Tag Archives: Boeing 787-8

TUI Group finalizes its order for one Boeing 787-9, converts two 787-8 orders to the larger 787-9

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Boeing (Chicago, Seattle and Charleston) and TUI Group, one of the world’s largest integrated leisure travel companies, have finalized an order for one 787-9 Dreamliner with an option for one further 787-9. The order is valued at $257 million at current list prices. TUI Group also announced that it will substitute two unfilled orders for 787-8s for two 787-9s.

TUI Group logo-1

The European leisure group will operate a fleet of 13 787-8s from this summer and with today’s announcement will add three 787-9s to its fleet within the next three years.

The 787-9 complements and extends the 787 family. With the fuselage stretched by 6 meters (20 feet) over the 787-8, the 787-9 will fly up to 40 more passengers an additional 830 kilometers (450 nautical miles) with the same exceptional environmental performance – 20 percent less fuel use and 20 percent fewer emissions than the airplanes they replace.

There are six airlines in the TUI Group operating 144 medium and long-haul aircraft, including the 787. The airlines are TUIfly, Thomson Airways, TUIfly Nordic, Jetairfly, Corsair International and ArkeFly (Arke), serving more than 180 destinations around the world. Throughout its history, Boeing has delivered more than 165 airplanes to TUI Group airlines. As well as the orders for 787s, TUI Group also has ordered 60 737 MAXs.

In addition to TUI Group’s selection of the efficient 787 Dreamliner and 737 MAX, TUI Group is a partner on the Boeing ecoDemonstrator 757, which is currently testing new technologies to reduce airplane carbon emissions and noise.

Videos: The Thomson Boeing 787-8.

Video: Flight review: Thomson Boeing 787-8 to Puerto Plata: This is a flight review of our Thomson Airways Boeing 787-8 Dreamliner flight to Puetro Plata (Gregorio Luperón International Airport) in the Dominican Republic in the Caribbean. We flew in economy class called “Dreamliner Class” on the Dreamliner. All footage of the journey is filmed from the economy class cabin. Our flight crew was mainly British with a Scandinavian stewardess on board too. Our Thomson Airways Dreamliner (Boeing 787-8) had registration number G-TUIA and was named “Living the Dream”. Our flight started at Copenhagen Airport in Denmark and the aircraft passengers where mainly Scandinavians (Swedish and Danish nationality). Our charter holiday trips where booked via Star Tour (name for TUI in Denmark) (Fritidsresor as TUI are called in Swedish) which is the same as TUI travel in the UK and Germany.

Copyright Photo below: Evert Keijzer Ironbird Photography/AirlinersGallery.com. Jetairfly (TUI Airlines Belgium) Boeing 787-8 Dreamliner OO-JDL (msn 34425) beautifully flies over the English Channel in the 2012 TUI livery.

Jetairfly aircraft slide show: AG Airline Slide Show

 

 

 

Air Canada reports a first quarter net profit of $122 million

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Air Canada (Montreal) today (May 12) reported first quarter adjusted net income of $122 million (all amounts are in Canadian dollars) or $0.41 per diluted share compared to an adjusted net loss of $132 million or $0.46 per diluted share in the first quarter of 2014, an improvement of $254 million or $0.87 per diluted share. EBITDAR(1) (earnings before interest, taxes, depreciation, amortization and aircraft rent) amounted to $442 million compared to EBITDAR of $147 million in the same quarter in 2014, an increase of $295 million or 200 per cent year-over-year.

Here is the rest of the financial report:

 

On a GAAP basis, Air Canada reported operating income of $200 million in the first quarter of 2015 compared to an operating loss of $62 million in the first quarter of 2014, an improvement of $262 million. The airline recorded an operating margin of 6.2 per cent compared to a negative operating margin of 2.0 per cent in the first quarter of 2014, an improvement of 8.2 percentage points.

“I am delighted to report the best first quarter financial performance in Air Canada’s history,” said Calin Rovinescu, President and Chief Executive Officer. “Record results in adjusted net income, operating income, operating margin, EBITDAR, passenger revenues and passenger load factor for the quarter all underscore our team’s success in executing on our value-enhancing strategies. We have continued to see a strong demand environment, and in the first quarter our margins expanded dramatically, bolstered by strong cost control, with adjusted CASM declining 1.8 per cent despite the weaker Canadian dollar, and solid traffic growth particularly on leisure sun routes.

