AirlinesAlaska Air Group earns $256 million in 3Q; on pace for record yearSeattle-based Alaska Air Group, parent of Alaska Airlines and Horizon Air, posted third-quarter 2016 net income of $256 million, down 6.6% from a net profit of $274 million in the 2015 September quarter. The year-over-year profit decline can be attributed to $22 million in one-time costs related to Alaska’s proposed merger with San Francisco-based Virgin America, which remains the subject of antitrust talks between Alaska executives and the US Department of Justice (DOJ). Without the merger costs, Alaska’s profit would be slightly up year-over-year.
LinkAlaska CEO: Merger issues being discussed with DOJ are ‘manageable’Seattle-based Alaska Air Group remains in discussions with the US Department of Justice (DOJ) over gaining antitrust clearance for its acquisition of San Francisco-based Virgin America and continues to be confident the deal will be approved. “The scope of the issues that remain with the Justice Department are manageable,” Alaska chairman and CEO Brad Tilden told analysts and reporters Oct. 20, explaining that the issues are “important” and time will be needed to work through them.
LinkAlitalia switches to Sabre IT systemItalian flag carrier Alitalia has completed a major IT upgrade that involved switching its reservations system to a new provider, the airline said Oct. 19. From 8 p.m. local time Oct. 14 and throughout Oct. 15, the airline’s computerized booking system was out of action as it was switched from previous provider Arco to a new system from Sabre that controls reservations, check-in and critical airline operations.
LinkAmerican 3Q net profit down 56.5%; plans conservative capacity growth American Airlines reported third-quarter 2016 net income of $737 million, down 56.5% from a net profit of $1.7 billion in the prior-year period, and is planning conservative capacity growth through 2017. The Dallas/Fort Worth-based airline pointed out that pre-tax net income excluding special items was $1.5 billion, but earnings on that basis were still $400 million lower year-over-year. Chairman and CEO Doug Parker told analysts and reporters that “while [earnings] are down, they’re still the second-best third-quarter results in American’s history after only last year’s third quarter.”
LinkAmerican Airlines shows support for Chicago CubsAmerican Airlines is showing its support for the Chicago Cubs, after becoming the Major League Baseball team's official airline in February 2015. American is putting rally towels with the team's signature "W" on flights and even allowing pilots to provide game updates during flights.
LinkAmerican Airlines to roll out Premium Economy cabin in Nov.American Airlines' new Premium Economy cabin for international flights will launch next month on service from Texas to Brazil. Premium Economy seats feature expanded legroom, priority boarding and up to two free checked bags.
LinkGECAS delivers Azul's first A320neoLessor GE Capital Aviation Services Limited (GECAS) has delivered Azul’s first Airbus A320neo. The aircraft, registered PR-YRA, is powered by CFM International Leap 1-A engines, and is the first of eight that will be delivered to Azul by GECAS by end-2019. The A320neo is configured with 174 seats and will enter into service in the coming months, says the Brazilian carrier.
LinkCopa Holdings to launch Colombia-based LCC WingoPanama City-based Copa Holdings will launch Wingo, a low-cost carrier subsidiary of Copa Airlines Colombia, on Dec. 1. “Wingo … diversifies and expands Copa Holdings’ business and operational models, allowing us to better serve a market segment where many opportunities for growth and development still exist,” Copa Holdings CEO Pedro Heilbron said Oct. 20.
LinkEgyptAir agrees to buy eight Boeing 737NGsCairo-based EgyptAir has inked a deal to purchase eight new Boeing 737NGs, with first delivery expected in February 2017, according to an EgyptAir statement. The aircraft will be financed by Dubai Aerospace Enterprise. “This new agreement, which implies adding new eight Boeing Next-Generation 737s to our fleet, will commemorate the mutual effort gathering both Boeing and EgyptAir, which dated back since 1969. The delivery of this new order will help us maintain EgyptAir’s global flight schedule and continue to deliver a consistently great performance for our customers,” EgyptAir chairman and CEO Safwat Musallam said at the signing in Cairo.
LinkIberia to introduce premium economy in 37 long-haul aircraft Spanish flag carrier Iberia has detailed plans to roll out a new premium economy cabin across 37 of its long-haul aircraft, starting from summer 2017. Eight Airbus A330-300s and 13 A340-600s will be upgraded in 2017-18 and these will be joined by 16 factory-equipped A350-900s from 2018.
LinkJetBlue: DOT delay on Norwegian approval hurts US airlines“An unfavorable light” is being cast on US commitment to the rule of law and its Open Skies agreements by the delay in finalizing a decision on Norwegian Air International’s (NAI) application to begin flights to the US, New York-based JetBlue Airways has charged. In a letter to US transportation secretary Anthony Foxx, dated Oct. 19 and submitted to a Department of Transportation (DOT) docket seeking comments on NAI’s application, JetBlue EVP & general counsel James Hnat expresses concern the continued delay could have negative repercussions for US airlines that wish to grow their networks under the terms allowed by the US-European Union Open Skies agreement.
LinkLufthansa increases full-year profit guidanceLufthansa has again changed its full-year adjusted EBIT guidance from “below previous year” to “approximately on previous year’s level.” The German airline group was originally expecting an adjusted EBIT “slightly above previous year.” This was changed to “below previous year” in July. The latest revised guidance was given Oct. 19.
LinkMAS to use A380s for pilgrimages, up seats to 700Malaysia Airlines will transfer its six Airbus A380 aircraft to a subsidiary carrier focused on religious pilgrimage flights, and greatly boost total seating capacity. Speaking to FlightGlobal, carrier chief executive Peter Bellew says the subsidiary airline will have a separate AOC with a sales office operational by December 2016 and flight operations to commence by the third-quarter of 2018.
LinkNorwegian 3Q net profit up 19%Fast-expanding low-cost carrier (LCC) Norwegian recorded a third-quarter net profit of NOK992.5 million ($121.1 million), up 19% compared to a net profit of NOK832.8 million in the year-ago quarter. It achieved the profit on revenue up 15% at NOK8.4 billion. Norwegian described the quarterly results as its “best ever.” “Overall development is good in all markets,” CEO Bjørn Kjos said, singling out growth on Spanish domestic routes; Spain is now Norwegian’s second-largest market in terms of number of passengers.
LinkUnited creates new customer service teamUnited Airlines formed a new customer service team that will integrate all customer-facing factions throughout the organization, including naming Kate Gebo to the newly created role of senior vice president of customer service delivery. "Gebo will report to Greg Hart, chief operating officer of United," writes the company.
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