Delta Air Lines expects to report a $1.5 billion net loss for 2009, compared to an $8.9 billion deficit in 2008 that largely was the result of goodwill impairment, and an operating profit of $100 million, it said yesterday in a presentation to investors. Excluding special items, the 2009 loss is expected to be $1.1 billion. It expects December passenger unit revenue to fall just 1% year-over-year to 10.8 cents. The largest decline was June's 23%. Next year's consolidated unit cost excluding fuel is expected to be flat compared to 2009's 8.25 cents.
Etihad Airways joined the Sustainable Aviation Fuel Users Group, an airline-led industry working group established in 2008 to accelerate the commercialization and availability of sustainable biofuels.
Air France KLM flew 15.47 billion RPKs in November, down 3.2% from the year-ago month. Capacity fell 2.9% to 19.83 billion ASKs and load factor dropped 0.2 point to 78%. Lufthansa Group airlines flew 13.59 billion RPKs in November, a 14.9% increase year-over-year, while capacity rose 16.2% to 18.1 billion ASKs. Load factor fell 0.9 point to 75.1%. Lufthansa Passenger Airlines flew 9.59 billion RPKs, up 0.2%, against a 1.3% lift in capacity to 12.81 billion ASKs. Load factor was down 0.9 point to 74.8%.
SpiceJet launched cargo operations in Kochi, the 14th city in its freight network. The LCC said it carries around 120 tons of freight per day aboard its 19 737NGs.
US Air Transport Assn. announced that 15 airlines have signed MOUs with either AltAir Fuels, Rentech or both expressing nonbinding commitment to support future biofuel supply. Air Canada, American Airlines, Atlas Air, Delta Air Lines, FedEx Express, JetBlue Airways, Lufthansa, Mexicana, Polar Air Cargo, United Airlines, UPS Airlines and US Airways signed with both providers. Alaska Airlines and Hawaiian Airlines went with AltAir only and AirTran Airways signed with Rentech. ATA said discussions with additional fuel producers "about other projects" have started.
While asserting that the industry downturn has reached bottom with load factors returning to pre-recession levels and yields experiencing a timid recovery, IATA has become less positive about prospects for 2010 and yesterday deepened its forecast for global industry losses to $5.6 billion from $3.8 billion owing to renewed pressure on passenger yields, higher fuel prices and low aircraft utilization. The organization maintained its forecast of an $11 billion net loss this year ( ATWOnline, Sept. 16).
Air France A380 was held at New York JFK Monday night because of a fuel transfer problem. Passengers scheduled to fly to Paris Charles de Gaulle on Flight AF007 were put on alternate flights yesterday. AF took delivery of the aircraft on Oct. 30 and it first flew from CDG to JFK on Nov. 20 ( ATWOnline, Nov. 2).
Boeing called yesterday's 787 first flight a success despite the inclement weather that cut it short, setting the stage for what the company hopes will be a smooth flight test program culminating with FAA certification and first delivery to launch customer ANA in the 2010 fourth quarter.
Aeronautical Engineers announced it has become a Boeing Licensed Third Party STC Provider for the 737-200SF, 737-300SF and the 737-400SF passenger-to-freighter conversions.
AerCap signed two debt facility agreements that will provide $127 million in funding, the lessor announced. The first, worth $67 million, was inked with Norddeutsche Landesbank Girozentrale for two existing A330s on long-term leases. The second, worth $60 million, was signed with Natixis Transport Finance to finance AerCap investments.
OnAir said it is offering airlines the chance "to communicate directly with their passengers once onboard through personalized text messages." OnAir chose Halys to provide the SMS system that allows carriers to communicate with individual passengers during the flight.
AerData, which provides software and back office services for aircraft asset managers, said that DVB Bank acquired a 2% stake. Other shareholders are AerData Management and AerCap with 49% each.
Garuda Indonesia pilot in command of the 737-400 that crashed at Yogyakarta in March 2007, killing 21 people, won his appeal against a two-year prison sentence that was handed down last April ( ATWOnline, April 7). All charges against Marwoto Komar were dismissed by the Yogyakarta High Court, which ruled that he did his best to save the aircraft.
