Tag Archives: London

Finnair expands its codeshare agreement with Airberlin

Finnair’s (Helsinki) AY designator will be added to selected services operated by Airberlin (Berlin) or its subsidiary Niki (Vienna) to Bucharest, Catania, Chania, Cologne, Larnaca, Málaga, Naples, Palma de Mallorca, Paphos and Stuttgart. Finnair passengers will be able to connect to these cities via Berlin, Düsseldorf, Frankfurt, Munich, Vienna or Zurich.

Most of the new codeshares will supplement Finnair’s own nonstop services from Helsinki, allowing passengers more travel dates and a wider choice of schedules.

Finnair and Airberlin have been codesharing across Scandinavia and Central Europe since 2010.

Top Copyright Photo: AirlinersGallery.com. Airbus A320-214 OH-LXF (msn 1712) taxies at London (Heathrow).

Finnair aircraft slide show: AG Airline Slide Show

Airberlin aircraft slide show: AG Airline Slide Show

Bottom Copyright Photo: Paul Bannwarth/AirlinersGallery.com. Airberlin’s Airbus A320-214 D-ABNA (msn 5191) prepares to land at Tenerife Sur.

La Compagnie today starts London – New York area flights

La Compagnie (Paris-CDG) today enters the very competitive London – New York area market. The French boutique upscale carrier commences Boeing 757-200 services today between Luton Airport and Newark Liberty International Airport with Boeing 757-256 F-HTAG (msn 29307).

La Compagnie logo-2 (LRW)

Copyright Photo: Keith Burton/AirlinersGallery.com (all others by La Compagnie). Former Thomson Airways Boeing 757-204 F-HCIE (msn 27208, ex G-BYAT) remains at Southend as it is prepared for service.

La Compagnie aircraft slide show: AG Airline Slide Show

La Compagnie 757-200 cabin (La Compagnie)(LR)

La Compagnie crew (La Compagnie)(LR)

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

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

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

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

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

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

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

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

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

Revenue and Cost Comparisons

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

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

Liquidity

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

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

Shares repurchased under the buyback program may be made through a variety of methods, which may include open market purchases, privately negotiated transactions, block trades or accelerated share repurchase transactions. Any such repurchases will be made from time to time subject to market and economic conditions, applicable legal requirements and other relevant factors. The program does not obligate the Company to repurchase any specific number of shares or continue a dividend for any fixed period, and may be suspended at any time at the Company’s discretion.

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

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

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

Notable Accomplishments

Merger Accomplishments

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

Finance Accomplishments

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

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

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

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

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

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

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

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

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

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

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

American Airlines aircraft slide show: AG Airline Slide Show AG Prints-6 Sizes

AG Thank you

United Airlines reports record first quarter net income of $508 million, announces its fleet plans including 10 Boeing 777-300 ERs

United Airlines (UAL) (United Continental Holdings, Inc.) (Chicago) today reported first-quarter 2015 net income of $582 million, or $1.52 per diluted share, excluding $74 million of special items. Including special items, UAL reported first-quarter net income of $508 million, or $1.32 per diluted share. These results are a record first-quarter profit for the company.

UAL earned a 17.1 percent return on invested capital for the 12 months ended March 31, 2015.
UAL’s consolidated passenger revenue per available seat mile (PRASM) increased 0.4 percent for first-quarter 2015 compared to first-quarter 2014.

First-quarter 2015 consolidated unit costs (CASM), excluding special charges, third-party business expenses, fuel and profit sharing, decreased 1.5 percent year-over-year on a consolidated capacity increase of 0.1 percent. First-quarter 2015 CASM, including those items, decreased 13.1 percent year-over-year.

In the quarter, UAL returned approximately $200 million to shareholders as part of its previously announced $1 billion share buyback program.

In the quarter, UAL prepaid approximately $120 million of debt and announced its intention, in the second quarter, to prepay $601 million of its 6 percent notes due 2026 and 2028.

“This quarter we reported a profit of nearly $600 million, excluding special items, a $1 billion improvement compared to the first quarter of 2014, and I’d like to thank the United team for all their great work,” said Jeff Smisek, UAL’s chairman, president and chief executive officer. “We continued to improve our operational reliability and deliver products that enhance our customers’ experience, including new aircraft, improved food, new inflight entertainment options and modern facilities. We are making significant progress on our long-term plan to reduce costs, improve our margins and grow our earnings, and expect our second quarter pre-tax margin to be between 12 and 14 percent, excluding special items.”

