American Airlines and British Airways to operate four daily flights between Los Angeles and London Heathrow starting on March 28, 2015
American Airlines (Dallas/Fort Worth) has announced it will add more service between Los Angeles and London (Heathrow) beginning in March 2015. The new flight will be operated with three-class Boeing 777-300 ERs.
With four daily direct flights to London Heathrow – two operated by American with its flagship 777-300 ERs and two by American’s Atlantic joint business partner British Airways (London) with its Airbus A380s.
LAX-LHR (four times per day, year round, all times local)
The new 5:55 p.m. (1755) LAX to LHR nonstop begins on March 28, 2015.
During 2014, American has expanded its LAX hub with new twice-daily service to Vancouver, Canada (YVR), daily nonstop service to Edmonton, Canada (YEG) and San Antonio, Texas (SAT). American launches new daily nonstop service to Tampa, Florida (TPA), on Nov. 5 and three daily nonstop flights to Atlanta (ATL) on March 5, 2015. With these new destinations, American will serve 55 domestic and international destinations from LAX. Earlier this month, American also submitted a motion to the U.S. Department of Transportation asking it to reallocate an underutilized U.S.-Tokyo Haneda (HND) frequency to American, which American would use to operate year-round service between LAX and HND.
Copyright Photo: SPA/AirlinersGallery.com. American’s Boeing 777-323 ER N717AN (msn 31543) climbs away from London’s Heathrow Airport.
Lufthansa Group (Frankfurt), despite the on-going pilot strikes at Lufthansa (Frankfurt), remains confident its can maintain its profitability of 1 billion euro for the year. The Group today issued this report:
The Lufthansa Group remains confident of achieving its profit targets for 2014 – despite experiencing a difficult third quarter, and despite strike action eroding EUR 170 million from its earnings results. The Group expects to post an operating profit of around EUR 1 billion for the year, excluding the impact of any further strike action between now and year-end. The projection has been strengthened by favorable results for the first nine months: the Lufthansa Group achieved an operating profit of around EUR 849 million for January-to-September 2014, a EUR 186 million improvement on the same period last year. Adjusted for non-recurring restructuring and project costs, this represents an operating profit of some EUR 1 billion for the first-nine-month period. Third-quarter operating profit amounted to EUR 735 million, up EUR 145 million on the prior-year period.
Read the full report: CLICK HERE
Copyright Photo: Michael B. Ing/AirlinersGallery.com. Boeing 747-830 D-ABYO (msn 37841) with Fanhansa titles departs from Los Angeles International Airport.
Ryanair (Dublin) has announced it will open its second Danish base (70 in total) at Copenhagen in March 2015 with up to four based Boeing 737-800 aircraft and starting with three new routes to London, Milan and Warsaw, with an additional 10 more new routes to be announced in the New Year. Ryanair will base its first Boeing 737-800 in Copenhagen from March and 3 more units later in 2015.
Copyright Photo: Paul Bannwarth/AirlinersGallery.com. Boeing 737-8AS EI-DAD (msn 33544) lands at the EuroAirport.
Fuzhou Airlines (Fuzhou, Fujian Province, China) today (October 30) launched scheduled passenger operations between Fuzhou and Beijing with Boeing 737-84P B-5503 (msn 36782) leased from Hainan Airlines (Haikou and Beijing). The new airline is a joint venture between Hainan Airlines and Golden Resources Investment Group which is a state-owned asset investment company.
The airline received its AOC on October 17.
Photo: Fuzhou Airlines.
American Airlines‘ (Dallas/Fort Worth) first Boeing 787-8 Dreamliner (N800AN, msn 40618) emerged from the paint shop this morning at Boeing’s Everett facility. American has released these photos.
N800AN will be delivered in December. The first 787-8 is scheduled to enter revenue service in early 2015 initially on domestic routes.
American has 42 Boeing 787s on order including 16 787-8s and 26 787-9s, with 58 options. The airline is scheduled to take delivery of two 787s this year, 11 in 2015, 13 in 2016 and nine in 2017.
American will replace some of its older Boeing 767-300s with the new 787s.
In other news, US Airways has repainted its Airbus A319-112 N744P (msn 1287) (below) in the 1974 Piedmont Airlines (1st) (Winston-Salem) livery now with American titles. US Airways is gradually repainting all of the legacy jets with American titles.
All Images by American Airlines (except the slide show by AirlinersGallery.com).
Piedmont Airlines (1st) Aircraft Slide Show:
Dynamic Airways (2nd) (Greensboro, NC) is planning to restart scheduled passenger services from New York (JFK) to Georgetown, Guyana (GEO) on November 22.
Schedule: CLICK HERE
Bill Gray, COO of Dynamic Airways said “in past months our team has worked diligently on restarting air service to Guyana. With the help of authorities from both countries as well as our partners we were able to prepare the type of service we believe is long overdue in this market.”
Dynamic Airways’ Sales Agent Network, which includes long established travel industry leaders such as Roraima Airways, Bobbie Travel, Sunita Travel, and many others, has been greatly enhanced by the addition of TravelSpan, Inc. from Queens, NY. TravelSpan’s block seat agreement as well as PSA Agreement allows Dynamic Airways to significantly expand its passenger base and market penetration.
The flights will depart from JFK’s Terminal One at 1 AM (0100) and departing from Georgetown at 4 PM (1600) every Tuesday, Friday and Saturday. Dynamic Airways offers both Business and Coach Class seats.
Images: Dynamic Airways.
United Airlines (Chicago) will launch a new summer seasonal spoke route from its Newark hub to Newcastle in the United Kingdom on May 23, 2015. The flight will operate five days a week until September 7, 2015 with 169-seat Boeing 757-200s. This will be the first trans-Atlantic route for Newcastle.
Copyright Photo: Michael B. Ing/AirlinersGallery.com. Boeing 757-224 N58101 (msn 27291) climbs away from the runway at Los Angeles.
Virgin Atlantic Airways (London) yesterday (October 28) introduced its new Boeing 787-9 Dreamliner (G-VNEW, “Birthday Girl) on the London (Heathrow)-Boston route as planned.
The airline celebrated the new launch with this entry in its blog:
In 1984, the inaugural Virgin Atlantic transatlantic flight took place. To celebrate the 30th anniversary of this historic event, we’re introducing our new Boeing 787-9, also known as the ‘Dreamliner.’
Named “Birthday Girl”, this brand new aircraft started flying from London to Boston, on October 28, 2014. It’s a whole new chapter for air travel. Here’s why…
The Virgin Atlantic Boeing Dreamliner 787-9The new Boeing 787-9 Dreamliner. Prepare for an evolution in air travel
A strong connection
Now, you can stay connected throughout the whole flight with the onboard WiFi connection. So you can tweet from your seat or make a call mid air.
The Wander Wall
Head over to grab a bite to eat or a drink and meet other travellers at the Wander Wall in Premium Economy. And make sure you say hello to our friendly cabin crew, because if there’s one thing they love, it’s getting to know customers from across the globe. Stretching your legs has never been so interesting.
A bright idea
Feel lighter, brighter and say goodbye to jet lag. The new dynamic mood lighting on the 787 adjusts throughout the flight to the destination time zone, helping you arrive feeling relaxed and as energised as you would on a normal day.
Drinks all round
The Upper Class Bar is the new social space for Upper Class travellers. You can relax, chat to friends and other customers. Or just take some time out to enjoy the extraordinary views over your favourite drink. Unwinding never felt so good.
The new 787 offers maximum legroom and soft seating throughout all cabins
Economy seating on the 787 is more comfortable than ever. We’ve made the most of the space around the seats, so there’s maximum legroom and plenty of space for reclining. Whichever cabin you’re in, the seats are soft and beautifully designed. And if you’re travelling in Upper Class, you can look forward to stretching out in a 33″ wide flat bed. Ceilings throughout are also higher, allowing more air and light to circulate and giving a feeling of space and freedom.
Birthday Girl has a maximum altitude of 40,000 feet, a range of over 8,300 miles and speeds of over 640 mph. Prepare to reach your destination faster than you ever thought possible.
Pure and simple
Feeling comfortable onboard the 787 goes even further than advanced seating and ample legroom. The air’s cleaner and the cabin pressure is lower, meaning you’ll arrive feeling refreshed and revived. Not only that, the windows are the largest on any commercial aircraft. So you can eat, dine or relax in perfectly natural light. And when you’re ready for the end of the day, the dynamic mood lighting and electronically dimmable windows lower the brightness.
Ending on a high note
Our new 787 is 21% more fuel efficient than the aircraft it’s replacing. It’s innovation at its greenest.
Our 787 Dreamliner is innovative, luxurious and miles ahead. And it’s built to make flying even more enjoyable.
All images by Virgin Atlantic.
Emirates Airline (Dubai) and Boeing (Chicago and Seattle) are celebrating the delivery of the airline’s 100th 777-300 ER (Extended Range), marking another milestone in a partnership that began over two decades ago when the Dubai-based airline ordered its first 777. Boeing 777-31H ER A6-ENV (msn 41368) (above) was handed over to the carrier on October 28.
With this delivery, Emirates will have 142 777s in operation and is the only airline in the world to operate all the 777 variants. With a current direct backlog of 51 777-300 ERs, the 777 also comprises the largest part of Emirates’ 213-strong fleet.
At the 2013 Dubai Airshow, Emirates became one of the launch customers for the 777X by committing to 150 airplanes. The order was finalized in July of this year.
Boeing provides Emirates with essential support and services from its Boeing Edge portfolio of aviation services, including parts and components, Airplane Health Management to speed the detection and resolution of maintenance issues, Jeppesen Crew Rostering services to optimize flight crew scheduling, and AerData STREAM (Secure Technical Records for Electronic Asset Management) to manage aircraft and engine records.
Emirates also celebrated the delivery of the pictured A6-ENV with this announcement:
Emirates celebrated another milestone on Wednesday with the delivery of the airline’s 100th Boeing 777-300 ER, the world’s largest, long-range twin engine commercial aircraft.
The Boeing 777-300 ER forms the backbone of the Emirates fleet with the aircraft type currently operating to 77 destinations on the airline’s global network.
Delivery of Emirates’ first Boeing 777-300 ER took place in March 2005 and with a further 52 aircraft on order, the airline is the world’s largest operator of this aircraft type – in fact one in every five 777-300 ERs flying today is in Emirates’ livery.
It takes 47 days to build a 777-300 ER and each aircraft is made of three million parts. If you took all of the wiring contained within Emirates’ 100 777-300 ERs and placed it end-to-end it would stretch from Dubai to New York and back again.
Sir Tim Clark, President of Emirates Airline said, “The Boeing 777-300ER is one of the most remarkable aircraft ever built, and its combination of efficiency, range and payload is second to none. Our customers are equally excited by the aircraft and its on-board product, and to date over 108 million passengers have flown on an Emirates Boeing 777-300 ER.
“We have 204 more Boeing 777s on order, which supports over 400,000 jobs in the United States of America, including those from various suppliers such as General Electric which provides the GE90 engines that power all of our 777-300 ERs,” added Sir Tim.
“We are proud of our long-term relationship with Emirates and for the confidence they have in Boeing’s products and services beginning with the 777 and continuing with the 777X in the years to come,” said Ray Conner, president and CEO, Boeing Commercial Airplanes. “The operating economics and long-range capability of the 777-300 ER have played a prominent role in the success of Emirates’ business strategy.”
The range of the Boeing 777-300 ER is 14,490 kilometers, and Emirates’ longest flight with this aircraft currently operates between Dubai and Houston which is a total distance of 13,120 kilometers.
