Southwest to start Houston Hobby-Washington Reagan National service on August 4
Southwest Airlines (Dallas) announced today that new service between Houston Hobby and Ronald Reagan Washington National Airport will begin on August 4, 2013. The airline initially will operate one daily roundtrip flight between the two cities.
The U.S. Department of Transportation (DOT) recently awarded slot exemptions for this service by selecting Southwest’s application over competing applications by other airlines to serve other cities from Reagan National Airport.
The new route completes a triad of nonstop service options between Houston and the metropolitan airports in Boston, New York, and Washington, DC.
Southwest has served Houston Hobby since June 18, 1971, and has more than 2,800 Houston-based employees and currently operates 153 daily departures from Hobby Airport. Earlier this year, the Houston City Council approved Southwest’s proposal to construct a new five-gate international facility at Hobby Airport. New near-international service on Southwest Airlines is scheduled to begin in 2015.
Copyright Photo: Tony Storck/AirlinersGallery.com. Boeing 737-8H4 WL N8610A (msn 36635) completes its final approach into nearby Baltimore/Washington.
Southwest Airlines: 
Ryanair’s 2012 profit rises by 13% to a record $731.3 million
Ryanair (Dublin) has reported on its financial results for 2012. The company issued this statement:
Ryanair, Europe’s only ultra-low cost carrier (ULCC) today (May 20) announced (record) annual profits of €569 million ($731.3 million), up 13% on last year despite higher oil costs. Revenues rose 13% to €4.88 billion as traffic grew 5% to 79.3 million passengers. Unit costs rose 8% mainly due to an 18% (€292 million) increase in fuel. Excluding fuel unit costs rose by 3%, while average fares improved by 6%.
| Full Year End (IFRS) |
Mar 31, 2012 |
Mar 31, 2013 |
% Change |
| Passengers(m) | 75.8 | 79.3 | + 5% |
| Revenue(m) | €4,325 | €4,884 | +13% |
| Profit after Tax(m) Note 1 | €503 | €569 | +13% |
| Basic EPS(euro cent) | 34.10 | 39.45 | +16% |
“Announcing these profits Ryanair’s, Michael O’Leary, said:
The highlights of the past financial year include:-
· Profits grew by 13% to €569m.
· Traffic grew 5% to 79.3m (despite grounding up to 80 winter aircraft).
· 7 new bases – Chania (Greece), Eindhoven (Netherlands), Fez (Morocco), Krakow (Poland), Maastricht (Netherlands), Marrakech (Morocco) & Zadar (Croatia).
· 217 new routes (y/e total over 1,600 routes).
· 15 new aircraft delivered (y/e fleet 305).
· 2nd special div. of €492m and €68m share buyback completed.
· 175 new aircraft order, delivery 2014 to 2018 (sub. to June 18 EGM approval).
Delivering a 13% increase in profits and 5% traffic growth despite high oil prices during a European recession is testimony to the strength of Ryanair’s ultra-low cost model. Fuel costs rose by over €290m, and now represent 45% of total costs. Excluding fuel, unit costs were up 3% due to excessive and unjustified increases in Italian ATC, Eurocontrol and Spanish airport fees. Ancillary revenues outpaced traffic growth, rising 20% to €1,064m or 22% of total revenue.
Growth – New Routes and Bases
This summer Ryanair opened 7 new bases, and more than 200 new routes as we continue our strategy of growing Europe’s largest passenger airline. However with 9 (net) additional aircraft and longer sectors, traffic growth this summer will be very modest at approx. 2%. By grounding fewer aircraft next winter we expect to deliver slightly faster H2 monthly growth which should result in overall traffic growth for the full year rising by more than 2m to 81.5m passengers.
Our new route teams continue to handle more growth opportunities than our current fleet expansion allows. Significant opportunities are opening up in Germany, Scandinavia and central Europe in particular, where Air Berlin, SAS and LOT continue to restructure. We are in active discussions with the new owners of Stansted Airport and the new management at Dublin Airport and while no agreements have yet been reached, if a competitive cost base emerges, then we could restart growth at one or other airports as early as September 2013.
Ryanair continues to expand, making meaningful share gains in many of Europe’s largest markets. In addition to being the No. 1 passenger airline in Ireland, and Spain, we have in the last 12 months overtaken Alitalia and LOT to become Italy’s and Poland’s No. 1 airline, respectively. Ryanair believes that its unique low cost advantage will enable the airline to achieve a 20% share of the European short-haul market over the next 5 years, particularly given that many of Europe’s high fare incumbents are restructuring and cutting capacity.
Ryanair’s successful growth, allied to deep short-haul restructuring among many high fare competitors, gives us confidence that we can grow from 80m p.a. to over 100m passengers p.a. over the next 5 years. Our recent order for 175 firm B 737-800 aircraft represents an enormous opportunity for shareholders as Ryanair returns to higher rates (5% p.a.) of traffic growth. We are pleased to have reached acceptable pricing with Boeing, and the controlled delivery programme from Autumn 2014 to end of 2018 will provide the opportunity to expand Ryanair’s fleet to over 400 aircraft and our traffic to over 100m p.a. Ryanair is now uniquely positioned to offer many of Europe’s airports sustained traffic growth in return for low cost, efficient facilities. I am confident that in time this new order will enable Ryanair to extend its traffic leadership over Europe’s airlines, and generate further returns for our shareholders.
We were disappointed that the European Commission in February 2013 decided to prohibit Ryanair’s third offer for Aer Lingus. It is bizarre that the EU can wave through BA’s offer for British Midland in Phase 1 with few remedies, yet months later reject Ryanair’s offer for Aer Lingus which was accompanied by a revolutionary remedies package delivering two upfront buyers to open competing bases in Dublin and Cork airports. We have no doubt that this was yet another politically motivated decision by Europe’s competition authority and it is inexplicable in the context of its stated policy of promoting European airline consolidation.
In recent years high oil prices and competitor fuel surcharges have made Ryanair’s fares even more attractive to hard pressed European consumers. The combination of high oil prices, increasing competitor losses, together with a shortage of financing for weaker credits, will lead to continued EU consolidation and closures. Ryanair is 90% hedged for FY’14 at $980 per tonne (approx. $98 p.bl) and we have now extended our hedges into FY’15 with 25% of H1 hedged at $930 per tonne (approx. $93 p.bl). We hope to continue to make meaningful reductions in our oil costs into FY’15.
Ryanair’s balance sheet remains one of the strongest in the industry. Our aircraft which have been purchased at substantially discounted prices, represents a significant long term benefit for our shareholders. We have gross cash over €3.5bn and year-end net cash of €61m, despite having returned almost €500m to shareholders in November (€1.5bn over the past 5 years) via a second special dividend. We have also taken advantage of current low interest rates to secure almost 70% of our fleet financing all in at under 3% and we have completed our Capex hedging programme to the end of 2014 at Euro/Dollar exchange rate of 1.32.
We expect traffic in FY.14 to grow by 3% to 81.5m. Growth will be slower in H1 at approx. 2%, but rise to approx. 5% in H2 as we ground fewer winter aircraft (up to 60) compared to prior years. Unit costs will increase primarily due to rising oil prices, a 3% growth in sector length, and unjustified higher Eurocontrol and Spanish airport charges. Due to lower yields and higher fuel costs Q1 Net Profit will be lower than last year due to the timing of Easter (which boosted Q4 revenues) and its presence in the prior year Q1 comparable. With almost zero yield visibility into H2 and the EU wide recession, we expect that there will continue to be downward pressure on yields which will dampen full year profit growth. We expect modest yield and traffic growth for the full year to be partly offset by higher oil and Eurocontrol costs resulting in another year of profit growth in FY’14 which – subject to winter yield outturns – should increase to a range of between €570m to €600m”.
Copyright Photo: SM Fitzwilliams Collection. In November of 2006 Ryanair added these biting “bye bye Latehansa” markings to this Boeing 737-8AS EI-DLM (msn 33594) pictured landing at the Dublin base. The aircraft has since gone on to Nok Air as HS-DBM.
Ryanair:
Newsworthy Photo of the Day – May 17, 2013
Travel Service Airlines (Czech Republic) Boeing 737-8Z9 WL OK-TVX (msn 33833) (Prague loves you – Prague Airport) AMS (Ton Jochems). Image: 912156.
Copyright Photo: Ton Jochems/AirlinersGallery.com.
Hot New Photos: 
Alaska Air Cargo delivers the season’s first Copper River Salmon to Seattle-Tacoma
Alaska Air Cargo (Alaska Airlines) (Seattle/Tacoma) today (May 17) delivered the season’s first shipment of Copper River salmon to Seattle-Tacoma International Airport. According to the airline, “the arrival of the coveted Copper River salmon marks the start of the summer salmon season and is anticipated by seafood lovers throughout the Pacific Northwest and beyond.”
The Alaska Airlines plane arrived early this morning with Copper River king and sockeye salmon from three seafood processors: Ocean Beauty Seafoods, Trident Seafoods and Copper River Seafoods. At least four more Alaska Airlines flights today will transport salmon from Cordova, Alaska, to Anchorage, Alaska, Seattle and across the United States.
“We’re proud to be the first to bring wild and sustainable Copper River salmon to seafood lovers across the country, in many cases within 24 hours after the fish is caught,” said Betsy Bacon, managing director of Alaska Air Cargo. “With so much demand for sustainable wild Alaska seafood, airline crews in South-Central and Southeast Alaska will kick into high gear to ship more than 2 million pounds of salmon across our 95-city network.”
Copper Chef Cook-off
Following the arrival of the first fish, three top Seattle chefs will compete to create the best salmon recipe in Alaska Air Cargo’s annual “Copper Chef Cook-off.” Pat Donahue, executive chef of Anthony’s Restaurants and the 2010, 2011 and 2012 Copper Chef winner, will compete against executive chefs John Howie of Seastar Restaurant and Raw Bar, and Chris Bryant of Wildfin American Grill. Also competing against the three chefs in the cook-off will be Master Sgt. Robert Shulman, a 31-year U.S. Air Force Reserve chef representing the 446th Airlift Wing (AW) out of Joint Base Lewis-McChord, located in Tacoma, Wash.
The chefs will have 30 minutes to prepare and serve the first catch of the season to a panel of judges, including Jay Buhner, Seattle Mariners Hall of Famer; Mike Fourtner, deckhand on the F/V Time Bandit, as featured on Discovery Channel’s “Deadliest Catch;” Chief Master Sgt. Tony Mack, 446th AW command chief from JBLM; and Jeff Butler, Alaska Airlines’ vice president of customer service-airports and cargo.
In a special tribute to the military, 10 citizen airmen from the 446th AW, joined in the morning festivities to cheer on the four chefs and sample the season’s first Copper River salmon. Among the other onlookers awaiting the freighter’s arrival were five Alaska Airlines Mileage Plan MVP Gold members invited to sample the season’s first Copper River salmon. These frequent fliers donated 500,000 Alaska Airlines Mileage Plan miles to Fisher House Foundation’s Hero Miles program to attend the event. Hero Miles turns donated frequent-flier miles into free airfare for wounded, injured and ill service members and/or their families who are undergoing treatment at a military or VA medical center and for other authorized events. Through Alaska Airlines’ partnership with Fisher House, the nonprofit that administers the program, nearly 6 million miles were donated last year to assist U.S. servicemembers injured and wounded in service to their country.
“The Copper Chef Cook-off helps to showcase the proud relationship the Air Force Reserves has with Alaska Airlines and hundreds of other employers and industry leaders here in Washington State,” said Chief Master Sgt. Tony Mack, 446th Airlift Wing command chief from Joint Base Lewis-McChord. “Chef is only one of hundreds of vocations in the Air Force Reserve, and allowing one of our finest to compete is a testament to the relationships we have within the community.”
Alaska Airlines and its sister carrier Horizon Air employ dozens of reservists who serve as pilots, aircraft maintenance technicians as well as other air and ground crew. An estimated 10 percent of current Alaska and Horizon employees either still serve in the military or have veteran status.
The airline will use its Twitter account, @AlaskaAir, to announce the winning Copper River salmon recipe. The recipes that will be prepared for the Copper Chef Cook-off are available to download at http://bit.ly/13qe3gS. Fish lovers are encouraged to share their own favorite salmon recipes on Twitter, using the hashtag #SalmonChef.
Enhanced seafood quality training program
Copper River salmon shipped on Alaska Air Cargo this season will arrive as fresh as possible to grocery stores and restaurants across the nation, thanks in part to a cool chain training program required of all airline employees who handle perishables. Alaska Air Cargo employees are required to adhere to strict seafood quality standards and pass an annual food quality course.
Seafood processors and shippers follow these cool-chain standards to provide a temperature-controlled environment for proper food handling. The goal is to keep seafood moving rapidly throughout its journey on Alaska Airlines and maintain a consistent temperature range from the time it leaves the water to when it arrives at stores and restaurants.
Copyright Photo: bruce Drum/AirlinersGallery.com. Alaska Air Cargo’s Boeing 737-490 (F) N709AS (msn 28896) arrives at the Seattle-Tacoma International Airport hub.
Alaska Airlines:
airBaltic launches a new route from Riga to Malta, trims its 1Q net loss
airBaltic (Riga) on May 12, 2013 launched a new route from Riga to Malta. The new route will offer convenient travel between the airports, and beyond to destinations in the Baltics, Scandinavia, Russia, and the CIS.
| Destination served
(from North Hub Riga) |
Flight frequency | Start date | Price*, Basic | Price*, Business Flex |
|
Malta |
1 flight weekly | May 12, 2013 | 59 LVL/ 85 EUR | 315 LVL/ 449 EUR |
airBaltic will fly from Riga to Malta once a week on Sundays, the return flight from Malta to Riga will be operated also on Sundays to secure convenient connections. Passengers will board a Boeing 737-300 aircraft (above) for a flight that will last for 3 hours and 40 minutes.
airBaltic serves 60 destinations from its home base in Riga, Latvia. airBaltic offers convenient connections via North Hub Riga to its network spanning Europe, Scandinavia, Russia, CIS and the Middle East. For summer 2013, airBaltic has introduced six new destinations – Prague (Czech Republic), Heviz-Balaton (Hungary), Olbia (Sardinia, Italy), Rijeka (Croatia), Larnaca (Cyprus), and Malta.