First-Quarter Revenue and Capacity

For the first quarter of 2015, total revenue was $8.6 billion, a decrease of 1.0 percent year-over-year. First-quarter consolidated passenger revenue increased 0.5 percent to $7.4 billion, compared to the same period in 2014. Ancillary revenue per passenger in the first quarter increased 8.6 percent year-over-year to more than $23 per passenger. First-quarter cargo revenue grew 15.8 percent year-over-year to $242 million. Other revenue in the first quarter decreased 14.2 percent year-over-year, mostly due to the reduction in sales of fuel to a third party. The corresponding expense decline from this reduction appears in third-party business expense.

Consolidated revenue passenger miles increased 0.1 percent and consolidated available seat miles increased 0.1 percent year-over-year for the first quarter, resulting in a first-quarter consolidated load factor of 81.1 percent.

First-quarter 2015 consolidated PRASM increased 0.4 percent and consolidated yield increased 0.4 percent compared to the first quarter of 2014.

“This quarter our PRASM performance reflected good progress on our revenue initiatives,” said Jim Compton, UAL’s vice chairman and chief revenue officer. “We will continue to match capacity with demand while making the appropriate network, fleet and product decisions to enhance revenue and margin performance, while improving our customers’ experience.”

First-Quarter Costs

First-quarter consolidated CASM, excluding special charges, third-party business expense, fuel and profit sharing, decreased 1.5 percent compared to the first quarter of 2014. The improved cost performance was driven by the better-than-expected performance from the company’s Project Quality efficiency program and strong U.S. dollar. First-quarter consolidated CASM including those items decreased 13.1 percent.

First-quarter total operating expenses, excluding special charges, decreased $1.19 billion, or 13.2 percent, year-over-year. Including special charges, total operating expenses decreased $1.18 billion, or 13.0 percent, in the first quarter versus the same period in 2014.

First-Quarter Liquidity and Cash Flow

In the first quarter, UAL generated over $1 billion in free cash flow, and ended the quarter with $7.0 billion in unrestricted liquidity, including $1.35 billion of undrawn commitments under its revolving credit facility. During the first quarter, the company had gross capital expenditures of $794 million, excluding fully reimbursable projects. The company contributed approximately $180 million to its pension plans and made debt and capital lease principal payments of $320 million in the first quarter, including approximately $120 million of prepayments. UAL also announced its intention to prepay the remaining $303 million of 6 percent notes due 2026 on April 1, 2015 and to prepay $298 million of 6 percent notes due 2028 on May 1, 2015.

As part of UAL’s $1 billion share buyback program, the company spent approximately $200 million in share repurchases in the first quarter. Through the first quarter, UAL has returned a total of approximately $520 million to shareholders under the program.

For the 12 months ended March 31, 2015, the company’s return on invested capital was 17.1 percent.

For more information on UAL’s second-quarter 2015 guidance, please visit ir.united.com for the company’s investor update.

Fleet Updates

Today, UAL announced refinements to its fleet plan, which will allow the company to achieve longer-term network needs without increasing its outlook for capacity or gross capital expenditures over the next several years. These adjustments will accelerate the company’s network initiatives as it transitions flying into the mainline operation from the regional operation, increases average gauge and reduces reliance on 50-seat aircraft. As part of this effort, the company will:

Complete the removal of more than 130 50-seat aircraft from its schedule by the end of 2015. UAL will remove additional 50-seat aircraft in 2016 and beyond as aircraft come off lease.

Above Copyright Photo: Brian McDonough/AirlinersGallery.com. United is removing rapidly its smaller regional jets. Operated by ExpressJet Airlines, Embraer ERJ 145XR (EMB-145XR) N12166 (msn 145831) approaches the runway at Baltimore/Washington (BWI).

Exchange 10 787 orders with Boeing for 10 777-300 ERs for delivery beginning in 2016. The new 777-300 ER aircraft will provide attractive upgauge and range opportunities to the company at competitive economics.

Extend the life of 11 additional 767-300 ER aircraft. The company now plans to extend the life of all 21 767-300 ER through investments in winglets, reliability improvements and interior modifications, which will improve financial performance and make the aircraft more customer pleasing.

Above Copyright Photo: SPA/AirlinersGallery.com. United has made the decision to extend the operating life of all 21 Boeing 767-300 ER aircraft. United is also inserting some international Boeing 777-200 and 757-200 aircraft back into the domestic market.

Reconfigure and transition 10 777-200 aircraft currently used in international markets into the domestic network, and position a number of its trans-Atlantic 757-200 fleet into the domestic and Latin markets, with the extension of the 767-300 ER aircraft.

Acquire additional used narrowbody aircraft. The company is in final negotiations regarding the lease of 10 to 20 used narrowbody aircraft for delivery over the next few years. In addition, the company plans to continue to seek other opportunities to acquire used aircraft to meet its needs as market conditions allow.

These changes will not impact the company’s current 2015 capacity guidance, and are consistent with the company’s focus on capacity discipline, and will not alter the company’s current gross annual capital expenditure guidance of $2.7 billion to $2.9 billion over the next three to four years.

“These changes are part of our strategy to improve operational reliability, grow capacity with demand, and enable us to achieve our long-term goal to improve margins and return on invested capital,” said John Rainey, UAL’s executive vice president and chief financial officer. “Customers tell us they prefer larger aircraft, and these fleet modifications will provide more opportunity for our customers to travel on the type of aircraft they prefer.”

Top Copyright Photo: SPA/AirlinersGallery.com. United will exchange 10 Boeing 787 orders with Boeing for 10 777-300 ERs for delivery beginning in 2016. According to the carrier, “the new 777-300 ER aircraft will provide attractive upgauge and range opportunities to the company at competitive economics.” Boeing 787-8 Dreamliner N26910 (msn 34826) climbs away from London (Heathrow).

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

AG WAN-Powered by AG

Ethiopian Airlines extends its Hong Kong route to Tokyo Narita

Ethiopian Airlines (Addis Ababa), as planned, on April 21 extended the Addis Ababa – Hong Kong route to Tokyo (Narita) in association with Star Alliance partner ANA (Tokyo). The route is operated three days a week with its Boeing 787-8 Dreamliners.

Copyright Photo: AirlinersGallery.com. Boeing 787-8 ET-AOV (msn 34750) touches down in London (Heathrow).

Ethiopian Airlines aircraft slide show: AG Airline Slide Show

AG Each photo carefully selected

AG Print Sizes

 

Virgin Atlantic to bring the Boeing 787-9 to Chicago

Virgin Atlantic Airways (London) is planning to introduce the new Boeing 787-9 Dreamliner on the London (Heathrow) – Chicago (O’Hare) starting on April 27. The new type will be operated daily according to Airline Route.

Copyright Photo: AirlinersGallery.com. The pictured Boeing 787-9 Dreamliner G-VOOH (msn 37968) is named “Miss Chief” and was handed over by Boeing on February 4, 2015.

Virgin Atlantic aircraft slide show: AG Airline Slide Show

AG You do not have to pay

Finnair and Airberlin to expand their codeshare relationship

Finnair (Helsinki) is expanding its codeshare cooperation in Europe with fellow oneworld alliance member Airberlin (Berlin).

Finnair’s AY designator will be added to selected services operated by Airberlin or its subsidiary Niki to Bucharest, Catania, Chania, Cologne, Larnaca, Malaga, Naples, Palma de Mallorca, Paphos and Stuttgart. Finnair passengers will be able to connect to these cities via Berlin, Düsseldorf, Frankfurt, Munich, Vienna or Zurich.

Most of the new codeshares supplement Finnair’s own nonstop services from Helsinki, allowing passengers more travel dates and a wider choice of schedules. The codeshares are planned to take effect from early May.

Finnair and Airberlin have been codesharing across Scandinavia and Central Europe since 2010.

Top Copyright Photo: Airbus A320-214 OH-LXC (msn 1544) of Finnair taxies at London’s Heathrow Airport.

Finnair aircraft slide show: AG Airline Slide Show

Airberlin aircraft slide show: AG Airline Slide Show

Below Copyright Photo: Paul Bannwarth/AirlinersGallery.com. Airberlin is gradually phasing out its Boeing 737s. Boeing 737-86J D-ABKQ (msn 37760) prepares to touch down in Tenerife Sur (TFS).

AG Full screen views