“While fuel prices remain volatile, in 2015 we expect to continue to expand margins, increase adjusted net income, strengthen our balance sheet and create value for shareholders. We also expect to set a new record for second quarter operating income this year; however year-over-year improvements will likely be modest when compared to the first quarter improvement. This is due to a particularly strong revenue performance in the second quarter of 2014 and higher projected maintenance expense, the absence of favourable tax-related provisions adjustments of $41 million recorded in the second quarter of 2014, as well as higher relative fuel prices in the second quarter versus the first quarter of 2015.

“I would like to thank Air Canada’s 27,000 employees for their hard work earning the loyalty of our customers as we continue to implement our commercial strategy focused on international growth with a renewed fleet and onboard product.”

First Quarter Income Statement Highlights

In the first quarter of 2015, on capacity growth of 9.3 per cent, system passenger revenues of $2.786 billion increased $178 million or 6.9 per cent from the first quarter of 2014. The increase in system passenger revenues was due to traffic growth of 10.9 per cent partly offset by a yield decline of 4.2 per cent. An increase in average stage length of 2.7 per cent versus the same quarter in 2014, reflecting international long-haul growth, had the effect of reducing system yield by 1.6 percentage points. On a stage length adjusted basis, system yield decreased 2.6 per cent year-over-year. Modest yield declines are an anticipated and natural consequence of the successful implementation of Air Canada’s strategy to profitably increase long-haul international and leisure flying.

Passenger revenue per available seat mile (PRASM) decreased 2.7 per cent from the first quarter of 2014 as the lower yield was partly offset by a passenger load factor improvement of 1.2 percentage points.

In the first quarter of 2015, operating expenses of $3.049 billion decreased $78 million or 2 per cent from the first quarter of 2014 on capacity growth of 9.3 per cent. The decline in operating expenses reflected the impact of lower jet fuel prices largely offset by the impact of the weaker Canadian dollar and capacity-related cost increases. The unfavourable impact of a weaker Canadian dollar on foreign currency denominated operating expenses (mainly U.S. dollars) in the first quarter of 2015, when compared to the first quarter of 2014, increased operating expenses by approximately $135 million. This currency impact was partly offset by a favourable currency impact of $38 million on passenger revenues and realized currency derivatives gains of $51 million.

Air Canada’s adjusted cost per available seat mile (adjusted CASM(1)), which excludes fuel expense, the cost of ground packages at Air Canada Vacations® and unusual items, decreased 1.8 per cent from the first quarter of 2014, better than the 0.5 to 1.5 per cent increase projected in Air Canada’s news release dated February 11, 2015. The better than expected adjusted CASM performance was largely due to:

Lower than anticipated aircraft maintenance expenses, primarily driven by the acceleration of aircraft lease extensions and certain favourable lease return condition provision adjustments, reducing maintenance expenses by $22 million in the first quarter of 2015;
The impact of the new Jazz CPA, effective January 1, 2015, whereby certain costs, such as ground handling services performed by Air Canada, are no longer recovered from Jazz and passed through to Air Canada under the Jazz CPA as capacity purchase fees, thereby reducing both other revenues and capacity purchase fees; and

Lower than expected employee benefits expense due to lower benefit payments and improved plan experience.

Financial and Capital Management Highlights

At March 31, 2015, unrestricted liquidity (cash, short-term investments and undrawn lines of credit) amounted to over $3.1 billion (March 31, 2014 – $2.5 billion). Air Canada’s principal objective in managing liquidity risk is to maintain a minimum unrestricted liquidity level of $1.7 billion.

At March 31, 2015, adjusted net debt(1) amounted to $5.19 billion, an increase of $58 million from December 31, 2014, as higher long-term debt and finance lease balances were largely offset by higher cash and short-term investments balances. The airline’s adjusted net debt to EBITDAR ratio was 2.6 at March 31, 2015 versus a ratio of 3.1 at December 31, 2014. Air Canada uses this ratio to manage its financial leverage risk and its objective is to maintain the ratio below 3.5.

In the first quarter of 2015, free cash flow(1) of $383 million was $349 million higher than in the first quarter of 2014, reflecting higher cash flows from operating activities partly offset by an increase in capital expenditures which included the acquisition of two Boeing 787-8 aircraft in the first quarter of 2015.

