Lufthansa on April 30 decided to stop any planned growth of its low-fare brand Eurowings as that unit’s financial performance continued to deteriorate in the first quarter.
Southern Airways Corp., parent of Mississippi-based commuter Southern Airways Express and Hawaii-based commuter Mokulele Airlines, has announced a strategic minority investment by SkyWest Inc., parent of Utah-based regional SkyWest Airlines.
China’s Hainan Airlines has incurred CNY3.6 billion ($523 million) loss for 2018, reversed from a net profit of CNY3.3 billion in 2017, ending its profit-making run.
United Airlines has not leveraged collateral in Avianca Holdings that could see it take control of the Colombian carrier following loan-covenant violations by majority shareholder BRW Aviation, which put up its ownership stake to guarantee a loan from the Chicago-based carrier.
An April 30 deadline for the presentation of a new business plan to rescue Alitalia looked set to be extended after Italian railway company Ferrovie dello Stato (FS), which is expected to lead the relaunch, said it had discussed the possibility of an extension at a board meeting.
Lufthansa subsidiary Austrian Airlines reported a 2019 first-quarter net loss of €99 million ($111 million), widened from a €73 million loss in the year-ago quarter.
Boeing chairman, president and CEO Dennis Muilenburg appears likely to keep all those titles after company shareholders opted April 29 not to make the chairmanship an independent position.
Italy’s deputy prime minister Luigi Di Maio said more private investors are making offers for Alitalia and would play a role in the bankrupt airline’s relaunch.
Japan Airlines (JAL) achieved healthy growth in net profits for its fiscal year through March 31, although it is projected to decline in the current fiscal year.
UK regional carrier Eastern Airways declined to comment on its future in light of the financial problems facing its parent company, US-based Bristow Group.
American Airlines reported a 2019 first-quarter net profit of $237 million, down 23%. The Boeing 737 MAX grounding is projected to cost Dallas/Fort Worth-based American about $350 million in full-year income, assuming its current plan to have the aircraft back in revenue service by Aug. 19 holds, the carrier reported.
Winter storm-related disruptions and a drop in close-in bookings held Alaska Air Group’s net income flat at $4 million in the 2019 first quarter, the same as the year-ago period.
Kuwait-based hybrid carrier Jazeera Airways reported a 2019 first-quarter net profit of KD1.5 million ($4.9 million), reversed from a net loss of KD0.3 million in the year-ago quarter.
Florida-based LCC Spirit Airlines reported a 2019 first-quarter net income of $56.1 million, reversed from a net loss of $44.9 million in the year-ago quarter.
A trio of unusual events took a toll on Southwest Airlines’ first-quarter financial performance and is driving unit costs up, but long-term fundamentals remain strong, as does the carrier’s confidence in the Boeing 737 MAX.
The FAA projects passenger growth for US carriers will advance at an average annual rate of 1.8% over the next 20 years—about 0.1% lower than last year’s forecast—increasing by 48% or roughly 424 million passengers from 2018 levels by 2039.
MAX operators in the US and elsewhere are emphasizing a need to plan for the busy summer season to set schedules well ahead of whenever the groundings are lifted.