The Boeing 777 is manufactured in Everett, Washington. The Everett plant is so large that it requires its own fire department, security force, fully equipped medical clinic, electrical substations and water-treatment plant. The site’s main assembly building, which the Guinness Book of World Records acknowledges as the largest building in the world by volume, its footprint covers 98.3 acres (39.9 hectares)
Timeline of the Emirates Boeing 777-300 ER:
June 16, 2003: Emirates announced an operating lease order for 26 Boeing 777-300 ERs at the 2003 Paris Air Show, worth $5.6 billion.
July 20, 2004: Emirates ordered 4 Boeing 777-300 ERs with 9 options at the 2004 Farnborough Air Show, worth $2.96 billion.
March 26, 2005: Emirates receives its first Boeing 777-300 ER.
November 20, 2005: At the Dubai 2005 – 9th International Aerospace Exhibition, Emirates announced an order for 24 Boeing 777-300 ERs. In all, Emirates ordered 42 Boeing 777s in a deal worth $9.7 billion, the largest Boeing 777 order then in history.
November 11, 2007: At the 2007 Dubai Air Show, Emirates ordered 12 Boeing 777-300 ERs, worth $3.2 billion.
In 2009, Emirates became the world’s largest operator of the Boeing 777 with the delivery of its 78th Boeing 777.
July 19, 2010: Emirates ordered another 30 Boeing 777-300 ERs at the 2010 Farnborough Air Show, worth $9.1 billion.
November 13, 2011: At the 2011 Dubai Air Show, a firm order was placed for 50 Boeing 777-300 ERs with options for another 20. The deal was worth $18 billion, the largest commercial order by value in Boeing’s history.
March 3, 2012: Emirates received the 1000th Boeing 777 which was a 777-300 ER variant.
November 17, 2013: In the 2013 Dubai Air Show , Emirates made aviation history with a record-breaking order of 150 Boeing 777X aircraft.
July 29, 2014: Boeing delivers its 500th 777-300 ER to Emirates. Emirates is the only airline in the world to operate all 6 variants of the 777 family.
October 29, 2014: Emirates receives its 100th Boeing 777-300 ER. Emirates operates one out of every five Boeing 777-300 ERs in the world.
Emirates destinations launched using Boeing 777-300 ER are:
Adelaide, Barcelona, Buenos Aires, Geneva, Milan-New York JFK, Oslo, Rio De Janeiro, Seattle, Stockholm, Taipei and Tokyo (Narita)
All images by Emirates.
WestJet (Calgary) has announced it has reached a tentative agreement with WestJet’s Flight Attendant Association Board (FAAB). The proposed agreement is available to WestJet flight attendants for review beginning on October 31, 2014, and voting begins on November 10, 2014, at 9 a.m. MST.
The WestJet Inflight leadership team and FAAB began negotiations in May 2014, to develop a tentative agreement to replace the flight attendants’ memorandum of agreement.
WestJet and FAAB have committed, in writing, to honor all facets of the tentative agreement, which covers a five-year term, and changes may only be made through negotiations with flight attendants. There is also a clear and enforceable dispute resolution process in place.
Copyright Photo: Ken Petersen/AirlinersGallery.com. Boeing 737-8CT C-GWSA (msn 34153) arrives at Las Vegas.
Biman Bangladesh Airlines (Dhaka) today (October 27) is ending service to Frankfurt where it operates as an extension of the Dhaka-Rome route. The route was served two days a week.
Copyright Photo: Joe G. Walker/AirlinersGallery.com. Boeing 777-3E9 ER S2-AHN (msn 40121) departs from Paine Field, Everett.
Biman Bangladesh Aircraft Slide Show:
Current Route Map:
Norwegian Air Shuttle (Norwegian.com and Norwegian Long Haul) (Oslo) reported a net profit of NOK 373.8 million ($57.0 million) for the third quarter, down 14% from a net profit of NOK 435.9 million ($65.8 million) for the same quarter in 2013.
The airline issued this full report:
Norwegian reports strong growth in all European markets with a capacity increase of 36 percent and a load factor of 85 percent in its third quarter results. The pre-tax result (EBT) was 505 MNOK, compared to 604 MNOK the same quarter previous year. The costs associated with wet-leasing replacement aircraft and a weak Norwegian Krone (NOK) significantly affected the figures.
Even with strong passenger growth, the load factor was high and increased by three percentage points to 85 percent in the third quarter. Norwegian carried 7.1 million passengers this quarter and the company’s operations at London Gatwick had the strongest passenger growth.
The pre-tax result (EBT) was 505 MNOK, compared to 604 MNOK the same quarter previous year. The combination of a weak Norwegian Krone (NOK), the delayed approval from the U.S. Department of Transportation and costs associated with flight delays, affected the results this quarter. Wet-leasing replacement aircraft and extra fuel, as well as accommodation, food and drink for delayed passengers also created extra costs. The costs associated with the long overdue application before the U.S. Department of Transportation for a foreign air carrier permit for Norwegian’s Irish subsidiary, Norwegian Air International were also considerable. The application is in full accordance with the Open Skies Agreement between the EU and the U.S.
“We’re very satisfied that throughout our world-wide route network, an increasing number of new passengers choose Norwegian. Norwegian has recently received several international awards and was even named ‘Europe’s best low-cost airline’ the second year running. However, we have also experienced some turbulence this quarter. Our results are affected by additional costs related to the pending U.S. permit for our subsidiary in Dublin, consequently reducing our ability to optimize our fleet of aircraft. Even though technical difficulties with our Boeing 787 Dreamliners have also caused additional costs, our long-haul operation now consists of more aircraft and improved reliability. Looking into 2015, we will see a year of consolidation and lower growth. Next year, our fleet of short-haul aircraft will consist exclusively of Boeing 737-800s as older Boeing 737-300s will be phased out,” said CEO Bjørn Kjos.
Copyright Photo: Stefan Sjogren/AirlinersGallery.com. Norwegian will retire its last Boeing 737-300 in 2015. Devoid of a tail photo, Boeing 737-31S LN-KHC (m,sn 29295) arrives in Stockholm (Arlanda).
Aerolineas Argentinas (Buenos Aires) will add Punta Cana, Dominican Republic on January 3, 2015 via Caracas per Airline Route. The new route will be operated three days a week with Boeing 737-800s.
The airline will also serve Havana via Caracas starting on January 5, 2015.
Copyright Photo: Steve Bailey/AirlinersGallery.com. Boeing 737-8BK N5573P (msn 41561) departs from Boeing Field in Seattle on a test flight. The new aircraft was delivered as LV-FRQ on April 10, 2014.
Delta Air Lines (Atlanta) on January 5, 2015 will introduce the Boeing 737-900 ER on the Los Angeles-Guadalajara route followed by Los Angeles-Phoenix on February 13, 2015 per Airline Route.
Additionally for next summer, Delta plans to use the stretched 737 on the Atlanta-Grand Cayman route weekly on Saturdays from June 8 through August 15, 2015.
Copyright Photo: Michael B. Ing/AirlinersGallery.com. Boeing 737-932 ER N811DZ (msn 31916) arrives at Los Angeles International Airport (LAX).
WestJet (Calgary) today (October 26) will launch new daily nonstop services between Toronto (Toronto) and Phoenix, Arizona
Details of WestJet’s new daily Phoenix service are as follows:
Flight WS 1198 will depart Toronto at 10 a.m. (1000) and arrive in Phoenix at 11:51 a.m. (1151).
Flight WS 1199 will depart Phoenix at 12:40 p.m. (1240) and arrive in Toronto at 7:41 p.m. (1941).
In other news, WestJet Encore will launch new daily nonstop service between Calgary and Penticton, British Columbia, today, October 26, 2014.
Details of WestJet’s new daily Penticton service are as follows:
Flight WS 3281 departs Calgary at 2:10 p.m. (1410) and arrives in Penticton at 2:26 p.m. (1426).
Flight WS 3280 departs Penticton at 3 p.m. (1500) and arrives in Calgary at 5:05 p.m. (1705).
Penticton is WestJet’s 41st nonstop destination from Calgary International Airport. The airline’s average of 97 daily departures makes YYC its busiest Canadian airport.
Launched in June 2013, WestJet Encore now services 24 cities in seven provinces with 114 daily departures. In 2015, the regional airline will launch service to Quebec City, Quebec, and Fredericton, New Brunswick.
Copyright Photo: Ken Petersen/AirlinersGallery.com. Boeing 737-8CT C-GAWS (msn 38880) arrives in Las Vegas with new Aviation Partners Boeing Split Scimitar Winglets.
UPS reports its third quarter operating profit increased 7.8% to $1.3 billion, expects holiday packages to increase by 11%
UPS (United Parcel Service) (UPS Airlines) (Atlanta and Louisville) issued this financial statement:
UPS has announced diluted earnings per share of $1.32 for the third quarter 2014, a 13.8% improvement over the prior year period. Operating profit increased 8.3%, resulting from balanced growth across all three segments.
Daily packages in the U.S. were 6.9% higher as demand from both B2C and B2B customers improved. International Export shipments increased 9.4% with strong growth in both Asia and Europe. UPS delivered 1.1 billion packages around the world, up 6.9% over the third quarter 2013.
For the nine months ended Sept. 30, UPS generated $2.8 billion in free cash flow. The company paid dividends of $1.8 billion, up 8.1% per share over the prior year, and repurchased 20.6 million shares for approximately $2.1 billion.
U.S. Domestic Package
U.S. Domestic revenue increased to $8.7 billion, up 5.3% over the third quarter 2013. Daily package volume improved 6.9%, led by gains in UPS Ground and Deferred products up 7.7% and 5.9%, respectively. E-commerce continued to drive strong B2C growth, while B2B deliveries were also higher this quarter.
Operating profit was $1.3 billion, up 7.8%. Operating margin expanded 30 basis points to 14.7%. The segment experienced positive operating leverage as investments in new technology and capacity helped lower costs.
Total revenue per package declined 1.5% as base rate improvements were offset by changes in customer and product mix. UPS SurePost shipments increased more than 50%, contributing to the mix change.
During the quarter, UPS announced the expansion of its Access Point alternate delivery solution to the New York City and Chicago areas. Plans were announced to add locations in other U.S. cities, in addition to more than 4,400 existing UPS Stores, by the end of 2015.
International revenue increased 5.5% to $3.2 billion on daily package growth of 6.7%. Export products jumped 9.4% with gains from all regions of the world. Shipments out of Asia grew 16% and Europe was up 14%.
Operating profit improved 10.3% to $460 million. Operating margin expanded 70 basis points over the prior year period, to 14.5%. Revenue and cost initiatives implemented during the quarter contributed to the margin improvements.
Currency-neutral revenue per package declined 1.0% due to changing product mix and continued strength in shorter trade lanes. Non-premium products continue to outpace premium, putting pressure on yield.
On October 7, UPS announced the acquisition of international e-commerce enabler i-parcel, LLC. The company’s experience and technology in cross-border e-commerce assists U.K. and U.S. based retailers expand their reach to consumers in over 100 countries worldwide.
Supply Chain & Freight
Supply Chain and Freight revenue was up 7.4% to $2.4 billion, resulting primarily from growth in the Distribution and UPS Freight business units. Operating profit was 7% higher at $215 million, and operating margin was 8.9%.