On the financial, the struggling flag carrier stated it trimmed its first quarter net loss by over $12 million. The airline issued this statement:
Latvian airline airBaltic has improved its net result by LVL + 6.7 milllion in the first quarter of 2013, compared to the same perid a year ago.
Martin Gauss, Chief Executive Officer of airBaltic: “After improving our consolidated net result by LVL +66 million in 2012, we were again able to beat our own plan.”
For the January to March period, airBaltic achieved +41% improvement of its net result, compared to the same period a year ago. airBaltic achieved +10% yield improvement in the first quarter of 2013 compared to the same period in 2012, and generated LVL 44.5 million in revenues. The unit revenue, or RASK – revenue per available seat kilometer, was improved by +8% in the January to March period, compared to the same period a year ago.
airBaltic operated 9,685 flights in the first quarter of 2013, or 9% less than in the first quarter of 2012 when airBaltic operated 10,637 flights. In March 2013, airBaltic operated 3,442 flights. The airline carried 534,879 passengers in the first three months of 2013 in its network spanning Europe, Scandinavia, Russia, CIS and the Middle East, but in March 2013 the airline carried 201,757 passengers. The airline’s load factor, which represents the number of passengers as a proportion of the number of available seats, in the first quarter of 2013 was at a level of 63%, while in March it stood at 69%.
The 15-minute flight punctuality indicator for airBaltic was at a level of 83.9% in the first quarter of 2013. This means that 83 of every 100 airBaltic flights in the first quarter of 2013 departed at the planned time or with a delay of no more than 15 minutes.
For summer 2013, airBaltic has introduced six new destinations - Prague (Czech Republic), Heviz-Balaton (Hungary), Olbia (Sardinia, Italy), Rijeka(Croatia), Larnaca (Cyprus), and Malta.
Copyright Photo: Ole Simon/AirlinersGallery.com. Boeing 737-33V WL YL-BBK (msn 29332) taxies past the camera at Paris (CDG).
airBaltic:
American to allow passengers with only one personal item to board early
American Airlines (Dallas/Fort Worth) has launched a new systemwide boarding process that saves overall boarding time by allowing customers who are traveling light to board earlier. Customers traveling with one personal carry-on item that fits under the seat in front of them will be invited to board before Group 2.
The new boarding process is another example of how American is reinventing itself by continuously seeking out ways to streamline processes, creating a more efficient and enjoyable customer journey. With on-time performance being a key factor in the airline’s dependability rating, every minute saved during boarding allows American to push back from the gate earlier, resulting in a more timely departure and arrival.
“For customers, departing on time and arriving at their destination on time is a huge factor in how they feel about their overall experience,” said Carol Wright, American’s Vice President – Customer Planning. “Our tests indicate that this new boarding process will improve our dependability and on-time performance, while being easier and more enjoyable for our customers. It’s another example of our promise to put our customers at the center of everything we do.”
The new boarding process follows successful testing done earlier this year at American Airlines gates at airports in Austin, Texas (AUS), Baltimore (BWI), Denver (DEN), Fort Lauderdale-Hollywood, Fla. (FLL), Kansas City, Mo. (MCI), Minneapolis-St. Paul (MSP) and Washington-Dulles (IAD).
The test received overwhelmingly positive feedback from American’s customers, and agents like the new process because it allows for smoother and quicker boarding for everyone. American expects to see a notable reduction in average boarding time per flight with the new boarding process.
American is continually looking for innovative ways to enhance the customer experience. Other recent enhancements designed to give customers more choices when traveling include:
- The expansion of American’s next-generation kiosks with self-tag capabilities for checked baggage, speeding up the check-in process
- New fare choices with perks that include preferred seating, early boarding and same-day flight changes
- More power ports onboard to help customers stay charged and connected throughout their journey
American’s baggage policy allows each customer to take onboard at no charge one personal item that will fit under the seat in front of them and one bag that meets the FAA-mandated carry-on size requirements to fit into the overhead storage compartment. With the new boarding process, customers who wish to board early before Group 2 can gate-check their carry-on bag at no charge.
Copyright Photo: Joe G. Walker/AirlinersGallery.com. Boeing 737-823 WL N980AN (msn 33203) arrives at Las Vegas.
American Airlines:
Newsworthy Photo of the Day – May 16, 2013
Spring Airlines Japan Boeing 737-81D WL N272LM (JA01GR) (msn 39429) BFI (Rick Schlamp). Image: 912049.
Copyright Photo: Rick Schlamp.
Hot New Photos:
Newsworthy Photo of the Day – May 15, 2013
Southwest Air Lines-SWAL/JTA (Japan Transocean Air) Boeing 737-446 JA8999 (msn 29864) HND (Akira Uekawa). Image: 912016.
Copyright Photo: Akira Uekawa/AirlinersGallery.com.
Hot New Photos:
Southwest Airlines helps to launch the Boeing 737 MAX 7
Boeing (Chicago) and Southwest Airlines (Dallas) announced today the launch of the 737 MAX 7, the third member of the 737 MAX family. The carrier and launch customer for the 737 MAX program became the first airline to order the 737 MAX 7, when it converted 30 existing orders for Next-Generation 737s into orders for the 737 MAX 7.
Southwest also exercised options to add five more Next-Generation 737-800s to its fleet. These airplanes, along with the 737 MAX 7s, are part of Southwest’s ongoing effort to improve fuel efficiency and profitability. The 737 MAX 7 supports Southwest’s expanding fleet modernization effort. Southwest is expected to take its first 737 MAX 7 delivery in 2019.
“We are thrilled to announce that Southwest Airlines and Boeing have entered into an agreement for Southwest to be the launch customer for the Boeing MAX 7 series, with deliveries beginning in 2019,” said Gary C. Kelly, Southwest Airlines Chairman of the Board, President, and CEO. “The 737 MAX 7 builds on the strengths of today’s Next-Generation 737-700, incorporating the latest CFM International LEAP-1B engines is expected to reduce fuel burn and CO2 emissions by an additional 12 percent over today’s most fuel-efficient single-aisle airplane.”
The 737 MAX 7 (below) brings the most advanced engine technologies to the world’s best-selling airplane, building on the strengths of today’s Next-Generation 737-700. The 110-ft long airplane incorporates the latest CFM International LEAP-1B engines to deliver improved efficiency with the most reliability and passenger comfort in the single-aisle market. The 737 MAX 7 also will extend the range over today’s 737-700 by approximately 400 nautical miles (741 km).
Image: Boeing.
“Southwest has been a valued partner in the evolution of the 737 program,” said Boeing Commercial Airplanes President and CEO Ray Conner. “We have worked together to launch several models of the 737 including the 737 MAX family in 2011. We are excited to bring the 737 MAX 7 to market with Southwest.”
With the MAX 7 conversions and exercised options for 737-800s, Southwest’s unfilled orders consist of 180 737 MAX airplanes and 137 Next-Generation 737s. The 737 MAX now has orders for 1,315 airplanes.
In other news, Southwest Airlines’ Board of Directors, at its meeting held today, significantly increased the Company’s quarterly dividend to $.04 per share from $.01 per share. Annualized, this amounts to over $100 million. The increase in the quarterly dividend will begin with the 147th consecutive quarterly dividend declared today to Shareholders of record at the close of business on June 5, 2013 on all shares then issued and outstanding. The dividend will be paid on June 26, 2013. The Board also increased the Company’s existing $1 billion share repurchase authorization to $1.5 billion. Of the remaining share repurchase authorization, an initial $250 million of Southwest common stock will be repurchased under an accelerated stock repurchase program.
Gary C. Kelly, Chairman of the Board, President, and CEO, stated: “Over the past 24 months, we have returned over 20 percent of our operating cash flows, or approximately $770 million, to Shareholders through share repurchases and dividends. I am pleased to announce several actions taken today by our Board that follow through with our commitment to deploy free cash flow1 to our Shareholders. The Board authorized an increase in our quarterly dividend payment to $.04 per share from $.01 per share. Based on yesterday’s closing stock price of $13.98, this would provide an approximate one percent annual dividend yield to our Shareholders. The Board also increased our existing $1 billion share repurchase authorization to $1.5 billion. To date, $725 million in share repurchases of the $1.5 billion authorization have been completed since August 2011. This means we have the authority to repurchase an additional $775 million of our common stock. We intend to execute an agreement today to repurchase $250 million of our shares under an accelerated stock repurchase program, which, upon implementation, will immediately bring shares back into the Company.
Top Copyright Photo: Brian McDonough/AirlinersGallery.com. With this announcement, Southwest exercised options to add five more Next-Generation 737-800s to its growing fleet. Boeing 737-8H4 WL N8308K (msn 36682) arrives at Washington (Reagan National).
Southwest Airlines:
Norwegian to launch 20 new routes for the winter 2013-2014, launches its 15th route from London Gatwick
Norwegian Air Shuttle (Norwegian.com) (Oslo) is one of the fastest growing airlines in Europe and continues to launch new routes. The airline has issued this statement concerning the launch of 20 new routes for the coming winter season:
Norwegian is planning to launch 20 new routes this winter season starting in the autumn of 2013. From Stockholm, the company expands the number of direct routes to Malaga, Gran Canaria, Alicante and Tenerife.
Norwegian also announced new routes and increased frequencies on existing routes from Finland, Denmark, Norway and England.
From Sweden and Denmark, the Norwegian winter offer even more departures to several Spanish destinations. From Stockholm, Norwegian is increasing number of flights to Malaga from five to six times per week, to Las Palmas from four to five, Alicante 4-5 and Tenerife from 2 to 3 times a week.
From Gothenburg, Norwegian is increasing the number of flights to Tenerife from one to two times a week. The cvompany is increasing the Copenhagen-Malaga route from eight to nine times a week.
Norwegian has got a very nice reception in the Finnish market and the number of passengers increases constantly resulting in new routes and more departures. For the winter season, Norwegian will fly directly from Oulu to Tenerife and from Turku to Alicante. In addition to these new routes, Norwegian also extends the direct route between Oulu and Alicante in the winter program.
To meet market demand, Norwegian is also increasing flights from Helsinki to several Spanish destinations. The direct flights to Tenerife increases from two to three times a week, Alicante from four to six and Las Palmas from three to four times a week.
As previously reported, Norwegian continues to grow internationally and is launching 11 new routes from Germany to several Spanish destinations. From Hamburg, Norwegian Air Shuttle routes to Alicante, Malaga, Las Palmas and Tenerife. From Cologne launched routes to Alicante, Malaga, Las Palmas and Tenerife. From Munich there will be direct routes to Alicante, Malaga and Tenerife.
In other news, Norwegian has announced flights from London Gatwick to the popular Spanish Canary Island of Fuerteventura starting on October 30. Norwegian will fly twice a week between London Gatwick and Fuerteventura. The new route becomes the 15th route from LGW.
Norwegian has become a significant player at London Gatwick and recently established a UK base at the airport. The airline currently has three aircraft based at London Gatwick and has increased its weekly flights from 198 in 2009 to 320 by the end of the summer.
Copyright Photo: SM Fitzwilliams Collection/AirlinersGallery.com. Boeing 737-8JP WL LN-DYW (msn 39010) with the image of Thorbjorn Egner on the tail taxies past the camera at Dublin.
Norwegian:
Copa Holidings reports a 1Q net profit of $113.8 million
Copa Holdings, S.A. (Copa Airlines) (Panama City) has announced financial results for the first quarter of 2013 (1Q13). The terms “Copa Holdings” or “the Company” refer to the consolidated entity. The following financial information, unless otherwise indicated, is presented in accordance with International Financial Reporting Standards (IFRS). See the accompanying reconciliation of non-IFRS financial information to IFRS financial information included in financial tables section of this earnings release. Unless otherwise stated, all comparisons with prior periods refer to the first quarter of 2012 (1Q12).
OPERATING AND FINANCIAL HIGHLIGHTS
- Copa Holdings reported net income of US$113.8 million for 1Q13, or diluted earnings per share (EPS) of US$2.56. Excluding special items, Copa Holdings would have reported an adjusted net income of $124.4 million, or $2.80 per share, a 37.3% increase over adjusted net income of US$90.6 million and US$2.04 per share for 1Q12.
- Operating income for 1Q13 came in at US$142.6 million, a 27.9% increase over operating income of US$111.6 million in 1Q12. Operating margin for the period came in at 22.2%, compared to 20.5% in 1Q12, as a result of lower unit costs.
- Total revenues increased 18.0% to US$641.3 million. Yield per passenger mile decreased 0.8% to 17.6 cents and operating revenue per available seat mile (RASM) decreased 1.5% to 14.0 cents. However, adjusting for a 6.3% increase in length of haul, yields and RASM increased 2.2% and 1.5%, respectively.
- For 1Q13, robust demand trends resulted in passenger traffic (RPMs) growth of 19.5% on a 19.9% capacity expansion. Consolidated load factor came in at 76.9%, or 0.3 percentage points below 1Q12.
- Operating cost per available seat mile (CASM) decreased 3.6%, from 11.3 cents in 1Q12 to 10.9 cents in 1Q13. CASM, excluding fuel, decreased 4.7% to 6.5 cents.
- Cash, short term and long term investments ended 1Q13 at US$733.4 million, representing 31.2% of the last twelve months’ revenues.
- During the first quarter, Copa Airlines took delivery of two Boeing 737-800 aircraft. As a result, Copa Holdings ended the quarter with a consolidated fleet of 85 aircraft.
