AirlinesAirberlin posts record loss for 2016Airberlin has reported a €781.9 million loss ($824 million) in 2016, deepened from a €446.6 million loss in the year-ago period. Germany’s second largest carrier said that 2016 and 1Q 2017 were dominated by the transition to a new business model. The old business model and high restructuring costs had a huge impact on last year’s results.
LinkANA reaffirms ambitious 2020 profit targetAll Nippon Airways parent ANA Holdings has reiterated its commitment to achieving a full year operating profit of Y200 billion ($1.8 billion) in its 2020 fiscal year.
This goal represents a 37% improvement from an operating profit of Y146 billion achieved for its 2016 fiscal year ended 31 March. Another key target is achieving 40% higher passenger and cargo revenue by 2020.
LinkIlyushin Finance firms one Bombardier Q400 for JambojetMoscow-based lessor Ilyushin Finance (IFC) has converted a Bombardier Q400 option into a firm order, taking its order to two of the type, to be placed with Kenya Airways low-cost subsidiary Jambojet.
LinkOman Air losses deepen in 2016Oman Air recorded a sharp deterioration in its financial position in 2016, making a net loss of RO129.8 million ($337.1 million) compared to RO86.3 million in 2015. Full-year revenue was up 1% at RO4.73 billion. Last year, the airline was operating in “an increasingly volatile, political and economic climate,” CEO Paul Gregorowitsch said. Passenger numbers grew by more than 21%, to 7.7 million, while capacity, measured in ASKs, grew 20% to 24.8 billion. RPKs increased 25.5%, resulting in load factor rising 3% to 74.4%.
LinkQantas to adjust long-haul network with advent of Perth-LondonQantas Airways will drop its daily Melbourne-Dubai-London route in March 2018 when it launches daily Melbourne-Perth-London service. The Oneworld carrier detailed the network change in its announcement that tickets for the Perth-London route have gone on sale.
LinkRwandAir replaces CEO, launches London Gatwick servicesRwandAir named Chance Ndagano as acting CEO, who replaced John Mirenge April 10. Ndagano is reportedly a former judge at the military tribunal. The Rwanda flag carrier plans to launch 3X-weekly Kigali to London Gatwick services from May 26, becoming its first route to Europe. The new route will be operated by Airbus A330-200/300 aircraft, which offers 244 or 274 seats in a three-class layout and inflight connectivity.
LinkSouthwest 1Q net profit down 32% despite record revenueSouthwest Airlines posted 2017 first-quarter net income of $351 million, down 31.6% from a net profit of $513 million in the 2016 March quarter, even as the Dallas-based carrier generated record first-quarter revenue of $4.9 billion, up 1.2% year-over-year (YOY). First-quarter expenses increased 8.8% YOY to $4.2 billion as labor costs rose 12.6% to $1.7 billion and fuel costs heightened 8.2% to $922 million. Operating income was $658 million, down 30.3% from an operating profit of $944 million in the prior-year quarter.
LinkSouthwest announces plan to end overbookingSouthwest Airlines says it will end the practice of overbooking flights, a step the airline has been considering for some time, CEO Gary Kelly said. A new reservation system and better forecasting tools are making the practice unnecessary.
LinkSpirit 1Q net profit down 48%, but touts operational improvementUltra low-cost carrier (ULCC) Spirit Airlines reported a first-quarter net profit of $31.9 million, down 48.4% from net income of $61.9 million in the prior-year period, but the Fort Lauderdale-based airline believes it is on the upswing. The aggressive price matching of major US airlines has led the airline to focus more on improving operating performance and on managing its fares more thoughtfully, CEO Bob Fornaro told analysts.
LinkSpirit sheds A320neo deliveries in 2018 after engine issuesSpirit Airlines will no longer take any Airbus A320neos in 2018, becoming the latest airline to adjust deliveries after widely-reported problems with the Pratt & Whitney geared turbofan engine. The ultra low-cost carrier says it has converted two of four A320neos for delivery in 2018 to A320ceos. These aircraft will be delivered in the fourth quarter of 2017, says chief financial officer Ted Christie.
LinkSWISS, Austrian and Lufthansa abolish two-persons-in-the-cockpit rule Lufthansa Group subsidiaries Swiss International Air Lines (SWISS), Austrian Airlines and Lufthansa will abolish a rule requiring two people in the cockpit, effective May 1. The carriers will revert to previous cockpit access provisions, plus a number of additional safety and security measures. Austrian Airlines spokesperson Peter Thier told ATW that Austrian will “revert to the previous cockpit access provisions on our Airbus, Boeing and Embraer fleet. The only exclusion is our [Bombardier] Dash 8 Q400 fleet,”
LinkUPS posts $1.2 billion 1Q net profit as B2C and B2B deliveries riseUnited Parcel Service (UPS) posted a $1.2 billion net profit for the first quarter of 2017, up 2.4% from net income of $1.1 billion in 1Q 2016, on a 6.2% year-over-year rise in total company revenue to $15.3 billion. First-quarter revenue from UPS’s domestic package business rose 5% year-over-year (YOY) to $9.5 billion, with next day air revenue up 5.7% to $1.7 billion. International package revenue increased 4.9% YOY to $3.1 billion. Total fuel expenses were up 43% YOY to $621 million.
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