Delta Air Lines and Virgin Blue/V Australia will commence codeshare flights next month as part of the partnership that gained approval from Australian competition authorities last week ( ATWOnline, Dec. 11). Blue will place its code on Delta flights from Los Angeles to Cincinnati, New York JFK, Orlando International and Salt Lake City beginning Jan. 18, and DL will codeshare on Blue service from Sydney to Brisbane and Melbourne from Feb. 15.
BAE Systems Asset Management announced the sale of three BAe 146QT freighters to Cobham Aviation Services Australia, which had been leasing the aircraft since the early 1990s. Cobham will use them to service a renewed A$100 million ($91.2 million) contract awarded by Australian air Express. BAE and Cobham also extended the lease on one passenger BAe 146-300.
US airlines collected more than $2 billion in ancillary fees in the third quarter, up 36.4% year-over-year, helping the seven network carriers post their first combined operating profit margin since the 2007 third quarter, the US Dept. of Transportation reported yesterday ( ATWOnline, Nov. 12). Network airlines' third-quarter operating profit was $338 million, reversed from a loss of $1.62 billion in the year-ago period. Operating margin was 1.4%, reversed from a loss margin of 5.4% in the 2008 third quarter.
British Airways faces a Christmas crisis following yesterday's announcement that 92.5% of voting flight attendants represented by Unite are in favor of a 12-day strike beginning Dec. 22, a decision that Unite Assistant General Secretary Len McCluskey said was taken with a "heavy heart."
India is making a considerable effort to join commercial aviation's environmental effort, Civil Aviation DG Nasim Zaidi said at the US-India Aviation Partnership Summit in Washington this month, with authorities committed to establishing a national inventory of carbon dioxide emissions for the sector (with a base year of 2005) along with programs compelling both airlines and airports to be more efficient and green.
The US Environmental Protection Agency, as expected, on Dec. 7 issued a formal finding that greenhouse gases including carbon dioxide emissions "threaten the public health and welfare of the American people," clearing the way for the agency to regulate a wide range of CO2-emitting industries, including aviation, under provisions of the Clean Air Act.
As airlines grapple with the challenges of implementing the EU's Emissions Trading Scheme, it turns about that most passengers don't really care very much about offsetting their flights. Dutch bank ING's economic survey team interviewed travelers about their opinion on their CO2 output, asking if they cared about the environmental impact. According to the survey of 41,900 passengers, only 3% actively try to offset their emissions while a further 12% make a minor effort. A staggering 76% didn't care and 9% had no opinion.
ATW announced that the third annual Eco-Aviation Conference will be held June 22-24 at the Marriott Metro Center in Washington. Topics to be discussed will include the development and certification of alternative aviation fuels, the impact of potential EPA CO2 regulations and cap-and-trade legislation in Congress, preparing for and participating in the EU's Emissions Trading Scheme, identifying and implementing operational and air traffic efficiencies, and other topics related to the industry's efforts to become greener.
Fifteen US and non-US airlines, under the umbrella of the Air Transport Assn., entered into MOUs with AltAir Fuels LLC and Rentech Inc. for the purchase of up to 325 million gal. of alternative fuel. The new fuel, which includes second-generation biojet and biodiesel, could begin flowing as early as the fourth quarter of 2012.
US Dept. of Energy Secretary Steven Chu and Dept. of Agriculture Secretary Tom Vilsack announced in early December the selection of 19 integrated biorefinery projects to receive up to $564 million from the American Recovery and Reinvestment Act to accelerate construction and operation of pilot, demonstration and commercial-scale facilities. The projects in 15 states will validate refining technologies and help lay the foundation for full commercial-scale development of a biomass industry in the US.
Nearly a year after it operated the first second-generation biofuel test flight, Air New Zealand continues to be focused on ensuring that "a material portion of its annual fuel use comes from sustainable second-generation sources," according to GM-Operations and Chief Pilot Dave Morgan.
UK Committee on Climate Change report published on Dec. 8 said that the country's aviation policy should be based on the assumption that demand growth between now and 2050 cannot exceed 60% if the UK is to meet the government's target that aviation emissions in 2050 must not exceed 2005 levels. The CCC said that left unchecked, aviation in the UK would grow by 200% by 2050.