- For 1Q13, Copa Holdings reported consolidated on-time performance of 90.0% and a flight-completion factor of 99.7%, maintaining its position among the best in the industry.
| Consolidated Financial & Operating Highlights |
1Q13 | 1Q12 | % Change | 4Q12 | % Change |
| Revenue Passengers Carried (’000) | 1,926 | 1,714 | 12.4% | 1,899 | 1.4% |
| RPMs (mm) | 3,529 | 2,954 | 19.5% | 3,366 | 4.8% |
| ASMs (mm) | 4,590 | 3,829 | 19.9% | 4,447 | 3.2% |
| Load Factor | 76.9% | 77.2% | -0.3 p.p. | 75.7% | 1.2 p.p. |
| Yield | 17.6 | 17.7 | -0.8% | 17.1 | 2.8% |
| PRASM (US$ Cents) | 13.5 | 13.7 | -1.2% | 12.9 | 4.4% |
| RASM (US$ Cents) | 14.0 | 14.2 | -1.5% | 13.5 | 3.6% |
| CASM (US$ Cents) | 10.9 | 11.3 | -3.6% | 11.1 | -2.5% |
| CASM Excl. Fuel (US$ Cents) | 6.5 | 6.8 | -4.7% | 6.8 | -4.1% |
| Breakeven Load Factor (1) | 58.7% | 61.2% | -2.5 p.p. | 61.6% | -2.9 p.p. |
| Fuel Gallons Consumed (Millions) | 60.1 | 51.3 | 17.1% | 58.4 | 2.9% |
| Avg. Price Per Fuel Gallon (US$ Dollars) | 3.34 | 3.33 | 0.4% | 3.34 | 0.1% |
| Average Length of Haul (Miles) | 1,832 | 1,724 | 6.3% | 1,772 | 3.4% |
| Average Stage Length (Miles) | 1,123 | 1,066 | 5.4% | 1,090 | 3.1% |
| Departures | 29,428 | 26,647 | 10.4% | 29,555 | -0.4% |
| Block Hours | 84,490 | 73,394 | 15.1% | 83,146 | 1.6% |
| Average Aircraft Utilization (Hours) | 11.3 | 10.9 | 3.1% | 11.0 | 2.7% |
| Operating Revenues (US$ mm) | 641.3 | 543.3 | 18.0% | 599.8 | 6.9% |
| Operating Income (US$ mm) | 142.6 | 111.6 | 27.9% | 104.3 | 36.8% |
| Operating Margin | 22.2% | 20.5% | 1.7 p.p. | 17.4% | 4.9 p.p. |
| Net Income (US$ mm) | 113.8 | 95.9 | 18.7% | 86.6 | 31.4% |
| Adjusted Net Income (US$ mm) (1) | 124.4 | 90.6 | 37.3% | 89.3 | 39.3% |
| EPS – Basic and Diluted (US$) | 2.56 | 2.16 | 18.5% | 1.95 | 31.5% |
| Adjusted EPS – Basic and Diluted (US$) (1) | 2.80 | 2.04 | 37.1% | 2.01 | 39.4% |
| # of Shares – Basic and Diluted (’000) | 44,387 | 44,341 | 0.1% | 44,409 | 0.0% |
(1) Breakeven Load Factor, Adjusted Net Income and Adjusted EPS for 1Q13, 1Q12, and 4Q12 exclude non-cash charges/gains associated with the mark-to-market of fuel hedges. Additionally, for 1Q13 excludes a US$13.9 million charge related to the devaluation of the Venezuelan currency.
Note: Attached to this press release is a reconciliation of non-IFRS financial measures to the comparable IFRS measures.
Copyright Photo: Michael B. Ing/AirlinersGallery.com. Boeing 737-86N WL HP-1826CMP (msn 38031) approaches the runway for landing at Los Angeles International Airport.
Copa Airlines:
Turkish Airlines finalizes a firm order for 40 Boeing 737 MAX 8s, 10 737 MAX 9s and 20 737-800s
Turkish Airlines (Istanbul) has finalized a firm order for 40 737 MAX 8s, 10 737 MAX 9s and 20 Next-Generation 737-800 jets, valued at $6.9 billion at list prices. The order, originally announced as a commitment last month, also includes options for an additional 25 737 MAX 8s and is the largest Boeing order in Turkish Airlines’ history.
This announcement brings the total number of 737 MAXs ordered to date to 1,285 and Boeing currently has more than 3,100 unfilled orders for 737s.
Turkish Airlines currently operates more than 85 Next-Generation 737s.
Copyright Photo: Andi Hiltl. Boeing 737-8F2 TC-JFU (msn 29781) approaches Zurich for landing.
Turkish Airlines:
Turkish Airlines announces five new destinations
Turkish Airlines (Istanbul) has announced it will fly to Isparta (Turkey), Santiago De Compostela (Spain), Valetta (Malta) and Salzburg (Austria) following the May 2 addition of Friedrichshafen to its growing network.
Beginning on May 20, the carrier will add roundtrip flights between Istanbul and Isparta (Turkey) and will be operated three times weekly on Mondays, Wednesdays and Fridays.
Isparta flight times as planned starting on May 20;
| Flight No. | Days | Departure | Arrival | ||
| TK2860 | Monday, Friday | Istanbul | 13:25 | Isparta | 14:35 |
| TK2860 | Wednesday | Istanbul | 10:55 | Isparta | 12:05 |
| TK2861 | Monday, Friday | Isparta | 15:20 | Istanbul | 16:25 |
| TK2861 | Wednesday | Isparta | 12:50 | Istanbul | 13:55 |
*All times are in LMT.
Another destination in Spain…
With existing services to Madrid, Barcelona, Valencia, Malaga and Bilbao, Turkish Airlines adds flights to Santiago De Compostela as its 6th destination in Spain. Beginning May 21, Santiago De Compostela flights will be operated three times per week on Tuesdays, Fridays and Sundays in both directions.
Santiago De Compostela flight times as planned starting on May 21;
| Flight No. | Days | Departure | Arrival | ||
| TK1319 | Tuesday, Friday, Sunday | Istanbul | 09:00 | Santiago De Compostela | 12:45 |
| TK1320 | Tuesday, Friday, Sunday | Santiago De Compostela | 13:50 | Istanbul | 19:15 |
*All times are in LMT.
Turkish Airlines’ 226th destination in 100 country, Malta flights begins on May 25, 2013. Roundtrip flights between Istanbul and Malta will be operated three times per week on Tuesdays, Wednesdays and Saturdays.
Malta flight times as planned starting on May 25;
| Flight No. | Days | Departure | Arrival | ||
| TK1369 | Tuesday, Wednesday, Saturday | Istanbul | 12:35 | Malta | 14:20 |
| TK1370 | Tuesday, Wednesday, Saturday | Malta | 15:15 | Istanbul | 18:35 |
*All times are in LMT.
Expansion in Austria as well…
With existing services to Vienna, Turkish Airlines now adds flights to Salzburg as its second destination in Austria. Beginning on May 28, roundtrip flights between Istanbul and Salzburg will be operated four times per week on Mondays, Tuesdays, Thursdays and Saturdays.
Salzburg flight times as planned starting on May 28;
| Flight No. | Days | Departure | Arrival | ||
| TK1381 | Monday, Tuesday, Thursday, Saturday | Istanbul | 12:15 | Salzburg | 13:45 |
| TK1382 | Monday, Tuesday, Thursday, Saturday | Salzburg | 14:45 | Istanbul | 18:05 |
*All times are in LMT.
Copyright Photo: Paul Bannwarth. Boeing 737-8F2 TC-JGA (msn 29785) lands at Basel/Mulhouse/Freiburg.
Turkish Airlines:
United to start Chicago O’Hare-San Juan flights on November 5
United Airlines (Chicago) announced today that it will begin daily flights from its hub at Chicago’s O’Hare International Airport to the Luis Munoz Marin International Airport in San Juan, Puerto Rico, on November 5, 2013.
The flight will depart Chicago at 8:20 a.m. (0820), arriving in San Juan at 2:57 p.m. (1457). The return flight will depart San Juan at 3:55 p.m. (1555) and arrive in Chicago at 7:13 p.m. (1913). The route will be operated with Boeing 737-900 aircraft with seating for 20 in United First, 51 in Economy Plus and 96 in Economy. The airline also announced that it will add a second daily flight for the holiday season from December 4 – January 5, 2014.
Copyright Photo: Ton Jochems. Boeing 737-924 ER N75429 (msn 30130) prepares to land at Los Angeles.
United Airlines:
Gol expands its code-share relationship with Delta
Gol Linhas Aéreas Inteligentes S.A. (Gol Transportes Aéreos) (Sao Paulo) has announced a key milestone in its partnership with Delta Air Lines (Atlanta): the implementation of Gol code-share on Delta’s flights from Brasilia to Atlanta.
The companies together offer approximately 380 destinations in more than 62 countries.
“The code-share implementation which has now started and will be done in six phases from May to August,” said Paulo Miranda, Alliances and Strategy manager for Delta Air Lines. “Besides the route from Brasilia to Atlanta, soon we will be integrating all flights operated by Delta between Brazil and the United States to Atlanta and flights to the John F. Kennedy International Airport (JFK) and to Detroit and as part of the codeshare agreement”, he emphasizes.
The route from Brasilia to Atlanta is already available to be acquired at Gol channels and the first flight will take place on May 20. The second phase will include flights from Goiania, Belo Horizonte, Curitiba and Porto Alegre all via Brasilia to Atlanta. This action allows baggage to be labeled and dispatched to final destination.
Copyright Photo: Tony Storck. Boeing 737-8EH WL PR-GUI (msn 35844) arrives in Miami.
Gol:
Delta Air Lines:
Rossiya retires its last Boeing 737-500
Rossiya Russian Airlines (St. Petersburg) in April retired its last Boeing 737-500.
Read the full account (in Russian) from ATO.RU: CLICK HERE
Copyright Photo: Stefan Sjogren. Boeing 737-548 EI-CDD (msn 24989) in the Pulkovo colors prepares to land at Stockholm (Arlanda).
Rossiya:
Routes from St. Petersburg:
Delta Air Lines to buy back shares up to $500 million as its financial condition improves
Delta Air Lines (Atlanta) today announced a balanced capital deployment program aimed at creating up to $5 billion of value for shareholders, including returning more than $1 billion to shareholders over the next three years.
As part of this program, Delta’s Board of Directors has initiated a quarterly dividend and declared a $0.06 per share dividend for shareholders of record as of Aug. 9, 2013. This dividend will be paid on Sept. 10, 2013. In addition, the Board has authorized a $500 million share repurchase program, to be completed no later than June 30, 2016. Together, these two programs are designed to return more than $1 billion of capital to shareholders over the next three years.
“Delta’s financial performance and balance sheet have strengthened considerably over the past five years and the Board believes the company is now in a position to begin returning cash to our shareholders,” said Daniel Carp, chairman of Delta’s Board of Directors. “The Board’s shareholder return program makes a long-term commitment to our shareholders with the implementation of an ongoing quarterly dividend, while also providing flexibility to return additional cash to shareholders through the share repurchase program.”
Comprehensive Financial Plan
Since 2009, Delta has made significant investments in its people, product and service, while improving its earnings and generating $4 billion of free cash flow. That free cash flow has been dedicated to strengthening the company’s balance sheet. As a result, Delta’s adjusted net debt has fallen from $17 billion at the end of 2009 to just under $12 billion at the end of 2012. The company expects to achieve its $10 billion adjusted net debt target by the end of 2013.
“Delta’s strategy has resulted in a solid financial foundation for our company, tremendous improvements in our fleet, facilities, products and technology, as well as top-notch operational reliability and service to our customers,” said Richard Anderson, Delta’s chief executive officer. “The capital deployment plan unveiled today furthers our commitment to becoming the airline of choice for our employees, customers and shareholders.”
In an investor presentation this morning, Delta outlined a comprehensive, five-year financial plan. The plan focuses on free cash flow generation through a combination of expected earnings improvements and a disciplined approach to capital investment. Over the next five years, the company plans to reinvest $2.0 – $2.5 billion annually, or approximately 50 percent of its operating cash flow, into improving the company’s fleet, facilities, products and technology. The resulting free cash flow will be used to return cash to shareholders, further reduce the company’s debt, and opportunistically address longer-term pension funding needs, driving up to $5 billion of value to Delta’s shareholders.
As part of this plan, Delta expects to achieve and maintain an adjusted net debt level of $7 billion, a $5 billion reduction over 2012. By meeting the $7 billion target, Delta will have reduced its adjusted net debt by $10 billion since 2009, significantly decreasing the company’s balance sheet risk and generating more than 50 percent savings in interest expense.
The company also plans to make up to $1 billion of incremental contributions to the company’s defined benefit pension plans over the next five years. These contributions would be in addition to the $650 – $700 million annual required minimum contribution.
Repurchases under Delta’s program may be made through a variety of methods, which may include open market purchases, privately negotiated transactions, block trades, or accelerated share repurchase transactions in compliance with applicable regulatory guidelines, including Securities and Exchange Commission Rule 10b-18. Purchases will be made subject to market and economic conditions, applicable legal requirements, and other relevant factors. Delta had approximately 855 million shares of common stock outstanding as of March 31, 2013.
Copyright Photo: Michael B. Ing. Boeing 737-832 WL N3755D (msn 29627) in the SkyTeam motif arrives at Los Angeles.
Delta Air Lines:
Southwest to start Memphis, Pensacola and Richmond service on November 3
Southwest Airlines (Dallas) has announced new service beginning in November to Memphis, Tennessee, Pensacola, Florida., and Richmond, Virginia, completing the planned arrival of Southwest’s Low Fares and Legendary Customer Service in 89 domestic destinations, including all previously served by wholly-owned subsidiary AirTran Airways.
The new nonstop service offered on both carriers comes as Customers are able to purchase itineraries among the two airlines’ combined 97 destinations, including international airports, in one transaction.