Forwarding revenue was higher primarily due to increased International Air Freight (IAF) tonnage which was aided by high-tech product launches and Government sector gains. Operating profit improvements in North American Air Freight and Ocean Forwarding were more than offset by continued pricing pressure in IAF.
Distribution revenue increased more than 10% over the same quarter last year. Strong demand from Healthcare and Retail sector customers contributed to the growth.
UPS Freight revenue increased 7.9% to $810 million. LTL shipments were 4.7% higher and revenue per hundredweight improved 1.1%. Operating profit and margin expanded from the third quarter last year.
The company announced its expectations for the upcoming holiday season. UPS expects shipments delivered during the month of December to climb 11% over the prior year. As previously announced, the company committed an additional $175 million in operating expense and $500 million in capital expenditures to enhance its capabilities and prepare the network for peak and future volume growth.
Copyright Photo: Michael B. Ing/AirlinersGallery.com. Boeing 747-4R7F N582UP (msn 29053) departs from Anchorage.
Delta and Virgin Atlantic this weekend add to their trans-Atlantic joint venture with two swapped flights
Delta Air Lines (Atlanta) and Virgin Atlantic Airways (London) this weekend are marking the launch of their new services between London (Heathrow) and Los Angeles and London-Heathrow and Atlanta respectively.
The new routes are the first transfer of operations between the two airlines since the launch of their joint venture earlier this year and will offer more choice and flexibility for both airlines’ customers on these key routes across the Atlantic.
From Sunday, Delta will be flying nonstop from London to California for the first time with one of two daily Heathrow-Los Angeles flights previously operated by Virgin Atlantic. The route is Delta’s seventh nonstop destination between London and the United States. Virgin Atlantic, meanwhile, is operating its first ever flights into the world’s busiest airport, Hartsfield-Jackson Atlanta International, having taken over one of Delta’s three daily services, and is now able to offer more than 100 additional international and domestic connections to its customers at Delta’s hub airport.
Delta and Virgin Atlantic will operate their Los Angeles and Atlanta services at Heathrow Terminal 3. This co-location adds to the New York-JFK, Boston and Seattle/Tacoma joint venture flights, which already operate from Terminal 3. This provides convenient connections and a seamless customer experience for passengers of both airlines, including access to Virgin Atlantic’s award winning Clubhouse for all business class passengers. Both carriers also offer full flat-bed seats with direct aisle access on all business class flights between the U.K and U.S..
Virgin Atlantic expects to fly around 160,000 passengers annually to Atlanta and beyond on its new service providing convenient connections to Delta flights across the U.S., Mexico and the Caribbean. Virgin Atlantic has recently announced plans to add a second daily seasonal flight to Atlanta in summer 2015 as part of a package of investment into North American routes that will see the total number of peak day flights operated by the joint venture at 37 from March.
Since the start of the Delta and Virgin Atlantic trans-Atlantic joint venture, 3.5 million passengers have experienced the benefits of the partnership. The two airlines also have a codeshare agreement in place, maximizing the customer appeal of the joint schedule. The partnership enables the airlines to offer more flight choices for travellers on both sides of the Atlantic by improving their travel options.
Top Copyright Photo: Delta will operate the Boeing 767-300 ER on the LHR-LAX route. Delta’s Boeing 767-332 ER N16065 (msn 30199) now carries special “Andrew Young – Atlanta ‘s Ambassador to the World” markings by the nose saluting the diplomatic career of Atlanta native Andrew Young.
Bottom Copyright Photo: SPA/AirlinersGallery.com. Virgin Atlantic will operate the Airbus A330-300 on the LHR-ATL route. Airbus A330-343 G-VUFO (msn 1352) climbs away from the runway at London’s Heathrow Airport.
United Airlines (Chicago) will launch four new Pacific routes, beginning with nonstop service between Los Angeles and Melbourne, Australia, and between San Francisco and Tokyo’s Haneda Airport, on October 26, 2014. Later in the week, the airline will also launch two new routes from its Guam hub – Seoul, South Korea, on October 27 and Shanghai on October 28.
Los Angeles – Melbourne, Australia
The airline will fly the Los Angeles – Melbourne route six times weekly with the new Boeing 787-9 Dreamliner aircraft (above). United is the North American launch customer for the 787-9, and this will be the carrier’s first international deployment of the aircraft type.
United has timed the new Melbourne flights to conveniently connect at Los Angeles with an extensive network of service throughout the United States, Canada and Latin America. United and United Express jointly operate nearly 200 flights daily from Los Angeles to more than 65 destinations. With this new service, United will provide convenient one-stop service to Melbourne from more than 37 U.S. cities.
United started service to Australia in 1979 and today operates more flights to more destinations in Australia than any other U.S. carrier, with daily flights from its San Francisco and Los Angeles hubs to Sydney and Melbourne and twice-weekly service to Cairns from Guam.
Boeing 787 Dreamliner
The 787 Dreamliner is revolutionizing the flying experience for United customers and crews while delivering unprecedented operating efficiency, comfort and lower emissions.
The 787-9’s extended range – 8,550 miles compared to the 787-8’s 8,200 – enables United to launch the Los Angeles-to-Melbourne service, which will be the longest Dreamliner route in the world to date.
The Boeing 787-9 aircraft operating the new Melbourne route will feature a total of 252 seats – 48 in United BusinessFirst and 204 in United Economy, including 88 Economy Plus seats with added legroom and increased personal space.
San Francisco – Tokyo/Haneda Airport
New daily flights between San Francisco and Tokyo’s close-in Haneda Airport complement United’s existing service between the hub and Tokyo’s Narita International Airport. Flights from San Francisco to both Tokyo airports maximize choice and convenience for customers traveling from across the Americas to Tokyo, and to points beyond on United’s joint-venture partner ANA.
The flight schedules enable customers to use convenient public transportation between Haneda Airport and central Tokyo and Yokohama.
United also operates daily service to Tokyo/Narita from its hubs in Chicago (O’Hare), Denver, Guam, Houston, Los Angeles, Newark and Washington (Dulles), as well as from Honolulu.
United is the largest carrier at San Francisco International Airport, offering nearly 300 daily flights to more than 90 destinations in the U.S. and around the world, more service than any other airline from the Bay Area. United’s San Francisco hub also offers more nonstop trans-Pacific service than any airline hub in America. The company currently operates nearly 30 daily nonstop flights from San Francisco to more than 20 international destinations.
Guam to Seoul, South Korea and Shanghai
In addition, United will launch two new routes from its Guam hub at A.P. Won Pat International Airport: daily service to Seoul’s Incheon International Airport beginning on October 27, 2014, and twice-weekly service to Shanghai’s Pudong International Airport, the first nonstop service from Guam to mainland China, beginning on October 28, 2014.
United has served Guam for more than 40 years, with United and United Express currently providing nonstop service from the hub to more than 17 destinations in the Asia/Pacific region.
Copyright Photo: Michael B. Ing/AirlinersGallery.com. The first United Boeing 787-9 Dreamliner, N38950 (msn 36401) departs from Los Angeles International Airport.
United’s International Route Map:
Virgin Australia Airlines (Brisbane) has announced that it will introduce nonstop services between Darwin and Alice Springs from the end of March 2015, to coincide with the opening of the new Virgin Australia Lounge in Darwin.
The airline will introduce this new weekly schedule of services using its Boeing 737 aircraft.
Copyright Photo: Colin Hunter/AirlinersGallery.com. Boeing 737-8FE ZK-PBA (msn 33796) arrives in Auckland, New Zealand.
Makivik Corporation and NorTerra Inc., respectively the shareholders of First Air (Ottawa) and Canadian North (Yellowknife), in April 2014 agreed to hold discussions leading to the merger of their operations consistent with a merger of equals, subject to the successful conclusion of negotiations and regulatory review.
According to the two parties, “The potential merger was intended to create a single airline entity that builds on the strengths and identities of the two companies. A merger would improve the sustainability of these critical Inuit birthright enterprises and would also create better air services and new economic development opportunities across the north.”
Please see the previous report with route maps of both carriers: CLICK HERE
The merger discussions failed. The two parties issued this joint statement:
Makivik Corporation and NorTerra Inc., respectively the shareholders of First Air and Canadian North, announce that they have terminated discussions aimed at merging their airline operations, and no such further discussions are envisaged.
Canadian North and First Air will continue to have a positive working relationship aimed at providing the best possible service to customers in a competitive marketplace.
Flight operations and services at both airlines remain unaffected. The parties will have no further comment on the matter.
Canadian North and its founding companies (Canadian Airlines, Pacific Western Airlines, Transair, Nordair) has proudly served Canada’s North with passenger and cargo services for more than 80 years. Offering scheduled flights to 19 destinations, Canadian North proudly serves the Northwest Territories and Nunavut, via the southern gateways of Edmonton and Ottawa. Canadian North is also the premier provider of fly-in/fly-out charter services for large resource sector clients requiring safe, efficient and economical air transportation. Charter flights are also offered across North America for sports teams, cruise lines and large groups. Canadian North is a subsidiary of NorTerra Inc., which is owned by the Inuvialuit Development Corporation, representing the Inuvialuit of the Western Arctic. For more information please visit http://www.canadiannorth.com.
First has a fleet of 23 aircraft including the only two civilian owned and operated Hercules cargo aircraft in Canada, First Air has been connecting the people of the North for over 65 years.
First Air offers scheduled, cargo and charter services to more northern destinations than any other airline. First Air is a wholly-owned subsidiary of Makivik Corporation and has around 1,000 employees, of which more than 450 work and live in the North. For more information please visit http://www.firstair.ca.
Top Copyright Photo: Tony Storck/AirlinersGallery.com. Canadian North’s DHC-8-106 Dash 8 C-GRGO (msn 258) taxies at Yellowknife.
Bottom Copyright Photo: TMK Photography/AirlinersGallery.com. Set against an angry sky, Boeing 737-2R2C C-FNVK (msn 23130) of First Air displays the polar bear on the tail.
Etihad Airways (Abu Dhabi) will increase the frequency of its new service to Dallas/Fort Worth to daily from April 16, 2015, to meet the demand from business and leisure travellers on the ultra-long-haul route.
Dallas/Fort Worth will be introduced into Etihad Airways’ global route network on December 3, 2014 with an initial three flights per week service, prior to the upgrade. It is the airline’s sixth route in the United States, alongside New York, Washington DC, Chicago, Los Angeles and San Francisco, which launches on November 18, 2014.
A Boeing 777-200 LR aircraft will be operated on the route, offering a total of eight seats in First Class, 40 seats in Business Class, and 177 seats in Economy Class.
Copyright Photo: Michael B. Ing/AirlinersGallery.com. Ex-Air India Boeing 777-237 LR A6-LRE (msn 36304) completes its final approach to Los Angeles.
SF Airlines (Shenzhen) is planning to add the larger Boeing 767-300F freighter to its growing fleet. The 767 will be a new type for the carrier. The cargo airline has placed an order with Boeing for an undisclosed number of 767-300 ER passenger-to-freighter conversions (Boeing Converted Freighters). SF Airlines, a subsidiary of Shenzhen, China-based delivery services company SF Express, will accept its first redelivered 767 in the second half of 2015.
SF Airlines currently operates Boeing 757-200F freighters (above) and Boeing 737 freighters.
Copyright Photo: Yuji Wang/AirlinersGallery.com. Boeing 757-2Z0 (F) B-2832 (msn 25887) is pictured at Shanghai (Pudong).
Kunming Airlines (Changshui) has committed to purchase 10 Boeing 737s, including four Next-Generation 737-700s and six 737 MAX airplanes.
