Copa Holdings, parent of Copa Airlines and AeroRepublica, reported third-quarter net income of $30.3 million, down 35.6% from a $46.8 million profit in the year-ago period, a drop it attributed almost entirely to noncash fuel hedge losses. Copa took a $15.5 million noncash charge on its hedging contracts owing to the drop in oil prices during the quarter. Absent the charge, its quarterly net profit would have been $45.8 million.
EasyJet transported 4 million passengers in October, up 18.4% from the year-ago month. Load factor rose 1.4 points to 83.9%. Republic Airways flew 795.7 million RPMs in October, down 2.8% year-over-year, against a 0.4% fall in ASMs to 1.09 billion. Load factor dropped 1.8 points to 73%. Allegiant Air flew 248 million RPMs in October, up 8.6% year-over-year. Capacity fell 2.4% to 284.1 million ASMs, lifting load factor 8.9 points to 87.3%.
China Southern Airlines and China Eastern Airlines have started to ground aircraft and cut flights as there is little sign of a recovery in the slumping domestic market. According to CAAC, Chinese carriers again suffered from falling demand last month despite the "golden week" travel period surrounding Oct. 1 National Day. Passenger load factor fell 2.2 points year-over-year to 76.9% while daily aircraft utilization was down 2.1% to 9.2 hr ( ATWOnline, Sept. 17).
US Dept. of Transportation task force comprising representatives from airlines, airports, consumer groups and DOT this week issued recommendations for treating passengers during extended tarmac delays, calling for better communication and improved preparedness to provide stranded passengers with food and water. But the nonbinding "model contingency plan," approved by a 34-1 vote, did not include a suggested set time for returning delayed aircraft back to a gate, a provision desired by consumer advocates and some lawmakers.
Alitalia must pay back the €300 million emergency loan from the Italian government, which the European Commission yesterday called "unlawful aid and incompatible with the common market."
World travel is projected to grow an average of 5% per from 2009 through 2028, with China leading at 7.5%, according to Embraer's 20-year market forecast for commercial aircraft. Emerging markets in Latin America and Russia/CIS will grow a projected 6% annually, Asia/Pacific and Africa will grow about 5% and Europe and North American 4%. Some 6,750 jets in the 30/120-seat range will be required, generating sales of $220 billion over the next two decades.
Air France KLM flew 18.41 billion RPKs in October, up 9% from the year-ago month, against an 8% increase in ASKs to 22.65 billion. Load factor rose 0.7 point to 81.3%. United Airlines flew 8.68 billion system RPMs in October, a 9.7% year-over-year decrease. Capacity dropped 9.9% to 10.68 billion ASMs and load factor rose 0.2 point to 81.3%. Alaska Airlines flew 1.42 billion RPMs in October, down 1% year-over-year. Capacity fell 3.7% to 1.92 billion ASMs, lifting load factor 2 points to 73.6%.
United Airlines will operate the second ASPIRE (Asia and South Pacific Initiative to Reduce Emissions) flight on Nov. 14 from Sydney to San Francisco, following in the footsteps of Air New Zealand, which flew "ASPIRE 1" with a 777-200ER two months ago ( ATWOnline, Sept. 15).
Delta Air Lines and Northwest Airlines, which closed their merger last month, said they are aiming to integrate their flight schedule by next summer as DL unveiled new flights intended to increase connectivity between the two networks and expand its global reach. DL plans to launch 15 new international routes in June to coincide with the network integration. It will start daily 777-200ER flights between JFK and Tokyo Narita as well as five-times-weekly A330-200 Salt Lake City-NRT and daily 757-200 NRT-Ho Chi Min services. It will add a second-daily Atlanta-NRT flight on May 4.
Air Arabia firmed options for 10 A320s, Airbus announced, following up on the order for up to 49 aircraft signed at last year's Dubai Air Show and saying said it needs the additional planes to support expansion and its new Moroccan base scheduled to open next year.
