Tag Archives: 767-300

Air Canada sets new records for daily passengers

Air Canada (Montreal) said it achieved a single-day record for passengers carried on July 30 and it  expected to surpass its record again yesterday as Canadians take to the skies for the August holiday long weekend. On July 30 Air Canada welcomed an estimated 141,000 customers on board its aircraft, and the July 31 forecasted bookings indicated that number was expected to grow to approximately 150,000.

Copyright Photo: James Helbock/AirlinersGallery.com. Air Canada’s leisure unit, Air Canada rouge Boeing 767-333 ER C-FMWQ (msn 25584) arrives in Las Vegas.

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UPS exceeds forecasts for the second quarter, international operating profit jumps 17%

UPS (United Parcel Service) (UPS Airlines) (Atlanta and Louisville) today announced second quarter 2015 diluted earnings per share of $1.35, a 12% increase over adjusted results for the same period last year. All three segments improved operating profit and margin, led by International and Supply Chain and Freight performance.

The company continued:

UPS-We Love Logistics logo

Highlights:

  • All Segments Improve Profitability and Expand Margins
  • International Operating Profit Jumps 17%
  • Export Shipments up 5.5% with Strong Intra-Europe Growth
  • Supply Chain and Freight Operating Profit Climbs 18%
  • Revenue Growth Dampened by Changes in Currency and Fuel Prices
  • 2015 EPS Growth at Higher End of 6%-to-12% Guidance Range

Currency exchange rates and lower fuel surcharges reduced total reported revenue growth. Total revenue declined 1.2% from the same quarter last year to $14.1 billion. Pricing initiatives continue to drive base rates higher.

“During the quarter, UPS continued to invest for the future by expanding capacity and launching new capabilities that provide higher value to customers,” said David Abney, UPS chief executive officer. “The strong momentum in our International segment is expected to continue and gives us confidence in achieving the upper end of our guidance range.”

On a reported basis, operating profit increased $1.2 billion, and diluted earnings per share was up $0.86. In the second quarter of 2014, UPS reported diluted earnings per share of $0.49, which included a $665 million after-tax charge for the transfer of certain post-retirement liabilities to defined contribution healthcare plans.

Total company shipments increased 2.1% over the second quarter last year to 1.1 billion packages, led by U.S. Deferred Air products and International Export shipments.
Cash Flow

For the six months ended June 30, UPS generated $3.3 billion in free cash flow. The company paid dividends of $1.3 billion, an increase of 9.0% per share over the prior year. UPS also repurchased 13.5 million shares for approximately $1.4 billion.

U.S. Domestic Package

U.S. Domestic revenue increased $140 million over the second quarter last year to $8.8 billion. Shipment growth was led by Deferred Air products up 15% and UPS SurePost which increased more than 8%. Total daily deliveries grew 1.8% due to a slower pace of B2C (business-to-consumer) growth.

Operating profit was $1.2 billion, up $35 million or 3.0% over prior-year adjusted results. Operating margin expanded to 13.6% as improved pricing and productivity offset higher benefit costs.

On a reported basis, operating profit increased $992 million after the transfer of certain post-retirement liabilities to defined contribution healthcare plans, which occurred in the second quarter of last year.

Continued improvements in base rates were offset by lower fuel surcharges. Revenue per package was flat, as changes in fuel surcharges dropped reported yield by almost 300 basis points.

International Package

Currency-adjusted International revenue was up 1.5% over the same period last year. UPS daily Export shipments increased 5.5%, primarily due to an 8.5% increase in intra-Europe shipments. The strong dollar drove U.S. imports higher, while U.S. exports were down slightly.

International operating profit increased $81 million, or 17% over the adjusted results for the same period in 2014. Network improvements, volume growth and pricing initiatives all contributed to expanded operating margin and increased profitability. The segment experienced growth from middle-market accounts and improved premium product sales.

On a reported basis, operating profit increased $108 million after the transfer of certain post-retirement liabilities to defined contribution healthcare plans in the second quarter of last year.

Underlying base rates were up across all regions, though revenue per package decreased 2.4% on a currency-neutral basis. Lower fuel surcharges reduced reported revenue per package by about 350 basis points.

Supply Chain & Freight

Supply Chain & Freight revenue declined 4.5% to $2.2 billion, due to Forwarding revenue management initiatives, currency and lower fuel surcharges at UPS Freight. Operating profits improved $31 million, or 18% over the adjusted results for the same quarter 2014, driven by gains in Forwarding.

On a reported basis, operating profit increased $113 million after the transfer of certain post-retirement liabilities to defined contribution healthcare plans that occurred in the second quarter of 2014.

UPS Forwarding operating profit and margin expanded as the business unit continued to implement a disciplined pricing strategy across key trade lanes. The unit also benefited from improved market conditions and customer mix. Forwarding tonnage and revenue dropped during the quarter, primarily due to revenue management initiatives and the impact of currency fluctuations.

Distribution revenue increased at a mid-single digit growth rate. Growth in Mail services, Healthcare and Aerospace industries contributed to revenue improvements.

UPS Freight revenue declined 2.5% due to lower fuel surcharges and a drop in tonnage driven by changes in customer mix and slowing market growth. LTL (less-than-truckload) revenue per hundredweight growth remained positive, with a 1.4% gain.