The commitment, valued at $897 million at current list prices, is subject to the approval of the Chinese government and will be posted on Boeing’s Orders & Deliveries website once all contingencies are cleared.
Kunming Airlines, based at Changshui International Airport in the capital city of Yunnan province, began operations in 2009. The carrier currently serves more than 25 cities across China by operating a fleet of 10 Boeing 737-700s and five 737-800s.
Copyright Photo: Ivan K. Nishimura/AirlinersGallery.com. The larger Boeing 737-87L B-1926 (msn 41111) taxies at Honolulu.
Atlas Air Worldwide Holdings, Inc. (New York) today announced the placement of two incremental Boeing 747 freighters into ACMI service with DHL Express.
The two aircraft, a Boeing 747-800F and a 747-400F, will be operated in Polar Air Cargo Worldwide’s express network under an ACMI arrangement for the benefit of DHL Express. Operations are scheduled to begin on October 26, 2014.
When the new ACMI service begins, Polar’s express network will total twelve 747 freighters, consisting of five Boeing 747-800Fs and seven 747-400Fs, in ACMI on behalf of DHL and Polar’s other customers. Atlas also will continue to operate a fleet of Boeing 767 Freighters in CMI service for DHL, with 11 aircraft in operation by the end of January 2015.
Copyright Photo: Michael B. Ing/AirlinersGallery.com. Polar Air Cargo’s Boeing 747-46NF N451PA (msn 30809) arrives in Los Angeles.
United Airlines (Chicago) today reported third quarter 2014 net income of $1.1 billion, or $2.75 per diluted share, excluding $151 million of special items, its highest-ever quarterly profit and an increase of 99 percent year-over-year. Including special items, UAL reported third-quarter 2014 net income of $924 million, or $2.37 per diluted share.
United’s consolidated passenger revenue per available seat mile (PRASM) increased 3.9 percent in the third quarter of 2014 compared to the third quarter of 2013.
Third-quarter 2014 consolidated unit costs (CASM), excluding special charges, third-party business expenses, fuel and profit sharing, increased 1.0 percent year-over-year on a consolidated capacity increase of 0.5 percent. Third-quarter 2014 CASM, including those items, decreased 4.0 percent year-over-year.
UAL ended the third quarter with $6.9 billion in unrestricted liquidity.
The company earned a 12.3 percent return on invested capital for the 12 months ended Sept. 30, 2014.
United returned $220 million to shareholders as part of its previously announced $1 billion share buyback program.
“Our third-quarter results demonstrate continued progress, and I want to thank our employees for their contributions to our success,” said Jeff Smisek, UAL’s chairman, president and chief executive officer. “We still have significant opportunity ahead to grow our margins and improve the quality and efficiency of everything we do.”
Third-Quarter Revenue and Capacity
For the third quarter of 2014, total revenue was $10.6 billion, an increase of 3.3 percent year-over-year. Third-quarter consolidated passenger revenue increased 4.4 percent to $9.3 billion, compared to the same period in 2013. Ancillary revenue per passenger in the third quarter increased 10.9 percent year-over-year to more than $22 per passenger. Third-quarter cargo revenue grew 19.1 percent to $237 million driven by higher volumes year-over-year, as cargo traffic returned following lower bookings during the implementation of the company’s new cargo systems in the third quarter of 2013. Other revenue decreased 8.9 percent year-over-year to $1.0 billion mostly due to the company choosing to discontinue an agreement to sell fuel to a third party. The corresponding expense decline appears in third-party business expense.
Consolidated revenue passenger miles increased 0.4 percent and consolidated available seat miles increased 0.5 percent year-over-year for the third quarter, resulting in a third-quarter consolidated load factor of 85.8 percent.
Third-quarter 2014 consolidated PRASM increased 3.9 percent and consolidated yield increased 4.1 percent compared to the third quarter of 2013.
Third-quarter consolidated CASM, excluding special charges, third-party business expense, fuel and profit sharing, increased 1.0 percent compared to the third quarter of 2013. Third-quarter consolidated CASM including those items decreased 4.0 percent.
Third-quarter total operating expenses, excluding special charges, decreased $180 million, or 1.9 percent, year-over-year. Including special charges, total operating expenses decreased $348 million, or 3.6 percent, in the third quarter versus the same period in 2013. Third-party business expense was $61 million in the third quarter of 2014.
Third-Quarter Liquidity and Cash Flow
UAL ended the third quarter with $6.9 billion in unrestricted liquidity, including $1.35 billion of undrawn commitments under its revolving credit facility. The company generated $574 million of operating cash flow in the third quarter. During the third quarter, the company had gross capital expenditures of $493 million, excluding fully reimbursable projects. The company made debt and capital lease principal payments of $1.1 billion in the third quarter, including the redemption of the entire $800 million of its 6.75 percent secured notes due 2015. The company also issued an additional $500 million tranche of term loan debt in the quarter.
The company’s long-term capital structure goals include reducing its non-aircraft related debt and achieving a total gross debt balance, including capitalized operating leases, of approximately $15 billion while maintaining an unrestricted liquidity balance of $5 billion to $6 billion, including its undrawn revolver.
As part of United’s $1 billion share buyback program, United returned $220 million to shareholders during the third quarter.
For the 12 months ended Sept. 30, 2014, the company’s return on invested capital was 12.3 percent.
Third-Quarter 2014 Accomplishments
Operations, Employees and Network
United Airlines reported a third-quarter mainline on-time arrival rate (domestic and international) of 77.6 percent, which was adversely affected by a runway closure at its San Francisco hub and the Sept. 26 sabotage and fire at the air traffic control center in Aurora, Illinois. The on-time arrival rate is based on flights arriving within 14 minutes of scheduled arrival time.
United and the Association of Flight Attendants announced that United will offer its flight attendants an enhanced early out program, which allows participants a one-time opportunity to voluntarily separate from the company and receive a severance payment. United also announced that it is recalling all flight attendants who are on voluntary and involuntary furlough.
During the quarter, United announced five new international routes including Guam to Seoul, South Korea, and Shanghai; Houston to Punta Cana, Dominican Republic; and Newark to London, Ontario, Canada. The company also launched new domestic service from Denver to Lafayette, Louisiana, and Hays, Kansas, and from Houston to Boise, Idaho, and Williston, North Dakota, along with seasonal service from Denver to Sun Valley, Idaho. Additionally, the airline announced new service from Newark to South Bend, Indiana, and seasonal service from Newark to Sarasota, Florida, and San Francisco to Montrose, Colorado.
Fleet and Finance
United became the first North American carrier to take delivery of the Boeing 787-9, a stretched version of the Dreamliner that will allow the airline to accommodate more customers and further capitalize on its worldwide route network. The aircraft is the first of 26 787-9s that United has on order. The company also took delivery of four Boeing 737-900 ER aircraft and four Embraer 175 aircraft during the third quarter.
The company announced that it will add 50 new Embraer 175 aircraft to the United Express fleet. United anticipates deliveries will begin in July 2015 and continue through the summer of 2017. The new aircraft will replace large turboprop aircraft and older, less-efficient aircraft, and are in addition to the 70 new E175s previously announced, bringing the total of new E175s to 120.
United sent notice of redemption of the entire $248 million of its 6.0 percent preferred securities due 2030, which were subsequently retired on Oct. 10, 2014.
The company redeemed the entire $800 million of its 6.75 percent secured notes and simultaneously closed on a transaction to increase the size of its undrawn revolving credit facility by $350 million to a total of $1.35 billion, and issued an additional $500 million tranche of term loan debt.
United continued to install onboard Wi-Fi at a rapid rate, with more than 330 mainline aircraft outfitted with Wi-Fi at the end of the third quarter, including all Boeing 747 and Airbus A319 and A320 aircraft. By the end of the year, the company will have Wi-Fi on two thirds of its mainline fleet and will have begun installation on its two-cabin regional fleet.
The company offered personal device entertainment on more than 180 mainline aircraft – including all Boeing 747s, its Airbus fleet and nine Boeing 777s. Personal device entertainment allows passengers to stream videos and TV shows directly to their own devices inflight.
United launched mobile app passport scanning, becoming the first U.S. airline to offer customers the ability to scan their passports on iOS and Android mobile devices to check in for international flights.
United announced significant upgrades to inflight food service, including this summer’s introduction of new, fresh salads and sandwiches for premium-cabin customers on North America flights. Next year, the company will introduce completely redesigned menu concepts and the expansion of premium-cabin meals within North America, upgraded premium-cabin meal service on United Express flights with freshly prepared food, and significantly enhanced United Economy meals and beverages on long-haul international flights.
United continued installing slimmer, next-generation economy-class seats on certain aircraft, which enables one to two additional rows per aircraft. The airline now offers these seats, which are 10 to 15 percent lighter than the seats they are replacing, on approximately 270 aircraft and expects approximately 350 aircraft to be completed by the end of the year.
United launched Mercedes-Benz tarmac-transportation service in Denver, which is now available for Global Services members and United Global First customers at all of the airline’s mainland U.S. hubs.
The company became the first airline to offer customers Uber transportation services, now available through the United app.
Copyright Photo: Ken Petersen/Airlinersgallery.com. United has been adding new Boeing 737-900 ERs. Boeing 737-924 ER N37466 (msn 31644) arrives at Las Vegas.
Record third quarter net income, excluding special items1, of $382 million, or $.55 per diluted share, compared to third quarter 2013 net income, excluding special items, of $241 million, or $.34 per diluted share. This represented a 61.8 percent increase from third quarter 2013, and exceeded the First Call consensus estimate of $.53 per diluted share.
Record third quarter net income of $329 million, or $.48 per diluted share, which included $53 million (net) of unfavorable special items, compared to third quarter 2013 net income of $259 million, or $.37 per diluted share, which included $18 million (net) of favorable special items.
Record third quarter operating income of $614 million. Excluding special items, record third quarter operating income of $649 million.
Returned $241 million to Shareholders through dividends and share repurchases.
Return on invested capital1, before taxes and excluding special items (ROIC), for the twelve months ended September 30, 2014, of 19.0 percent, as compared to 10.6 percent for the twelve months ended September 30, 2013.
Gary C. Kelly, Chairman of the Board, President, and Chief Executive Officer, stated, “We are very pleased to report another record quarterly profit performance, which resulted in a $100 million third quarter 2014 profitsharing expense for our Employees. Excluding special items, third quarter 2014 net income was $382 million, or $.55 per diluted share, and operating income was $649 million, resulting in a 13.5 percent operating margin2. The 386 basis point year-over-year improvement in operating margin, excluding special items, was driven by strong revenues, lower jet fuel prices, and a solid cost performance.
“Total operating revenues were $4.8 billion, which was a 5.6 percent increase from a year ago, despite a four percent decline in trips and two percent fewer seats flown3, as we work through the transition of AirTran aircraft. Our traffic and revenue trends were strong throughout the third quarter, generating a 4.5 percent year-over-year increase in unit revenues, despite a large percentage of our route system in development or conversion as we continued to transition AirTran flying to Southwest. Our third quarter 2014 revenue strength was driven by record load factors and a strong performance in our Rapid Rewards frequent flyer program. Thus far, revenue momentum has continued into October 2014, with favorable load factor and unit revenue trends. Current bookings for November and December are also good.
“Our third quarter 2014 cost performance benefited from lower jet fuel prices and our fleet modernization efforts. With these trends continuing, we are poised for another solid cost performance for fourth quarter 2014. Based on current cost trends, and excluding fuel and oil expense, profitsharing, and special items, we expect full year 2014 unit costs to increase approximately two percent compared to last year.
“Our third quarter 2014 financial performance was very gratifying, and I commend our outstanding Employees of Southwest Airlines for their unending dedication to providing reliable, low cost operations with our legendary, friendly Customer Service. As an industry leader of low fares and low costs, we are very pleased with the transformative and successful execution of our strategic initiatives that contributed significantly to our 19.0 percent ROIC for the twelve months ended September 30, 2014. Our Employees are the very best in the airline industry, and we were thrilled to unveil a bold, new visual expression of our brand in September. Our Heart aircraft livery, airport experience, and logo marries our past to our present and commemorates the transformation of Southwest in 2014. It is dedicated with much gratitude to our People.
“We are also thrilled with the July 1, 2014, launch of Southwest international service. During third quarter, we began service to Oranjestad, Aruba; Montego Bay, Jamaica; Nassau/Paradise Island in the Bahamas; and San Jose del Cabo/Los Cabos and Cancun, Mexico, all markets previously served by AirTran Airways. Next month, we will initiate Southwest service to Punta Cana, Dominican Republic, and Mexico City, which will complete the conversion of international service from AirTran to Southwest. Also during third quarter, we announced that our first destination in Central America will be Juan Santamaria International Airport in San Jose, Costa Rica. The inauguration of this service is expected to be on March 7, 2015, subject to government approval.
“October 13, 2014, was a momentous day for Southwest Airlines. After 34 years, we are finally free from the Wright Amendment restrictions4, and have proudly launched our initial nonstop offerings from Dallas Love Field to seven popular destinations, with ten more nonstop destinations, previously announced, on the horizon.
“In addition to our strong third quarter 2014 earnings performance, our balance sheet, liquidity, and cash flows support our commitment to maintain our financial strength so that we can continue to take great care of our Employees, Customers and Shareholders. At the end of third quarter 2014, we had $3.6 billion in cash and short-term investments. For the nine months ended September 30, 2014, net cash provided by operations was $2.7 billion, and capital expenditures were $1.3 billion, resulting in strong free cash flow1 of $1.4 billion. We have further strengthened our balance sheet and repaid $517 million in debt and capital lease obligations, thus far in 2014, including $167 million in debt and capital lease obligations repaid during the nine months ended September 30, 2014, and $350 million repaid on October 1st. Thus far this year, we have returned $893 million to Shareholders through the payment of $138 million in dividends and the repurchase of $755 million in common stock.”
Financial Results and Outlook
The Company’s third quarter 2014 total operating revenues increased 5.6 percent, while operating unit revenues increased 4.5 percent, on a 1.1 percent increase in available seat miles, all as compared to third quarter 2013. Third quarter 2014 passenger revenues were $4.6 billion, which was an increase of 4.9 percent on a unit basis, as compared to third quarter 2013.
Total operating expenses in third quarter 2014 increased 0.7 percent to $4.2 billion, as compared to third quarter 2013. Third quarter 2014 profitsharing expense was $100 million, compared to $69 million in third quarter 2013. The Company incurred costs (before profitsharing and taxes) associated with the acquisition and integration of AirTran, which are special items, of $23 million during third quarter 2014, compared to $28 million in third quarter 2013. Cumulative costs associated with the acquisition and integration of AirTran, as of September 30, 2014, totaled $488 million (before profitsharing and taxes). The Company expects total acquisition and integration costs to be approximately $550 million (before profitsharing and taxes). Excluding special items in both periods, total operating expenses in third quarter 2014 increased 1.1 percent to $4.2 billion, as compared to third quarter 2013.
Third quarter 2014 economic fuel costs were $2.94 per gallon, including $.05 per gallon in favorable cash settlements from fuel derivative contracts, compared to $3.06 per gallon in third quarter 2013, including $.01 per gallon in favorable cash settlements from fuel derivative contracts. Based on the Company’s fuel derivative contracts and market prices as of October 17, 2014, fourth quarter 2014 economic fuel costs are expected to be in the $2.70 to $2.75 per gallon range, compared to fourth quarter 2013’s $3.05 per gallon. As of October 17, 2014, the fair market value of the Company’s hedge portfolio through 2018 was a net liability of $236 million. Additional information regarding the Company’s fuel derivative contracts is included in the accompanying tables.
Excluding fuel and oil expense, profitsharing, and special items in both periods, third quarter 2014 operating costs increased 2.6 percent from third quarter 2013, and increased 1.5 percent on a unit basis.
Operating income in third quarter 2014 was $614 million, compared to $390 million in third quarter 2013. Excluding special items, operating income was $649 million in third quarter 2014, compared to $439 million in the same period last year, a 47.8 percent increase year-over-year.
Other expenses in third quarter 2014 were $89 million, compared to other income of $29 million in third quarter 2013. The $118 million swing primarily resulted from $66 million in other losses recognized in third quarter 2014, compared to $59 million in other gains recognized in third quarter 2013. In both periods, these gains/losses included ineffectiveness and unrealized mark-to-market amounts associated with a portion of the Company’s fuel hedging portfolio, which are special items. Excluding these special items, third quarter 2014 had $16 million in other losses, compared to $19 million in third quarter 2013, primarily attributable to the premium costs associated with the Company’s fuel derivative contracts. Fourth quarter 2014 premium costs related to fuel derivative contracts are currently estimated to be $13 million, compared to $22 million in fourth quarter 2013. Net interest expense in third quarter 2014 was $23 million, compared to $30 million in third quarter 2013.
For the nine months ended September 30, 2014, total operating revenues increased 5.3 percent to $14.0 billion, and total operating expenses were $12.4 billion, resulting in operating income of $1.6 billion, compared to $893 million in operating income for the same period last year. Excluding special items, operating income was $1.7 billion for the nine months ended September 30, 2014, compared to $1.0 billion for the same period last year. Net income for the nine months ended September 30, 2014, was $946 million, or $1.36 per diluted share, compared to $542 million, or $.75 per diluted share, for the same period last year. Excluding special items, net income for the nine months ended September 30, 2014, was $993 million, or $1.42 per diluted share, compared to $569 million, or $.79 per diluted share, for the same period last year.
Balance Sheet and Cash Flows
As of September 30, 2014, the Company had $3.6 billion in cash and short-term investments, and a fully available unsecured revolving credit line of $1 billion. Net cash provided by operations during third quarter 2014 was $240 million, and capital expenditures were $433 million. The Company repaid $48 million in debt and capital lease obligations during third quarter 2014, and intends to repay an additional $395 million in debt and capital lease obligations during fourth quarter 2014, including $350 million repaid on October 1, 2014.
During third quarter 2014, the Company returned $241 million to its Shareholders through the payment of $41 million in dividends and the repurchase of $200 million in common stock, or 5.0 million shares, pursuant to an accelerated share repurchase (ASR) program executed during the quarter. This ASR program was completed in early October, and the Company then received an additional 1.1 million shares, bringing the total shares repurchased under the third quarter 2014 ASR program to 6.1 million. During third quarter, the Company also received the remaining 1.4 million shares pursuant to the second quarter 2014 $200 million ASR program, bringing the total shares repurchased under that ASR program to 7.4 million. Thus far in 2014, the Company has returned $893 million to its Shareholders through $138 million in dividends, and the repurchase of $755 million in common stock, or 29.2 million shares. The Company has $580 million remaining under its existing $1 billion share repurchase authorization.
During third quarter 2014, the Company’s fleet increased by two to 685 aircraft at period end. This reflects the third quarter 2014 delivery of 11 new Boeing 737-800s and two pre-owned Boeing 737-700s, as well as the retirement of one Boeing 737-500. In addition, the Company removed ten Boeing 717-200s from service during third quarter 2014 in preparation for transition out of the fleet.
Boeing 737 Delivery Schedule:
Copyright Photo: Eddie Maloney/AirlinersGallery.com. Boeing 737-7H4 N909WN (msn 32458) arrives at Las Vegas.
Third quarter 2014 net profit, excluding net special charges, was a record $1.2 billion, up 59 percent versus the third quarter 2013
Third quarter 2014 GAAP net profit was $942 million, a record for any quarter in the history of American Airlines
Returned $185 million to shareholders through the payment of $72 million in quarterly dividends and the repurchase of $113 million of common stock through the Company’s stock repurchase program
Declared a dividend of $0.10 per share to be paid on November 17, 2014 to shareholders of record as of November 3, 2014
For the third quarter 2014, American Airlines Group reported a record GAAP net profit of $942 million. This compares to a GAAP net profit of $289 million in the third quarter 2013 for AMR Corporation prior to the merger.
The Company believes it is more meaningful to compare year-over-year results for American Airlines and US Airways excluding special charges and on a combined basis, which is a non-GAAP formulation that combines the results for AMR Corporation and US Airways Group. On this basis, third quarter 2014 net profit excluding net special charges was a record $1.2 billion, or $1.66 per diluted share. This represents a 59 percent improvement over the combined non-GAAP net profit of $771 million excluding net special charges for the same period in 2013. The Company’s third quarter 2014 pretax margin excluding net special charges was 11 percent. See the accompanying notes in the Financial Tables section of this press release for further explanation of this presentation, including a reconciliation of GAAP to non-GAAP financial information.
“We are very pleased to have reported a record profit for each quarter so far in 2014,” said Chairman and CEO Doug Parker. “We anticipate we will also post a record profit for both the fourth quarter and full year 2014. This performance reflects the strength of our merger and the commitment of our team. Our over 100,000 team members are doing an excellent job of integrating our airlines and providing outstanding service to our customers. While some of the biggest tasks in our integration still lie before us, the significant accomplishments to date reinforce our confidence that we are well on our way to restoring American as the world’s greatest airline. Thanks to our team, American is in excellent position for success in 2015 and beyond.”
Revenue and Cost Comparisons
Total revenues in the third quarter were a record $11.1 billion, an increase of 4.4 percent versus the third quarter 2013 on a combined basis, on a 2.0 percent increase in total available seat miles (ASMs). Consolidated passenger revenue per ASM (PRASM) was a record at 14.12 cents, up 1.0 percent versus the third quarter 2013 on a combined basis, driven by a record yield of 16.93 cents, up 2.6 percent year-over-year.
Total operating expenses in the third quarter were $9.9 billion, an increase of 3.5 percent over combined third quarter 2013. Third quarter mainline cost per available seat mile (CASM) was 13.28 cents, up 1.3 percent on a 2.1 percent increase in mainline ASMs versus combined third quarter 2013. Excluding special charges and fuel, mainline CASM was up 0.7 percent compared to the combined third quarter 2013, at 8.35 cents. Regional CASM excluding special charges and fuel was 15.52 cents, up 3.7 percent on a 1.0 percent increase in regional ASMs versus combined third quarter 2013.
Liquidity and Financing Transactions
At September 30, 2014, American had approximately $8.8 billion in total cash and short-term investments, of which $875 million was restricted. The Company also had an undrawn revolving credit facility of $1.0 billion.
During the third quarter, the Company Issued $957 million principal amount of 2014-1 Enhanced Equipment Trust Certificates (EETC) at a blended interest rate of 3.8 percent and issued $750 million principal amount of 5.5 percent senior unsecured notes due in 2019.
Also in the third quarter, the Company returned $185 million to its shareholders through the payment of $72 million in quarterly dividends and the repurchase of $113 million of common stock, or 2.9 million shares. The Company also purchased approximately 432,000 shares from its Disputed Claims Reserve at the prevailing market price to satisfy certain tax obligations resulting from the July 1, 2014, distribution.
