American to allow passengers with only one personal item to board early
American Airlines (Dallas/Fort Worth) has launched a new systemwide boarding process that saves overall boarding time by allowing customers who are traveling light to board earlier. Customers traveling with one personal carry-on item that fits under the seat in front of them will be invited to board before Group 2.
The new boarding process is another example of how American is reinventing itself by continuously seeking out ways to streamline processes, creating a more efficient and enjoyable customer journey. With on-time performance being a key factor in the airline’s dependability rating, every minute saved during boarding allows American to push back from the gate earlier, resulting in a more timely departure and arrival.
“For customers, departing on time and arriving at their destination on time is a huge factor in how they feel about their overall experience,” said Carol Wright, American’s Vice President – Customer Planning. “Our tests indicate that this new boarding process will improve our dependability and on-time performance, while being easier and more enjoyable for our customers. It’s another example of our promise to put our customers at the center of everything we do.”
The new boarding process follows successful testing done earlier this year at American Airlines gates at airports in Austin, Texas (AUS), Baltimore (BWI), Denver (DEN), Fort Lauderdale-Hollywood, Fla. (FLL), Kansas City, Mo. (MCI), Minneapolis-St. Paul (MSP) and Washington-Dulles (IAD).
The test received overwhelmingly positive feedback from American’s customers, and agents like the new process because it allows for smoother and quicker boarding for everyone. American expects to see a notable reduction in average boarding time per flight with the new boarding process.
American is continually looking for innovative ways to enhance the customer experience. Other recent enhancements designed to give customers more choices when traveling include:
- The expansion of American’s next-generation kiosks with self-tag capabilities for checked baggage, speeding up the check-in process
- New fare choices with perks that include preferred seating, early boarding and same-day flight changes
- More power ports onboard to help customers stay charged and connected throughout their journey
American’s baggage policy allows each customer to take onboard at no charge one personal item that will fit under the seat in front of them and one bag that meets the FAA-mandated carry-on size requirements to fit into the overhead storage compartment. With the new boarding process, customers who wish to board early before Group 2 can gate-check their carry-on bag at no charge.
Copyright Photo: Joe G. Walker/AirlinersGallery.com. Boeing 737-823 WL N980AN (msn 33203) arrives at Las Vegas.
Spirit produces a 1Q net profit of $32.8 million
Spirit Airlines, Inc. (Fort Lauderdale/Hollywood) today reported first quarter 2013 financial results.
- Adjusted net income for the first quarter 2013 was $32.8 million, or $0.45 per diluted share1. GAAP net income was $30.6 million, or $0.42 per diluted share.
- For the first quarter 2013, Spirit achieved an operating margin, excluding special items, of 14.4 percent1. Operating margin on a GAAP basis was 13.4 percent for the first quarter 2013.
- Spirit ended the first quarter 2013 with $483.5 million in unrestricted cash.
- Spirit grew total available seat miles (“ASMs”) 20.8 percent as compared to the first quarter 2012.
- Spirit’s return on invested capital (before taxes and excluding special items) for the last twelve months ended March 31, 2013 was 28.0 percent. See “Calculation for Return on Invested Capital” table below for more details.
“We are pleased to report strong first quarter results. Our team continues to do a great job delivering among the best results in the industry while offering our customers low base fares. Our average base fare per passenger segment in the first quarter 2013 was $79.09. Spirit is proud to offer extremely low base fares so that, even when adding in optional extras, the total price our customers pay is almost always less than what they would pay on other airlines,” said Ben Baldanza, Spirit’s President and Chief Executive Officer. “We are committed to our low-cost, low-fare strategy and to providing value for our customers and our shareholders.”
Revenue Performance
For the first quarter 2013, Spirit’s total operating revenue was $370.4 million, an increase of 22.9 percent, compared to first quarter 2012.
Total revenue per available seat mile (“RASM”) for the first quarter 2013 was 11.85 cents, an increase of 1.7 percent compared to the first quarter 2012 driven by strength in operating yields. The calendar shift of Easter occurring in March this year compared to April in 2012 contributed to the strong first quarter 2013 results.
Passenger flight segment (“PFS”) volume grew 17.8 percent year-over-year in the first quarter 2013. Average non-ticket revenue per PFS for the first quarter 2013 increased 5.9 percent year-over-year to $54.75 and average ticket revenue per PFS for the quarter increased 3.2 percent year-over-year to $79.09. The growth in non-ticket revenue per PFS during the first quarter 2013 was primarily driven by the introduction of advance purchase restrictions on bags as well as other various changes in our pricing structure for optional services.
Cost Performance
Total operating expenses in the first quarter 2013 increased 21.4 percent year-over-year to $320.8 million on a capacity increase of 20.8 percent.
Cost per available seat mile excluding special items and fuel (“Adjusted CASM ex-fuel”) for the first quarter 2013 was 6.04 cents, up 0.8 percent year-over-year. The increase in Adjusted CASM ex-fuel was primarily driven by depreciation and amortization expense related to amortization of heavy maintenance events. Due to an increased number of severe winter storms during the quarter, the Company experienced a higher number of weather-related flight cancellations compared to the same period last year. The CASM pressure associated with the resulting decrease in ASMs as well as other weather-related expenses such as higher deicing expense, also contributed to the increase in Adjusted CASM ex-fuel. The impact of these items was partially offset by efficiency benefits resulting in lower labor expense per ASM, lower distribution expense per ASM, and an increase in average stage length.
Selected Balance Sheet and Cash Flow Items
As of March 31, 2013, Spirit had $483.5 million in unrestricted cash and cash equivalents, no restricted cash, no debt on its balance sheet, and total shareholders’ equity of $614.8 million.
During the first quarter 2013, Spirit incurred capital expenditures of $10.6 million, which includes the purchase of a spare engine that was financed under a sale leaseback transaction after it was delivered. The Company paid $15.1 million in pre-delivery deposits (“PDPs”) for future deliveries of aircraft, and paid $6.8 million in maintenance reserves, net of reimbursements.
Fleet
In the first quarter 2013, Spirit took delivery of two used A319 aircraft and two new A320 aircraft, ending the quarter with 49 aircraft in its fleet. Spirit’s March A320 aircraft delivery was the carrier’s first aircraft to be delivered with sharklets. The Company has five additional new A320 aircraft with sharklets scheduled for delivery in 2013.
Copyright Photo: Bruce Drum. Spirit Airlines will phase out its last two Airbus A321s (N587NK and N588NK) in 2017 on the expiration of the leases. Airbus A321-231 N588NK (msn 2590) in the old 2004 livery arrives at Las Vegas.
WestJet and Icelandair launch their new interline agreement
WestJet (Calgary) and Icelandair (Keflavik) have launched a new interline agreement opening up the skies for passengers connecting between the Americas and more than 20 Icelandair destinations throughout Europe .
Passengers can now book a single combined e-ticket for WestJet and Icelandair flights which includes the conveniences of single check-in for all flights and baggage sent through to the final destination.
Earlier this year Icelandair expanded its seasonal service from Toronto to a year-round operation with plans to increase capacity next summer. Icelandair will also resume seasonal service from Halifax with two flights a week starting June 1, 2013.
Icelandair, the national carrier of Iceland since 1937, offers service to Iceland from Boston , New York-JFK, Seattle , Denver and Toronto with seasonal service from Newark , Washington, D.C., Minneapolis-St. Paul, Orlando Sanford , Halifax , and Anchorage (starting May 15 , 2013).
Top Copyright Photo: Bruce Drum. Boeing 737-7CT WL C-FWAF (msn 32747) arrives at Las Vegas.
Bottom Copyright Photo: Keith Burton. Boeing 757-208 WL TF-FIP (msn 30423) completes its final approach into London (Heathrow).
Allegiant announces Bellingham-Reno service
Allegiant Air (Las Vegas) has announced new, twice-weekly nonstop jet service between Bellingham International Airport (BLI) and Reno-Tahoe International Airport (RNO) beginning on June 6, 2013.
In other news, the company has announced it has now served over four million total travelers at St. Pete-Clearwater International Airport (PIE) since the first flight took off on November 16, 2006 en route to Allentown, PA. Since that time, the company has grown its presence at the airport, now serving 25 cities with nonstop flights into St. Pete-Clearwater International, as well as basing six aircraft at the airport and employing pilots, flight attendants and mechanics.
Copyright Photo: Ton Jochems. McDonnell Douglas DC-9-83 (MD-83) N873GA (msn 49658) touches down at Las Vegas.
Allegiant to seasonally halt Hawaii service from seven cities
Allegiant Air (Las Vegas) plans to temporarily suspend service to Hawaii from seven of the nine mainland cities after the summer season.
Allegiant will suspend flights beginning on August 14 from Boise, Idaho; Eugene, Oregon; Phoenix; Spokane, Washington; and Fresno, Stockton and Santa Maria, all in California according to this report by the Star Advertiser.
The company has recently been struggling with some well-publicized Hawaii cancellations due to mechanical issues affecting its Boeing 757-200 fleet.
Read the full report: CLICK HERE
Copyright Photo: Ton Jochems. Boeing 757-204 N901NV (msn 26963) touches down at the Las Vegas base after arriving from Hawaii.
AeroMexico announces new international flights
AeroMexico (Mexico City) has announced new increased frequencies and international services.
As of June and August, AeroMexico will offer a second flight on the Mexico City-Bogota, Colombia route in response to strong demand in both Latin American capitals, plus two additional frequencies between Mexico City and Sao Paulo, Brazil for a total of nine weekly flights on the route, along with three new frequencies on the Mexico City-Madrid route for a total of ten flights per week.
The airline also announced new seasonal service from Cancun and Huatulco to Los Angeles,California starting in June, to leverage summer travel in both destinations.
AeroMexico and its partner Apple Vacations will offer three weekly flights on the Cancun-Los Angeles route, along with the Huatulco-Los Angeles service they will offer on Fridays.
Both routes will be served with Boeing 737-800 jet airliners with 160 seats, so passengers in both Mexican destinations can travel to Los Angeles and beyond to other cities in the United States, thanks to the AeroMexico and Alaska Airlines codeshare agreement.
The airline will also start to serve the Puerto Penasco-Las Vegas route in June.
During 2013, AeroMexico is also working on consolidating its extensive network of domestic and international routes by continuously strengthening connectivity from different regions in Mexico with the 45 destinations it serves in this country, 19 in the United States, 11 in Latin America, three in Europe, two in Asia and one in Canada.
Copyright Photo: Eddie Maloney. Boeing 737-852 EI-DRB (msn 35115) lands at Las Vegas.
Allegiant announces two new routes
Allegiant Air (Las Vegas) has announced new nonstop jet service between Provo International Airport (PVU) and Oakland International Airport (OAK) beginning on June 7, 2013. The new flights will operate twice weekly between Provo International Airport (PVU) and Oakland International Airport (OAK).
In addition, the company also announced new nonstop jet service between Asheville Regional Airport (AVL) and St. Pete-Clearwater International Airport (PIE) beginning on June 6, 2013. The new flights will operate two times a week between Asheville Regional Airport (AVL) and St. Pete-Clearwater International Airport (PIE).
Copyright Photo: Ton Jochems. McDonnell Douglas DC-9-83 (MD-83) N420NV (msn 49424) arrives at the Las Vegas hub.
Editor’s “To The Point” Observation: Allegiant’s unique “small cities to holiday markets” business plan initially means adding two roundtrips per week on a new thin route to test the market. Often this new route becomes the biggest flight at this small airport. If the new route does well, Allegiant adds more frequencies until it eventually ramps up to daily service. If not, the route is dropped. This strategy to serve underserved small cities to vacation markets have worked well for the growing carrier.
Frontier announces new seasonal service from Denver to both Fresno and Eugene
Frontier Airlines (2nd) (Denver) announced today that it is launching new seasonal service from its Denver, Colorado (DEN) hub to Eugene, Oregon (EUG) starting on May 16, 2013, and resuming year-round service from Denver (DEN) to Fresno, California (FAT) starting on May 17, 2013.
Following is the schedule for Frontier’s Eugene service:
Denver-Eugene (beginning May 16, 2013)
| Route | Departs | Arrives | Frequency | Aircraft | ||||
| DEN-EUG | 12:15 p.m. | 1:55 p.m. | Tues, Thurs, Sun | A319 | ||||
| EUG-DEN | 2:35 p.m. | 6:05 p.m. | Tues, Thurs, Sun | A319 |
Following is the schedule for Frontier’s Fresno service:
Denver-Fresno (beginning May 17, 2013)
| Route | Departs | Arrives | Frequency | Aircraft | ||||
| DEN-FAT | 12:45 p.m. | 2:10 p.m. | Mon, Wed, Fri | A319 | ||||
| FAT-DEN | 2:50 p.m. | 6:00 p.m. | Mon, Wed, Fri | A319 |
The new service will operate on 138-seat Airbus A319 aircraft.
Copyright Photo: Bruce Drum. Airbus A319-111 N904FR (msn 1579) (Swan) approaches Las Vegas.
WestJet reports 4Q net earnings of C$60.9 million and full year net earnings of C$242.4 million
WestJet Airlines (Calgary) has announced its fourth quarter and year-end results for 2012. The airline reported fourth quarter net earnings of $60.9 million, or $0.46 per share and full-year net earnings of $242.4 million, or $1.78 per share; up significantly from the net earnings of $148.7 million, or $1.06 per share, reported for 2011. These financial results mark WestJet’s 31st consecutive quarter of profitability. Based on the trailing twelve months, the airline achieved a return on invested capital of 13.7 per cent, up from the 12.7 per cent reported last quarter.
“We are very pleased with the positive momentum generated in 2012 that culminated with us reporting record annual earnings, record high load factors and for the second consecutive quarter, we surpassed our return on invested capital target of 12 per cent by achieving 13.7 per cent for the year,” said WestJet President and CEO Gregg Saretsky. “Fundamentally our momentum is traced to the commitment and dedication of our over 9,000 WestJetters, and I am very proud of the positive and caring attitude they exemplify each and every day.”
Operating highlights (stated in Canadian dollars)
| Q4 2012 | Q4 2011 | Change | Full-Year 2012 |
Full-Year 2011 |
Change | |
| Net earnings (millions) | $60.9 | $35.6 | 71.3% | $242.4 | $148.7 | 63.0% |
| Diluted earnings per share | $0.46 | $0.26 | 76.9% | $1.78 | $1.06 | 67.9% |
| Total revenues (millions) | $860.6 | $781.5 | 10.1% | $3,427.4 | $3,071.5 | 11.6% |
| Operating margin | 10.6% | 7.6% | 3.0 pts | 11.0% | 8.4% | 2.6 pts |
| ASMs (available seat miles) (billions) | 5.487 | 5.329 | 3.0% | 22.064 | 21.186 | 4.1% |
| RPMs (revenue passenger miles) (billions) | 4.493 | 4.194 | 7.1% | 18.263 | 16.891 | 8.1% |
| Load factor | 81.9% | 78.7% | 3.2 pts | 82.8% | 79.7% | 3.1 pts |
| Segment Guests | 4,314,024 | 3,996,593 | 7.9% | 17,423,352 | 16,040,682 | 8.6% |
| Yield (revenue per revenue passenger mile) (cents) |
19.16 | 18.64 | 2.8% | 18.77 | 18.18 | 3.2% |
| RASM (revenue per available seat mile) (cents) |
15.68 | 14.67 | 6.9% | 15.53 | 14.50 | 7.1% |
| CASM (cost per available seat mile) (cents) |
14.01 | 13.55 | 3.4% | 13.83 | 13.29 | 4.1% |
| CASM, excluding fuel and employee profit share (cents)* |
9.32 | 9.03 | 3.2% | 9.12 | 8.85 | 3.1% |
*Refer to reconciliations in the accompanying tables for further information regarding calculations.
WestJet also announced its intention, upon the expiry of the 12-month period of its 2012 normal course issuer bid, to make an application to the Toronto Stock Exchange to initiate a further normal course issuer bid for up to 5 per cent of the currently issued and outstanding shares. The airline also declared an increase to its quarterly dividend from $0.08 to $0.10. “Continuing the share buy-back program and increasing the dividend signals our confidence in the strength of the business and our commitment to return value to shareholders,” added Gregg Saretsky.
Throughout 2012, WestJet was able to expand its virtual network with the implementation of 13 new interline partnerships, and by evolving four existing interline partnerships (Delta Air Lines, Korean Air, China Eastern Airlines and British Airways) into code-share relationships, bringing the total number of airline partnerships to thirty worldwide.
WestJet expects moderate growth in RASM and margin expansion in the first quarter of 2013, notwithstanding the difficult prior year comparisons and increases in system wide capacity. For the full year 2013, the airline expects CASM, excluding fuel and employee profit share, to increase between two to three percent year-over-year. For the first quarter of 2013, WestJet expects fuel costs to range between $0.94 and $0.96 per litre.
Dividend declaration
On February 5, 2013 WestJet’s Board of Directors declared a cash dividend of $0.10 per common voting share and variable voting share for the first quarter of 2013, to be paid on March 28, 2013, to shareholders of record on March 13, 2013. All dividends paid by WestJet are, pursuant to subsection 89(14) of the Income Tax Act, designated as eligible dividends, unless indicated otherwise. An eligible dividend paid to a Canadian resident is entitled to the enhanced dividend tax credit.
Copyright Photo: Ton Jochems. Boeing 737-7CT C-FKIW (msn 37955) arrives at Las Vegas.
Grand Rapids to join the Southwest Airlines network on August 11
Southwest Airlines (Dallas) announced today that Grand Rapids, Michigan is the next AirTran Airways (Dallas) city to be converted to Southwest service. Those flights from Grand Rapids to Baltimore/Washington, Denver, Orlando, and Saint Louis will begin on August 11, 2013. AirTran service in Grand Rapids will end the previous day, August 10, 2013.
From Gerald R. Ford International Airport (GRR), fly Southwest Airlines Nonstop to:
- (BWI) Baltimore/Washington International Thurgood Marshall Airport
- (DEN) Denver International Airport
- (MCO) Orlando International Airport
- (STL) Lambert-St. Louis International Airport
Additionally, AirTran expands operations in Memphis with new nonstop flights between Memphis and Chicago (Midway), Baltimore/Washington, and Orlando, beginning on August 11, 2013. In Memphis, AirTran currently offers five daily nonstop flights to Atlanta.
Southwest also will begin nonstop service between Flint, Michigan and Las Vegas starting on August 11, 2013. Bishop International Airport (FNT) in Flint is currently served by AirTran Airways and will convert to Southwest Airlines service on April 14, 2013. Inaugural service from Flint will also include nonstop service to Baltimore/Washington, Orlando, and Tampa Bay.
Top Copyright Photo: Eddie Maloney. Boeing 737-3H4 N609SW (msn 27929) in the California One motif lands at Las Vegas.
Bottom Copyright Photo: Bruce Drum. Southwest Airlines is also phasing out the AirTran Airways’ Boeing 717 fleet. The 717s will gradually migrate to Delta Air Lines. Boeing 717-2BD N946AT (msn 55009) painted in the special livery of the world champion Baltimore Ravens of the National Football League (NFL) climbs away from the runway at Fort Lauderdale-Hollywood International Airport (FLL).
Allegiant celebrates it 40th consecutive profitable quarter
Allegiant Travel Company (Allegiant Air) (Las Vegas) is celebrating its 40th consecutive profitable quarter. The company produced a net profit of $14.8 million in the fourth quarter (up from a net profit of $10.8 million in the same quarter a year ago) and a net profit of $78.6 million for 2012 (up from a net profit of $49.4 million in 2011). The travel company specializes in serving small markets with limited service to popular vacation destinations. The company issued the following financial results and details for the fourth quarter 2012 and full year results for 2012:
Allegiant Travel Company reported the following financial results for both the fourth quarter and full year 2012, as well as comparisons to prior year equivalents:
| Unaudited | 4Q12 | 4Q11 | Change | 2012 | 2011 | Change |
| Total operating revenue (millions) | $222.8 | $193.9 | 14.9% | $908.7 | $779.1 | 16.6% |
| Operating income (millions) | $25.4 | $20.2 | 25.8% | $132.3 | $85.4 | 54.8% |
| Operating margin | 11.4% | 10.4% | 1.0pp | 14.6% | 11.0% | 3.6pp |
| EBITDA (millions) | $42.2 | $31.3 | 34.7% | $190.1 | $127.4 | 49.2% |
| EBITDA margin | 18.9% | 16.2% | 2.7pp | 20.9% | 16.4% | 4.5pp |
| Net income (millions) | $14.8 | $10.8 | 36.6% | $78.6 | $49.4 | 59.1% |
| Diluted earnings per share | $0.76 | $0.56 | 35.7% | $4.06 | $2.57 | 58.0% |
“We are very proud to report our 40th consecutive profitable quarter,” stated Maurice J. Gallagher, Jr., Chairman and CEO of Allegiant Travel Company. ”40 consecutive profitable quarters is an outstanding achievement in this industry and we could not do it without the great efforts and contributions of our Team Members. In 2012, we recorded the highest system fuel cost per gallon we have ever paid for a full year. In spite of that, we were able to grow full year earnings per share over 58 percent to the highest ever.”
Notable company quarterly highlights
- Signed purchase agreements to acquire nine Airbus A320 aircraft previously operated by Iberia
- Successfully converted 100 percent of our customer web traffic to our new booking engine in November
- Returned over $38 million to shareholders through a special dividend of $2 per share in December
- Repurchased approximately 55,000 shares for $4 million during the fourth quarter
- As of January 30, 2013, we have converted 47 of an expected 51 MD-80s to 166 seat aircraft
- Began operating 21 new routes during the quarter
- Announced eight new routes starting in the first quarter
- Ranked 14th on the Forbes’ 100 Best Small Companies. We have been listed four years in a row
Revenue performance
- Fourth quarter 2012 total average fare was up 4.4 percent versus 2011 and was the highest in the company’s history
- 12th consecutive quarter of year over year increases in total average fare
- Ancillary air-related revenue per passenger has grown sequentially every month since April 2012
| 4Q12 | 4Q11 | Change | 2012 | 2011 | Change | |
| Scheduled Service: | ||||||
| Average fare – scheduled service | $88.59 | $91.66 | (3.3)% | $88.90 | $89.15 | (0.3)% |
| Average fare – ancillary air-related charges | $39.89 | $31.51 | 26.6% | $35.72 | $31.17 | 14.6% |
| Average fare – ancillary third party products | $5.19 | $4.88 | 6.4% | $5.48 | $5.18 | 5.8% |
| Average fare – total | $133.67 | $128.05 | 4.4% | $130.10 | $125.51 | 3.7% |
| Scheduled service passenger revenue per ASM (PRASM) (cents) | 7.99 | 8.91 | (10.3)% | 8.43 | 8.88 | (5.1)% |
| Total scheduled service revenue* per ASM (TRASM) (cents) | 12.06 | 12.45 | (3.1)% | 12.33 | 12.50 | (1.4)% |
| Load factor | 86.5% | 89.6% | (3.1)pp | 89.4% | 91.7% | (2.3)pp |
| Passengers (millions) | 1.6 | 1.4 | 13.3% | 6.6 | 5.8 | 14.1% |
| Average passengers per departure | 141 | 134 | 5.2% | 140 | 136 | 2.9% |
| Average scheduled service stage length (miles) | 930 | 904 | 2.9% | 918 | 901 | 1.9% |
* Total scheduled service revenue includes scheduled service, ancillary air-related, and ancillary third party revenue.
Cost performance
- Full year 2012 cost per ASM excluding fuel decreased 6.7 percent to 5.3 cents in spite of a five percent decrease in aircraft utilization for the same time period
- Full year 2012 ASMs per gallon increased 6.6 percent to 63.0 versus last year, and improved sequentially 3.6 percent in the fourth quarter 2012 versus the third quarter 2012
- Full year 2012 salaries and benefits expense per passenger decreased 1.7 percent despite a 14.2 percent increase in full time equivalent employees
- Full year 2012 maintenance and repairs expense per passenger decreased 19.6 percent due primarily to a 60 percent decline in engine overhaul expenses. Maintenance expense per aircraft per month was $102,277 in 2012 versus $129,558 in 2011
- Full year 2012 sales and marketing expense per passenger decreased 14.6 percent versus last year, primarily due to the implementation of a discount for customers paying with less expensive forms of payment beginning in the third quarter 2012
| 4Q12 | 4Q11 | Change | 2012 | 2011 | Change | |
| Total System*: | ||||||
| Operating expense per passenger | $118.49 | $116.08 | 2.1% | $111.12 | $112.32 | (1.1)% |
| Operating expense per passenger, excluding fuel | $63.50 | $62.04 | 2.4% | $56.99 | $58.78 | (3.0)% |
| Operating expense per ASM (CASM) (cents) | 10.50 | 11.03 | (4.8)% | 10.37 | 10.90 | (4.9)% |
| Operating expense, excluding fuel per ASM (CASM ex fuel) (cents) | 5.63 | 5.89 | (4.4)% | 5.32 | 5.70 | (6.7)% |
| Average block hours per aircraft per day | 5.3 | 5.6 | (5.4)% | 5.7 | 6.0 | (5.0)% |
* Total system includes scheduled service, fixed-fee contract and non-revenue flying.
Third party products performance
- For the fourth quarter 2012, ancillary revenue – third party products per passenger increased 6.4 percent versus last year. This has been our eleventh consecutive quarter of year over year increases.
- For the full year 2012, net revenue from hotels increased about five percent while net revenue from rental cars increased about 33 percent versus 2011
| Supplemental Ancillary Revenue Information
Unaudited (millions) |
4Q12 | 4Q11 | Change | 2012 | 2011 | Change |
| Gross ancillary revenue – third party products | $24.9 | $23.0 | 8.6% | $119.0 | $106.4 | 11.9% |
| Cost of goods sold | ($16.2) | ($15.2) | 6.1% | ($79.0) | ($72.0) | 9.7% |
| Transaction costs* | ($.6) | ($.9) | (35.9)% | ($3.9) | ($4.5) | (12.1)% |
| Ancillary revenue – third party products | $8.2 | $6.8 | 20.5% | $36.1 | $29.9 | 20.8% |
| As percent of gross | 32.8% | 29.6% | 3.2pp | 30.3% | 28.1% | 2.2pp |
| As percent of income before taxes | 34.9% | 36.9% | (2.0)pp | 29.0% | 37.6% | (8.6)pp |
| Ancillary revenue – third party products/scheduled passenger | $5.19 | $4.88 | 6.4% | $5.48 | $5.18 | 5.8% |
| Hotel room nights (thousands) | 137.5 | 142.6 | (3.5)% | 690.1 | 647.7 | 6.5% |
| Rental car days (thousands) | 169.1 | 113.8 | 48.6% | 763.4 | 577.7 | 32.1% |
* Includes payment expenses and travel agency commissions.
Balance sheet highlights
- We currently have $41 million in share repurchase authority
| Unaudited (millions) | 12/31/12 | 12/31/11 | Change |
| Unrestricted cash* | $352.7 | $319.5 | 10.4% |
| Total debt | $150.9 | $146.1 | 3.3% |
| Total Allegiant Travel Company stockholders’ equity | $400.5 | $351.5 | 14.0% |
| Year ended December 31, | |||
| Unaudited (millions) | 2012 | 2011 | Change |
| Capital expenditures | $105.1 | $86.6 | 21.4% |
* Unrestricted cash includes investments in marketable securities.
At this time, Allegiant Travel Company provides the following guidance to investors, subject to revision.
| Guidance, subject to revision | ||
| Revenue guidance | January 2013 | 1Q13 |
| Estimated PRASM year-over-year change | (13) to (11)% | (8) to (6)% |
| Fixed fee and other revenue guidance | 1Q13 | |
| Fixed fee and other revenue (millions) | $4 to $6 | |
| Capacity guidance | ||
| System | 1Q13 | 2Q13 |
| Departure year-over-year growth | (8) to (4)% | (7) to (3)% |
| ASM year-over-year growth | +12 to 16% | +14 to 18% |
| Scheduled | ||
| Departure year-over-year growth | (2) to 2% | 0 to 4% |
| ASM year-over-year growth | +15 to 19% | +19 to 23% |
| Cost guidance | 1Q13 | |
| CASM ex fuel – year-over-year change | +1 to 3% | |
| CAPEX guidance | FY13 | |
| Capital expenditures (millions) | $150 to $160 | |
CASM ex fuel – cost per available seat mile excluding fuel expense
* Number of aircraft expected to be completed by end of the quarter
2013 aircraft fleet plan by end of quarter
| Aircraft | 1Q13 | 2Q13 | 3Q13 | 4Q13 |
| MD-80 (166*) | 51 | 51 | 51 | 51 |
| MD-80 (non 166*) | 6 | 5 | 1 | 1 |
| 757 | 6 | 6 | 6 | 6 |
| A319 | 0 | 2 | 2 | 2 |
| A320 | 0 | 0 | 2 | 7 |
| Total | 63 | 64 | 62 | 67 |
* 166 refers to MD-80s that are expected to be converted to 166 seat aircraft, non 166 refers to those aircraft that will not be converted
Aircraft listed in table above are considered in service aircraft
Copyright Photo: Ton Jochems. McDonnell Douglas DC-9-83 (MD-83) N416NV (msn 49555) is pictured arriving at the Las Vegas main hub.
JetBlue reports net income of $1 million in the 4Q, $128 million for the full year
JetBlue Airways Corporation (JetBlue Airways) (New York) today reported its results for the fourth quarter and full year 2012:
- Operating income of $44 million in the fourth quarter. This compares to operating income of $83 million in the year-ago period. For the full year 2012, JetBlue reported operating income of $376 million. This compares to operating income of $322 million for the full year 2011.
- Pre-tax income of $1 million in the fourth quarter. This compares to pre-tax income of $40 million in the year-ago period. For the full year 2012, JetBlue reported pre-tax income of $209 million. This compares to a pre-tax income of $145 million for the full year 2011.
- Net income for the fourth quarter was $1 million, or $0.00 per diluted share. This compares to JetBlue’s fourth quarter 2011 net income of $23 million, or $0.08 per diluted share. For the full year 2012, JetBlue reported net income of $128 million, or $0.40 per diluted share. This compares to net income of $86 million, or $0.28 per diluted share.
“Although Hurricane Sandy negatively impacted fourth quarter results, 2012 was a very good year for JetBlue,” said Dave Barger, JetBlue’s President and Chief Executive Officer. “We further solidified our position as New York’s Hometown Airline™ while continuing to pursue profitable growth opportunities in Boston and the Caribbean & Latin America, resulting in record revenue performance. These results reflect the hard work and dedication of our 14,000 crewmembers who deliver exceptional service to our customers every day.”
Operational Performance
JetBlue reported record fourth quarter operating revenues of $1.2 billion despite Hurricane Sandy, which reduced revenue by an estimated $45 million. Revenue passenger miles for the fourth quarter increased 4.3% to 8.1 billion on a capacity increase of 4.8%, resulting in a fourth quarter load factor of 81.9%, a decrease of 0.3 points year over year.
Yield per passenger mile in the fourth quarter was 13.47 cents, up 0.2% compared to the fourth quarter of 2011. Passenger revenue per available seat mile (PRASM) for the fourth quarter 2012 decreased 0.2% year over year to 11.03 cents and operating revenue per available seat mile (RASM) decreased 0.5% year over year to 12.09 cents.
“While we saw a significant decline in demand for air travel following Hurricane Sandy, we are encouraged by more robust demand trends during the December holiday travel period,” said Robin Hayes, JetBlue’s Chief Commercial Officer. “We continue to be pleased with the strong performance of our Boston business-oriented markets – an area of significant focus for JetBlue.”
Operating expenses for the quarter increased 8.3%, or $87 million, over the prior year period. JetBlue’s operating expense per available seat mile (CASM) for the fourth quarter increased 3.3% year over year to 11.65 cents. Excluding fuel, CASM increased 4.8% to 7.17 cents.
Over the course of 2012, JetBlue improved its return on invested capital (ROIC) by approximately one percentage point to 4.8%. “We improved ROIC through a combination of margin expansion and prudent balance sheet management,” said Mark Powers, JetBlue’s Chief Financial Officer. “Nonetheless, we recognize there is still significant work to be done to continue improving shareholder returns. We remain committed to improving ROIC and believe we are on track to do so in 2013.”
Fuel Expense and Hedging
JetBlue continued to hedge fuel to manage price volatility. Specifically, during the fourth quarter JetBlue hedged approximately 27% of its fuel consumption and managed approximately 20% of its fuel consumption using fixed forward price agreements (FFPs), resulting in a realized fuel price of $3.20 per gallon, a 1% increase over fourth quarter 2011 realized fuel price of $3.15.
JetBlue has managed approximately 18% of its first quarter projected fuel requirements using a combination of FFPs and collars. Based on the fuel curve as of January 25th, JetBlue expects an average price per gallon of fuel, including the impact of hedges, FFPs and fuel taxes, of $3.23 in the first quarter.
Balance Sheet Update
JetBlue ended the fourth quarter with approximately $731 million in unrestricted cash and short term investments. During the quarter, JetBlue increased its line of credit with Morgan Stanley to $200 million. In addition, JetBlue maintains a $125 million corporate purchasing line with American Express for jet fuel purchases.
During the fourth quarter, JetBlue prepaid approximately $50 million of debt. JetBlue recorded a $3 million loss in non-operating income during the quarter in connection with this prepayment. In addition, JetBlue prepaid $200 million related to 2013 aircraft deliveries and pre-delivery deposits for future aircraft deliveries in exchange for favorable pricing terms.
Since December 31, 2011, JetBlue has increased the number of unencumbered Airbus A320 aircraft from one to 11 and decreased its total debt balance by approximately $285 million. ”We continue to actively manage our total debt balance and seek to optimize the liquidity on our balance sheet, which we believe will help improve ROIC,” said Mr. Powers.
First Quarter and Full Year Outlook
For the first quarter of 2013, CASM is expected to increase between 1.0% and 3.0% over the year-ago period. Excluding fuel and profit sharing, CASM in the first quarter is expected to increase between 2.0% and 4.0% year over year.
CASM for the full year is expected to increase between 1.5% and 3.5% over full year 2012. Excluding fuel and profit sharing, CASM in 2013 is expected to increase between 1.0% and 3.0% year over year.
Capacity is expected to increase between 5.5% and 7.5% in the first quarter and for the full year.
Copyright Photo: Eddie Maloney. Airbus A320-232 N746JB (msn 3622) is dedicated to the hometown New York Jets of the National Football League. N746JB is pictured arriving at Las Vegas.
Spirit Airlines starts New Orleans-Dallas/Fort Worth service
Spirit Airlines (Fort Lauderdale/Hollywood) yesterday (January 25) started operating nonstop service between New Orleans and Dallas/Fort Worth.
Copyright Photo: Ton Jochems. The “Spirit of Las Vegas” arrives at its namesake still dressed in the old black version of the 2004 livery. The pictured A319-132 N522NK (msn 2893) was handed over to the ultra low fare airline on November 9, 2006.
Southwest to charge $40 to upgrade to an earlier “A” boarding pass on the day of flight
Southwest Airlines (Dallas) customers LUV the coveted “A” boarding group according to the airline. Now Southwest will offer an additional option to upgrade their position with the open seating at the board gate.
The airline continues:
Now they have one more way to be among the first to board. Beginning today, Southwest Airlines will offer customers the opportunity to purchase one of the earliest boarding positions at the gate for $40 per flight, when available.
This new boarding option will only be offered at the gate on the day of travel, beginning 45 minutes before the flight departs. Customers will hear an announcement in the gate area and will be able to purchase an available boarding position via credit card from a Customer Service Agent. Customers will only have the opportunity to purchase these positions if available. The airline successfully tested this new boarding option in San Diego last month, and received positive feedback.
Copyright Photo: Ton Jochems. Boeing 737-8H4 N8326F (msn 35969) touches down at the popular destination of Las Vegas, Nevada.
American Airlines and US Airways move one step closer to a merger with this announcement
American Airlines (Dallas/Fort Worth) will soon make a decision on whether it will proceed with the proposed merger with US Airways (Phoenix). The two airlines have issued this joint statement which brings a probable merger one step closer with a new agreement between its pilots:
American Airlines and US Airways, with participation of committee counsel for the Unsecured Creditors Committee, are pleased that they have completed discussions with the Allied Pilots Association and US Airline Pilots Association intended to develop a framework for the terms of employment for pilots, as well as a process for pilot integration, in the event of a merger between AA and US during restructuring. This memorandum of understanding was approved by the Allied Pilots Association’s Board of Directors and by USAPA’s Board of Pilot Representatives. This memorandum of understanding will assist all of the stakeholders, including the Boards of AMR and US Airways, in making an informed decision as to whether a merger should ultimately be pursued. The MOU is one of several elements to be considered before a decision on a merger can be made. Details regarding the MOU are still covered by the terms of a non-disclosure agreement so they cannot be further disclosed at this time.
American Airlines’ board of directors meets next week to consider its course of action. Read the analysis by Reuters: CLICK HERE
Top Copyright Photo: Michael B. Ing. The Boeing 767-200s of both airlines are likely to be retired fairly soon if a merger is accomplished. American’s Boeing 767-223 ER N324AA (msn 22325) is mainly assigned to the transcontinental routes and is pictured departing from Los Angeles International Airport.
Bottom Copyright Photo: Bruce Drum. A decision will have to made about US Airways’ membership in the Star Alliance if a merger is pursued. Boeing 757-2B7 N935UW 9msn 27201) arrives at Las Vegas.
JetBlue to try to gain a foothold in the Seattle/Tacoma-Anchorage market next summer
JetBlue Airways (New York) has announced plans to expand its schedule in Alaska with new nonstop service between Ted Stevens Anchorage International Airport and Seattle-Tacoma International Airport. The airline plans to launch daily service for the summer season beginning on May 16, 2013.
JetBlue already offers Alaska travellers the only nonstop service between Anchorage and Long Beach with a daily summer service that will resume May 16, 2013.
JetBlue’s schedule between ANC and SEA:
| SEA to ANC: | ANC to SEA: |
| Depart – Arrive | Depart – Arrive |
| 8:00 p.m. – 10:40 p.m. | 1:00 a.m. – 5:25 a.m. |
| - Flights operate daily effective May 16, 2013-
- All times local - |
|
Copyright Photo: Bruce Drum. Airbus A320-232 N505JB (msn 1173) prepares to land at Las Vegas.
Alaska to start new nonstop service from San Diego to Boston and Lihue, Kauai
Alaska Airlines (Seattle/Tacoma) has announced it will begin new service between San Diego and Boston starting March 29 and between San Diego and Lihue, Kauai (Hawaii), on June 7, 2013.
Summary of new service
| San Diego-Boston: | ||||
| Start date | City pair | Departs | Arrives | Frequency |
| March 29 | San Diego-Boston | 9:30 a.m. | 5:55 p.m. | Daily |
| March 29 | Boston-San Diego | 6:55 p.m. | 10:13 p.m. | Daily |
| San Diego- Kauai: | ||||
| Start date | City pair | Departs | Arrives | Frequency |
| June 7 | San Diego-Kauai | 9:55 a.m. | 1:05 p.m. | Daily until Aug. 24 then Mon, Tue, Thu, Sat |
| June 7 | Kauai -San Diego | 11:05 a.m. | 7:50 p.m. | Daily until Aug. 23 then Mon, Wed, Fri, Sun |
All times based on local time zones
Alaska has added four flights from San Diego this year, including nonstop service to Orlando, Fla., and daily service to Fresno, Monterey and Santa Rosa, Calif. In addition to Alaska’s new San Diego-Kauai service, the carrier also flies daily from San Diego to the Hawaiian Islands of Oahu and Maui.
Copyright Photo: Eddie Maloney. Boeing 737-890 N512AS (msn 39043) dressed in the promotional Boeing Dreamliner scheme lands at the desert oasis of Las Vegas.
Spirit Airlines to charge passengers $100 fee to check their bags at the gate
Spirit Airlines (Fort Lauderdale/Hollywood) has announced it will charge $100 to check a bag at the gate. The airline is taking the radical step because last minute bag checks at the gate are often delaying the departures according to the airline.
The airline issued the following statement:
Spirit Airlines’ (SAVE) carry-on bag program — which includes priority boarding — has proven successful for customers and the airline. It has helped speed the boarding process, ensured sufficient overhead space is available for all carry-on bags, and it has helped reduce the airline’s fuel consumption rate by the equivalent of nearly six million gallons in the past year alone. The success of the program has allowed customers to pay for only the services that they use and it has permitted Spirit to continue lowering fares for its customers.
Unfortunately, some customers are still waiting until they reach the boarding gate to purchase their carry-on. This slows the boarding process for all customers, delays flights, increases costs for the company, and ultimately results in higher fares for everyone.
Starting November 6, 2012, customers who wait until the last minute to purchase their carry-on at the boarding gate will be charged $100. The $100 carry-on bag fee is intentionally set high to deter costly delay-causing gate activity.
Much lower priced options are available for those who plan ahead and reserve their bags in advance with prices from as little as $20.
“Our goal is for no customer ever to pay the $100 fee,” says Spirit’s Chief Operating Officer Tony Lefebvre. “Spirit offers our customers multiple opportunities to avoid this unnecessary fee and save money. By planning ahead and paying for bags before getting to the boarding gate, our customers are saving time at the airport and speeding up the boarding process. When our customers choose these time-saving, self-service options, our costs go down, and we can pass those savings along to our customers.”
Spirit says advance planning can bring significant savings to customers if they purchase their bags in advance online when making their reservation, when checking in online, at an airport kiosk, or at an airport ticket counter. Checked bags are available for as low as $20 and carry-ons for as little as $25 (including priority boarding).
Spirit’s “Bring Less, Pay Less” bag program passes the cost of handling bags solely to those bringing bags rather than have everyone subsidize these costs. Customers who bring less, pay less. That’s exactly what has happened at Spirit. Spirit’s customers have reduced the amount of baggage, saved money and helped the company conserve the equivalent of nearly six million gallons of fuel in the last year alone compared to the rate of consumption before the introduction of the program.
Spirit Bag Fees (effective November 6, 2012):
| $9 Fare Club Member Online |
Standard Online |
Telephone Reservations |
Airport Ticket Counter or Kiosk |
Boarding Gate |
|
| Checked Bag | $20 | $30 | $35 | $45 | $100 |
| Carry-on | $25 | $35 | $40 | $50 | $100 |
Spirit continues to offer customers one free personal item that fits under the seat free of charge. Also, a list of other items that are exempt from the carry-on bag fee can be found at spirit.com.
Copyright Photo: Michael B. Ing. Airbus A319-132 N505NK (msn 2485) taxies off the runway at Las Vegas.
American may eliminate 11,000 positions
American Airlines (Dallas/Fort Worth) has sent notices to more than 11,000 employees they could lose their jobs as part of its Chapter 11bankruptcy reorganization according to this report by Reuters. AA is also cutting flights by one to two percent for the rest of September and October.
Read the full report: CLICK HERE
Copyright Photo: Bruce Drum. McDonnell Douglas DC-9-82 (MD-82) N411AA (msn 49322) arrives at Las Vegas. More DC-9-82s and DC-9-83s are likely to be retired.
Frontier drops plans for Durango-Las Vegas service
Frontier Airlines (2nd) (Denver) has announced it will not operate the nonstop service it planned to launch between Durango, Colorado and Las Vegas, Nevada starting on October 4, 2012 due to a lack of demand.
Frontier will continue to provide service to Durango with daily flights to its hub in Denver.
Copyright Photo: Ton Jochems. Airbus A319-111 N939FR (msn 2448) lands at Las Vegas.
Allegiant to start Mesa (Phoenix)-Honolulu service and two new routes to Palm Springs
Allegiant Air (Las Vegas) will begin new, nonstop air service from Mesa (near Phoenix, Arizona) to Honolulu International Airport (HNL) beginning on February 7, 2013.
The new flights will operate three times weekly between Phoenix-Mesa Gateway Airport (IWA) and Honolulu International Airport (HNL).
In addition, the company will begin new, nonstop air service from Eugene, Oregon and Oakland to Palm Springs starting on November 15.
Copyright Photo: Eddie Maloney. Boeing 757-204 N902NV arrives at Las Vegas.
Frontier to fly from Trenton, New Jersey to Orlando this winter
Frontier Airlines (2nd) (Denver) continues its expansion with new winter markets. Today the airline announced new nonstop service between Orlando, Florida (MCO) and Trenton, New Jersey (TTN), with twice weekly nonstop flights beginning on November 16, 2012. Frontier will be the only airline providing scheduled carrier service out of Trenton-Mercer Airport.
Following is the schedule for Frontier’s Orlando – Trenton service:
Orlando-Trenton (beginning Nov. 16, 2012)
| Route | Departs | Arrives | Frequency | Aircraft | ||||
| MCO-TTN | 12:55 p.m. | 3:20 p.m. | Monday | A319 | ||||
| MCO-TTN | 7:25 a.m. | 9:50 a.m. | Friday | A319 | ||||
| TTN-MCO | 4:00 p.m. | 6:35 p.m. | Monday | A319 | ||||
| TTN-MCO | 10:30 a.m. | 1:05 p.m. | Friday | A319 | ||||
The new service will operate on 138-seat Airbus A319 aircraft.
Copyright Photo: Eddie Maloney. Airbus A319-111 N932FR is pictured in action at Las Vegas. Sarge, the Bald Eagle, adorns the tail.
Allegiant to fly to Honolulu from both Boise and Spokane
Allegiant Air (Las Vegas) announced today it will offer new nonstop flights from Honolulu International Airport (HNL) to both Boise, Idaho (starting on February 9) and Spokane (starting on February 8).
The new Routes will be operated with Boeing 757-200s.
Copyright Photo: Eddie Maloney. Boeing 757-204 N902NV (msn 26964) is pictured at the Las Vegas hub.
United Airlines and ALPA reach a tentative agreement
United Continental Holdings, Inc. (United Airlines) (Chicago) has announced that the company has reached an agreement in principle on a new joint collective bargaining agreement with the Air Line Pilots Association (ALPA) representing pilots at the United and Continental subsidiaries. The agreement is subject to definitive documentation, approvals by the ALPA master executive councils of each subsidiary and ratification by the company’s pilots.
“This agreement follows intense negotiations with our pilot group and is an important step forward for our company. I want to thank both negotiating teams for their efforts in reaching this agreement,” said Fred Abbott, senior vice president of flight operations for United.
“The National Mediation Board played a crucial role in our negotiations, and I want to recognize NMB member Linda Puchala for her personal involvement and thank Senior Mediator Patricia Sims for her professional and effective mediation support,” said Mike Bonds, executive vice president of human resources and labor relations at United.
Copyright Photo: Eddie Maloney.
AirTran adds more flights on the Baltimore/Washington-Fort Lauderdale/Hollywood route
AirTran Airways (subsidiary of Southwest Airlines) (Dallas) has announced more options for Baltimore Customers looking to get to Florida, AirTran Airways will add as many as four daily nonstop flights between Baltimore/Washington and Ft. Lauderdale/Hollywood beginning on September 6, 2012, through the end of its published schedule on February 13, 2013. The new flights will add to AirTran’s existing three daily roundtrip flights between the markets.
With the September flight schedule, Southwest Airlines will operate three daily nonstop flights between Baltimore/Washington and Ft. Lauderdale/Hollywood for a combined total of up to ten daily roundtrip BWI-FLL flights between the carriers.
Southwest Airlines began service to Baltimore/Washington on Sept. 15, 1993, with ten daily nonstop departures to two cites. Since then, Southwest has grown its operation to more than 170 daily nonstop departures to nearly 50 cities. Southwest has nearly 3,000 Employees at BWI, and has a plane dedicated to the state, Maryland One.
Top Copyright Photo: Bruce Drum. Boeing 737-7BD N281AT taxies to the runway at Fort Lauderdale/Hollywood.
Bottom Copyright Photo: Bruce Drum. Maryland One arrives at Las Vegas.
Southwest Airlines acquires four Reagan National slots from Spirit Airlines
Southwest Airlines (Dallas) has acquired four landing and takeoff slots at Washington (Reagan National) from Spirit Airlines (Fort Lauderdale/Hollywood). The Department of Transportation (DOT) approve the acquisition on July 2. Southwest intends to launch nonstop St. Louis-Washington (Reagan National) flights on September 6.
Meanwhile Spirit will move its two daily roundtrips from Fort Lauderdale/Hollywood to Reagan National to nearby Baltimore/Washington International Thurgood Marshall Airport (BWI) on September 5.
Top Copyright Photo: Eddie Maloney. Brand new Boeing 737-8H4 N8309C (msn 36985) was delivered on May 18, 2012.
Bottom Copyright Photo: Brian McDonough. Airbus A320-232 N603NK makes its final approach into Washington (Reagan National).
The Teamsters want to represent Allegiant’s pilots
Allegiant Air‘s (Las Vegas) pilots will soon have a choice whether they want to be represented by the Teamsters or continue to directly negotiate with the company.
The airline issued the following statement:
“Allegiant has received notification from the National Mediation Board (NMB) that International Brotherhood of Teamsters, Airline Division has filed an application for a representation election on behalf of Allegiant Air pilots. This will be the first time Allegiant pilots have voted on union representation.
“We strongly believe that Allegiant’s success is attributable in large part to our pilots and the direct, open relationship we have with them,” Maurice J. Gallagher, Jr., Allegiant CEO and Chairman, said. “We are committed to ensuring a fair election and we are confident Allegiant pilots will cast their votes based on the facts, and not rush to judgment based on IBT propaganda.”
Copyright Photo: Eddie Maloney. Formerly operated by Britannia Airways/Thomsonfly/Thomson Airways as G-BYAO, the pictured Boeing 757-204 at hot Las Vegas joined the Allegiant fleet as N905NV on March 15, 2012 in time to launch new low-fare flights to Hawaii.
Frontier to start nonstop Durango-Las Vegas twice-weekly service on October 4
Frontier Airlines (2nd) (Denver) today announced new nonstop service between Durango, Colorado and Las Vegas, Nevada beginning on October 4, 2012. The twice weekly nonstop service will operate using 138-seat Airbus A319 aircraft.
Following are schedules for the new service:
Durango – Las Vegas (beginning Oct. 4, 2012)
| Route | Departs | Arrives | Frequency | Aircraft | ||||||||||||
| LAS-DRO | 5:59 p.m. | 8:14 p.m. | Thur/Sun | A319 | ||||||||||||
| DRO-LAS | 8:54 p.m. | 9:09 p.m. | Thur/Sun | A319 | ||||||||||||
In other news, Frontier Airlines today also announced it will extend its nonstop seasonal service between Pennsylvania’s Harrisburg International Airport (MDT) and its Denver International Airport (DEN) hub through October 27, 2012. The carrier first launched the three weekly flights on May 24, 2012.
Following are schedules for the extended Harrisburg service:
Harrisburg-Denver (Sept. 7 – Oct. 27, 2012)
| Route | Departs | Arrives | Frequency | Aircraft | ||||||||||||
| DEN-MDT | 4:40 p.m. | 9:55 p.m. |
Wed, Fri, Sun
|
A319 | ||||||||||||
| MDT-DEN | 9:47 a.m. | 11:37 a.m. | Mon, Thur, Sat | A319 | ||||||||||||
Copyright Photo: Eddie Maloney.
Southwest Airlines and AirTran Airways aircraft maintenance technicians ratify Seniority Integration Agreement
Southwest Airlines (Dallas) announced the Aircraft Maintenance Technicians (AMT) from Southwest Airlines, represented by the Aircraft Mechanics Fraternal Association (AMFA), and AirTran Airways (Dallas), represented by the International Brotherhood of Teamsters (IBT) Local 528, voted to ratify their Seniority Integration Agreement. This agreement integrates the two groups’ seniority lists. Southwest Airlines finalized closing of the acquisition of AirTran Holdings, Inc., on May 2, 2011.
AMFA represents approximately 1,750 Southwest Airlines Aircraft Maintenance Technicians, and the IBT represents close to 500 Mechanics from AirTran Airways.
Today’s vote by the AMTs means they now join the Pilots, Flight Attendants, Flight Instructors, Dispatchers, and Ramp, Operations, Provisioning and Freight Agents as having successfully completed the Seniority Integration negotiation process. Work groups still in seniority integration negotiations include Customer Service Agents and Customer Support and Service Employees and Materials Specialists.
This moves the merger one step closer.
Top Copyright Photo: Bruce Drum.
Bottom Copyright Photo: Jay Selman. The AirTran Boeing 717s will not be painted in Southwest’s livery.
Air Canada conducts its first biofuel flight
Air Canada (Montreal) yesterday (June 18) operated it first biofuel flight. Flight AC 991 from Toronto (Pearson) to Mexico City generated at least 40 per cent fewer emissions by using jet fuel derived from recycled cooking oil and through other fuel-saving measures, making it the most environmentally-friendly flight ever flown by Air Canada. The flight is supported by Airbus and is part of an environmental demonstration by the International Civil Aviation Organization (ICAO) to coincide with the Rio +20 United Nations Conference on Sustainable Development.
AC991 will be a normal revenue flight operated with an Airbus A319 aircraft using a 50/50 mix of regular and biofuel derived from recycled cooking oil. This blend produced by SkyNRG has been recertified to normal jet fuel standards and can be safely used without modifying the aircraft’s systems.
Flight AC991 is being operated as part of ICAO’s Flightpath to a Sustainable Future. In addition to alternative fuel, Air Canada will also use other techniques and measures it has adopted to reduce the flight’s environmental impact. These include:
Pre-flight maintenance preparation:
- Fuselage wash and wax to improve aerodynamics
- Interior clean and reconciliation of service items to reduce excess weight
- Installation of lightweight aisle carpet
- Engine compressor wash to increase efficiency
- iPad Electronic Flight Bag in lieu of paper documents for pilots to save weight
Pre-flight operations:
- Minimizing emissions from on-board Auxiliary Power Unit (APU) through use of ground power at gate and use of conditioned air
- Streamlining push-back procedures to reduce fuel usage
- Taxiing the aircraft to the runway with one engine
- Minimizing taxi time to runway
Take-off:
- Reduced thrust take-off
- Air conditioning adjusted to save power
Climb:
- Immediate turn towards destination
- Optimized climb to optimal cruise altitude
Cruise:
- Optimized cruise speed and altitude
- Most direct routing through Canadian, US, and Mexican airspace
- Use of live weather updates accessed through iPad for re-routing due to weather
Descent:
- Constant descent using optimized descent rate along most direct routing
Arrival:
- Direct taxi to gate with minimal delay
- Taxiing the aircraft with one engine
- Minimizing use of APU at gate through use of ground power.
Copyright Photo: Eddie Maloney.
Allegiant receives ETOPS certification and Flag Carrier status from the FAA
Allegiant Air (Las Vegas) on June 12 obtained Extended-Range Operations (ETOPS) certification and Flag Carrier Status from the Federal Aviation Administration (FAA).
The company announced earlier this year its entrance into Hawaii. ETOPS certification and Flag Carrier status are both necessary for flying to Hawaii.
Allegiant will offer nonstop air service to Honolulu, Hawaii from:
Las Vegas – begins June 29
Fresno, California — begins June 30
Bellingham, Washington — begins November 15
Monterey, California – begins November 16
Eugene, Oregon — begins November 17
Santa Maria, California — begins November 17
Stockton, California — begins November 18
Allegiant will also offer nonstop air service to Maui, Hawaii from:
Bellingham, Washington — begins November 14
AirTran Airways adds more Sun Belt flights
AirTran Airways Boeing 737-76N WL N289AT (msn 32673) LAS (Bruce Drum), originally uploaded by Airliners Gallery.
AirTran Airways (Orlando) announced new nonstop service from Tampa to Key West, as well as additional flights to Tampa, San Juan, Phoenix and Orlando beginning this winter.
The company will also begin nonstop flights between Milwaukee and Phoenix on December 13, 2010.
Service between Akron/Canton and Orlando will start on December 21, 2010.
New flights between Milwaukee and Tampa will also start on March 8, 2011.
Finally a new route between Baltimore/Washington and San Juan will be available starting on April 5, 2011.
Southwest Airlines announced its intends to acquire and merge AirTran Airways.
Copyright Photo: Bruce Drum. Boeing 737-76N N289AT (msn 32673) approaches Las Vegas for landing.
Spirit Airlines loses $2.8 million in the first six months, will go public
Spirit Airlines Airbus A319-132 N505NK (msn 2485) LAS (Michael B. Ing), originally uploaded by Airliners Gallery.
Spirit Airlines (Fort Lauderdale/Hollywood) will soon shed its “privately held” label as it will soon issue its Initial Public Offering (IPO) of stock according to this report by Reuters.
The company, which lost $2.8 million in the first six months of this year, is also terminating its consulting contract with U.S. investment company Indigo Partners.
Read the full report:
Copyright Photo: Michael B. Ing. Airbus A319-132 N505NK (msn 2485) arrives at Las Vegas.
AirTran to fly Tampa-San Juan
AirTran Airways Boeing 737-76N WL N289AT (msn 32673) LAS (Bruce Drum), originally uploaded by Airliners Gallery.
AirTran Airways (Orlando) announced plans to Puerto Rico with twice daily flights from Tampa, FL. JetBlue has announced it is expanding service on the same route.
The new flights will begin on April 5, 2011.
Copyright Photo: Bruce Drum. Boeing 737-76N N289AT (msn 32673) prepares to land at Las Vegas.
Allegiant Air to fly Northwest Arkansas-Mesa
Allegiant Air McDonnell Douglas DC-9-83 (MD-83) N866GA (msn 49910) LAS (Bruce Drum), originally uploaded by Airliners Gallery.
Allegiant Air (Las Vegas) has announced new, nonstop jet service between Northwest Arkansas Airport (Fayetteville) and Mesa, AZ (near Phoenix) will begin on November 18.
The new flights will operate twice weekly between the Northwest Arkansas Regional Airport (XNA) and Phoenix-Mesa Gateway Airport (IWA) with service on Thursdays and Sundays. Flights will depart Northwest Arkansas at 8:25 p.m. (2025) arriving in Phoenix-Mesa at 10:05 p.m. (2205). Flights leaving Phoenix-Mesa will depart at 4:20 p.m. (1620) arriving in Northwest Arkansas at 7:45 p.m. (1945) (all flight times are local). The company offers nonstop service to three other destinations, Las Vegas, Los Angeles and Sanford, FL (near Orlando).
Copyright Photo: Bruce Drum. McDonnell Douglas DC-9-83 (MD-83) N866GA (msn 49910) is pictured on final approach at Las Vegas.
Allegiant Air to start Savannah-Fort Lauderdale service
Allegiant Air McDonnell Douglas DC-9-83 N405NV (msn 49623) LAS (Blue Man Group) (Ton Jochems), originally uploaded by Airliners Gallery.
Allegiant Air (Las Vegas) has announced new, nonstop jet service between Savannah/Hilton Head Island and Fort Lauderdale/Hollywood will begin on November 18.
The new flights will operate twice weekly between Savannah/Hilton Head International Airport (SAV) and Fort Lauderdale-Hollywood International Airport (FLL), with service Thursday and Sunday. Flights will depart Savannah/Hilton Head at 11:05 a.m. (1105) arriving in Fort Lauderdale at 12:30 p.m. (1230). Flights leaving Fort Lauderdale will depart at 9 a.m. (0900) arriving in Savannah/Hilton Head at 10:25 a.m. (1025) (all flight times are local). The carrier will utilize a full-size, 150-seat DC-9-80 (MD-80) jet aircraft on the route.
In addition, the company also announced new, nonstop jet service between Moline/Quad Cities, IL, and Mesa, AZ (near Phoenix) will begin also on November 18.
The new flights will operate twice weekly between the Quad City International Airport (MLI) and Phoenix-Mesa Gateway Airport (IWA) with service on Thursday and Sunday. Flights will depart Moline/Quad Cities at 1:25 p.m. (1325) arriving in Phoenix-Mesa at 3:40 p.m. (1540). Flights leaving Mesa will depart at 8:50 a.m. (0850) arriving in Moline/Quad Cities at 12:45 p.m. (1245) (all flight times are local). The company will begin nonstop service to Las Vegas on October 14.
Copyright Photo: Ton Jochems. McDonnell Douglas DC-9-83 (MD-83) N405NV (msn 49623) dressed in the promotional markings of the Blue Man Group arrives at the Las Vegas base.
Allegiant Air to start Moline/Quad Cities-Las Vegas flights
Allegiant Air McDonnell Douglas DC-9-83 (MD-83) N866GA (msn 49910) LAS (Bruce Drum), originally uploaded by Airliners Gallery.
Allegiant Air (Las Vegas) announced new, nonstop jet service between the Moline/Quad Cities, IL, and Las Vegas will begin on October 14. Fares start at $44.99.
Copyright Photo: Bruce Drum. McDonnell Douglas DC-9-83 (MD-83) N866GA (msn 49910) arrives at the LAS hub.
Allegiant Air to start Fort Collins-Mesa service
Allegiant Air McDonnell Douglas DC-9-83 N405NV (msn 49623) (Blue Man Group) (Ton Jochems), originally uploaded by Airliners Gallery.
Allegiant Air (Las Vegas) announced new, nonstop jet service between Mesa, AZ (near Phoenix) and Fort Collins-Loveland, CO, will begin on October 8.