For the 12 months ended March 31, 2015, return on invested capital (ROIC(1)) was 15.2 per cent versus 10.9 per cent for the 12 months ended March 31, 2014. Air Canada’s goal is to maintain a sustainable ROIC of 10 to 13 per cent.

Further to Air Canada’s foreign exchange risk management practices (which are more fully described in Air Canada’s 2014 MD&A dated February 11, 2015), foreign denominated revenues essentially act as a natural hedge against U.S. dollar denominated non-fuel operating expenses. As such, net U.S. dollar operating expenses are largely attributable to the airline’s fuel purchases which are currently at a much lower cost in Canadian dollars despite the impact of a weaker Canadian dollar.

U.S. dollar currency derivatives and U.S. dollar cash reserves which, as at March 31, 2015, amounted to US$2.2 billion and US$711 million, respectively, are employed to offset approximately 65 per cent of the net U.S. dollar currency exposure over the next 18 months. The currency derivatives enable Air Canada to purchase U.S. dollars at a weighted average price of C$1.1784 (subject to various option pricing features, such as knock-out terms and profit cap limitations). These derivatives and U.S. dollar cash reserves would be available to mitigate certain cash flow exposure from the currency movements over the next 18 months; however the benefit of these hedging activities is recorded as a foreign exchange gain and not within operating income.

Current Outlook

Capacity

Air Canada expects second quarter 2015 system ASM capacity, as measured by available seat miles (ASMs), to increase 8.75 to 9.75 per cent when compared to the second quarter of 2014, and to be comprised of an increase in the total number of seats dispatched (system) of 5.5 to 6.5 per cent and an increase in system average stage length (measured by ASMs divided by seats dispatched) of approximately 3.0 per cent when compared to the same quarter in 2014.

Air Canada continues to expect its full year 2015 system ASM capacity to increase by 9.0 to 10.0 per cent. For the full year 2015, Air Canada continues to expect an increase in the total number of seats dispatched (system) of 6.0 to 7.0 per cent and an increase in average stage length (system) of approximately 3.0 per cent when compared to the full year 2014. Approximately 55 per cent of the 2015 forecasted capacity increase will be through the continued lower-cost growth of Air Canada rouge® while approximately 38 per cent of the capacity growth will be targeted to international markets operated by the mainline carrier.

Air Canada continues to expect its full year 2015 domestic ASM capacity to increase 3.5 to 4.5 per cent when compared to 2014, with a large part of the growth focused on the airline’s transcontinental services. The increase on transcontinental services is partly driven by the positioning of certain Boeing 777 and 787 aircraft at Air Canada’s major hubs in Toronto and Vancouver. Furthermore, in 2015, an overlap of the aircraft brought into the fleet to replace the exiting Embraer 190 aircraft is expected to account for approximately 30 per cent of the projected domestic capacity growth in 2015. This overlap is designed to better match capacity with expected 2015 summer season demand. For the full year 2015, Air Canada continues to expect an increase in the total number of seats dispatched (domestic) of 2.5 to 3.5 per cent and an increase in average stage length (domestic) of approximately 1.0 per cent when compared to the full year 2014.

Adjusted CASM

For the second quarter of 2015, Air Canada expects adjusted CASM (which excludes fuel expense, the cost of ground packages at Air Canada Vacations and unusual items) to increase 0.25 to 1.25 per cent when compared to the second quarter of 2014.

For the full year 2015, Air Canada now expects adjusted CASM to decrease 1.5 to 2.5 per cent from the full year 2014 (as opposed to the decrease of 0.75 to 1.75 per cent projected in Air Canada’s February 11, 2015 news release). This improvement is largely driven by the impact of the new Jazz CPA, effective January 1, 2015, whereby certain costs, such as ground handling services performed by Air Canada, are no longer recovered from Jazz and passed through to Air Canada under the Jazz CPA.

Major Assumptions

Air Canada’s outlook assumes annual Canadian GDP growth of 1.75 to 2.25 per cent for 2015. Air Canada also expects that the Canadian dollar will trade, on average, at C$1.22 per U.S. dollar in the second quarter of 2015 and for the full year 2015 and that the price of jet fuel will average 69 cents per litre for the second quarter of 2015 and 70 cents per litre for the full year 2015.

(1) Non-GAAP Measures

Below is a description of certain non-GAAP measures used by Air Canada to provide additional information on its financial and operating performance. Such measures are not recognized measures for financial statement presentation under Canadian GAAP and do not have standardized meanings and may not be comparable to similar measures presented by other public companies. Refer to Air Canada’s First Quarter 2015 MD&A for reconciliation of non-GAAP financial measures.

Adjusted net income (loss) and adjusted net income (loss) per diluted share are used by Air Canada to assess its performance without the effects of foreign exchange, net financing expense on employee benefits, mark-to-market adjustments on fuel and other derivatives and unusual items.

EBITDAR is commonly used in the airline industry and is used by Air Canada to assess earnings before interest, taxes, depreciation, amortization, impairment and aircraft rent as these costs can vary significantly among airlines due to differences in the way airlines finance their aircraft and other assets.

Adjusted CASM is used by Air Canada to assess the operating performance of its ongoing airline business without the effects of fuel expense, the cost of ground packages at Air Canada Vacations and unusual items, as such expenses may distort the analysis of certain business trends and render comparative analysis to other airlines less meaningful.

Adjusted net debt is a key component of the capital managed by Air Canada and provides a measure of the airline’s net indebtedness. Adjusted net debt is calculated as the sum of total long-term debt and finance lease obligations and capitalized operating leases less cash and cash equivalents and short-term investments.

Free cash flow is used by Air Canada as an indicator of the financial strength and performance of its business because it shows how much cash is available for such purposes as repaying debt, meeting ongoing financial obligations and reinvesting in Air Canada.

Return on invested capital (ROIC) is used by Air Canada to assess the efficiency with which it allocates its capital to generate returns. Return is based on Adjusted net income (loss) (as referred to in the above paragraph), excluding interest expense and implicit interest on operating leases. Invested capital includes average year-over-year total assets, net of average year-over-year non-interest-bearing operating liabilities, and the value of capitalized operating leases (calculated by multiplying annualized aircraft rent by 7).

Copyright Photo below: SPA/AirlinersGallery.com. Air Canada acquired two Boeing 787-8 aircraft in the first quarter of 2015. C-GHPQ (msn 35257) departs from London (Heathrow).

Air Canada aircraft slide show: AG Airline Slide Show

Bloomberg: Air India wants to order 14 Airbus A320neo aircraft

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Air India (Mumbai) according to Bloomberg, quoting unnamed sources, is in negotiation with Airbus in order to acquire 14 new A320neo aircraft.

The flag carrier is also considering converting some Boeing 787-8 Dreamliners orders (seven remain on order) to the larger 787-9.

Read the full report: CLICK HERE

Copyright Photo below: Ole Simon/AirlinersGallery.com. The newer Airbus A320s would replace the older models. Airbus A320-214 VT-EDF (msn 4237) arrives in Dubai.

Air India aircraft slide show: AG Airline Slide Show

 

American Airlines inaugurates Boeing 787 service, starts DFW-Beijing flights

American 787 Inaugural (Boeing)(LR)

American Airlines (Dallas/Fort Worth) this morning (May 7) inaugurated Boeing 787-8 revenue service (with N801AC, msn 40619) between Dallas/Fort Worth and Chicago (O’Hare). The inaugural flight departed at 7:10 am from DFW and was broadcast live on the new Periscope app (owned by Twitter).

Read the full report from NBC 5: CLICK HERE

American Airlines 2013 logo

In other news, American Airlines today (May 7) launched daily nonstop service between Dallas/Fort Worth International Airport (DFW) and Beijing Capital International Airport (PEK), marking the airline’s 11th route between the U.S. and Asia and the only daily nonstop flight connecting DFW and Beijing.

American’s service to Beijing will initially operate with a Boeing 777-200 aircraft before it switches to the Boeing 787-8 Dreamliner beginning June 2 – marking the inaugural international flight for the new aircraft.

The new flight from DFW will complement American’s existing service from Chicago O’Hare International Airport (ORD) to Beijing.

Photo Above: Boeing Airplanes. Boeing congratulates the American flight crew on the inaugural flight.

American Airlines aircraft slide show: AG Airline Slide Show

Copyright Photo Below: Brian Peters/AirlinersGallery.com. The sunlight shines brightly on sister ship Boeing 787-8 Dreamliner N800AN (msn 40618) at Dallas-Fort Worth International Airport (DFW).

American Airlines to start Chicago O’Hare – Tokyo Narita Boeing 787 flights

American Airlines (Dallas/Fort Worth) will introduce the new Boeing 787-8 Dreamliner on the Chicago (O’Hare) – Tokyo (Narita) route starting on August 18. The new type will replace the current Boeing 777-200 ER aircraft on the route according to Airline Route.

Copyright Photo: Antony J. Best/AirlinersGallery.com. Boeing 787-8 Dreamliner N800AN (msn 40618) lands at London (Heathrow).

American Airlines aircraft slide show (current livery only): AG Airline Slide Show

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American Airlines showcases its new Boeing 787-8 as it prepares for the May 7 launch

American Airlines (Dallas/Fort Worth) is showcasing its new Boeing 787-8 Dreamliner. The new type was unveiled to employees and the media on April 29 at DFW. As planned, the 787-8 goes into revenue service on May 7. Here are two video reviews.

Video Above: The Dallas Morning News reviews the new type.

Copyright Photo Below: Boeing 787-8 N800AN (msn 40618) has been operating route proving flights with one destination being London’s Heathrow Airport.

American Airlines aircraft slide show (current livery): AG Airline Slide Show

American Airlines Group reports a record first quarter GAAP net profit of $932 million

American Airlines Group Inc. (American Airlines) (Dallas/Fort Worth) today reported its first quarter 2015 results.

Reported record first quarter 2015 net profit of $1.2 billion excluding net special charges, tripling the Company’s first quarter 2014 net profit of $402 million excluding net special credits

Reported record first quarter 2015 GAAP net profit of $932 million, a $452 million improvement versus the Company’s first quarter 2014 GAAP net profit of $480 million

Achieved several critical integration milestones during the quarter, including a combined frequent flyer program and recalibration of the schedule at the Company’s hubs at Chicago O’Hare and Dallas/Fort Worth. Also obtained a single operating certificate from the Federal Aviation Administration (FAA) in early April

Declared a dividend of $0.10 per share to be paid on May 18, 2015, to shareholders of record as of May 4, 2015

Excluding net special charges, American Airlines Group’s first quarter 2015 net profit was a record $1.2 billion, or $1.73 per diluted share. This represents a tripling of the Company’s first quarter 2014 net profit excluding net special credits of $402 million, or $0.54 per diluted share. The Company’s first quarter 2015 pretax margin excluding net special charges was a record 12.7 percent, up 8.6 percentage points from the same period last year.

On a GAAP basis, the Company reported a record net profit of $932 million, or $1.30 per diluted share. This compares to a GAAP net profit of $480 million in the first quarter 2014, or $0.65 per diluted share.

“We are pleased to report record first quarter profits, exceeding the prior record set just last year,” said Doug Parker, American Airlines Group Chairman and CEO. “The credit belongs to our 100,000 team members who are working together to restore American to the greatest airline in the world. We are particularly pleased with the integration achievements our team has realized and look forward to building on those successes through 2015 and beyond.”

Revenue and Cost Comparisons

While core demand remains healthy, first quarter 2015 revenue was impacted by competitive capacity growth, a stronger U.S. dollar and economic softness in Latin America. Total revenue in the first quarter was $9.8 billion, a decrease of 1.7 percent versus the first quarter 2014 on a 0.9 percent decrease in total available seat miles (ASMs). Consolidated passenger revenue per ASM (PRASM) was 13.44 cents, down 1.7 percent versus the first quarter 2014. Consolidated passenger yield was 16.82 cents, down 1.2 percent year-over-year.

Total operating expenses in the first quarter were $8.6 billion, a decrease of 7.1 percent compared to the first quarter 2014 due primarily to a 42.2 percent decrease in consolidated fuel expense. First quarter mainline cost per available seat mile (CASM) was 12.80 cents, down 5.2 percent on a 1.7 percent decrease in mainline ASMs versus the first quarter 2014. Excluding special charges and fuel, mainline CASM was 9.49 cents, up 5.8 percent compared to the first quarter 2014. Regional CASM excluding special charges and fuel was 16.47 cents, down 0.9 percent on a 5.7 percent increase in regional ASMs versus the first quarter 2014.

Liquidity

As of March 31, 2015, the Company had approximately $9.9 billion in total cash and short-term investments, of which $757 million was restricted. The Company also had an undrawn revolving credit facility of $1.8 billion.