As of September 30, 2014, $721 million of the Company’s unrestricted cash balance was held in Venezuelan bolivars, valued at the weighted average applicable exchange rate of 6.41 bolivars to the dollar. The Company’s cash balance held in Venezuelan bolivars decreased $70 million from the June 30, 2014, balance of $791 million, due primarily to $48 million in repatriations in the third quarter of 2014 ($31 million valued at 6.3 bolivars to the dollar and $17 million valued at 10.6 bolivars to the dollar). This balance also reflects the Company’s significant reduction in capacity in this market, pending further repatriation of funds and due to a decrease in demand for air travel resulting from the effective devaluation of the bolivar. The Company continues to work with Venezuelan authorities regarding the timing and exchange rate applicable to the repatriation of funds held in local currency. The Company is monitoring this situation closely and continues to evaluate its holdings of Venezuelan bolivars for potential impairment.
In early October, the Company arranged a new credit facility consisting of a fully-drawn $750 million term loan that matures in October 2021 and an undrawn $400 million revolving credit facility that matures in October 2019. Collateral for the new credit facility consists of certain slots, gates and route authorities. Also in early October, the Company increased its existing $1 billion revolving credit facility by $400 million and extended its maturity date from June 2018 to October 2019. As a result of these transactions, the Company’s undrawn revolving credit facility is now $1.8 billion.
On October 22, the Company’s Board of Directors declared a dividend of $0.10 per share for shareholders of record as of November 3, 2014. The dividend will be paid on November 17, 2014.
Merger Integration Developments
Reached a tentative agreement with the Association of Professional Flight Attendants on a joint collective bargaining agreement covering more than 24,000 flight attendants at American and US Airways. This agreement is pending ratification by the flight attendants
Recalibrated the schedule at our Miami hub to increase the number of available connections and optimize revenue
Combined operations at 82 airports since the merger, including the Company’s hub at Chicago O’Hare
Broke ground on our new state of the art Robert W. Baker Integrated Operations Center in Fort Worth, with completion planned for the third quarter of 2015
American flight attendants began exclusively using an electronic flight attendant manual on a handheld tablet, making the documents easier to access for flight attendants and reducing weight on each aircraft. US Airways flight attendants will begin using eManuals after the two carriers achieve a single operating certificate next year
Rebranded nine Admirals Club® lounges at eight airports, including Ronald Reagan Washington National Airport, Boston Logan Airport, Pittsburgh International Airport, and Tampa International Airport
Fleet and Network Developments
As part of its plan to modernize its fleet, the Company took delivery of 22 new mainline aircraft during the third quarter
US Airways became fully integrated in the trans-Atlantic joint business by launching a codeshare agreement with Finnair, providing customers increased access to Helsinki and beyond
Applied for new international service between Dallas/Fort Worth and Beijing. This will be the Company’s 11th route between the U.S. and Asia
In the third quarter, the Company recognized a total of $281 million in net special charges, including:
$223 million net special operating charges, which principally included $168 million of mainline and regional merger integration expenses and an $81 million charge to revise prior estimates of certain aircraft residual values. These charges were offset, in part, by a net $40 million credit for bankruptcy related items consisting of fair value adjustments for bankruptcy settlement obligations
$50 million of nonoperating items, primarily due to early debt extinguishment costs related to American’s 7.5 percent senior secured notes and other debt
$8 million in non-cash deferred income tax provision related to certain indefinite-lived intangible assets
Copyright Photo: Jay Selman/AirlinersGallery.com. US Airways is now repainting its fleet, including the older Boeing 757-200s. Boeing 757-23N N203UW (msn 30548) taxies at the Charlotte hub.
Alaska Air Group, Inc., (Alaska Airlines and Horizon Air) (Seattle/Tacoma) today reported third quarter 2014 GAAP net income of $198 million, or $1.45 per diluted share, compared to $289 million, or $2.04 per diluted share in the third quarter of 2013. Excluding the impact of mark-to-market fuel hedge adjustments and a one-time special revenue item in the prior year, the company reported record adjusted net income of $200 million, or $1.47 per diluted share, compared to adjusted net income of $157 million, or $1.11 per diluted share, in 2013.
“This was our best quarterly result ever” said CEO Brad Tilden. “I want to thank our 13,000 employees who are keeping a focus on playing our game, and working hard every day to run a great operation, keep fares low, and deliver award winning service to our customers. All of us at Alaska would like to thank our customers for their continued loyalty.”
Reported record third quarter net income, excluding special items, of $200 million – a 27% increase over the third quarter of 2013.
Reported adjusted earnings per share of $1.47 per diluted share, a 32% increase over the third quarter of 2013 and ahead of First Call analyst consensus estimate of $1.42 per share.
Earned net income for the third quarter under Generally Accepted Accounting Principles (GAAP) of $198 million or $1.45 per diluted share, compared to net income of $289 million, or $2.04 per diluted share in 2013.
Recorded $84 million of incentive pay through the first nine months of 2014. This includes each Air Group employee earning at least $800 by meeting or exceeding monthly customer satisfaction and operational performance goals and tracking to earn above-target payouts for full-year goals.
Increased fuel efficiency (as measured by seat-miles per gallon) by 2.8% as part of our effort to be the airline leader in environmental stewardship.
Grew passenger revenues by 7%, compared to the third quarter of 2013.
Generated record adjusted pretax margin in the third quarter of 21.8% compared to 18.4% in 2013.
Generated 15.9% pretax margin for the trailing 12-month period ended Sept. 30, 2014, compared to 11.7% for the same period in the prior year.
Achieved trailing 12-month after-tax return on invested capital of 17.2% compared to 13.0% in the 12-month period ended Sept. 30, 2013.
Repurchased 3.4 million shares of common stock for $159 million in the third quarter of 2014, and 5.3 million shares for $242 million in the first nine months of 2014, representing 3.8% of the total shares outstanding at the beginning of the year.
Paid a $0.125 per-share quarterly cash dividend on September 4, bringing total dividend payments so far this year to $51 million.
Generated $1 billion in operating cash flows for the 12-months ended Sept. 30, 2014, generating $321 million of free cash flows.
Lowered adjusted debt-to-total-capitalization ratio to 31%.
Held $1.3 billion in unrestricted cash and marketable securities as of Sept. 30, 2014.
Became one of only two U.S. airlines with investment grade credit ratings.
Copyright Photo: Ken Petersen/AirlinersGallery.com. Boeing 737-890 N579AS (msn 35187) arrives in Las Vegas.
Southwest Airlines (Dallas) and the International Association of Machinists and Aerospace Workers (IAM), representing the carrier’s approximately 6,000 Customer Service Agents and Customer Support and Services Representatives, announced today the two parties have reached a tentative agreement. The tentative agreement is for a new four year contract and requires Membership ratification. The current contract became amendable in October 2012.
In the upcoming weeks, the IAM membership will be given the full details of the agreement and have the opportunity to vote on ratification.
Copyright Photo: Michael B. Ing/AirlinersGallery.com. Southwest’s Boeing 737-7H4 N708SW (msn 27842) in the new “Heart” livery arrives at Los Angeles International Airport (LAX).
The Boeing Company (Chicago and Seattle) today reported third quarter revenue increased 7 percent to $23.8 billion on higher deliveries (Table 1). Core earnings per share (non-GAAP) increased 19 percent* to $2.14, driven by strong performance across the company’s businesses. Third-quarter core operating earnings (non-GAAP) increased 13 percent* to $2.4 billion from the same period of the prior year.
GAAP earnings per share was $1.86 and GAAP earnings from operations was $2.1 billion.
Core earnings per share guidance for 2014 increased to between $8.10 and $8.30, from $7.90 to $8.10 on continued strong operating performance. GAAP earnings per share guidance for 2014 increased to between $6.90 and $7.10, from $6.85 to $7.05. Operating cash flow before pension contributions* guidance increased to greater than $7 billion. Commercial Airplanes operating margin guidance increased to approximately 10.5 percent.
Read the full report: CLICK HERE
American Airlines (Dallas/Fort Worth) customers will have greater access to domestic Japanese destinations starting on October 22, 2014, thanks to a new codeshare agreement between American and Jetstar Japan (Tokyo-Narita).
Under the new arrangement, American Airlines will place its ‘AA’ code on services operated by Jetstar Japan between Tokyo Narita International Airport and Fukuoka, Matsuyama, Okinawa (Naha), Osaka (Kansai) and Sapporo (Shin Chitose), with first flights under the codeshare starting on October 26, 2014.
Jetstar Japan is a partnership between the QANTAS Group, Japan Airlines, Mitsubishi Corporation and Century Tokyo Leasing Corporation. It operates 18 Airbus A320 aircraft across 10 destinations in Japan.
Top Copyright Photo: SPA/AirlinersGallery.com. American’s Boeing 777-223 ER N776AN (msn 29582) slips into the clouds over the London area after departing from Heathrow Airport.
Bottom Copyright Photo: Michael B. Ing/AirlinersGallery.com. Jetstar Japan’s Airbus A320-232 JA15JJ (msn 5701) arrives at the Tokyo (Narita) base.
Alaska Airlines (Seattle/Tacoma) is bringing more Hawaii to its customers in San Diego with new nonstop flights between San Diego and Kona, on the Big Island of Hawaii. Starting March 5, 2015, the new flights will operate three times weekly.
Copyright Photo: Brian McDonough/AirlinersGallery.com. Boeing 737-890 N593AS (msn 35107) completes the river approach into Washington’s Reagan National Airport.
Boeing (Chicago and Seattle) and Commercial Aircraft Corporation of China (COMAC) today (October 22) opened a demonstration facility that will turn waste cooking oil, commonly referred to as “gutter oil” in China, into sustainable aviation biofuel. The two companies estimate that 500 million gallons (1.8 billion liters) of biofuel could be made annually in China from used cooking oil.
Boeing and COMAC are sponsoring the facility, which is called the China-U.S. Aviation Biofuel Pilot Project. It will use a technology developed by Hangzhou Energy & Engineering Technology Co., Ltd. (HEET) to clean contaminants from waste oils and convert it into jet fuel at a rate of 160 gallons (650 liters) per day. The project’s goal is to assess the technical feasibility and cost of producing higher volumes of biofuel.
Sustainably produced biofuel, which reduces carbon emissions by 50 to 80 percent compared to petroleum through its lifecycle, is expected to play a key role in supporting aviation’s growth while meeting environmental goals. The Boeing Current Market Outlook has forecast that China will require more than 6,000 new airplanes by 2033 to meet fast-growing passenger demand for domestic and international air travel.
Boeing and COMAC have been collaborating since 2012 to support the growth of China’s commercial aviation industry. Their Boeing-COMAC Aviation Energy Conservation and Emissions Reductions Technology Center in Beijing works with Chinese universities and research institutions to expand knowledge in areas that improve aviation’s efficiency, such as aviation biofuel and air traffic management.
Biofuel produced by the China-U.S. Aviation Biofuel Pilot Project will meet international specifications approved in 2011 for jet fuel made from plant oils and animal fats. This type of biofuel has already been used for more than 1,600 commercial flights.
COMAC is also the builder of the new C919 jetliner.
In other news, Boeing yesterday (October 21) celebrated the groundbreaking of its new 777X Composite Wing Center at the Everett, Washington, campus. Permitting for the new 1-million-square-foot facility was completed approximately seven weeks earlier than anticipated, allowing for an accelerated start to construction.