Beginning Sunday, November 3, Southwest Airlines will fly nonstop between:
- Memphis and Baltimore/Washington, Houston (Hobby), Orlando, Chicago (Midway), and Tampa
- Pensacola and Nashville and Houston (Hobby)
- Richmond and Orlando (AirTran Airways will continue to operate nonstop service between Richmond and Atlanta.)
AirTran Airways will start service between Memphis and Baltimore/Washington, Houston (Hobby), and Orlando on August 11, 2013.
Also timed with the extension of the flight schedule, AirTran Airways will begin new service in four airports in November.
Beginning Sunday, November 3, AirTran Airways will fly nonstop between:
- Oklahoma City and Atlanta and Chicago (Midway)
- Hartford/Springfield and Atlanta
- Louisville and Atlanta
- Norfolk/Virginia Beach and Atlanta
Southwest Airlines and wholly-owned subsidiary AirTran Airways, in addition to providing new destinations, added nonstop routes to and from airports they currently serve.
Additional New Service on Southwest Airlines Beginning November 3:
- One daily nonstop flight between Atlanta and New York (LaGuardia)
- One daily nonstop flight between Atlanta and West Palm Beach
- One daily nonstop flight between Atlanta and St. Louis
- One daily nonstop flight between Austin and New Orleans
Shifting from AirTran to Southwest Beginning November 3:
- One daily nonstop flight between Atlanta and San Juan, Puerto Rico
- One daily nonstop flight between Dayton and Orlando
- Two daily nonstop flights between Ft. Lauderdale and Philadelphia
- One daily nonstop flight between Ft. Lauderdale and Pittsburgh
- Two daily nonstop flights between Milwaukee and Ft. Myers
- One daily nonstop flight between Pittsburgh and Ft. Myers
Additional New Service on AirTran Airways Beginning November 3:
- One daily nonstop flight between Baltimore/Washington and Kansas City
- One daily nonstop flight between Columbus and Tampa Bay
- Two daily nonstop flights between Ft. Lauderdale/Hollywood and Jacksonville
Seasonal nonstop service will also begin on November 3 for both Southwest Airlines and AirTran Airways, providing Customers a way to travel to popular Florida destinations.
Seasonal Nonstop Service Beginning November 3 between:
- Ft. Lauderdale/Hollywood and Albany, Columbus, Indianapolis, Kansas City, and Raleigh-Durham
- Ft. Myers and Hartford/Springfield, Boston Logan, Akron-Canton, and Philadelphia
- Orlando and Detroit
- Tampa and Norfolk/Virginia Beach
- West Palm Beach and Philadelphia
In other news, Southwest has been awarded two slot exemptions (one daily round trip) from the DOT to operate new service from Houston’s William P. Hobby Airport to Reagan National creating the only nonstop service between DCA and HOU.
Copyright Photo: Tony Storck. Boeing 737-8H4 WL N8314L (msn 36990) arrives at Baltimore/Washington.
Southwest Airlines:
WestJet reports record 1Q net profit of C$91.1 million, will sell 10 Boeing 737-700s
WestJet (Calgary) today announced its first quarter results for 2013. The airline reported record net earnings of $91.1 million, or $0.68 per diluted share, up from the net earnings of $68.3 million, or $0.49 per diluted share reported in the first quarter of 2012. These results mark WestJet’s 32nd consecutive quarter of profitability. Based on the trailing twelve months, the airline achieved a return on invested capital of 14.3 per cent, up from the 13.7 per cent reported in the previous quarter.
“We are very pleased to report our best ever quarterly earnings and for the third consecutive quarter we exceeded our 12 per cent ROIC target by achieving 14.3 per cent,” said WestJet President and CEO Gregg Saretsky. “The excitement is building as we move closer to the launch of WestJet Encore. I want to thank WestJetters for their dedication and tremendous efforts in providing our guests a caring and friendly experience each and every day.”
| Operating highlights (stated in Canadian dollars) | |||
| Q1 2013 | Q1 2012 | Change | |
| Net earnings (millions) | $91.1 | $68.3 | 33.3% |
| Diluted earnings per share | $0.68 | $0.49 | 38.8% |
| Total revenues (millions) | $967.2 | $891.0 | 8.6% |
| Operating margin | 13.7% | 11.9% | 1.8 pts |
| ASMs (available seat miles) (billions) | 6.032 | 5.690 | 6.0% |
| RPMs (revenue passenger miles) (billions) | 5.088 | 4.721 | 7.8% |
| Load factor | 84.3% | 83.0% | 1.3 pts |
| Segment guests | 4,493,324 | 4,230,415 | 6.2% |
| Yield (revenue per revenue passenger mile) (cents) | 19.01 | 18.87 | 0.7% |
| RASM (revenue per available seat mile) (cents) | 16.03 | 15.66 | 2.4% |
| CASM (cost per available seat mile) (cents) | 13.84 | 13.80 | 0.3% |
| CASM, excluding fuel and employee profit share (cents)* | 8.94 | 8.95 | (0.1%) |
*Refer to reconciliations in the accompanying tables for further information regarding calculations.
WestJet announced in February the first two new communities WestJet Encore will be servicing. Beginning on June 24, 2013, WestJet Encore will begin daily service from Calgary and Vancouver to Fort St. John, British Columbia, and from Calgary to Nanaimo, British Columbia.
In January 2013, WestJet launched a three-year company-wide business transformation initiative with a goal to reduce annual costs by $100 million by the end of 2015 and to undertake a longer term initiative to ensure WestJet’s unit costs are competitive with low cost North American airlines. This initiative will focus on aircraft and asset utilization, distribution, productivity, and all non-operational expenses.
For the second quarter of 2013, WestJet expects strong traffic growth and earnings among its best ever for a second quarter, notwithstanding an expected moderate decline in its second quarter RASM which will be impacted by the timing of Easter and Passover, the elimination of Thomas Cook capacity purchase commitments, the loss of the one-time benefit from Air Canada’s labour uncertainty in the second quarter of 2012, and accelerating capacity growth fueled by higher utilization and the launch of WestJet Encore.
For the second quarter of 2013, WestJet expects CASM, excluding fuel and employee profit share, to be flat to up one per cent year-over-year. The airline expects fuel costs to range between $0.84 and $0.86 cents per litre for the second quarter of 2013, representing a year-over-year decrease of six to nine per cent.
For the full year 2013, the airline now expects CASM, excluding fuel and employee profit share, to be flat to up one per cent year-over-year primarily as a result of cost reductions achieved and anticipated through its business transformation initiative, but excluding any benefit from the exemption it received yesterday from Transport Canada, to the requirement for one flight attendant for every forty passengers on board.
WestJet announced today it has entered into an agreement with a third party under which WestJet will sell 10 of its oldest Boeing Next-Generation 737-700 aircraft to that party in 2014 and 2015, and concurrently entered an agreement with Boeing to purchase 10 Boeing Next-Generation 737-800 aircraft in 2014 and 2015, effectively reducing the average age of WestJet’s fleet by approximately one year. WestJet has deferred the delivery of five Boeing Next-Generation 737-700 aircraft from 2014 and 2015 to 2016 and 2017. “These agreements are part of our strategy to optimize and modernize our fleet mix, which will improve CASM, while maintaining fleet flexibility going forward,” added Gregg Saretsky.
Dividend declaration
On May 6, 2013, WestJet’s Board of Directors declared a cash dividend of $0.10 per common voting share and variable voting share for the second quarter of 2013, to be paid on June 28, 2013, to shareholders of record on June 12, 2013. 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 confirmed it has received an exemption from Transport Canada to the requirement for one flight attendant for every 40 passengers on board. The exemption, which is effective immediately, allows for one flight attendant for every 50 seats on board the aircraft.
“We are pleased that Transport Canada has granted this exemption,” said Gregg Saretsky, WestJet President and CEO. “One flight attendant for every 50 seats is the accepted international practice and has been in place for decades around the world. “This exemption will place us on a level regulatory playing field with U.S. and international carriers who fly in and out of Canada every day under these rules. Safety is a core value at WestJet and we commend the government for recognizing that there is a consistent level of safety operating under this ratio.”
“WestJet has committed that it will not lay off any flight attendants under this new exemption,” commented Antonio Faiola, WestJet Flight Attendant and Chair of PACT, WestJet’s employee association. “Our history speaks for itself: WestJet has always worked with its employees when our business changes and this is another example of its commitment to its people.”
“We anticipate cost savings once this exemption has been operationalized across our network,” continued Gregg Saretsky. “These savings will allow us to grow our network and continue to provide low fares for the Canadian traveller. We will now work with our operations teams to determine when we can implement these changes which will in turn determine when these savings will be realized.”
On the intent to order 10 new Boeing 737-800s, Boeing issued this statement:
“Boeing is delighted that WestJet has committed to order 10 Next-Generation 737-800s. The commitment, with a current list-price value of $891 million, is a key component of the Calgary-based carrier’s strategy to optimize and modernize its fleet. Boeing looks forward to working with WestJet to finalize the order in the coming days.”
Copyright Photo: Michael B. Ing. Boeing 737-7CT WL C-FWBL (msn 32750) approaches Los Angeles International Airport for landing.
WestJet:
WestJet arrives in Myrtle Beach, South Carolina
WestJet (Calgary) yesterday (May 2) launched new twice-weekly nonstop service between Toronto (Pearson) and Myrtle Beach, South Carolina. The first flight left Toronto’s Pearson International Airport at 9:30 a.m. EDT.
Details of WestJet’s new nonstop twice-weekly service (Thursdays and Sundays) between Toronto and Myrtle Beach, South Carolina, are as follows:
| Flight | Departing | Arriving | Effective |
| 1154 | Toronto at 9:30 a.m. | Myrtle Beach at 11:35 a.m. | May 2, 2013 |
| 1155 | Myrtle Beach at 12:20 p.m. | Toronto at 2:14 p.m. | May 2, 2013 |
Introductory one-way fares starting at:
| Departing | Arriving | Air transportation charges (ATC) |
Taxes, fees and charges |
Total one-way price from |
|
| Base fare from | Other ATC | ||||
| Toronto | Myrtle Beach |
$89 | $7.50 | $82.27 | $178.77 *CAD |
*Some restrictions apply.
Further service expansion began April 29, when WestJet launched new nonstop daily service between Calgary and Dallas-Fort Worth, offering more connectivity than ever to the United States through WestJet’s code-share agreement with American Airlines. Within Canada, WestJet is also increasing the number of flights between Toronto and Vancouver, Edmonton, Calgary, Saskatoon and Regina, and will introduce new nonstop service between Toronto and Fort McMurray. The airline will also increase to two flights daily from one between Calgary and Los Angeles, and to 11 from seven flights weekly between Toronto and Orlando.
Internationally, WestJet will extend service to Aruba; Liberia, Costa Rica; and Trinidad and Tobago on a year-round basis. The airline will also add one extra flight each week between Toronto and Kingston and Montego Bay, Jamaica; Varadero, Cuba; St. Maarten; Puerto Plata, Dominican Republic; and Cancun, Mexico.
Copyright Photo: Bruce Drum. Boeing 737-7CT WL C-FWBL (msn 32750) approaches for landing at Orlando International Airport.
WestJet:
Alaska Airlines expands operations at Portland, Oregon
Alaska Airlines (Seattle/Tacoma) will begin new service between Portland, Oregon, and Atlanta starting on August 26 and between Portland and Dallas/Fort Worth starting on September 16, 2013.
“With today’s announcement, we will have committed to eight new routes from Portland within the last 12 months as we continue expansion of this hub,” said Andrew Harrison, Alaska Airlines’ vice president of planning and revenue management. “With these new flights to Atlanta and Dallas/Fort Worth, our Portland-area customers will not only enjoy two new nonstop destinations, but seamless connecting opportunities throughout North America via our partners Delta Air Lines and American Airlines at their respective hubs in Atlanta and Dallas/Fort Worth.”
| Summary of new service: | ||||
| Portland-Atlanta | ||||
| Start date | City pair | Departs | Arrives | Frequency |
| Aug. 26 | Portland-Atlanta | 9:50 a.m. | 5:35 p.m. | Daily |
| Aug. 26 | Atlanta-Portland | 5:10 p.m. | 7:30 p.m. | Daily |
| Portland-Dallas/Fort Worth | ||||
| Start date | City pair | Departs | Arrives | Frequency |
| Sept. 16 | Portland-Dallas | 10:15 a.m. | 4:04 p.m. | Daily |
| Sept. 16 | Dallas-Portland | 5:00 p.m. | 6:59 p.m. | Daily |
| All times based on local time zones. | ||||
During the past year, Alaska Airlines has expanded Portland service to Bozeman, Montana, Santa Barbara, California, Pasco, Washington, Reagan Washington National Airport in Washington, D.C., and Kauai. In addition to the two new markets announced today, Alaska is also scheduled to begin flying between Portland and Fairbanks, Alaska, on June 9, 2013.
The Portland-Atlanta flight will replace one of the two scheduled Seattle/Tacoma-Atlanta flights, which the carrier will reduce to one daily flight starting on August 26.
Copyright Photo: Bruce Drum. Alaska Airlines’ Boeing 737-790 WL N607AS (msn 29751) in the Portland Timbers special livery taxies to the gate at the Seattle-Tacoma International Airport hub.
Alaska Airlines:
Lufthansa and Verdi settle their pay dispute, all strikes called off
Lufthansa (Frankfurt) and the Verdi union representing 33,000 Lufthansa workers have agreed to a new pay increase and a new contract. Pay increases range from three percent to 4.7 percent.
Read the full report from Reuters: CLICK HERE
Copyright Photo: Ole Simon. Boeing 737-330 D-ABEM (msn 25416) climbs gracefully away from the Frankfurt hub.
Lufthansa:
WestJet arrives in Dallas/Fort Worth today
WestJet (Calgary) today launches new daily nonstop service between Calgary and Dallas/Fort Woth, Texas. The first flight leaves Calgary International Airport at 10:25 a.m. MST .
“Today marks the launch of service to a key destination,” said Chris Avery , WestJet Vice-President, Network Planning, Alliances and Corporate Development. “Dallas-Fort Worth International Airport is the fourth-largest airport in the United States , as well as a major hub for our partner, American. Combined, the two airlines offer three round-trip flights between Calgary and Dallas , and beyond that, the opportunity to connect to 16 additional cities as part of our code-sharing agreement. This additional connectivity, combined with the opportunity to earn rewards on both airlines, is an attractive offer for business travellers in particular.”
The WestJet code is also available on American-operated routes connecting through Dallas-Fort Worth to Albuquerque , N.M., Austin, Texas, Nashville , Tenn., Charlotte, N.C., Fort Lauderdale , Fla., Jacksonville , Fla., Kansas City , Mo., Orlando , Fla., Miami , Fla., New Orleans , La., Oklahoma City , Okla., Raleigh-Durham, N.C., San Antonio , Texas, St. Louis , Mo., Tampa, Fla., and Tulsa , Okla.
Details of WestJet’s new nonstop daily service between Calgary and Dallas-Fort Worth are:
| Flight | Departing | Arriving | Effective |
| 1554 | Calgary at 10:25 a.m. | Dallas-Fort Worth at 2:58 p.m. | April 29, 2013 |
| 1555 | Dallas-Fort Worth at 3:45 p.m. | Calgary at 6:29 p.m. | April 29, 2013 |
Copyright Photo: Bruce Drum. American Airlines is WestJet’s new strategic partner and the move to serve AA’s largest hub at DFW makes a lot of business sense. WestJet has also serves AA’s Latin American hub at Miami where Boeing 737-7CT C-GWBF (msn 32757) is pictured taxiing to the runway.
WestJet:
Southwest to revamp its Atlanta schedules to better compete for business traffic against Delta
Southwest Airlines (Dallas) is changing its Atlanta operation in order to better compete against Delta Air Lines (Atlanta) for business customers. The airline, according to this Bloomberg report, will have no more than 20 aircraft on the ground at any time at ATL instead of current 30 (including the shrinking AirTran Airways). This will allow the 175 daily flights to be spread more evenly throughout the day according to the airline. The new strategy and schedule will become effective in November.
Read the full report: CLICK HERE
Copyright Photo: Fernandez Imaging. Boeing 737-3H4 N629SW in the second Silver One scheme taxies at Houston (Hobby).
Southwest Airlines:
AirTran Airways:
United reports a 1Q net loss of $417 million
United Airlines (Chicago) today reported a first-quarter 2013 net loss of $325 million, or $0.98 per share, excluding $92 million of special charges. Including special charges, UAL reported a first-quarter 2013 net loss of $417 million, or $1.26 per share.
- The company achieved its best first-quarter on-time performance in a decade, with 81.0 percent of mainline flights, including both domestic and international flights, arriving within 14 minutes of scheduled arrival time.
- UAL’s first-quarter 2013 consolidated passenger revenue increased 0.7 percent year-over-year on a consolidated capacity reduction of 4.9 percent. First-quarter consolidated passenger revenue per available seat mile (PRASM) increased 5.9 percent compared to the same period in 2012.
- First-quarter 2013 consolidated unit costs (CASM), holding fuel rate and profit sharing constant and excluding special charges and third-party business expense, increased 7.2 percent year-over-year on a consolidated capacity reduction of 4.9 percent. First-quarter 2013 consolidated CASM increased 6.5 percent year-over-year.
- UAL ended the first quarter with $6.4 billion in unrestricted liquidity.
“Our co-workers pulled together in the first quarter to significantly improve our operational performance and customer service despite challenging weather and high load factors, and I want to thank them for their hard work,” said Jeff Smisek, chairman, president and chief executive officer. “Although this was a difficult quarter financially, I’m very proud of our team.”
First-Quarter Revenue and Capacity
For the first quarter of 2013, total revenue was $8.7 billion, an increase of 1.4 percent year-over-year. First-quarter consolidated passenger revenue increased 0.7 percent to $7.6 billion, compared to the same period in 2012.
Consolidated revenue passenger miles (RPMs) decreased 1.2 percent on a consolidated capacity (available seat miles) decrease of 4.9 percent year-over-year for the first quarter. First-quarter 2013 consolidated load factor was 81.1 percent, an increase of 3.0 points versus the first quarter of 2012.
First-quarter 2013 consolidated PRASM increased 5.9 percent compared to the same period in 2012. Consolidated yield for the first quarter of 2013 increased 1.9 percent year-over-year.
Mainline RPMs in the first quarter of 2013 decreased 1.6 percent on a mainline capacity decrease of 5.0 percent year-over-year, resulting in a first-quarter mainline load factor of 81.4 percent. Mainline yield for the first quarter of 2013 increased 1.3 percent compared to the same period in 2012. First-quarter 2013 mainline PRASM increased 5.0 percent year-over-year.
“We are encouraged by our unit revenue performance this quarter, and we are working hard to build on our overall revenue progress this year,” said Jim Compton, UAL’s vice chairman and chief revenue officer. “My co-workers’ continued focus on our operational performance and customer service directly contributed to our improved revenue results.”
Passenger revenue for the first quarter of 2013 and period-to-period comparisons of related statistics for UAL’s mainline and regional operations are as follows:
| 1Q 2013PassengerRevenue (millions) | Passenger Revenue vs.1Q 2012 | PRASM vs. 1Q 2012 | Yield vs. 1Q 2012 | Available Seat Miles vs. 1Q 2012 |
||||||||||
| Domestic | $2,909 | (1.1%) | 3.6% | 1.1% | (4.5%) | |||||||||
| Atlantic | 1,185 | (0.3%) | 11.0% | 6.9% | (10.2%) | |||||||||
| Pacific | 1,143 | 4.0% | 7.2% | 0.7% | (3.0%) | |||||||||
| Latin America | 701 | (3.4%) | (2.6%) | (5.6%) | (0.8%) | |||||||||
| International | 3,029 | 0.5% | 6.5% | 1.5% | (5.6%) | |||||||||
| Mainline | 5,938 | (0.3%) | 5.0% | 1.3% | (5.0%) | |||||||||
| Regional | 1,621 | 4.3% | 8.8% | 2.9% | (4.1%) | |||||||||
| Consolidated | $7,559 | 0.7% | 5.9% | 1.9% | (4.9%) | |||||||||
Year-over-year cargo and other revenue in the first quarter of 2013 increased 6.2 percent, or $68 million, to $1.2 billion.
First-Quarter Costs
First-quarter total operating expenses increased $112 million, or 1.3 percent, year-over-year. Third-party business expense was $121 million in the first quarter.
Consolidated and mainline CASM, excluding special charges and third-party business expense, increased 6.8 percent and 8.3 percent, respectively, in the first quarter of 2013 compared to the same period of 2012. First-quarter consolidated and mainline CASM, including special charges, increased 6.5 and 7.9 percent year-over-year, respectively.
In the first quarter, consolidated and mainline CASM, excluding special charges and third-party business expense and holding fuel rate and profit sharing constant, increased 7.2 percent and 8.6 percent, respectively, compared to the results for the same period in 2012.
“We are focused companywide on operating more efficiently. Moreover, we are building an infrastructure to achieve our return-on-invested-capital goals and generate long-term returns,” said John Rainey, UAL’s executive vice president and chief financial officer. “Our balance sheet is the healthiest it’s been in years, and that benefits everyone—co-workers, customers and investors.”
Liquidity, Cash Flow and Return on Invested Capital
UAL ended the quarter with $6.4 billion in unrestricted liquidity, including $1.0 billion of undrawn commitments under its new revolving credit facility. During the first quarter, the company generated $393 million of operating cash flow and had gross capital expenditures and purchase deposits of $526 million. The company made debt and capital lease principal payments of $1.3 billion in the first quarter, including $1.0 billion of prepayments. The company’s return on invested capital for the 12 months ended March 31, 2013, was 8.0 percent, below the company’s goal of 10 percent.
First-Quarter 2013 Events
- United Airlines achieved a U.S. Department of Transportation first-quarter domestic on-time arrival rate of 81.4 percent, exceeding 80 percent in each month of the quarter. For international flights, United recorded an on-time arrival rate of 79.7 percent for the quarter. The on-time arrival rates are based on flights arriving within 14 minutes of scheduled arrival time. This was the best first-quarter on-time performance for the carrier in a decade.
- United co-workers earned cash incentive payments totaling $22 million for on-time performance during the first quarter.
- Co-workers earned $4.4 million for reaching the company’s customer-satisfaction target for the first quarter, as measured through online surveys of MileagePlus members flying United and United Express. United also awarded $125,000 to select employees of United and United Express for excellence in customer service as part of the company’s Outperform Recognition Program.
- United continued its comprehensive customer service training program for all customer-facing agents and flight attendants worldwide, and nearly 13,000 co-workers completed the training in the first quarter.
- During the first quarter, United replaced its $1.2 billion term loan due 2014 with a new $900 million term loan due 2019, and reduced the principal balance by $300 million in the process. Simultaneously, United entered into a new $1.0 billion revolving credit facility due 2018 that replaced the company’s $500 million undrawn revolving credit facility due 2015, bolstering the company’s unrestricted liquidity position.
- The company pre-paid $400 million of its 9.875 percent Senior Secured Notes and $200 million of its 12.0 percent Senior Second Lien Notes during the first quarter.
- United broke ground on a new widebody aircraft maintenance hangar at Newark Liberty International Airport and is constructing a new maintenance hangar at Washington Dulles International Airport, boosting United’s maintenance capabilities on the East Coast. The company signed a 10-year lease extension on its Maintenance Operations Center at San Francisco International Airport, United’s largest maintenance facility.
- United opened the airline’s new employee health clinic at Chicago O’Hare International Airport, offering convenient on-site health services to co-workers at no charge.
- The company took delivery of six Boeing 737-900ERs and removed from service three Boeing 737-500s and two Boeing 757-200s.
- The company reached an agreement to sell up to 30 Boeing 757-200 aircraft to FedEx.
- During the quarter, the company expanded its industry-leading global route network, launching new nonstop service to Nassau, Bahamas; Fort Lauderdale, Fla.; and Oklahoma City, Okla. United also added two new cities to its network, Fayetteville, N.C., and Thunder Bay, Ontario, Canada. The company announced future new nonstop markets, including the company’s first nonstop service to Dickinson, N.D., as well as additional service to Portland, Ore.; Austin, Texas; San Jose del Cabo, Mexico; Saskatoon, Saskatchewan, Canada; Anchorage, Alaska; Traverse City, Mich.; and Charleston, S.C. The airline also announced it will resume nonstop daily service from Chicago to San Juan, Puerto Rico.
- United relaunched the Premier Access program offering customers access to expedited check-in and security checkpoint lanes along with priority boarding.
- United launched a new baggage delivery option, enabling customers to have their checked bags delivered directly to their final destinations and skip baggage claim upon arrival. The airline will expand the service to more than 190 domestic airports in the coming months.
- The company unveiled a new lounge standard at its United Club in Terminal 2 at Chicago O’Hare International Airport, the first to feature a new design that the airline will use when building and renovating lounges worldwide. The airline is investing more than $50 million to renovate many of its United Clubs, with three more United Clubs to be renovated this year.
- The carrier introduced its first reconfigured transcontinental “p.s.,” Premium Service, aircraft equipped with flat-bed seats, all-new interiors, personal on-demand entertainment, Wi-Fi connectivity, in-seat power and USB ports. United offers p.s. on all nonstop flights between New York Kennedy and both Los Angeles and San Francisco.
- The company ramped up installation of global satellite-based Wi-Fi on its mainline fleet and currently offers satellite-based Wi-Fi on 38 of its aircraft, becoming the first U.S.-based international carrier to offer customers the ability to stay connected while traveling on long-haul overseas routes.
- United introduced a new application for Windows Phone 8 users. With the launch of the Windows app, United is now available on all mobile platforms, including iPhone, Android and Blackberry.
- The company continued to install flat-bed seats in premium cabins on its international fleet and now has more than 7,000 new flat-bed seats on 182 aircraft, more than any other U.S. carrier. In addition, Economy Plus is now available on nearly all of United’s mainline fleet.
- UAL merged its two operating subsidiaries, United and Continental, into a single operating entity, United, on March 31, 2013.
Copyright Photo: Mark Durbin/AirlinersGallery.com. The Continental Airlines name is being kept alive with this United Airlines’ Boeing 737-924 ER WL N75436 (msn 33531) painted in Continental’s 1947 Blue Skyway retrojet scheme.
United Airlines:
Continental Airlines:
Alaska Air Group reports 1Q net income of $37 million
Alaska Air Group, Inc. (Alaska Airlines and Horizon Air) (Seattle/Tacoma) today reported first quarter 2013 GAAP net income of $37 million, or $0.51 per diluted share, compared to $41 million, or $0.56 per diluted share in 2012. Excluding the impact of mark-to-market fuel hedge adjustments of $12 million ($7 million after tax, or $0.11 per diluted share), the company reported record first quarter 2013 net income of $44 million, or $0.62 per diluted share, compared to net income excluding mark-to-market fuel hedge adjustments of $28 million, or $0.39 per diluted share, in 2012.
“Our record performance in what is seasonally our weakest quarter is due to steady demand that kept pace with our growth, and to the many changes we’ve made to improve our business over the last several years,” Alaska Air Group CEO Brad Tilden said. “Looking ahead, we’re facing increased competition in certain markets, and we will closely monitor the environment and continue to adjust our plans to appropriately address these challenges. Our first quarter results, and our ability to be flexible and adapt to an ever-changing industry landscape, would not be possible without the dedication and determination of our employees at Alaska and Horizon.”
The following table reconciles the company’s reported GAAP net income and earnings per diluted share (EPS) during the first quarters of 2013 and 2012 to adjusted amounts:
| Three Months Ended March 31, | |||||||||||||||
| 2013 | 2012 | ||||||||||||||
| (in millions, except per-share amounts) | Dollars | Diluted EPS | Dollars | Diluted EPS | |||||||||||
| Reported GAAP net income | $ | 37 | $ | 0.51 | $ | 41 | $ | 0.56 | |||||||
| Mark-to-market fuel hedge adjustments, net of tax | 7 | 0.11 | (13) | (0.17) | |||||||||||
| Non-GAAP adjusted income and per-share amounts | $ | 44 | $ | 0.62 | $ | 28 | $ | 0.39 | |||||||
Copyright Photo: Michael B. Ing/AirlinersGallery.com. Pulling together, Boeing 737-490 N705AS (msn 29318) in the “Spirit of Alaska Statehood” livery approaches Los Angeles International Airport.
Alaska Airlines:
Alaska Horizon:
Horizon Air:
Southwest reports 1Q net profit of $59 million, establishes a “No Show” policy
Southwest Airlines Company (Southwest Airlines) (Dallas) today reported its first quarter 2013 results. First quarter 2013 net income was $59 million, or $.08 per diluted share, which included $6 million (net) of favorable special items. This compared to net income of $98 million, or $.13 per diluted share, in first quarter 2012, which included $116 million (net) of favorable special items. Excluding special items, first quarter 2013 net income was $53 million, or $.07 per diluted share, compared to a net loss of $18 million, or $.02 loss per diluted share, in first quarter 2012. This exceeded the First Call consensus estimate of $.02 per diluted share. Operating income for first quarter 2013 was $70 million, compared to $22 million in first quarter 2012. Excluding special items, operating income was $112 million for first quarter 2013, compared to $10 million in the same period last year. Additional information regarding special items is included in this release and in the accompanying reconciliation tables.
Gary C. Kelly, Chairman of the Board, President, and Chief Executive Officer, stated, “The significant year-over-year improvement in our first quarter results (excluding special items) was driven by record first quarter revenues and a better-than-expected cost performance. On relatively flat available seat miles year-over-year, total operating revenues of $4.1 billion increased 2.3 percent, or 1.8 percent on a unit basis, compared to first quarter last year. Passenger revenues were boosted significantly by continued progress on the AirTran integration, fleet modernization efforts, and the Rapid Rewards loyalty program. Year-over-year passenger unit revenue trends were relatively stable through February, and while worse than expected, March passenger unit revenues outperformed the domestic industry, on a capacity adjusted basis. Soft revenue trends have continued, thus far, in April, and we expect a year-over-year decline in our April passenger unit revenues. While we are cautious about April trends and the potential effects from government sequestration, recent bookings for May and June have been solid, and lower fuel prices have roughly offset the revenue weakness thus far in April.
“Based on market prices as of April 22nd, second quarter 2013 economic fuel costs, including fuel taxes, are expected to be in the $3.00 to $3.05 per gallon range, well below second quarter 2012′s $3.22 per gallon, including fuel taxes, and below the original forecast included in our 2013 plan1. Also, we now have derivative contracts in place for the remainder of the year that support estimated fuel costs per gallon below our 2013 plan. First quarter 2013 economic fuel costs were $3.29 per gallon, which was in line with our expectation, and 4.4 percent lower than first quarter 2012′s all-time high $3.44 per gallon.
“We are pleased with the early results from revenue initiatives implemented in first quarter 2013 and are excited about the incremental benefit expected for future periods. We launched some of our new 2013 ancillary revenue streams, including selling open premium boarding positions at the gate, increasing our EarlyBird Check-In™ charge, and increasing certain other fees.
“We also phased in the ability for our Customers to fly connecting itineraries between the Southwest and AirTran networks, our top priority this year. As of April 14th, all 97 destinations within the combined networks can be flown on a single itinerary, a key milestone of our AirTran integration. Bookings on these connecting itineraries, thus far, have been strong, giving us further confidence in our plan to achieve $400 million in net, pre-tax, AirTran synergies in 2013 (excluding acquisition and integration costs). With connecting capabilities in place, our ability to optimize the combined networks and operations is enabled, particularly in Atlanta. This is a significant milestone. We are now in a position to evolve Atlanta to a point-to-point operation in fall 2013, similar to our other top ten Southwest cities. This will allow our People to be substantially more productive through scheduling our aircraft, flight crews, and ground staff more constantly throughout the day. Our November schedule (which will open next month) will offer our Atlanta Customers a wider selection of departure times throughout the day, with roughly the same number of daily departures. We expect these changes will grow our local Atlanta traffic.
“We are enthused about planned initiatives for the remainder of the year. Today, we are announcing details of a new No Show policy that will apply to Southwest reservations that include Wanna Get Away® or DING!® fares and are made on or after May 10, 2013, for travel on or after September 13, 2013. The policy is intended to alter behavior, encouraging Customers to cancel unused nonrefundable fares prior to a flight’s departure, allowing us to better predict future inventory and reduce the number of empty seats on aircraft. Also, later this quarter, we will implement phase one of our new revenue management system.
“While we continue to optimize our network and maintain a relatively flat fleet in 2013, we are also making excellent progress on our fleet modernization efforts. Thus far this year, we have taken delivery of nine new Boeing 737-800s and two used Boeing 737-700s, retired three older Boeing 737-300s and one Boeing 737-500, and retrofitted more -700s with our new Evolve interior. As of
March 31, 2013, nearly 90 percent of the Southwest -700 fleet had the Evolve interior, and we expect to complete the remainder of the Southwest -700 retrofits in second quarter 2013. Further, all of Southwest’s -800s and -700s are now equipped with WiFi technology.
“We began operating Southwest’s first scheduled service outside of the continental United States on April 14th, with daily service to San Juan, Puerto Rico, from Orlando and Tampa Bay, Florida. These flights augment AirTran’s existing service between San Juan and Atlanta, Georgia; Baltimore/Washington; and Fort Lauderdale, Florida. Since the beginning of the year, Southwest has also launched service to Branson, Missouri; Charlotte, North Carolina; Flint, Michigan; Portland, Maine; and Rochester, New York. We are excited about our growing network and opportunities ahead. Further, as part of the Dallas Love Field Modernization project, we reached a significant milestone at our hometown airport with the opening of 11 brand new Southwest gates and new concessions on April 16th. This impressive project is on budget and on track for full completion in second half 2014.
“Our balance sheet and liquidity remain strong with approximately $3.1 billion in cash and short-term investments at March 31, 2013. Earlier this month, we replaced our $800 million revolving credit facility with a new $1 billion five-year revolving credit facility. The $200 million increase enhances our liquidity and financial flexibility. Despite the uncertainties surrounding the impact to travel demand from government sequestration and increased consumer taxes, we remain focused on our 2013 plan to achieve a 15 percent pre-tax return on invested capital. In first quarter, we returned $115 million to our Shareholders through repurchasing $100 million of common stock (approximately 9 million shares) and distributing $15 million in dividends.”
No Show Policy
Southwest is implementing a No Show policy that applies to nonrefundable fares that are not canceled or changed by a Customer prior to a flight’s scheduled departure. If a Customer has booked a nonrefundable fare anywhere in his/her itinerary and that portion of the flight is not used and not canceled or changed by the Customer prior to scheduled departure, all unused funds on the full itinerary will be lost, and the remaining reservation will be canceled. The policy applies to reservations made or changed on or after Friday, May 10, 2013, for travel on or after Friday, September 13, 2013. This policy does not apply to military fares, senior fares, or travel during certain irregular operations, including severe weather conditions.
The No Show policy will not impact Customers who simply cancel a Wanna Get Away or DING! fare prior to scheduled departure; in this case, Customers may reuse their funds toward future travel on Southwest, without a change fee, as they have always done. Customers who are traveling on a fully refundable itinerary that does not contain a Wanna Get Away or DING! fare will continue to have the option of either requesting a refund or holding funds for future travel.
Financial Results and Outlook
The Company’s total operating revenues in first quarter 2013 were $4.1 billion, compared to $4.0 billion in first quarter 2012. Operating unit revenues increased 1.8 percent from first quarter 2012. Total first quarter 2013 operating expenses of $4.0 billion were comparable to first quarter 2012. The Company incurred $13 million in special charges (before taxes) during the first quarters of 2013 and 2012 associated with the acquisition and integration of AirTran. Cumulative costs associated with the acquisition and integration of AirTran, as of March 31, 2013, totaled $337 million (before profitsharing and taxes). The Company expects total acquisition and integration costs to be no more than $550 million (before profitsharing and taxes). Excluding special items in the first quarters of 2013 and 2012, operating expenses were approximately $4.0 billion in both periods.
First quarter 2013 economic fuel costs, including fuel taxes, decreased 4.4 percent to $3.29 per gallon, compared to $3.44 per gallon in first quarter 2012. The Company now has derivative contracts in place for approximately 95 percent of its estimated fuel consumption for the remainder of the year. As of April 22nd, the fair market value of the Company’s hedge portfolio through 2017 was a net liability of approximately $151 million, compared to a net asset of $200 million at March 31st. Additional information regarding the Company’s fuel derivative contracts is included in the accompanying tables.
First quarter 2013 profitsharing expense was $15 million, compared to no profitsharing expense in first quarter last year. Excluding fuel, profitsharing, and special items in both periods, first quarter 2013 unit costs increased 2.8 percent from first quarter 2012, which was better than expected largely due to lower workers’ compensation claims, favorable airport settlements, and lower advertising expense. Based on current cost trends, the Company expects a similar year-over-year increase in its second quarter 2013 unit costs, excluding fuel, profitsharing, and special items in both periods.
Operating income for first quarter 2013 was $70 million, compared to $22 million in first quarter 2012. Excluding special items, operating income was $112 million for first quarter 2013, compared to $10 million in first quarter 2012.
Other income for first quarter 2013 was $24 million, compared to $137 million in first quarter 2012. This $113 million decrease primarily resulted from $46 million in gains recognized in first quarter 2013, compared to $170 million in gains in first quarter 2012. In both periods, these gains primarily resulted from unrealized mark-to-market gains/losses associated with a portion of the Company’s fuel hedging portfolio, which are special items. Excluding these special items, other losses were $5 million in first quarter 2013, compared to $6 million in first quarter 2012, primarily attributable to the premium costs associated with the Company’s fuel derivative contracts. Second quarter 2013 premium costs related to fuel derivative contracts are currently estimated to be approximately $12 million, which is comparable to second quarter 2012. Net interest expense declined to $22 million in first quarter 2013, compared to $33 million in first quarter 2012, primarily as a result of the Company’s repayment of its $385 million 6.5 percent notes in March 2012.
Net cash provided by operations was $983 million, and capital expenditures were $534 million, resulting in $449 million in free cash flow2 in first quarter 2013. The Company repaid approximately $164 million in debt and capital lease obligations during first quarter 2013, and intends to repay approximately $149 million in debt and capital lease obligations during the remainder of the year. As of April 23rd, the Company had approximately $3.2 billion in cash and short-term investments, and a fully available unsecured revolving credit line of $1 billion.
The Company’s return on invested capital (before taxes and excluding special items) was approximately 8 percent for the twelve months ended March 31, 2013. Additional information regarding pre-tax return on invested capital is included in the accompanying reconciliation tables.
Southwest Airlines Awards and Recognitions
- Named seventh Most Admired Company in the world by FORTUNE Magazine
- Recognized as the top travel brand and fifth overall brand by The Business Journals in the American Brand Excellence Awards
- Named Domestic Carrier of the Year by the Airforwarders Association
- Named to the Airline of the Year list by the Express Delivery and Logistics Association
- Awarded the Air Cargo Excellence Diamond Award by Air Cargo World
- Named number one in Customer Service by the 2013 Airline Quality Ratings
- Recognized as one of the 2013 100 Best Corporate Citizens by CR Magazine
- Awarded the Grassroots Innovation Award for the Free Hobby Campaign by the Public Affairs Council
Copyright Photo: Brian McDonough/AirlinersGallery.com. Boeing 737-7H4 WL N240WN (msn 32503) with “Live in the Vineyard” promotional decal arrives at Baltimore/Washington.
Southwest Airlines:
Grupo Aeromexico reports a $9.9 million net operating loss in the first quarter
Grupo Aeromexico, S.A.B. de C.V. (AeroMexico) (Mexico City) reported its unaudited consolidated results for the first quarter 2013.
- Grupo Aeromexico reported record revenues of $9.174 billion pesos in the first quarter 2013; a 0.4% year-on-year increase, despite the fact that the quarter was one day shorter than that of the previous year.[1]
- The cost of available seat kilometers (CASK) excluding fuel decreased 3.0% year-on-year in the first quarter 2013 due to the Company’s successful cost containment strategies. When expressed in U.S. dollars, CASK, excluding fuel, decreased 0.4% despite first quarter Mexican peso/ U.S. dollar depreciation.
- First quarter EBITDAR reached $1.259 billion pesos, with a 13.7% margin. Operating income was $189 million pesos, with a 2.1% margin.
- Grupo Aeromexico reported a net operating loss of $122 million pesos ($9.9 million US) in the first quarter 2013. Market value adjustments for the Company’s fuel hedging position resulted in a $59 million peso negative impact on net income.
- Grupo Aeromexico generated $215 million in operating cash before tax during the first quarter 2013. Capital expenditures reached $519 million pesos, including items such as advance payments for aircraft purchases, security deposits and repayment of debt not associated with aircraft purchases. Grupo Aeromexico’s cash balance as at March 31, 2013 was $2.243 billion pesos.
- During the first quarter, Grupo Aeromexico retired two aircraft from its fleet: one Embraer ERJ-145 and one Boeing 737-700, both under lease agreements. The Company also added a Boeing 737-800 jet airliner to its fleet under an operating lease scheme.
Copyright Photo: Gilbert Hechema/AirlinersGallery.com. Boeing 737-752 WL EI-DRE (msn 35787) in the now gone Captain America special livery departs from Montreal (Trudeau).
AeroMexico:
Alaska Airlines is upgrading its aircraft with new seats and power outlets
Alaska Airlines (Seattle/Tacoma) is upgrading its fleet and interiors. According to the airline, “passengers starting this fall will enjoy new aircraft seats that feature a personal space-enhancing design and are equipped with power outlets. The airline is also nearing a decision on an enhanced inflight entertainment system that will allow customers to watch movies, television shows and other programming streamed to any Wi-Fi-enabled device.”
The $100 million project to upgrade the cabins on all of Alaska’s Boeing 737-800, -900 and -900 ER aircraft is expected to be finished by the end of 2014.
Cabin Photo: Alaska Airlines.
Alaska Airlines became the North America launch customer for the main cabin Recaro seat when the carrier took delivery of its first Boeing 737-900 ER in November 2012. The seat’s slimmer design and location of the literature pocket at the top of the seat back enables Alaska to reconfigure its cabins while maintaining the same passenger comfort standards and personal space that are on its aircraft today. Six seats will be added to the airline’s 737-800s and nine seats to its 737-900s.
Alaska will be the only U.S. airline to provide power outlets at every seat on its equipped aircraft, which will include nearly three-quarters of the fleet. The outlets, supplying both 110-volt and USB power for tablets and smart phones, will be conveniently located on the seatback in front of each passenger.
The inflight entertainment solution under consideration will allow programming to be streamed wirelessly from a server onboard the aircraft to any Wi-Fi-enabled device, including passengers’ own laptops, tablets and smart phones as well as tablets provided by Alaska.
After reconfiguring its aircraft, Alaska Airlines’ 737-800s will accommodate 163 passengers (16 in first class and 147 in the main cabin). The carrier’s 737-900s will accommodate 181 passengers (16 in first class and 165 in the main cabin). Its 737-900 ERs, which are not being reconfigured with more seats, also accommodate 16 passengers in first class and 165 in the main cabin. Alaska Airlines’ aircraft will provide passengers with the current fleet standard seat pitch of 31 to 32 inches and 3 inches of recline.
Copyright Photo: Michael B. Ing. Boeing 737-990 ER N408AS (msn 41732) arrives at Los Angeles.
Alaska Airlines:
Batik Air to launch operations on May 3
Batik Air (Jakarta), the new subsidiary of Lion Air (Jakarta) was originally planning to launch its full-service operations on April 26 from Jakarta to both Balikpapan and Manado. However this launch has been delayed to May 3.
In addition, the new carrier will launch two-class Boeing 737-900ER service from Jakarta to Pekanbaru and Ambon on May 8.
Videos:
Top Copyright Photo: Ivan K. Nishimura/Blue Wave Group. The first aircraft for Batik Air is the pictured Boeing 737-9GP ER PK-LBG (msn 38688) which is seen passing through Honolulu on delivery. The aircraft was handed over on April 15.
Bottom Photos: Batik Air.
Alaska Airlines warns its customers to expect delays at impacted airports due to FAA ATC controller layoffs starting today
Alaska Airlines (Seattle/Tacoma), along with many other U.S. airlines, are now warning their passengers that there may be significant ATC delays starting today due to planned cutbacks of FAA controllers due to the sequestration budget cuts. The airline issued this statement:
In response to sequestration budget cuts, Alaska Airlines is recommending that customers check the status of their flight before leaving for the airport and allow additional time to check in when traveling to or from Chicago O’Hare, Fort Lauderdale/Hollywood, Los Angeles, Newark, San Diego and San Francisco. The Federal Aviation Administration plans to furlough air traffic controllers starting Sunday (April 21), which the agency predicts could cause extensive ground delays ranging from 50 minutes to two hours and a reduction in flight arrivals of 30 to 40 percent at certain airports.
Alaska Airlines does not intend to pre-cancel any flights. The carrier is recommending that customers arrive at the airport two hours before departure for domestic flights and three hours before departure for international flights. Connection time between flights, especially when arriving from Mexico or Canada, may be challenging as travelers will need to clear customs and immigration. Travelers booking future flights are encouraged to allow adequate connection times in case air traffic delays continue.
“While we hope the impact of these FAA furloughs does not cause massive flight delays across the country, it is with an abundance of care for our customers that we caution them—especially travelers flying to or from Los Angeles, San Diego and San Francisco where we have several daily flights,” Alaska Airlines Chief Operating Officer Ben Minicucci said.
Minicucci said the airline has contingency plans in place to divert flights and shuttle passengers to and from nearby airports should widespread delays occur. The airline will allow passengers who miss flights to rebook their travel when space is available, with no increase in fare or change fee.
While the FAA says ground delays are expected to impact six airports Alaska Airlines serves, rolling delays could affect the carrier’s entire 95-city operation and cause crew scheduling issues that would force the cancellation of dozens of flights.
The airline is encouraging the public to share their feedback about the FAA’s staffing cutbacks at www.dontgroundamerica.com.
Alaska Airlines operates more than 800 flights a day including an average of:
- 38 daily roundtrip flights to/from Los Angeles
- 20 daily roundtrip flights to/from San Diego
- 16 daily roundtrip flights to/from San Francisco
- 5 daily roundtrip flights to/from Chicago O’Hare
- 2 daily roundtrip flights to/from Newark
- 1 daily roundtrip flight to/from Fort Lauderdale/Hollywood
Airlines are seeking court action to stop the FAA furloughs. Please see the report by Reuters: CLICK HERE
FAA Airport Delay Map: CLICK HERE
Click on this map below for the latest airport information:
Copyright Photo: Michael B. Ing. Boeing 737-990 WL N318AS (msn 30018) in the Spirit of Disneyland II departs from Anchorage International Airport.
Alaska Airlines:
Transavia Airlines to operate two Boeing 737-800s for Sunweb this summer
Transavia Airlines (Netherlands) (Amsterdam) is again planning to operate two Boeing 737-800s this summer season for Dutch tour operator Sunweb. A new color scheme has been developed on the pictured 737-8K2 PH-HZW (msn 29345).
Copyright Photo: Ton Jochems. PH-HZW is seen on the ramp at Amsterdam today after exiting the paint shop.
Hot New Photos:
Transavia Airlines:
AeroMexico introduces AM Plus Class on its 40 Boeing 737s
AeroMexico (Mexico City) has announced that its AM Plus Class will provide new benefits and enhanced seat comfort in its more than 40 Boeing 737 aircraft.
This new service features an extra 4″ (10 cm) of legroom in the first three rows in the Economy Class cabin, with an additional seatback tilt and leather headrests. Another advantage for passengers traveling in this new class includes priority boarding and deplaning, Premier airport check-in counters and baggage identification tags.
Some of the domestic destinations featuring this new product include Cancun, Tijuana, Monterrey, Guadalajara, Merida, among others; and Miami, Los Angeles, New York, Chicago, San Francisco, Washington, Montreal, Lima, Bogota, Caracas and Costa Rica internationally.
In other news, AM is adding new service to Loreto, Mexico. The new route will be served from Mexico City and will stop in Culiacan, then Loreto and continue on to its final destination in Los Angeles, California, enabling Loreto customers to connect to other destinations in the United States.
Copyright Photo: Gilbert Hechema. Boeing 737-752 WL EI-DRE (msn 35787) in the special Tarjeta Aeromexico Banamex-VISA markings climbs away from the runway at Montreal (Trudeau).
AeroMexico:
Jat Airways looks to Etihad Airways as its new savior
Jat Airways (Belgrade) is moving closer to Etihad Airways (Abu Dhabi). The latter will introduce daily Abu Dhabi-Belgrade flights on June 15. The two carriers are now exploring partnership options where Etihad could buy into the struggling Serbian carrier and help it upgrade its aging fleet. Etihad will take a hard look at Jat Airways before it makes an investment. If it invests, the investment is likely to follow and resemble the previous Airberlin (Berlin) investment. In the meantime, the two airlines will be code-sharing (see details below).
Read the full report from In Serbia: CLICK HERE
Both carriers issued this statement:
Etihad Airways, the national airline of the United Arab Emirates, will commence daily nonstop flights between its home-base of Abu Dhabi and Belgrade, the capital of Serbia, from June 15, 2013.
Jat Airways, Serbia’s national carrier, will place its JU code on the new service, as well as to 21 destinations on the Etihad Airways network. In return Etihad Airways will place its EY code on 23 of JatAirways’ European flights.
This new Etihad Airways flights will help provide better travel access to Belgrade for several hundred thousand Serbian nationals living around the world.
Etihad Airways will operate a two cabin Airbus A319 aircraft on the service between Abu Dhabi and Belgrade, configured to carry 106 passengers, with 16 seats in Pearl Business Class and 90 seats in Coral Economy Class. The announcement was made on April 15, at a media conference in Belgrade hosted by James Hogan, Etihad Airways’ President and Chief Executive Officer. Mr Hogan was joined at the media conference by Vladimir Ognjenović, JatAirways’ Chief Executive Officer.
As part of the codeshare agreement, subject to government and regulatory approval, JatAirways will place its JU code on Etihad Airways flights to Abu Dhabi and beyond to Bangkok, Beijing, Brisbane, Chengdu, Chicago, Colombo, Ho Chi Minh City, Islamabad, Johannesburg, Karachi, Kuala Lumpur, Kuwait, Lahore, New York, Melbourne, Seychelles, Shanghai, Singapore, Sydney, Toronto, and Washington, D.C.
In return, subject to government and regulatory approval, Etihad Airways will place its EY code on JatAirways flights between Belgrade and Amsterdam, Athens, Berlin, Brussels, Copenhagen, Düsseldorf, Rome, Frankfurt, Gothenburg, Istanbul, Heathrow, Larnaca, Milan, Moscow, Podgorica, Sarajevo, Skopje, Stockholm, Stuttgart, Thessaloniki, Tivat, Vienna and Zurich.
Jat Airways will place its code on a number of the flights operated by Etihad Airways’ equity partner, Airberlin (Berlin). A major highlight of this would be the provision of a direct link for passengers travelling from Belgrade, via Berlin, to Chicago in the US. The capital of Illinois is renowned for having the second largest Serbian population of any city in the world, with an estimated 200,000 Serb nationals living in Chicago, and up to 500,000 residents of Serb origin.
Belgrade will become the third of five new destinations to be served by Etihad Airways in 2013, following the launch in March of flights to Washington, D.C., and in May to Amsterdam.
Etihad Airways will commence services later this year to Sao Paulo, Brazil; and Ho Chi Minh City, Vietnam.
Copyright Photo: Keith Burton.
Jat Airways:
Video:
Norwegian swings to an operating profit of $40.9 million in the first quarter
Norwegian Air Shuttle (Norwegian.com) (Oslo) issued the following statement (translated from Norwegian):
Norwegian has announced a quarterly profit before tax of 238 million Norwegian crowns ($40.9 million). This is better than last year and one of its best first quarter results. The quarter was characterized by good traffic growth and international expansion and a substantial reduction of costs which strengthens the company’s competitive position in an industry with fierce competition.
Norwegian had sales of 2.9 billion Norwegian kroner in the first quarter, an increase of 23 percent compared with the same period last year. Earnings before tax (EBT) ranked -160 million NOK, SEK 238 million compared to the first quarter of 2012. 3.9 million passengers flew with the airline, which is a traffic growth of 8 per cent in terms of number of passengers. The traffic growth (RPK) was much higher, 19 percent, which is also linked to each Norwegian passengers now fly much longer distances than they did a year ago.
The figures also show a strong growth in production, an increase of 21 percent (ASK). The load factor for the first quarter was 76 percent, down one percentage point compared to the same quarter last year.
During the first quarter decreased cost (CASK) of 8 percent, both including and excluding fuel. Cost cuts explained by the establishment of new European bases and that the company will phase in a growing number of brand new Boeing 737-800′s, including 6 aircraft already delivered this year. April 1 opened Norwegian a new base at Gatwick in London, where the company until now launched 14 direct routes, including a number of popular Mediterranean destinations. Norwegian also opened a new base in Alicante in late March.
Norwegian’s overall production growth is expected to be over 25 percent in 2013 based on the company is phasing in new aircraft, launch more new routes and start to fly long-haul routes from late May / early June.
“We are very pleased with the results for the first quarter and that, in a seasonally weak quarter for many airlines, made a profit of 238 million kronor. The load factor was stable despite strong output growth. At the same time we reduce our costs significantly, which is absolutely critical to be a competitive player in the international industry. It is also gratifying that our growth is creating new jobs in several markets, including outside Scandinavia. Our strategy regarding cost reduction and international expansion is also the most important thing we can do to secure the many jobs we all have already created in Scandinavia”, said Norwegian’s CEO Bjorn Kjos.
Top Copyright Photo: Antony J. Best. Norwegian Air Shuttle (Norwegian.com) Boeing 737-81D WL LN-NOR (msn 39412) (Povel Ramel) arrives at London (Gatwick).
Norwegian:
Bottom Copyright Photo: Norwegian. Another view of LN-NOR in scenic Norway.
WestJet and Icelandair launch their new interline agreement
WestJet (Calgary) and Icelandair (Keflavik) have launched a new interline agreement opening up the skies for passengers connecting between the Americas and more than 20 Icelandair destinations throughout Europe .
Passengers can now book a single combined e-ticket for WestJet and Icelandair flights which includes the conveniences of single check-in for all flights and baggage sent through to the final destination.
Earlier this year Icelandair expanded its seasonal service from Toronto to a year-round operation with plans to increase capacity next summer. Icelandair will also resume seasonal service from Halifax with two flights a week starting June 1, 2013.
Icelandair, the national carrier of Iceland since 1937, offers service to Iceland from Boston , New York-JFK, Seattle , Denver and Toronto with seasonal service from Newark , Washington, D.C., Minneapolis-St. Paul, Orlando Sanford , Halifax , and Anchorage (starting May 15 , 2013).
Top Copyright Photo: Bruce Drum. Boeing 737-7CT WL C-FWAF (msn 32747) arrives at Las Vegas.
WestJet:
Icelandair:
Bottom Copyright Photo: Keith Burton. Boeing 757-208 WL TF-FIP (msn 30423) completes its final approach into London (Heathrow).
WestJet expands its relationship with American
WestJet (Calgary) has announced it will begin code-sharing on American Airlines flights to 16 new cities beyond Dallas-Fort Worth in conjunction with WestJet’s new, nonstop service between Calgary and Dallas-Fort Worth launching on April 29, 2013. WestJet and American Airlines together will provide three round-trip flights per day between the two cities.
The WestJet code has now been added on American Airlines-operated routes connecting through Dallas-Fort Worth to Albuquerque, N.M., Austin, Texas, Nashville, Tenn., Charlotte, N.C., Fort Lauderdale/Hollywood, Fla., Jacksonville, Fla., Kansas City, Mo., Orlando, Fla., Miami, Fla., New Orleans, La., Oklahoma City, Okla., Raleigh-Durham, N.C., San Antonio, Texas, St. Louis, Mo., Tampa, Fla., and Tulsa, Okla.
Two new destinations out of Chicago will also be available via the American Airlines partnership. Flights out of Chicago to Charlotte, N.C., and Fort Myers, Fla., will also operate under the code-share agreement.
Copyright Photo: Boeing 737-76N WL C-GWSE (msn 33379) taxies to the gate at Los Angeles International Airport.
WestJet:
The FAA orders tail part inspections of all U.S.-registered 737NGs
Federal Aviation Administration (FAA) (Washington) has ordered inspections of over 1,000 U.S.-registered Boeing 737 jets to inspect a potentially faulty part in the tail, which may cause a loss of control of the aircraft if the part fails according to this report by Reuters.
The AD applies to all 737-600, 737-700, 737-800, 737-900, and 737-900ER aircraft.
Read the full report: CLICK HERE
AMR Corporation files its exit plan with the bankruptcy court
AMR Corporation (Dallas/Fort Worth), the parent of American Airlines (Dallas/Fort Worth) and American Eagle Airlines (Dallas/Fort Worth), yesterday filed its reorganization plan to exit its Chapter 11 reorganization with the bankruptcy court in New York. This is a necessary step towards a merger with US Airways (Phoenix). Under the plan, outgoing CEO Tom Horton would receive a $19.9 million severance plan. This amount was previously rejected by the bankruptcy judge Sean Lane.
The merger is expected to be closed in the third quarter. However there are many merger issues that are still unresolved.
Read the full report from Reuters: CLICK HERE
Copyright Photo: Tony Storck. Boeing 737-823 WL N803NN (msn 29566) of the “new American” arrives at Baltimore/Washington (Thurgood Marshall).
American Airlines:
Southwest Airlines launches Pittsburgh-Houston Hobby flights, arrives in San Juan
Southwest Airlines (Dallas) has launched a new route from Pittsburgh International Airport (PIT) to William P. Hobby Airport (HOU) in Houston.
The PIT-HOU schedule will include one flight daily. Monday through Friday, it will depart PIT at 11:50 a.m., arriving HOU at 2:00. p.m. Saturdays it will depart PIT at 9:15 a.m. and on Sunday depart PIT at 12:00 p.m. Returning from HOU to PIT: Sunday through Friday, the flight will depart HOU at 1:35 p.m. and arrive at PIT 5:35 p.m. Saturday, it departs HOU at 10:35 a.m. and arrives at PIT 2:29 p.m.
Southwest launched inaugural service to five cities on Sunday, April 14, 2013—the most cities the airline has ever opened in one day. Southwest, America’s largest airline in terms of originating domestic passengers boarded, is expanding its footprint as part of the ongoing integration of its wholly-owned subsidiary, AirTran Airways.
As of April 14, 2013, Southwest Airlines Offers New Nonstop Service between:
- Charlotte and Baltimore/Washington, Chicago (Midway), Houston (Hobby), and Orlando
- Flint and Baltimore/Washington, Orlando, and Tampa Bay
- Portland, Maine and Baltimore/Washington
- Rochester and Baltimore/Washington, Chicago (Midway), Orlando, and Tampa Bay
- San Juan and Orlando and Tampa Bay.
AirTran ceased service in Charlotte, Flint, Portland (Maine), and Rochester on April 13, 2013. AirTran will continue to offer service between San Juan and Baltimore/Washington, Fort Lauderdale/Hollywood, and Atlanta. Southwest previously announced that the carrier will assume AirTran’s San Juan service to Fort Lauderdale/Hollywood on Sept. 29, 2013.
Video: Southwest finally arrives in San Juan:
Copyright Photo: Tony Storck. Boeing 737-7H4 WL N713SW (msn 27847) in the SeaWorld Adventure Park-Shamu special livery arrives at Baltimore/Washington (BWI).
Southwest Airlines:
Blue Air is for sale
Blue Air (Blue Air Transport Aerian S.A. dba) (Bucharest) is for sale. The low-fare airline is currently owned by Nelu Iordache, who is currently facing charges for embezzling funds according to the Budapest Business Journal.
In January Blue Air Transport Aerian S.A. announced it had has reached an agreement with The Boeing Company to terminate the order placed in 2008 for five Boeing 737NG aircraft. It also stated “Based on the current troubled financial situation at Romstrade SRL, the major shareholder of Blue Air, SC Blue Air Transport Aerian S.A. is not in a position to continue the commitment.”
Six potential investors have expressed interest according to the airline managers.
Read the full article: CLICK HERE
Copyright Photo: Ton Jochems.
Blue Air:
Meridiana starts to repaint the Air Italy fleet, drops the “fly” from its name and settles on a color scheme
Meridiana fly (Olbia, Sardinia) on July 18, 2011, announced a merger with Air Italy (2nd) (Milan-Malpensa). Since then the two airlines have been operating as two separate airlines with their own brands and operating philosophies. This is now changing.
Meridiana has been using the Meridiana fly name since its merger with Eurofly (Milan-Malpensa) on February 28, 2010. Now the company will revert back to just Meridiana for the rebranding. The pictured 1991 livery above will now become the standard livery for all of the merged aircraft. For now, until the merger is complete, Air Italy is technically wet leasing its aircraft to Meridiana. The pictured Boeing 737-800 of Air Italy carries a small “Supplied by Air Italy” sticker applied close to the main forward left door.
The Air Italy brand will now be retired.
According to commercial director Andrea Andorno, “we want to emphasize the characteristics of full service carriers for the high-class clientele. No more low cost philosophy” according to this report by La Stampa.
Read the full report (in Italian): CLICK HERE
Top Copyright Photo: Marco Finelli. Air Italy’s Boeing 737-84P WL EI-IGN (msn 35074) taxies past the camera at Bologna in its new look.
Meridiana:
Meridiana fly:
Air Italy:
Bottom Copyright Photo: Nik French. Air Italy’s Boeing 737-8BK WL EI-EOJ (msn 33022) parks between flights at Manchester.
Breaking News: Lion Air’s brand new Boeing 737-800 ends up in the water at Bali
Lion Air‘s (Jakarta) flight from Bandung to Bali went into the water while landing at Bali today and broke into two sections. The 101 passengers and seven crew members were able to safely evacuate the aircraft. There were reports of 53 people with minor injuries.
The aircraft involved is this brand new Boeing 737-8GP PK-LKS (msn 38728) (below) which arrived at Lion Air on March 20, 2013 after a short stint with subsidiary Malindo Air.
Read the report by Bloomberg: CLICK HERE
A local report by the Jakarta Post quotes a Lion Air official stating the aircraft had not yet touched the runway before it hit the water implying the aircraft crashed short of the runway and was not an overrun of the runway as most media accounts claimed.
Read the full report: CLICK HERE
Copyright Photo: Leslie Snelleman. The ill-fated PK-LKS is pictured at the Jakarta base on April 4, 2013.
Follow-Up: Investigators are now looking at wind shear. The pilot reported losing control of the aircraft on its final approach according to this report by Reuters.
Read the full report: CLICK HERE
Lion Air:
United to start new service to Guatemala City and San Jose, Costa Rica tomorrow
United Airlines (Chicago) will begin weekly year-round service between its hub at Washington-Dulles International Airport and both Guatemala City, Guatemala, and San Jose, Costa Rica, on April 13. The airline also will begin weekly year-round service between its Chicago O’Hare hub and San Jose the same day.
All routes will be operated with Boeing 737-800 aircraft with 16 seats in United Business, 48 seats in Economy Plus and 90 seats in United Economy class. The new flights complement United’s existing service to Guatemala City and San Jose from the airline’s hubs in New York and Houston.
Copyright Photo: Jay Selman. Boeing 737-824 WL N76516 (msn 37096) with the special Eco-Skies/Commitment to the Environment markings arrives at Charlotte.
United Airlines:
Air Lease Corporation announces the placement of six new Boeing 737-800s with Aerolíneas Argentinas
Air Lease Corporation (Los Angeles) announced a lease agreement with Aerolíneas Argentinas (Buenos Aires) for six new Boeing 737-800 aircraft, each on lease for twelve years. The aircraft are scheduled for delivery between November 2014 and February 2016.
Copyright Photo: Marcelo F. De Biasi. Boeing 737-86J LV-CTC (msn 30570) lands at Aeroparque Jorge Newbery Airport in downtown Buenos Aires.
Aerolineas Argentinas:
American and American Eagle to add nine new destinations from Los Angeles
American Airlines (Dallas/Fort Worth) is significantly expanding service from Los Angeles International Airport (LAX) this year. In addition to American’s new service between Los Angeles and Raleigh/Durham, North Carolina, which began on April 2, American will begin serving the following new destinations this summer from LAX:
- Eugene, Oregon, beginning June 12 (operated by SkyWest Airlines)
- Redmond, Oregon, beginning June 12 (operated by SkyWest Airlines)
- Pittsburgh, Pennsylvania, beginning August 27
- Indianapolis, Indiana, beginning August 27
- Columbus, Ohio, beginning August 27
- Hartford/Springfield, Connecticut, beginning August 27
- Northwest Arkansas Regional Airport in Bentonville, Ark., beginning Aug. 27 (operated by American Eagle Airlines)
In February American filed an application with the U.S. Department of Transportation for the right to fly additional United States – Brazil frequencies beginning in 2013. Pending government approval, American intends to use these frequencies to add one new daily round trip service from its Los Angeles hub to Sao Paulo on November 21, expanding the airline’s Latin American network footprint. American currently offers more than 900 weekly flights to 49 cities throughout Latin America, including Mexico, Central and South America.
With these new markets, American will serve 51 domestic and international destinations from its LAX hub.
Further demonstrating its commitment to the Los Angeles market, American will be deploying its brand new 777-300 ER aircraft on its route between Los Angeles and London Heathrow in June. The 777-300 ER introduces new enhancements to the inflight experience, including fully lie-flat seats in First and Business Class – all with direct aisle access; a walk-up bar for premium-cabin customers that offers snacks and sweets; and a sophisticated entertainment system offering hundreds of hours of audio and video programming options at every seat throughout the aircraft. American was the first U.S. airline to order and take delivery of the state-of-the-art Boeing 777-300 ER and intends to take delivery of 20 of the aircraft over the next few years.
Copyright Photo: Brian McDonough. Boeing 737-823 WL N803NN (msn 29566) arrives at Washington (Reagan National) in the new look. Will new incoming American CEO Doug Parker allow the combined fleet to be repainted in outgoing CEO Tom Horton’s livery?
American Airlines:
Turkish Airlines to finalize an order for 40 737 MAX 8s, 10 MAX 9s and 20 737-800s
Turkish Airlines (Istanbul) has committed to order 40 737 MAX 8s, 10 737 MAX 9s and 20 additional Next-Generation 737-800 airplanes, valued at $6.9 billion at list prices. The agreement also includes options for an additional 25 737 MAX 8s.
Boeing looks forward to working with Turkish Airlines to finalize the order.
Copyright Photo: SM Fitzwilliams Collection. Turkish Airlines is one of the world’s fastest growing airlines. To celebrate its 200th aircraft, the airline painted this special livery. The airline also serves more countries than any other airline in the world. Boeing 737-9F2 ER WL TC-JYI (msn 40985) lands at Dublin in the special scheme.
Turkish Airlines:
A behind the scenes view of the Southwest Airlines headquarters
Southwest Airlines (Dallas) has added a nice pictorial article on their blog that takes the reader on a virtual tour of their headquarters at Love Field in Dallas.
Read the nice article: CLICK HERE
It is always nice to see an airline remembering and embracing its history and culture. Well done WN.
Copyright Photo: Bruce Drum. It all started with these three Boeing 737-200s on June 18, 1971. 737-2H4 N21SW (msn 20345) and the two others are parked at the Southwest hangar at Love Field during a rare down time. In the beginning, the titles were on the rear fuselage and the tail.
Southwest Airlines:
Ryanair opens three new bases
Ryanair (Dublin) celebrated the opening this past week of its new bases at Eindhoven, Krakow and Zadar, bringing Ryanair’s European base network to 54, with an additional 3 bases set to open at Chania (Greece), Fez and Marrakech (both Morocco) by the end of April.
Sberbank orders 12 Boeing 737-800s for Transaero Airlines
Boeing (Chicago), Sberbank of Russia and its wholly owned subsidiary, Sberbank Leasing, have reached an agreement on an order for 12 Next-Generation 737-800s. The airplanes are intended for operational leasing under Sberbank’s contract with Transaero Airlines (Moscow).
Copyright Photo: Keith Burton.
All AG images are available for purchase.
Transaero Airlines:
