Monthly Archives: April 2011

Delta Air Lines loses $318 million in the 1Q due to rising fuel costs and over capacity on the trans-Atlantic routes

Delta Air Lines McDonnell Douglas DC-9-51 N785NC (msn 48110) BWI (Brian McDonough) (to be retired now in 2012), originally uploaded by Airliners Gallery.

Delta Air Lines (Atlanta) reported a net loss for the first quarter of $318 million, or $0.38 per diluted share, which includes $2 million of special items.

The loss was driven by the $610 million impact of 30% higher fuel prices, Delta’s net loss was $128 million worse than the first quarter in 2010, excluding special items.

Delta generated $452 million in free cash flow for the quarter and its adjusted net debt at quarter end was $14.5 billion.

Delta ended the first quarter 2011 with $5.5 billion in unrestricted liquidity, which includes $1.6 billion in undrawn revolving credit lines.

Delta has reduced its capacity plans for the second half of 2011, which resulted in a four point reduction in planned capacity. The company is targeting reductions in markets where revenue improvements have not kept pace with rising fuel costs. Delta now expects system capacity for the post-Labor Day period to be down approximately 3% compared to the prior year period.

Copyright Photo: Brian McDonough. Delta has previously announced the early retirement of 130 of Delta’s least efficient aircraft over the next 18 months, including the DC-9-51 and SAAB 340B turbo-prop fleets, and 60 50-seat regional jets. Please click on the photo for additional information on the early retirement of the remaining DC-9-51s.

Continental becomes the first U.S. airline to operate the Boeing 737-900 ER Sky Interior

Continental Airlines (Houston) and Boeing (Chicago) yesterday (April 26) celebrated the delivery of the first Next-Generation 737-900 ER (extended range) with the Boeing Sky Interior to Continental Airlines. Continental is the first U.S. airline to operate the 737-800 and 737-900 ER featuring the all-new interior. Boeing 737-924 ER N73445 (msn 40000) was delivered in United markings. Boeing also reached the 40000 msn mark with this delivery.

Boeing also announced that Continental converted existing 2012 orders for Next-Generation 737s to 737-900 ERs and will now be taking 19 737-900 ERs in 2012.

Image: Boeing.

Boeing reports a $600 million net profit in the first quarter

Boeing 747-8JK Intercontinental N6067E (msn 38636) PAE (Nick Dean) (first flight), originally uploaded by Airliners Gallery.

The Boeing Company (Chicago) today reported first-quarter net income of $600 million, or $0.78 per share, on revenue of $14.9 billion. According to the company, operating margin of 6.7 percent reflects strong core performance across the company’s businesses on expected lower volumes and higher pension expense.

Boeing Commercial Airplanes first-quarter revenue decreased by 5 percent to $7.1 billion on planned lower 777 deliveries. Operating margin was 7.2 percent, reflecting the lower deliveries and higher R&D (Table 4).

Flight testing on the 787 program continued during the quarter, surpassing 3,500 hours on 1,250 flights. First delivery is expected in the third quarter of 2011. Total firm orders for the 787 at quarter-end were 835 airplanes from 56 customers.

The 747-8 program flight test also progressed during the quarter, surpassing 2,500 hours on 900 flights. First flight of the 747-8 Intercontinental was achieved in March. Delivery of the first 747-8 Freighter is planned for mid-2011.

Commercial Airplanes booked 153 gross orders during the quarter while 47 orders were removed from its order book, bringing net orders to 106, up from the year-ago period when net orders were 83 airplanes. Backlog remains strong with over 3,400 airplanes valued at $263 billion.

American Airlines to drop the New York JFK-Tokyo Haneda route on May 8

American Airlines Boeing 777-223 ER N794AN (msn 30256) LHR (Antony J. Best), originally uploaded by Airliners Gallery.

American Airlines (Dallas/Fort Worth) is planning to drop the newly-added New York (JFK)-Tokyo (Haneda) route on May 8. Service to Narita continues.

