 25% increase over a net profit of ¥24.7 billion in the year-ago period. Operating profit more than doubled to ¥77.7 billion from ¥34.3 billion in the previous financial year.
Boeing reported net earnings of $535 million for the first quarter ended March 31, a 14% decline versus net earnings of $623 million in the 2004 period, as significantly higher noncash expenses for share-based plans, pensions and deferred compensation offset strong performance by its Commercial Airplanes and Integrated Defense Systems units. Total revenue rose just 0.3% to $12.99 billion and total costs and expenses declined 0.2% to $10.78 billion. Earnings from continuing operations fell 16.6% to $687 million from $824 million in the 2004 first quarter.
Citing sharp sales growth and increasing customer preference for its products, Emirates Group reported a record net profit of Dhs2.6 billion ($707.9 million) for the 2004-05 fiscal year ended March 31, a 49% jump over a net profit of Dhs1.75 billion in FY04. Total revenue rose 36.2% to Dhs19.09 billion while total costs climbed 34.9% to Dhs16.4 billion, producing an operating profit of Dhs2.81 billion, up 47.1% over operating profit of Dhs1.91 billion in the prior financial year.
Emirates Airline continues to push Airbus to launch the stretch version of the A380, the proposed dash 900, President Tim Clark told ATWOnline in Dubai.
Assn. of Asia Pacific Airlines released traffic results for March that show continued robust growth. The number of international passengers carried rose 13.4% to 10.7 million while RPKs increased 11.3% to 43.77 billion on a capacity hike of 7.5% to 60.1 billion ASKs. Load factor gained 2.5 points to 72.8%. International FTKs grew 3.5% to 43.7 billion in March but capacity was up 8.4%, resulting in a decline of 3.2 points to 67.5% in load factor.
Debis AirFinance confirmed that its current shareholders, DaimlerChrysler, Bayern LB, Dresdner Bank, DZ Bank and HypoVereinsbank, are in the process of selling the aircraft finance and leasing company to Cerberus Capital Management. Terms were not disclosed. Headquartered in Amsterdam, debis AirFinance has a fleet of 141 aircraft and manages a further 108 under full-service contracts for third-party owners. It provides financial and corporate services for 164 aircraft. The company employs 113 people.
Air Transport Assn. member airlines flew 60.35 billion RPMs in March, up 9% over the year-ago period. Capacity climbed 3.8% to 74.47 billion ASMs and load factor gained 3.9 points to 81%. For the three months ended March 31, RPMs rose 7.5% to 159.44 billion, ASMs increased 2.5% to 211.01 billion and load factor jumped 3.5 points to 75.6%.
Construction of Emirates' new engineering center is on target to be able to handle the carrier's future fleet of 45 A380s, the first of which arrives in October 2006. The $353 million complex, built on a 55-hectare (136-acre) site at Dubai Airport, will have seven hangars and one paint hangar, each capable of handling the A380, making it the biggest maintenance center in the world for the newest Airbus. Two bays can provide A380 heavy maintenance and all can handle a stretched A380-900 version. The complex will employ 3,000.
AirTran Airways became the first US low-cost carrier to spill red ink in the first quarter as it reported a net loss of $8 million for the three months to March 31. In the year-ago period, the Orlando-based airline posted net income of $4.1 million. "The first quarter challenged us on many fronts as we grew revenues and capacity while contending with escalating fuel prices," Chairman and CEO Joe Leonard said. "Nevertheless, we were able to increase our load factor compared to the prior year."
SAS said that passengers traveling from the UK to Denmark and Norway as well as onward to Finland and Eastern Europe now can combine fares across business, Economy Flex (premium economy) and economy classes. The minimum stay rule for business travelers flying on higher economy fares has been reduced to one night and the minimum stay for the lowest economy fares to two nights.
Boullioun Aviation Services reached a medium-term lease with Ukraine International Airlines for a CFM56-3C1-powered 737-300. The aircraft was delivered last week and brings the carrier's fleet to nine 737s.
SkyWest Airlines posted a 1.3% decline in net income to $18.8 million for the first quarter ended March 31, down from net income of $19.4 million in the 2004 quarter. Total operating revenue rose 34.1% to $340.3 million, primarily owing to a 33.8% jump in capacity driven by an increase in fleet size year-over-year, along with increased fuel cost reimbursements by the company's Major partners that are recorded as operating revenues under contract flying arrangements. But operating expenses also increased, climbing 39.8% to $305.8 million during the quarter.
Mesa Air Group reported net income of $10.8 million for the fiscal second quarter ended March 31, up significantly over net income of $1.8 million in the year-ago period. Excluding a one-time gain of $0.6 million related to a settlement with a vendor and $1.6 million in net investment losses, pro forma net income was $11.9 million, a 23.5% increase over pro forma net income of $9.6 million in the 2004 period.
Despite a 30 million dinar ($79.6 million) increase in fuel expense for the year, Gulf Air reported a net profit of 1.5 million dinars for 2004, a complete turnaround compared to a net loss of 19.9 million dinars in 2003. Revenue rose 23.8% to 476.3 million dinars on a 27% jump in passenger revenue, which was driven largely by a 24.3% increase in premium passengers carried during the year. The company said similar growth was seen in cargo revenue, which climbed 20.4% year-over-year.
In a major victory for Boeing, Air Canada yesterday placed a fleet replacement/growth order for up to 96 777s and 787s, including two 777-200 freighters should that program be launched.
Singapore Airlines will increase its fuel surcharge from $4 to $10 per sector on flights between Singapore and Kuala Lumpur from May 1 and from $22 to $30 per sector on all long-haul flights. The airline said the surcharge on all other flights remains unchanged.
Copa yesterday placed an order with Boeing for up to 15 additional 737NGs. The deal includes five firm orders, with deliveries beginning in 2007 and extending through 2009. If all options are exercised, Boeing said the deal will be valued at $750 million. Copa currently operates an all-Boeing fleet of 21 737NGs, with three remaining to be delivered from prior orders.
Virgin Blue will equip its aircraft with inflight satellite television supplied by LiveTV, a subsidiary of JetBlue Airways. Under the agreement announced yesterday, LiveTV will outfit 51 Virgin Blue 737s with satellite receiving and distribution equipment, enabling the Australian low-cost carrier to provide its customers 24 FOXTEL and AUSTAR channels of programming at every seat. Installation is scheduled for the third quarter. The systems will be maintained by LiveTV as well.
Boeing and Mxi Technologies said Aloha Airlines completed installation of several modules of Boeing's Enterprise One maintenance software system into its maintenance operations and has turned off its legacy system. The carrier is using the new system for configuration management and maintenance tracking for its fleet of 737-200s and 737-700s.
United Airlines and the Pension Benefit Guaranty Corp. reached an agreement that will allow United to terminate all of its defined benefit pension plans. According to PBGC, under terms of the agreement, which still must be approved by the US Bankruptcy Court, the agency would terminate and become trustee of the company's four pension plans and its claims against the company would be settled. PBGC estimates that United's pension plans are underfunded by $9.8 billion on a termination basis, $6.6 billion of which is guaranteed by PBGC.
Aer Lingus, as expected, appointed Dermot Mannion as its new CEO replacing Willie Walsh, who left the airline in January and recently was named CEO of British Airways ( ATWOnline, March 9). Mannion, 47, joined Dubai-based Emirates in 1987 and became president of Group Support Services in 2003. He will take up his new post in August.