AirTran Airways will begin charging $15 for the first checked bag on flights from Dec. 5. It will continue charging $25 for the second checked bag and $50 for each additional bag. Business class and premium loyalty program members will be exempt. AirTran also said it now will allow passengers to upgrade to business class for $49-$99 one way when checking in online 24 hr. prior to departure and onboard the aircraft either before takeoff or at cruising altitude.
Iberia reported consolidated third-quarter net income of €30.4 million ($38.6 million), down 79.5% from €148.2 million in the year-ago period, on rising fuel costs and weaker demand. Operating revenue slipped 0.6% to €1.45 billion while costs rose 8.7% to €1.43 billion. EBIT fell 88.4% to €16.2 million from €139.3 million last year. Yield lifted 0.5% to 7.43 euro cents
Lufthansa suspended talks regarding a possible takeover of SAS Group ( ATWOnline, Sept. 24), Germany's dpa news agency reported, citing sources close to the negotiations who said a steep loss at SAS subsidiary Spanair is a primary reason for the retreat. An LH spokesperson contacted by ATWOnline would not comment on the report.
FedEx said yesterday that it intends to reduce carbon dioxide emissions from its aircraft fleet by 20% by 2020. It said it already has reduced CO2 emissions by 3.7% per ATM since 2005. Key to the increased efficiency will be the replacement of its 90 727Fs with at least 87 757-200 converted freighters by 2016. The 757s will reduce "fuel consumption up to 36% while providing 20% more payload capacity," it said.
CAE won orders for full-flight simulators and related CAE Simfinity training devices valued at C$63 million ($52.6 million) from American Airlines, Air New Zealand, Suzuyo and Embraer CAE Training Services. AA purchased a CAE 7000 Series 737NG FFS and CAE Simfinity 737NG Integrated Procedures Trainer. ANZ ordered a 787 FFS and a 777-300 FFS as well as a suite of CAE Simfinity training devices for each aircraft type including IPTs and virtual simulators. Suzuyo bought a CAE 7000 Series E-170 FFS and an E-170 IPT. ECTS committed to a CAE 5000 Series Phenom 100/300 FFS.
Aer Lingus yesterday said its full-year operating loss will be "closer" to the lower end of the projected €20-€30 million ($25.7-$38.5 million) range forecast previously but that it expects another operating loss in 2009. Operating loss through the first half of 2008 was €22.3 million.
Swissport International won a seven-year license from Luxembourg-Findel International to conduct ground handling activities including passenger and ramp services.
Vought Aircraft Industries, which produces the 787's rear fuselage, yesterday said it was temporarily ceasing operations at its Charleston plant, claiming that Boeing is so far behind on the program that Vought cannot afford to keep the facility running for the remainder of 2008. In a move that highlights the cascading effect of 787 program delays and the recently concluded Boeing machinists' strike, about half the Charleston plant's 400 employees will be out of work at least through year end. Vought said it hopes to restart rear fuselage production in the 2009 first quarter.
Cathay Pacific Airways CEO Tony Tyler said the current industry downturn will last longer than the one associated with SARS in 2003 but that there will be little, if any, cross-border consolidation, particularly in Asia, as a result. "It's already looking difficult and the question is how long and how deep it will be," Tyler told ATWOnline at the Australian Airports Assn. national convention in Perth. But relief will not come through consolidation, which did not occur during the 1997 Asian financial crisis or SARS, as many analysts predicted.
Fuel costs and the weakening won combined to drag Asiana Airlines to a KRW47.9 billion ($36 million) loss in the third quarter, reversed from a KRW37 billion profit in the year-ago period.
Eastern Airways will lease two additional 50-seat Saab 2000s from the manufacturer with deliveries scheduled for Dec. 3 and 15. It currently operates six of the type, along with 23 Jetstream 41s. It serves 18 destinations and will launch six-times-weekly Aberdeen-Oslo service on Jan. 12 aboard a Saab.
The world's first commercial aviation test flight powered by a sustainable second-generation biofuel will take place on Dec. 3 on an Air New Zealand 747-400 with a jatropha blend powering one of the Rolls-Royce RB211 engines.