AirTran and Southwest receive DOJ approval to proceed with the merger

AirTran Airways Boeing 717-231 N932AT (msn 55073) (Milwaukee Brewers) BWI (Tony Storck), originally uploaded by Airliners Gallery.

AirTran Holdings (Orlando) and Southwest Airlines Company (Dallas) announced yesterday they had received final Department of Justice (DOJ) approval to proceed with their merger, now set for May 2.

AirTran Slide Show: CLICK HERE

US Airways reports a first quarter loss of $110 million

US Airways Airbus A319-112 N744P (msn 1287) (Piedmont Airlines colors) CLT (Bruce Drum), originally uploaded by Airliners Gallery.

US Airways Group, Inc. (Phoenix) today (April 26) reported its first quarter 2011 financial results. The Company reported a net loss excluding special items for the first quarter 2011 of $110 million, or ($0.68) per share. This compares to the first quarter 2010 net loss excluding special items of $89 million, or ($0.55) per share. On a GAAP basis, the Company reported a net loss for the first quarter 2011 of $114 million, or ($0.71) per share. This compares to the first quarter 2010 net loss of $45 million, or ($0.28) per share.

Air China to launch the Beijing-Milan route on June 15

Air China Airbus A330-243 B-6075 (msn 785) (Zijin Hao) PEK (Michael B. Ing), originally uploaded by Airliners Gallery.

Air China (Beijing) has announced the launch of its new route between Beijing and Milan on June 15. The route will be serviced by a wide-body Airbus A330.

Air China’s Beijing-Milan route will offer flights every Monday, Wednesday and Saturday, on flight numbers CA 949 and CA 950. Outbound flights will leave Beijing at 1330 and arrive in Milan at 1900. Return flights will depart from Milan at 1330 and arrive in Beijing the next day at 1330. The trip is 11 hours and 30 minutes each way. Air China previously launched a direct Shanghai-Milan route in May, 2008.

FlyMe to start operations in the Maldives

FlyMe (Male) is a new airline in the Maldives that was established on March 14, 2011. The upstart is acquiring two ATR 42-500s that will be operated by Villa Air on domestic routes in the islands. The new company is expected to start operations in June 2011.

The Maldives is an island nation in the Indian Ocean formed by a double chain of twenty-six atolls stretching in a north-south direction off India’s Lakshadweep islands, between Minicoy Island and Chagos Archipelago.

Interjet successfully flies a biofuel flight in Mexico

Interjet (ABC Aerolineas) Airbus A320-214 F-WQUV (XA-INJ) (msn 1162) ZRH (Rolf Wallner) (orders 15 Superjet 100s), originally uploaded by Airliners Gallery.

Interjet (Toluca) has become a pioneer in alternate fuels development. In April 2011 Interjet and Airbus conducted the first jatropha-based biofuel test flight in Mexico. The Airbus A320 flew from Mexico City to Tuxtla Gutierrez. One of the A320’s two engines was fueled with a 30 percent biojet blend.

Jatropha oil is vegetable oil produced from the seeds of the Jatropha curcas, a plant that can grow in marginal lands. On December 30, 2008, Air New Zealand flew the first successful test flight with a Boeing 747-400 running one of its four Rolls-Royce engines on a 50:50 blend of jatropha oil and jet A-1 fuel.

Interjet Route Map from the Mexico City hub:

Pan American Airways formally makes its proposal to Brownsville

Pan American Airways (4th) (Brownsville) has formally submitted its written proposal to the Brownsville South Padre Island International Airport. The upstart paper airline is now in competition with a new group called Fly Frontera for the official approval of the airport to operate at the airport to Mexico according to this article by The Brownsville Herald. Pan American is proposing to operate a (probably on wet lease) Boeing 737-200 on the San Antonio-Brownsville-Monterrey-Tampico route.

Read the full article: CLICK HERE