Boeing is investing more than $1 billion in the Everett site for construction and outfitting of the new building.
Once completed, the facility located on the north side of the main final assembly building will help usher in composite wing fabrication for the company’s newest commercial jetliner and sustain thousands of local jobs for decades to come.
Completion of the new building, which is expected in May 2016, will require approximately 3.5 million hours of work. At its peak, there will be approximately 1,200 contract employees working on the project. By the numbers, the new building will require:
31,000 tons (28,000 metric tons) of steel
480 miles (770 kilometers) of electrical cable
80,000 linear feet (24,384 meters ) of process piping
530,000 cubic yards (405,210 cubic meters) of fill material
170,000 tons (154,000 metric tons) of concrete
To date, the 777X has accumulated 300 orders and commitments. Two models will comprise the 777X family – the 777-8X, with approximately 350 seats and a range capability of more than 9,300 nautical miles; and the 777-9X, with approximately 400 seats and a range of more than 8,200 nautical miles. The 777-8X competes directly with the Airbus A350-1000, while the 777-9X is in a class by itself, serving a market segment that no other airplane can. First delivery of the 777X is targeted for 2020.
Royal Air Maroc (Casablanca) will introduce the new Boeing 787-8 Dreamliner on the Casablanca-Paris (Orly) route on January 8, 2015 per Airline Route. Casablanca-New York (JFK) 787 service is due to start on February 22, 2015. The new type will also operate to Montreal (Trudeau) starting on March 29, 2015, Algiers (June 14, 2015) and Jeddah (June 16, 2015).
Royal Air Maroc has four 787-8s on order.
Image: Royal Air Maroc.
AirEuropa (Palma de Mallorca and Madrid) on March 30, 2015 will add the Madrid-Tel Aviv route with Boeing 737-800s. The new route will be operated three days a week per Airline Route.
Copyright Photo: Ton Jochems/AirlinersGallery.com. Boeing 737-85P EC-LVR (msn 36593) taxies to the gate at Palma de Mallorca.
Monarch Airlines (London-Luton) has announced two new destinations from Leeds/Bradford for the coming summer. The summer 2015 schedule from Leeds Bradford Airport will offer two new routes during the summer months to Alicante (starting on March 29) and Naples (March 30), in addition to eight routes continued from summer 2014, making a total of 28 flights per week. Flights to the increasingly popular destinations of Dalaman and Faro will see a rise in frequencies and holiday makers will enjoy more convenient flight times to Barcelona, Faro and Mahon. The airline will have 10 routes from LBA for the next summer season.
In July, Monarch Airlines announced that Boeing had been chosen as the preferred bidder for its anticipated fleet renewal project. The airline is currently working towards agreeing to terms which will see 30 new Boeing 737 MAX 8 aircraft joining the Monarch fleet from April 2018, with options to add up to an additional 15 to the order.
Copyright Photo: Javier Rodriguez/AirlinersGallery.com. If the Boeing deal is finalized, the Airbus A320 family fleet is expected to be reduced. Airbus A320-214 G-ZBAA (msn 5526) with Sharklets departs from Palma de Mallorca.
British Airways (London) is taking each of its eight Boeing 787-8 Dreamliners out of service one at a time for routine warranty service work by Boeing at Victorville, California. Starting with the pictured Boeing 787-8 G-ZBJA (msn 38609), each aircraft from the first four deliveries (JA-JD), is expected to take around 10 days for the service work. The last four 787s to be delivered (JE-JH) are expected to take less time since they are closer to the new 787s being delivered. Each of the eight aircraft, when finished, will be the same as new production 787s currently being delivered. This is normal procedure for a new aircraft type as the manufacturer often makes some changes as aircraft roll off the production line.
Copyright Photo: SPA/AirlinersGallery.com. G-ZBJA departs from London (Heathrow).
Aerolineas Argentinas (Buenos Aires) is coming to Havana, Cuba. The airline will operate twice-weekly Boeing 737-800 services on the Buenos Aires-Caracas-Havana extended route starting on January 4, 2015 per Airline Route.
Copyright Photo: Alvaro Romero/AirlinersGallery.com. Boeing 737-86J LV-FQC (msn 37744) is pictured at downtown Aeroparque Jorge Newbery Airport in Buenos Aires.
LAN Airlines (Santiago) is planning to assign the Boeing 787-8 to the unique Santiago-Easter Island route. The 787 will operate on the remote route starting on October 1, 2015 three days a week per Airline Route.
Copyright Photo: Rob Finlayson/AirlinersGallery.com. Boeing 787-8 Dreamliner CC-BBG (msn 38477) arrives at the Santiago hub.
LAN Airlines Aircraft Slide Show:
Delta Air Lines (Atlanta) continues to expand Boeing 717 operations as more aircraft are released from AirTran Airways. As previously reported, AirTran will operate its last flight on December 28.
Delta will introduce the 717 to the Minneapolis/St. Paul hub starting on January 6, 2015 with a route to Charlotte. Kansas City, Madison and Philadelphia will be added on February 13 followed by Detroit on March 2 per Airline Route.
Delta is also assigning the 717 to two new routes from the Atlanta hub to both Georgetown (December 20) and Nassau (January 12) in the Bahamas.
Copyright Photo: Brian McDonough/AirlinersGallery.com. Boeing 717-231 N929AT (msn 55075) arrives at Washington (Dulles).
British Airways (London) will resume Boeing 747-400 service on the London (Heathrow)-Denver route on March 29, 2015, replacing a Boeing 777-200 ER according to Airline Route. BA last operated the Jumbo on the route in 2003.
British Airways issued this statement:
British Airways announced that customers in Denver will soon be able to enjoy British Airways’ new First class cabin. From March 2015 the Denver to London service will be operated by a four class Boeing 747-400 aircraft.
British Airways began flying to Denver 16 years ago and the airline now offers a daily service to London Heathrow. The Boeing 747 aircraft will provide customers with a choice of World Traveller (economy), World Traveller Plus (premium economy), Club World (business class) and the airline’s flagship brand, First.
Premium First Experience
The First class cabin has 14 suites that are based on classic design and discrete luxury. Features include:
Individual seats that turn into a 6 ft. 6 in. fully flat beds with a simple twist of a button
Signature turn down service includes a luxurious quilted mattress, crisp white cotton duvet and pillow, along with pajamas and luxury amenity kit.
A personal closet and leather-bound writing desk that converts into a dining table
A la carte dining and a buddy seat to enable customers to dine together
A 15” in-flight entertainment screen with extensive TV, movie and audio selections
Lighting and electronic blinds that can be modified to reflect mood and time of day
All British Airways long haul flights include benefits such as free meals and all beverages, as well as free baggage allowance and seat allocation. The airline also provides a “Feed Kids First” service ensures that children are served first, allowing parents to enjoy their own meal.
Copyright Photo: SPA/AirlinersGallery.com. Boeing 747-436 G-BNLS (msn 24629) departs from London’s Heathrow Airport.
Royal Jordanian Airlines (Amman) today (October 18) inaugurated Boeing 787 Dreamliner service to Geneva.
Above: Twitter photo by IATA. The arrival was greeted with the traditional water cannon salute.
In other news, RJ announced a new policy for checked luggage, based on the piece concept instead of the weight concept. The new policy will be effective for ticketing on October 15, 2014, for travel as of November 2, 2014 to all RJ destinations.
Checked baggage allowance to all destinations except North America
Two pieces, the weight of the first is up to 30kg and the weight of the second is up to 23kg.The sum of the three dimensions of one piece must not exceed 158cm/62 inches
One piece, with a weight up to 30kg.
The sum of the three dimensions of one piece must not exceed 158cm (62 inches).
One piece with a maximum weight of 10 kg/22 lbs the sum of the 3 dimensions must not exceed 115cm/45 inches, and a carry-on fully-collapsible child stroller/push-chair, or infant carrying basket or infant car seat, which may be carried in the passenger cabin subject to the availability of space.
The same baggage allowance as passengers paying full adult fare.
Copyright Photo: SPA/AirlinersGallery.com. Boeing 787-8 JY-BAA (msn 37983) arrives at London (Heathrow).
Air France reaches a tentative agreement with the pilot’s union concerning the expansion of Transavia France
Air France and the representative pilot unions have just reached a draft agreement concerning the development of Transavia France.
This text will be presented on Friday, October 17 at the Special Board Meeting of SNPL Air France ALPA. Then it will be submitted to a referendum of its members for a signature in mid-November. The SNPL Transavia has also taken part in the talks.
The terms are as follows:
The development of Transavia France beyond 14 Boeing 737s will be assured as from summer 2015 in order to accelerate the Group’s development on the rapidly-expanding leisure market;
Pilots flying for Transavia France will be employed under Transavia France operating and remuneration conditions to ensure the company’s competitiveness and its development as a complement to the Air France network. Moreover, two co-existing contracts (Transavia France and Air France) will be implemented for Air France pilots flying for Transavia France;
These terms will provide pilots with dynamic and integrated career development, including a single seniority list, in response to high expectations on the part of pilots.
Any future changes in working conditions and remuneration at Transavia France will seek the agreement of the SNPL Air France ALPA and SNPL Transavia, again in response to clear demands expressed by pilots.
Air France considers that this balanced solution, the result of a responsible and peaceful social dialogue, will lead to the rapid development of Transavia France and an increased value added for the benefit of its customers and staff.
Copyright Photo: Ton Jochems/AirlinersGallery.com. Transavia France’s Boeing 737-8K2 F-GZHD (msn 29650) taxies at the leisure destination of Palma de Mallorca.
Aeroflot Russian Airlines (Moscow) has announced its schedule changes for its winter schedule valid until March 28, 2015:
During winter season 2014/2015 Aeroflot plans to fly to 52 countries including 8 CIS countries (Armenia, Azerbaijan, Belarus, Kyrgyzstan, Kazakhstan, Moldova, Uzbekistan and Ukraine).
Aeroflot will operate its own flights to 121 destinations — 69 of which are abroad — including 46 destinations in Europe, 13 in Asia, 5 in the USA, 5 in the Middle East and Africa. The winter CIS network covers 11 destinations: Baku, Bishkek, Yerevan, Minsk, Tashkent, Kiev, Dnepropetrovsk, Kharkiv, Odessa, Karaganda, Chisinau.
Starting from February 1, 2015 Aeroflot will add two new destinations, twice daily to the Russian cities of Arkhangelsk and Murmansk.
During the winter season Aeroflot will fly daily to Tbilisi and Chisinau.
Aeroflot will continue operating on the routes which were opened last summer season: Moscow — Karaganda, Moscow — Rostov-on-Don, Moscow — Novy Urengoy.
Aeroflot domestic network includes 41 destinations: Abakan, Anapa, Arkhangelsk, Astrakhan, Barnaul, Vladivostok, Volgograd, Ekaterinburg, Irkutsk, Kazan, Kaliningrad, Kemerovo, Krasnodar, Krasnoyarsk, Magnitogorsk, Murmansk, Mineralnye Vody, Nizhnevartovsk, Nizhny Novgorod, Nizhnekamsk, Novokuznetsk, Novosibirsk, Novy Urengoy, Orenburg, Omsk, Perm, Petropavlovsk-Kamchatsky, Rostov-on-Don, Samara, Saint Petersburg, Simferopol, Sochi, Surgut, Tomsk, Tyumen, Ufa, Khabarovsk, Chelyabinsk, Chita, Yuzhno-Sakhalinsk, Yakutsk.
