NewsANA sees 46% profit increase on international revenue growth All Nippon Airways (ANA) Holdings achieved another strong profit rise in its fiscal year ended March 31, driven mainly by a sharp increase in international revenue. The group reported a record net profit of ¥143.8 billion ($1.3 billion) for the fiscal year, up 45.6% from ¥98.8 billion in the previous year. Revenue rose 11.7% to ¥1.97 trillion, expenses were up 11.6%, and operating profit increased by 13% to ¥164.5 billion.
LinkAirbus posts 31% net profit drop in 1Q; cuts A330/A330neo production Airbus reported a €283 million ($349 million) net profit in the March quarter, down 31% from €409 million a year earlier. The Toulouse-based manufacturer cited supplier delays in the A320neo program as the main cause for the profit drop. Revenue fell 12% year-over-year to €10.1 billion. Because the company built up a massive inventory of unfinished aircraft, Airbus reported a €3.8 billion negative free cash flow for the quarter.
LinkUS House passes FAA reauthorization bill to 2023 The US Congress took a major step toward bringing an end to more than three years of contentious debate over FAA reauthorization with the House voting overwhelmingly to pass legislation that would authorize the agency through Sept. 30, 2023
LinkUnited Continental Holdings raises stake in Brazil’s Azul to 8% United Airlines parent United Continental Holdings has boosted its stake in Azul Airlines to 8% after purchasing shares in the Brazilian company from China’s HNA Group subsidiary Hainan Airlines. “Today is an important step forward in our partnership with United Airlines,” Azul CEO John Rodgerson said.
LinkRussia’s S7 Group agrees to buy Sukhoi’s new SSJ75 aircraft Russia’s S7 Group has signed a letter of intent (LOI) with Sukhoi Civil Aircraft Co. (SCAC) for 50 Sukhoi Superjet 75 (SSJ75) aircraft, plus 25 options. The new aircraft design, which SCAC announced in February, is a 75-seat modification of the SSJ100. The LOI was signed at the Eurasia Airshow in Antalya, Turkey, making S7 Group the launch customer for the new version. SCAC expects to deliver a design proposal to the Russian carrier by year-end. If the LOI is firmed, deliveries should start in 2022.
LinkAir France grounds one 787 over union pilot training conflict Air France said it would be forced to ground one of its new Boeing 787 aircraft and reduce its flight frequency from Paris to Guangzhou, China over a disagreement with its main pilot union the SNPL about pilot training. The news comes as Air France is locked in a wider conflict with its unions over pay: the airline group has launched a company-wide staff consultation on its latest pay proposal in a bid to break the deadlock, but three unions have called for a further four days of strike action on May 3, 4, 7 and 8, which would bring the total number of days of strike action in recent weeks to 15.
LinkEmbraer posts $10 million 1Q net loss; commercial revenue down 21%Brazilian manufacturer Embraer posted a consolidated $10.2 million net loss for the first quarter of 2018, a reversal from the company’s $55.1 million net profit showing in the year-ago March quarter.
LinkJAL reports 17.5% net profit drop on deferred taxesThe Japan Airlines Group’s net profit dropped 17.5% in the fiscal year ending March 31, although it saw a 2.5% rise in its operating profit for the same period. Despite the decline, JAL still recorded a net profit of ¥135.4 billion ($1.27 billion) for the fiscal year. The drop was mainly the result of deferred taxes from the previous year, the carrier said. Excluding special items, the operating profit increased year-on-year (YOY) to ¥174.5 billion.
LinkSkyWest fleet transition lifts 1Q net profit 56%Ongoing fleet transition at SkyWest Inc. continues to drive income growth for the Utah-based parent of regional carriers SkyWest Airlines and ExpressJet Airlines. The company registered a net profit of $54.4 million for the first quarter of 2018, up 56.3% compared to $34.8 million in 1Q 2017. SkyWest CEO and president Chip Childs said the results “reflect continued solid operating performance combined with the ongoing improvements in our fleet mix … we remain disciplined in our approach to risk and flying commitments and [are] focused on executing a strategy to improve our overall model.”
LinkWOW Air closes in on Asia launchIcelandic LCC WOW Air is on the brink of finalizing its plans to serve Asia, as CEO Skuli Mogensen looks to position Iceland as “the Dubai of the north” and grow the fleet to 24 aircraft by year-end.