Also in the first quarter, the Company returned $260 million to its shareholders through the payment of $70 million in quarterly dividends and the repurchase of $190 million of common stock, or 3.8 million shares, at an average price of $49.47 per share.

Shares repurchased under the buyback 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. Any such repurchases will be made from time to time subject to market and economic conditions, applicable legal requirements and other relevant factors. The program does not obligate the Company to repurchase any specific number of shares or continue a dividend for any fixed period, and may be suspended at any time at the Company’s discretion.

The Company also purchased approximately 87,230 shares from its Disputed Claims Reserve at the prevailing market price to satisfy certain tax obligations resulting from the February 10, 2015 distribution.

Approximately $644 million of the Company’s unrestricted cash and short-term investment balance was held in Venezuelan bolivars. This balance includes approximately $621 million valued at 6.3 bolivars to the U.S. dollar and approximately $23 million valued at 12.0 bolivars to the U.S. dollar, with the rate depending on the date the Company submitted its repatriation request to the Venezuelan government. These rates are materially more favorable than the exchange rates currently prevailing for other transactions conducted outside of the Venezuelan government’s currency exchange system. The Company’s cash balance held in Venezuelan bolivars decreased $12 million from the December 31, 2014 balance of $656 million due to payments made in bolivars for local operating expenditures.

During 2014, the Company significantly reduced capacity in the Venezuelan market and is no longer accepting bolivars as payment for airline tickets. The Company is monitoring this situation closely and continues to evaluate its holdings of Venezuelan bolivars for additional foreign currency losses or other accounting adjustments, which could be material, particularly in light of the additional uncertainty posed by the February 2015 changes to the foreign exchange regulations and the continued deterioration of economic conditions in Venezuela. More generally, fluctuations in foreign currencies, including devaluations, cannot be predicted by the Company and can significantly affect the value of its assets located outside the United States. These conditions, as well as any further delays, devaluations or imposition of more stringent repatriation restrictions, may materially adversely affect the Company’s business, results of operations and financial condition.

Notable Accomplishments

Merger Accomplishments

Merged frequent flyer programs by moving US Airways Dividend Miles members into AAdvantage®
In April, received a single operating certificate from the FAA which allows the airline to operate under one certificate
Achieved a ratified 5-year contract with the carrier’s 15,000 pilots that provides industry leading pay rates
Optimized the Company’s flight schedule at Chicago O’Hare International Airport and Dallas/Fort Worth International Airport
Co-located operations at eight more airports across its network, bringing the total number of co-locations to 114

Finance Accomplishments

Completed a $500 million unsecured bond offering priced at 4.625% and a $1.2 billion enhanced equipment trust certificate (EETC) issue priced at a blended rate of 3.425%. In addition, in April the Company refinanced its $750 million 2014 slot, gate and route term loan at lower interest rates and improved collateral terms
On March 20, the Company was added to the S&P 500 index
Marketing, Network and Fleet Accomplishments

Took delivery of the first two Boeing 787 Dreamliners, which will enter domestic service in May 2015, and begin flying internationally in June 2015. Also, as part of its ongoing fleet renewal program, the Company took delivery of 18 new mainline aircraft, and retired its last Boeing 767-200

Signed a codeshare agreement with Korean Air to place its code on American flights between Dallas/Fort Worth International Airport and Seoul, South Korea

Became the official airline partner of the Los Angeles Clippers and was named the official airline of the Chicago Cubs and Wrigley Field

In the first quarter, the Company recognized $311 million in net special charges, including:

$223 million in merger related integration expenses, including $216 million in mainline special charges and $7 million in regional special charges

$99 million in charges relating to the Company’s new pilot joint collective bargaining agreement

$6 million in net credits for bankruptcy related items, principally consisting of fair value adjustments for bankruptcy settlement obligations

$8 million non-operating net special credits comprised of a $17 million early debt extinguishment gain on the repayment of American’s AAdvantage® loan with Citibank, offset in part by a $9 million charge related to the prepayment of certain aircraft financings

$9 million in tax special charges related to certain indefinite-lived intangible assets

Copyright Photo: AirlinersGallery.com. The new Boeing 787-8 goes into revenue service next month. The pictured Boeing 787-8 Dreamliner N801AC (msn 40619) was the second, delivered on February 27. N801AC is pictured landing at London (Heathrow) on a proving and training flight.

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