The new flights will operate two times weekly between Fort Collins-Loveland Municipal Airport (FNL) and Phoenix-Mesa Gateway Airport (IWA) with service on Monday and Friday. Flights will depart Fort Collins-Loveland at 11:10 a.m. (1110) arriving in Phoenix-Mesa at 12:05 p.m. (1205). Flights leaving Phoenix-Mesa will depart at 7:40 a.m. (0740) arriving in Fort Collins-Loveland at 10:30 a.m. (1030) (all flight times are local).
Allegiant will utilize 150-seat, DC-9-80 (MD-80) series, jet-aircraft on the route. Allegiant Air began nonstop service to Las Vegas on July 31, 2003 from Fort Collins.
Copyright Photo: Ton Jochems. McDonnell Douglas DC-9-83 (MD-83) N405NV (msn 49623) in the Blue Man Group motif arrives at Las Vegas.
Spirit Airlines starts to charge for overhead carry-on bags
Spirit Airlines Airbus A319-132 N505NK (msn 2485) LAS (Michael B. Ing), originally uploaded by Airliners Gallery.
Spirit Airlines (Fort Lauderdale/Hollywood) on Sunday (August 1) started charging for overhead carry-on bags. Bags that fit under the seat are not charged.
Read the full story in the Miami Herald:
Copyright Photo: Michael B. Ing. Spirit’s Airbus A319-132 N505NK (msn 2485) prepares to cross the runway at Las Vegas.
Spirit Airlines’ pilots remain on strike, all flights cancelled through at least tomorrow
Spirit Airlines Airbus A319-132 N505NK (msn 2485) LAS (Michael B. Ing), originally uploaded by Airliners Gallery.
Spirit Airlines (For Lauderdale/Hollywood) has cancelled all flights through tomorrow, due to an on-going strike by its pilots.
The privately-held company issued this statement, trying to justify its bargaining position:
“As a result of its pilot union’s decision to strike, Spirit’s flights are cancelled for Saturday, June 12 through Tuesday, June 15, 2010.
Spirit is processing future flight credits for customers for the full amount of their unflown flight purchase, and is also giving them a $100 future flight credit. Customers who prefer a full refund may call 1 (800) 772-7117 for assistance. Customers who made their reservation prior to May 11, 2010 and purchased travel insurance can call Travel Guard at +1 (866) 877-3191 to discuss coverage questions and to start an insurance claim. Policyholders may have valuable coverage for Trip Cancellation and Trip Interruption due to the pilots strike.
Following is further clarification to Spirit’s fair and equitable offer that was turned down by the union. ALPA turned down a compounded average 29 percent pay increase costing the company an additional $70 million over five years, net of productivity improvements agreed to by the pilots. This 29 percent pay increase when combined with annual step increases totals a 47 percent increase in annual compensation over five years, prior to any overtime pay, signing bonus and 401K matching contribution increases.”
Read the full press release:
Copyright Photo: Michael B. Ing. Spirit’s Airbus A319-132 N505NK (msn 2485) taxies to the gate at Las Vegas.
Delta is expanding First Class on domestic routes
Delta Air Lines Boeing 757-2Q8 WL N710TW (msn 28169) LAS (Bruce Drum), originally uploaded by Airliners Gallery.
Delta Air Lines (Atlanta) announced a major enhancement of its domestic schedule, with plans to make First Class service available on all domestic flights longer than 750 miles, or about two and one-half hours of flight time, beginning this fall.
When the upgrade is complete, 50 routes that currently feature Delta Connection flights with only one class of service will be upgraded to two-cabin aircraft with First and Economy Class service. Some of the routes scheduled for enhanced service include flights between Atlanta and Albany, NY; Boston and Memphis, TN; Detroit and San Antonio; and Cincinnati and Dallas/Fort Worth. Service may be operated by Delta Connection carriers such as Atlantic Southeast Airlines, Chautauqua Airlines, Comair, Compass Airlines, Freedom Airlines, Mesaba Airlines, Pinnacle Airlines, Shuttle America and SkyWest Airlines.
Copyright Photo: Bruce Drum. Boeing 757-2Q8 N710TW (msn 28169) arrives at Las Vegas.
AirTran Airways adds new flights from San Antonio and Huntsville
AirTran Airways Boeing 737-76N WL N289AT (msn 32673) LAS (Bruce Drum), originally uploaded by Airliners Gallery.
AirTran Airways (Orlando) yesterday (May 27) added new nonstop service from San Antonio International Airport, to Baltimore/Washington Thurgood Marshall International Airport and Orlando International Airport.
AirTran Airways began service to San Antonio on June 11, 2008. In addition to these new destinations, the airline also offers direct flights to its hub in Atlanta.
In addition, the company yesterday also launched daily nonstop service between Huntsville International Airport and both Baltimore-Washington International Thurgood Marshall Airport and Orlando International Airport.
To celebrate the inaugural flight, Cadillac Williams, Alabama native and running back for the Tampa Bay Buccaneers, helped the airline donate tickets to the American Red Cross North Alabama / Tennessee Valley Region.
Copyright Photo: Bruce Drum. Boeing 737-76N N289AT (msn 32673) prepares to land at Las Vegas.
Frontier Airlines to allow small pets in the cabin
Frontier Airlines (2nd) Airbus A319-111 N908FR (msn 1759) LAS (Bruce Drum), originally uploaded by Airliners Gallery.
Frontier Airlines (2nd) (Denver) announced that customers can now travel with their small pets in the cabin of the aircraft for a $75 each-way pet fare. The new in-cabin pet policy applies to small dogs, cats, rabbits, guinea pigs, hamsters or small household birds. All pets must fit into a carrier that fits under the airplane seat and they must have proper health documentation in order to fly.
In addition to allowing small pets in the cabin, Frontier also accommodates larger pets as checked baggage. Pets weighing more than 20 pounds, who do not fit the pets-in-cabin requirements, may be checked for a $150 fee.
Copyright Photo: Bruce Drum. Since Frontier’s brand involves a lot friendly (and talking) animals, it is only appropriate the company would have this new policy. Frontier’s Airbus A319-111 N908FR (msn 1759) with “Holly” (the Blue Heron) on the tail arrives at Las Vegas.
WestJet reports first quarter net earnings of C$13.8 million
WestJet Airlines Boeing 737-8CT WL C-GWBL (msn 34154) LAS (Bruce Drum), originally uploaded by Airliners Gallery.
WestJet Airlines (Calgary) reported first quarter 2010 net earnings of C$13.8 million, or 10 cents per diluted share, which marks its 20th consecutive quarter of profitability. Excluding the impact of a one-time special item related to the departure of WestJet’s CEO in the first quarter of 2010, WestJet’s adjusted first quarter net earnings for 2010 were C$17.5 million or 12 cents per diluted share.
Read the full press release:
http://finance.yahoo.com/news/WestJet-reports-first-quarter-prnews-3784373686.html?x=0&.v=97
Copyright Photo: Bruce Drum. WestJet’s Boeing 737-8CT C-GWBL prepares to land at McCarren International Airport in Las Vegas.
Aladia Airlines is hoping to resume operations

Copyright Photo: James Helbock. Aladia's former Boeing 757-2G5 XA-DIA (msn 23928) arrives at Las Vegas.
Aladia Airlines (Monterrey) is hoping to restart operations with two ex-Maxjet Airways Boeing 767-200s. The reorganized company intends to operate charter flights and ACMI operations. Aladia previously ceased all operations on October 21, 2008.
WestJet produces 18th consecutive quarterly profit of C$31.4 million
WestJet Airlines 737-8CT WL C-GWSA (msn 34153) LAS, originally uploaded by Airliners Gallery.
WestJet Airlines (Calgary) reported a third quarter net income of C$31.4 million, its 18th consecutive quarterly profit. The company is one of the most successful airlines in North America.
Press release:
finance.yahoo.com/news/WestJet-announces-18th-prnews-3033625834.html?x=0&.v=61
Copyright Photo: Bruce Drum.
Please click on photo or link below for full view, information, prints for sale and other photos:
Allegiant Air is still making money
Allegiant DC-9-83 N405NV (msn 49623) (Blue Man Group), originally uploaded by Airliners Gallery.
Allegiant Air (Allegiant Travel Company) (Las Vegas) is one of a handful of U.S. airlines still making money. The organization reported net income of $13.8 million in the third quarter. This is up from a previous profit of $4.9 million in the same quarter a year ago.
Copyright Photo: Ton Jochems.
Press release:
SWAPA sends Southwest contract for vote
Southwest Airlines’ (Dallas) pilots, represented by SWAPA, have sent the new contract to its members for ratification.
Press release:
finance.yahoo.com/news/Tentative-Agreement-Between-prnews-1170102594.html?x=0&.v=1
Southwest comes to Boston

Boeing 737-7H4 N923WN arrives at BOS on the first day to the traditional water salute. However Massport is ending this honor due to liability issues. Copyright Photo: Darryl Sarno.
Southwest Airlines (Dallas) yesterday (August 17) added Boston (Logan) with two routes radiating to Chicago (Midway) and Baltimore/Washington. Both routes will initially have five daily roundtrips.








