LinkSpirit posts $45 million 1Q loss, cites pilot contract-related chargesFort Lauderdale-based ultra-LCC Spirit Airlines posted a $44.9 million net loss for the first quarter of 2018, reversed from a $31.3 million net profit in 1Q 2017, as $89 million in special charges related to Spirit’s February labor agreement with its pilots impacted the net result. Spirit recorded an additional $10 million in special charges related to its purchase of 14 previously leased Airbus A319s. Excluding special charges, Spirit’s adjusted net income for the quarter came to $29.9 million, down 14.2% from $34.9 million in adjusted net profit for 1Q 2017.
LinkUS domestic network lifts UPS 1Q profit 15%United Parcel Service (UPS) saw first-quarter net income rise 15% on the strength of its large US domestic network, helping offset headwinds, including weather disruptions that cost the company a chunk of profit. US revenue was $10.2 billion, an increase of 7.2%, with all products showing growth, and air outpacing ground. E-commerce shippers helped lift the company’s Next Day Air and Deferred Air services. International revenue totaled $3.5 billion, a 15% jump. Supply chain and freight revenue was $3.3 billion, up 16%, with tonnage gains “in the mid-single digits in both international and North American air reporting units,” CFO Richard Peretz said.
LinkChina’s Guangzhou Baiyun Airport opens new terminalGuangzhou Baiyun International Airport, China Southern Airlines’ home base, has opened Terminal 2, two years later than originally planned. Xiamen Airlines, Saudia Arabian Airlines, Garuda Indonesia and Kenya Airways are the first four carriers to operate out of the new terminal.
LinkEthiopian orders another 10 Q400sEthiopian Airlines has placed a firm order for 10 Bombardier Q400s, further building Bombardier's backlog and marking continued interest in the turboprop by Africa's largest Q400 operator. The agreement, which includes rights for Ethiopian to purchase five additional Q400s, calls for deliveries to begin in the second quarter of 2019, says Bombardier.
LinkIndiGo president Ghosh to step down this summerLong-standing president of Indian low-cost carrier IndiGo, Aditya Ghosh, has resigned and will step down from the role at the end of July after a decade at the helm. In a brief stock market statement issued after the close of business today, IndiGo parent InterGlobe Aviation says airline founder Rahul Bhatia will act as interim chief executive. It has also named former United Airlines executive Gregory Taylor as senior advisor to the company, a role in which he will report directly to Bhatia.
Link A330neo emerges in Wow Air coloursIcelandic budget carrier Wow Air's first Airbus A330-900 has been painted and rolled out ahead of engine installation. The aircraft (MSN1870) is one of four being leased by the carrier.
LinkCebu Pacific targets 12% passenger growth with A321 deliveriesCebu Pacific is targeting for passenger numbers to hit 22 million in 2018, a 12% increase from the year before. Last year, the Philippine low-cost carrier handled 19.7 million passengers, a 3% year-on-year increase, largely driven by an 8% growth in the number of international passengers. Performance was strong in its key markets of Sydney, Dubai, Hong Kong, Tokyo Narita, Taipei, and Seoul.
LinkALPA warns of strike as WestJet readies Swoop The union representing WestJet's pilots has warned of a possible strike on 19 May, marking further escalation of a labour battle made contentious by WestJet's plans to launch ultra-discount unit Swoop. Despite pressure from the union, WestJet's new chief executive Ed Sims has remained steadfast in the need for WestJet to get into the ultra-low-cost market as soon as it possibly can.
LinkA350 closes on production-rate targetAirbus has reached a monthly production rate of 10 aircraft for its A350 programme, in industrial terms. It has been aiming for a monthly delivery rate of 10 by the end of this year, and says the programme ramp-up is continuing to make "good progress" towards this target.
LinkAirbus ready for 'day one' CSeries marketing driveAirbus insists it is ready to embark fully on CSeries marketing once acquisition of the program from Bombardier is complete, a closure it expects to occur much earlier than originally expected. Chief financial officer Harald Wilhelm says progress on the acquisition, including the regulatory side, has been "great".
LinkBell takes cautious approach to 525 service entryBell plans a "soft" service debut in 2019 for its super-medium 525 Relentless helicopter as it continues to eye an oil and gas market that is still dealing with a significant oversupply of rotorcraft. First delivery of the fly-by-wire Relentless is due in late 2019, but the company estimates it will take "a couple of years" before the industry fully absorbs the "many second-hand aircraft that are standing idle", says Patrick Moulay, Bell senior vice-president commercial business – international.
LinkBoeing completes final FAA test on KC-46 tanker programBoeing’s KC-46 tanker program completed all required supplemental type certificate (STC) flight tests for the US Federal Aviation Administration following a successful refueling and communications flight with a C-17. Boeing said on 26 April that it plans to now submit the resulting data and reports to the FAA for review.
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