Outlook

“The second quarter results reflect continuing gains in our International business,” said Richard Peretz, UPS chief financial officer. “Even though the U.S. economy appears to be growing at a slower pace, our global portfolio and performance reinforces our expectations to attain the higher-end of the guidance range.”

The company’s guidance for 2015 full-year diluted earnings per share is $5.05 to $5.30, a 6% to 12% increase over adjusted 2014 results.

Copyright Photo: Michael B. Ing/AirlinersGallery.com. Boeing 767-34AF N302UP (msn 27240) arrives in Anchorage, Alaska.

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Air Canada to transfer more winter routes to rouge

Air Canada (Montreal) is planning to transfer additional routes to its leisure subsidiary Air Canada rouge (Toronto-Pearson) (YYZ) for the upcoming winter season. According to Airline Route, the carrier will transfer or start the following routes:

Toronto – Sarasota/Bradenton (A319) (October 24)

Toronto – Fort Lauderdale/Hollywood (A319 and 767-300) (October 25)

Toronto – Panama City (767-300) (October 25)

Montreal – Fort Lauderdale/Hollywood (A319 and 767-300) (December 16)

Vancouver – Kona, Hawaii (767-300) (December 19)

Montreal – Tampa (A319) (January 15, 2016)

Montreal – West Palm Beach (A319) (January 15)

Montreal – Nassau (A319) (January 17)

Toronto – Barbados (767-300) (January 7)

Copyright Photo: TMK Photography/AirlinersGallery.com. Not operating under the rouge brand, Air Canada’s Boeing 767-3Q8 ER C-FJZK (msn 29386) waits for the next assignment at the YYZ base.

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British Airways to end service to Almaty and Entebbe

British Airways (London) is dropping two long-haul routes from its London Heathrow hub. The flag carrier will drop service to Almaty (Kazakhstan) on October 11 and Entebbe (Uganda) on October 2 (both dates are for LHR departures) per Airline Route. Both routes are served with Boeing 767-300 ER aircraft.

Copyright Photo: SPA/AirlinersGallery.com. Boeing 767-336 ER G-BNWZ (msn 25733) departs from London’s Heathrow Airport.

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Air Canada rouge to start Vancouver – Cancun flights

Air Canada rouge (Toronto-Pearson) will start weekly Boeing 767-300 ER service between Vancouver and Cancun on February 15, 2016 for the winter season per Airline Route.

In other news, Air Canada will make the Calgary – Portland, OR a year-round service.

Copyright Photo: SM Fitzwilliams Collection/AirlinersGallery.com. Boeing 767-333 ER C-FMWY (msn 25587) lands in Dublin.

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FedEx Express to acquire 50 additional Boeing 767-300F freighters

FedEx Express (Memphis), a wholly owned subsidiary of FedEx Corporation (Memphis), has agreed to purchase 50 additional 767-300F aircraft from The Boeing Company. In addition to the 50 confirmed orders, FedEx also has options to purchase a total of 50 767F aircraft.

The 50 firm-order aircraft will be delivered from fiscal 2018 through fiscal 2023. Total capital spending for fiscal 2016 remains at $4.6 billion. The impact to capital spending in fiscal 2017 from this new order is immaterial. With this order, FedEx Express now holds a total of 106 firm orders for 767Fs from The Boeing Company through fiscal 2023.

The newer 767Fs will help the company retire its older aircraft. From this fleet plan as of May 31, 2015, the company was planning to retire the Airbus A310s in 2016 and the McDonnell Douglas MD-10-10s and MD-10-30s in 2021. This may now be expedited with this order.

FedEx Express fleet 5.31.15

The order will also help Boeing keep the 767 line going.

Copyright Photo: James Helbock/AirlinersGallery.com. Boeing 767-3S2F ER N102FE (msn 42707) approaches the runway at San Diego.

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Austrian Airlines is dropping the Vienna – Dubai route

Austrian Airlines (Vienna) will drop the nonstop Vienna – Dubai route due to “over capacity” and the route is “unsustainable” for the carrier.

The airline issued this statement:

Austrian (2015) logo

Austrian Airlines will no longer offer direct flights to Dubai. Passengers of the Lufthansa Group will still be able to reach this city in the United Arab Emirates (UAE) in the future by flying via Frankfurt, Zurich or Munich. The over capacity, built up in recent years, resulted in fierce price competition as up to 800 seats per day were on offer. This ultimately made the Vienna-Dubai route unsustainable for Austrian Airlines.

Austrian Airlines has been offering flight service to the largest city in the UAE since 1996. The last Austrian Airlines flight will take place on September 13, 2015 from Vienna to Dubai, and from Dubai to Vienna on September 14, 2015.

“Unfortunately, the Vienna-Dubai route has become unsustainable for us. The capacities which will become available will be deployed for attractive, new destinations, such as Miami, Mauritius and Colombo in Sri Lanka starting in October“, says Austrian Airlines CCO Andreas Otto.

As of October 16, 2015, Austrian Airlines will operate flights to Miami in the USA five times per week. Starting October 27, 2015, the national carrier will fly every Tuesday to Colombo, the capital of Sri Lanka. And from October 29, 2015 onwards, Austrian Airlines will offer nonstop flight service twice a week to Mauritius.

Copyright Photo: Gabor Hajdufi/AirlinersGallery.com. Boeing 767-3Z9 ER OE-LAZ (msn 30331) departs from the Vienna hub.

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