Aeroflot will also introduce additional frequencies on already existing routes from Moscow to the following destinations (flights per week): Saint Petersburg (from 98 to 108), Krasnodar (from 39 to 48), Mineralnye Vody (from 7 to 21), Orenburg (from 7 to 14), Simferopol (from 14 to 35), Ekaterinburg (from 35 to 42), Volgograd (from 21 to 28), Irkutsk (from 10 to 21), Novosibirsk (from 21 to 28), Tyumen (from 14 to 21), Rostov-on-Don (from 7 to 21), Yakutsk (from 5 to 6), Minsk (from 21 to 28), Vilnius (from 7 to 14), Dusseldorf (from 21 to 28), Bucharest (from 4 to 7), Amsterdam (from 14 to 21), Helsinki (from 7 to 14), Bangkok (from 10 to 14), Los-Angeles (from 6 to 7), Miami (from 3 to 4).
Instead of the flights to Gelendzik, Heraklion, Dubrovnik and Split operated only during the summer season, Aeroflot will fly to Phuket. Two traditional summer destinations — Thessaloniki and Tivat — will become year-round for the first time.
In total Aeroflot Group and its code sharing partners will fly to 333 unique destinations in 68 countries including Russia.
In other news, Aeroflot is transferring the assets of grounded Dobrolet (2nd) (Moscow) to its new subsidiary called Byudzhetny Perevozchik, (translated as Budgetary Carrier).
The new subsidiary will operate low fare Boeing 737-800 flights from Moscow (Sheremetyevo) to Belgorod, Kazan, Surgut, Perm, Yekaterinburg, Ufa, Samara, Volgograd and Tyumen according to Russian News.
Aeroflot Fleet Information: CLICK HERE
Copyright Photo: OSDU/AirlinersGallery.com. Boeing 737-9LJ VP-BZA (msn 41198) of Aeroflot arrives at the Moscow (Sheremetyevo) hub.
American Airlines‘ (Dallas/Fort Worth) CEO Doug Parker announced the airline would restore the Miami-Frankfurt route in the first half of 2015 according to the Miami Herald. The route is expected to be operated with Boeing 767-300 ERs.
American is expanding the Miami hub as it celebrates 25 years of expansion at Miami International Airport. American Airlines started serving MIA with a single DFW-MIA route. However with the acquisition of the Latin American routes from Eastern Airlines (1st), the hub started to grow to the 341 daily flights today.
Lufthansa operates its Airbus A380s on the route.
Read the full story: CLICK HERE
MIA Hub Terminal Map: With the recent expansion American Airlines has expanded from the North Terminal (Concourse D) back into the older Concourse E.
Copyright Photo: Ariel Shocron/AirlinersGallery.com. Boeing 767-323 ER N343AN (msn 33082) with Oneworld titles arrives at the Miami hub.
American Airlines Historical Liveries Slide Show:
British Airways (London) today announced that from March 29, 2015, Montreal will be served by the airline’s new Boeing 787 Dreamliner fleet, marking the first scheduled Dreamliner service between Montreal and London.
British Airways operates a daily service between the two cities and provides connections to more than 130 cities beyond London. The first Dreamliner received by British Airways made its inaugural flight to Toronto one year ago and last month Calgary became the second Canadian city to receive the most modern aircraft in the airline’s new fleet.
The new aircraft accommodates 214 passengers: 35 in Club World (business class), 25 in World Traveller Plus (premium economy) and 154 in World Traveller (economy). The three newly designed cabins feature high quality materials, comfortable seats and increased bag storage. Customers in British Airways Club World cabin can take advantage of wide, full-flat beds and Club Kitchen, a snack bar open throughout the flight.
The 787 also has the largest windows of any commercial airliner, offering customers views of the horizon from every seat. Instead of pull down blinds, each one has its own dimmer switch.
British Airways’ 787 features the airline’s new Thales entertainment system. Each seat has a television screen and customers can choose from more than 700 hours of content, including 230 TV programs, 70 movies and 400 music albums and interactive games. Travelers can also chat and play games with friends elsewhere on the aircraft using an in-seat chat system.
Copyright Photo: AirlinersGallery.com. Up-close taxiway action of BA’s Boeing 787-8 Dreamliner G-ZBJD (msn 38619).
British Airways Aircraft Slide Show:
Delta Air Lines (Atlanta) today reported financial results for the September 2014 fourth quarter. Key points include:
Delta’s pre-tax income for the September 2014 quarter was $1.6 billion, excluding special items, an increase of $431 million over the September 2013 quarter on a similar basis. Delta’s net income for the September 2014 quarter was $1.0 billion, or $1.20 per diluted share, and its operating margin was 15.8 percent, excluding special items.
On a GAAP basis including special items, Delta’s pre-tax income was $579 million, operating margin was 7.5 percent and net income was $357 million, or $0.42 per diluted share.
Results include $384 million in profit sharing expense in recognition of Delta employees’ contributions toward achieving the company’s financial goals, which makes a year-to-date profit sharing accrual of $823 million.
Delta generated $910 million of free cash flow during the September 2014 quarter. The company used its strong cash generation in the quarter to reduce its adjusted net debt to $7.4 billion and return $325 million to shareholders through dividends and share repurchases.
Delta’s operating revenue improved 7 percent, or $688 million, in the September 2014 quarter compared to the September 2013 quarter, driven by continued strength in corporate and domestic revenues. Traffic increased 3.7 percent on a 3.2 percent increase in capacity.
Passenger revenue increased 6 percent, or $522 million, compared to the prior year period. Passenger unit revenue (PRASM) increased 2.4 percent year-over-year with a 1.9 percent improvement in yield. Seat-related products and other merchandising initiatives increased revenues by nearly $50 million versus the prior year period.
Cargo revenue increased 7 percent, or $15 million, on higher freight yields and volumes.
Other revenue increased 15 percent, or $151 million, driven by joint venture, SkyMiles revenues, and third-party refinery sales.
Comparisons of revenue-related statistics are as follows:
Consolidated unit cost excluding fuel expense, profit sharing and special items (CASM-Ex2), was up 0.3 percent in the September 2014 quarter on a year-over-year basis as the benefits of Delta’s domestic refleeting and other cost initiatives offset the company’s investments in its employees, products and operations.
Excluding special items, total operating expense in the quarter increased $320 million year-over-year driven by higher revenue- and volume-related expenses and $135 million higher profit sharing expense. These cost increases were partially offset by lower fuel expense and savings from Delta’s cost initiatives.
Excluding mark-to-market adjustments,3 fuel expense declined $23 million driven by lower market prices and higher refinery profits. Delta’s average fuel price was $2.90 per gallon for the September quarter, which includes $63 million in settled hedge gains. Operations at the refinery produced a $19 million profit for the September quarter, a $16 million improvement year-over-year.
Non-operating expense declined by $63 million excluding special items as a result of lower interest expense and a $23 million increased contribution associated with Delta’s 49 percent ownership stake in Virgin Atlantic.
Tax expense, excluding special items, increased $629 million compared to the prior year quarter, as the company now recognizes tax expense for financial reporting purposes following the reversal of its tax valuation allowance at the end of 2013. Delta’s net operating loss carryforwards of more than $13 billion largely offset cash taxes due on future earnings.
On a GAAP basis, consolidated CASM increased 12 percent and total operating expense was up $1.4 billion compared to the September 2013 quarter primarily due to special items associated with fleet restructuring and mark-to-market adjustments on fuel hedges settling in future periods. GAAP fuel expense increased $609 million on a year-over-year basis primarily driven by the hedge performance including mark-to-market adjustments. GAAP fuel cost per gallon for the quarter was $3.23. Non-operating expenses for the quarter increased by $56 million as a result of a $134 million special item for loss on extinguishment of debt resulting from Delta’s debt reduction initiatives. On a GAAP basis, tax expense was $222 million in the quarter.
Adjusted cash from operations during the September 2014 quarter was $1.3 billion, driven by the company’s September quarter profit, partially offset by the normal seasonal decline in advance ticket sales. The company generated $910 million of free cash flow. Adjusted capital expenditures during the September 2014 quarter were $411 million, including $322 million in fleet investments. During the quarter, Delta’s net debt maturities and capital leases were $301 million. On a GAAP basis, cash from operations for the September 2014 quarter was $1.4 billion and capital expenditures were $457 million.
With its strong cash generation in the September 2014 quarter, the company returned $325 million to shareholders through $75 million of cash dividends and $250 million of share repurchases. For the first nine months of 2014, the company has returned a total of $776 million to shareholders, including $176 million in quarterly dividends and $600 million in share repurchases.
Delta ended the quarter with $6.4 billion of unrestricted liquidity and adjusted net debt of $7.4 billion. The company has now achieved nearly $10 billion in net debt reduction since 2009.
December 2014 Fourth Quarter Guidance
Following are Delta’s projections for the December 2014 fourth quarter:
10% – 12%
Fuel price, including taxes, settled hedges and refinery impact
$2.69 – $2.74
Consolidated unit costs – excluding fuel expense and profit sharing
(compared to 4Q13)
Up 0 – 2%
Profit sharing expense
$200 – $250 million
$175 – $200 million
System capacity (compared to 4Q13)
Delta recorded a $657 million special items charge, net of taxes, in the September 2014 quarter, including:
a $397 million charge for fleet and other items, primarily associated with the decision to accelerate the retirement of Delta’s 747 fleet as part of its Pacific network restructuring;
a $215 million charge for mark-to-market adjustments on fuel hedges settling in future periods;
an $87 million charge for debt extinguishment and other items, primarily associated with Delta’s debt reduction initiative; and
a $42 million gain related to a litigation settlement.
Delta recorded a net $157 million special items gain in the September 2013 quarter, including:
a $285 million gain for mark-to-market adjustments on fuel hedges settling in future periods; and
a $128 million charge for facilities, fleet and other items, primarily associated with Delta’s domestic fleet restructuring.
Delta will hold a conference call at 1000 am EDT today.
Copyright Photo: SPA/AirlinersGallery.com. Boeing 777-232 LR N707DN (msn 39091) departs from London (Heathrow).
Delta Air Lines Aircraft Slide Show (current livery):
Aviation Partners Boeing (APB) (Seattle) has announced Luxair-Luxembourg Airlines (Luxembourg) has ordered Split Scimitar Winglets for its Boeing Next-Generation 737-800 aircraft.
APB’s newest program is the culmination of a five-year design effort using the latest computational fluid dynamic technology to redefine the aerodynamics of the Blended Winglet into an all-new Split Scimitar Winglet. The unique feature of the Split Scimitar Winglet is that it uses the existing Blended Winglet structure, but adds new aerodynamic scimitar tips and a large ventral strake.
Split Scimitar Winglets can now be installed on all Boeing 737-800 and 737-900ER aircraft. All remaining commercial and private variants of the 737 Next-Generation aircraft are scheduled to be certified by May of 2015.
Luxair’s three 737-800’s will be fitted with the Scimitar Winglets upgrade by March 2015.
Since launching the Split Scimitar Winglet program early last year, APB has taken orders and options for 1,657 systems. Over the last 10 years, APB has sold nearly 8,000 Blended Winglet Systems. More than 5,300 Blended Winglet Systems are now in service with over 200 airlines in more than 100 countries. APB estimates that Blended Winglets have saved airlines worldwide 4.5 billion gallons of jet fuel to-date thus eliminating over 47 million tons of carbon dioxide emissions.
Aviation Partners Boeing is a Seattle based joint venture of Aviation Partners, Inc. and The Boeing Company.
Luxair Aircraft Slide Show: