Tag Archives: 737-800

Jin Air celebrates the delivery of the first direct Boeing 737-800

Jin Air.com 737-800 WL HL8012 (08)(Grd) BFI (Boeing)(LRW)

Jin Air (subsidiary of Korean Air) (Seoul) and Boeing (Chicago, Seattle and Charleston) on July 27 celebrated the airline’s first direct-delivered Next-Generation 737-800 in Seattle.

Jin Air logo (small)

Jin Air is the low-cost affiliated company of Korean Air. The delivery marks the 13th Boeing 737-800 to join Jin Air’s all-Boeing fleet. The airline currently serves 16 routes in Asia and operates a total of 15 airplanes, including two 777-200 ERs.

Photo: Boeing. The pictured Boeing 737-8SH HL8012 (msn 41348) was handed over at Boeing Field in Seattle on July 27.

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WestJet reports record second quarter net earnings

WestJet (Calgary) today announced its second quarter results for 2015, with net earnings of $61.6 million (all amounts in Canadian dollars) ($47.3 million US), or $0.49 per fully diluted share, as compared with the net earnings of $51.8 million, or $0.40 per fully diluted share reported in the second quarter of 2014.

The airline continued:

WestJet logo

WestJet achieved an on-time performance rate of 91.3 percent in the second quarter, a year-over-year improvement of 6.8 percentage points, placing WestJet as the top performing North American airline during the quarter. Based on the trailing twelve months, the airline achieved a return on invested capital of 16.0 per cent, up 0.2 percentage points from the 15.8 per cent reported in the previous quarter.

“I would like to congratulate our more than 10,000 WestJetters on these exceptional second quarter results which marked our 5th quarter of consecutive record adjusted net earnings,” said WestJet President and CEO Gregg Saretsky. “The second quarter is historically our most challenging quarter as capacity is transitioned from southern to domestic markets, so it is particularly rewarding to turn in a double digit margin this quarter. With another quarter of record earnings, and after having exceeded our ROIC target for 12 consecutive quarters, we are pleased to announce that we are increasing our target to 13 to 16 per cent, while continuing our commitment to our brand of friendly, caring service and affordable fares.”

WestJet 2Q15 Results Table

On July 27, 2015, WestJet’s Board of Directors declared a cash dividend of $0.14 per common voting share and variable voting share for the third quarter of 2015, to be paid on September 30, 2015, to shareholders of record on September 16, 2015. All dividends paid by WestJet are, pursuant to subsection 89(14) of the Income Tax Act, designated as eligible dividends, unless indicated otherwise. An eligible dividend paid to a Canadian resident is entitled to the enhanced dividend tax credit.

In other news, WestJet today announced it has begun rolling out its new inflight entertainment system featuring wireless Internet connectivity and more than 450 movies and television programs. Called WestJet Connect, the system will be activated on all of WestJet’s Boeing 767-300 ER aircraft and more than 30 percent of WestJet’s Boeing Next-Generation 737 aircraft by end of 2015, with installations on the majority of the 737 fleet expected to be completed in 2016.

Mobile devices and tablets using either iOS or Android operating systems will need the latest version of the WestJet app prior to boarding. Guests will also be able to access WestJet Connect using their laptops. Tablet rentals will be available on flights longer than three hours and 20 minutes for guests who do not have their own device. The WestJet app will take guests to the WestJet Connect home page where they can begin accessing content. Seats on WestJet Connect-equipped aircraft have 110-volt and/or USB power outlets, allowing guests the opportunity to charge or power their devices.

At launch, WestJet Connect will feature 85 movies and 329 TV programs, including expanded content in French. Content will be refreshed on a monthly basis and will be offered at no charge for an introductory period. The system’s Internet connectivity will be available at an introductory price of $7.99 plus applicable taxes for the duration of each flight.

Once installation is complete, WestJet Connect will be available on all WestJet flights operated on Boeing Next-Generation 737s or 767-300 ER aircraft.

Copyright Photo: TMK Photography/AirlinersGallery.com. WestJet Airlines’ Boeing 737-8CT WL C-GWSZ (msn 37092) in the special Walt Disney World – Magic Plane scheme arrives at Toronto (Pearson).

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Ryanair’s fiscal first quarter profit is up 25% to €245 million, load factor climbs to 92%

Ryanair (Dublin) today reported on its fiscal first quarter financial results. The company reported a first quarter net profit after taxes of €245 million ($271.1 million), up 25 percent from the same quarter a year ago.

Meanwhile Traffic grew 16 percent to 28 million passengers. The load factor climbed six percentage points to an astounding 92 percent.

Ryanair’s Michael O’Leary said:

“We are pleased to report strong growth in traffic and profits in Q1. Our mix of low fares, best on time performance (91% in Q1) and enhanced customer experience under our “Always Getting Better” (“AGB”) program, continues to attract millions of new customers. At the same time our focus on cost (Q1 unit costs fell 7%) enables us to pass on lower fares to customers. Q1 average fare fell 4% to just €45, due to the timing of Easter, weaker April yields and lower checked bag penetration as more families and business customers enjoy discounts on their luggage or benefit from our free 2nd carry-on bag policy.”

The airline continued:

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New Routes and Bases:

We continue to be inundated with growth offers from primary and secondary airports, whose incumbent carriers are cutting capacity and traffic. These new airports, along with our 72 existing bases offer significant growth opportunities as we embark on our new Boeing 737-800 program. This winter we take delivery of 31 aircraft which (net of lease returns), means our fleet will increase to 340 Boeing 737-800’s by year end.

In September we open our 6th German base in Berlin where we have a 5% share of the German market and expect to grow this strongly over the next 5 years. Gothenburg (our 2nd Swedish base) will also open in September. In November, Israel will become our 31st country served when we start flights to Eilat Ovda Airport from Budapest, Kaunas and Krakow.

Two weeks ago we decided, in the best interests of our customers and people, to close our 2 Danish bases in Copenhagen and Billund. This followed threats by the Danish Unions who admitted that they had no members among our Copenhagen pilots or cabin crew to get their members (competitor airline employees) to blockade/disrupt our flights. By moving the aircraft from Copenhagen and Billund to airports outside Denmark the unions have no legal basis for imposing these threatened disruptions, which allows us to continue to grow strongly in Copenhagen without union interference.

Customer Experience:

The year 2 rollout of AGB continues apace as we work to improve the travel experience of our millions of customers. In April we cut fees for sports equipment. In May we upgraded our mobile app to include improvements to the “My Ryanair” customer registration function which facilitates faster and easier booking of our low fares. We added Sabre as our 3rd GDS partner in June and in July we celebrated our 30th birthday with a 1m €19.85 seat sale.

We have also enhanced our Groups travel service with a dedicated groups page on http://www.ryanair.com. Ryanair joined Facebook in July, which provides another channel to communicate with, and listen to our customers. Ryanair’s campaign to “Keep Greece Flying”, under which we dropped prices on Greek domestic routes to just €4.99 one way while also cutting fares on international routes to/from Greece by 30% has been well received. Our on time performance leads the industry, and has further improved in Q1 despite the impact of the French ATC strikes, and the closure of T3 in Rome Fiumicino.

There is a lot more AGB development to come later this year, including a new personalised web site in October, new aircraft interiors, new crew uniforms and new bases.

Hedging:

Fuel is 90% hedged for FY16 at approx. $91 pbl and we have taken advantage of recent lower oil prices to increase our FY17 fuel hedging to 70% at an ave. rate of just under $66 pbl. This will deliver significant fuel bill savings in FY17 of up to €250m (based on current hedging). Our advantageous US$ CapEx hedging, along with our low cost eurobond financing, will help us to continue to purchase and operate aircraft at very low costs which further widens the cost advantage that Ryanair enjoys over all other EU airline competitors.

Balance Sheet:

Ryanair’s balance sheet remains one of the strongest in the industry. In Q1, despite CapEx of €324m and share buybacks of €195m, our net cash increased to over €550m (from €364m in March). We have completed almost 90% of our current €400m share buyback programme which when it closes in August, will mean we have returned almost €3bn to our shareholders via special dividends and share buybacks since 2008.

IAG – Aer Lingus:

On July 10, the Board of Ryanair voted unanimously to accept the IAG offer for Ryanair’s 29.8% stake in Aer Lingus. The timing of this sale is appropriate as our original plan for Aer Lingus (to use it as a mid-priced brand to offer competition at primary airports) has been overtaken by our AGB programme under which Ryanair has successfully entered many of Europe’s primary airports opening new routes and bases but offering competition and consumer choice. As the Ryanair brand develops and continues to grow strongly, the original rationale for acquiring Aer Lingus no longer exists. If the IAG offer is successful, then we would expect to receive these proceeds in mid/late September and the Board will consider our use of the proceeds around the time of our AGM.

We will continue to oppose the UK CMA’s baseless 2013 divestment ruling, (and their recent rejection of Ryanair’s request to review that decision), which was based on the invented theory that no other airline would bid for Aer Lingus while Ryanair was a minority shareholder. This has been hopelessly exposed by IAG’s current offer for Aer Lingus, even while Ryanair was its largest single shareholder.

Outlook:

Due to the exciting growth opportunities that exist for Ryanair’s low fares and AGB customer experience, as well as strong customer demand, we expanded our W15 business schedules which will increase our FY16 traffic target from 100m to 103m. This will be achieved through a combination of strong load factor (90%) and fewer winter groundings (approx. 40). Traffic should increase by 13% in H1 and slightly faster at 15% in H2.

Based on this Q1 performance and reasonable visibility into Q2 (which is heavily dependent on late bookings in Aug and Sept) we now believe that average fares for H1 will be broadly flat (previous guidance 0% to -2%). We have very little visibility into H2, during which we expect that our faster capacity growth (up 15%) and lower oil prices may lead to an aggressive pricing response from competitors who will try to defend their market shares. We therefore remain very cautious about weaker prices and yields this winter. Since Ryanair’s policy is to be load factor active/yield passive we expect that H2 fares will be towards the higher end of our -4% to –8% guidance range.

Our focus on unit cost continues and we expect that unit costs will fall by approx. 3% (aided by higher traffic). Fuel will deliver a saving of close to 7% and unit costs ex-fuel will be broadly flat. Ancillary revenue will be well ahead of our long term target of 20% of total revenue but will track behind the 14% growth in customer numbers in FY16.

We think it is too early in the year to alter our full year profit guidance, although the slightly better H1 yields will push it towards the upper end of our previously guided range of €940m to €970m net profit. We caution however that this guidance, which is 12% ahead of last year’s profit, is heavily reliant on the final outturn of H2 fares over which we currently have almost zero visibility. Ryanair will continue to pursue its strategy of being load factor active and yield passive for the benefit of our customers, our people and our shareholders.”

Copyright Photo: Paul Bannwarth/AirlinersGallery.com. Boeing 737-8AS EI-DWX (msn 33630) lands at Tenerife Sur.

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United Airlines to end two routes from Guam

United Airlines (Chicago) will drop two routes from Guam in late September. The carrier will end the Guam – Cairns route on September 26 and the Guam – Seoul (Incheon) route on September 30 per Airline Route.

Copyright Photo: Michael B. Ing/AirlinersGallery.com. Boeing 737-824 N37274 (msn 31592) departs from Los Angeles International Airport.

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New Gen Airways takes delivery of its first Boeing 737-800 in a revised livery

New Gen Airways (Sabaidee Airways dba) (Bangkok-Don Mueang) has taken delivery of its first Boeing 737-800, leased from ILFC. The pictured ex-Air Jamaica/Caribbean Airlines Boeing 737-8Q8 is currently registered as N645AR (msn 30645, ex 9Y-JMA) and will become HS-NGG. The new jetliner, painted in an updated livery for the new airline, passed through Honolulu on delivery.

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The new Thai airline started passenger operations in January 2014 with older Boeing 737-400s. The carrier currently has four Boeing 737-400s.

New Gen FAs (New Gen)(LR)

In other news, the airline announced a new scheduled route from Krabi International Airport to Nanchang, China. The new route was started on July 15. Previously New Gen operated charters on this route.

Copyright Photo: Ivan K. Nishimura/AirlinersGallery.com (all others by New Gen Airways). N645AR is seen on the ramp at Honolulu. The new airliner is named “Juthathib”.

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Lucky Air takes delivery of the first Boeing 737-800 in the new livery, opens the Kunming-Phuket route

Lucky Air (Kunming, Yunnan, China) on July 14 took delivery of the first Boeing 737-800 painted in the new 2015 livery.

Lucky Air 2015 logo

In other news, Lucky Air today (July 16) inaugurated the Kunming-Phuket route.

Copyright Photo: Ivan K. Nishimura/AirlinersGallery.com. The pictured Boeing 737-84P B-6015 (msn 41809) passed through Honolulu on its long delivery route.

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The new Gol – a closer look

Gol's new livery unveiling 7.15.15 CNF (RDC)(LRW)

Gol Linhas Aéreas Inteligentes S.A. (Gol Transportes Aéreos) (São Paulo), as we previously reported, unveiled a new look yesterday (July 15).

The pictured Boeing 737-8EH PR-GXZ (msn 40739) (above) was presented to the media and guests at the Gol Maintenance Center at Confins International Airport at Belo Horizonte (CNF/SBCF). CNF is the Gol’s main maintenance center.

Above Copyright Photo: Rodrigo Cozzato/AirlinersGallery.com. PR-GXZ is later rolled out into the sunshine at Belo Horizonte.

Gol 737-800 WL PR-GXZ (15)(Tail) CNF (RDC)(LRW)

In addition to the new visual identity (everything will change, from the website to the aircraft, through uniforms, napkins, cups, tickets etc.), the company presented the new seats, now in ecological leather.

Gol 2015 seat (RDC)(LRW)

Above: The new seats.

The pictured PR-GXZ is also the 100th 737NG purchased directly from Boeing. Gol has a total fleet of 140 aircraft. Gol also has 15 737NG to be delivered through 2018, which can be converted to the newer 737 MAX.

Gol 2015 logo (LRW)

In 2018, Gol will receive the first 737 MAX. In all, 100 units were purchased.

Finally, Gol announced a partnership with Go Go to offer a complete inflight entertainment system with on demand Wi-Fi content and streaming – all offered free in a basic page or premium paid packages.

Gol CEO Paulo Kakkinof (RDC)(LRW)

Above Photo: Gol CEO Paulo Kakkinof.

Gol 2015 WL (RDC)(LRW)

Rodrigo Cozzato reporting from Belo Horizonte.

All Copyright Photos by Rodrigo Cozzato/AirlinersGallery.com.

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