Aer Lingus reports a first half loss after a second quarter profit as it moves towards acceptance of the IAG takeover

Aer Lingus (Dublin) reported a first half loss of โ‚ฌ13.9 million ($15.2 million), an increase from a loss ofย โ‚ฌ9.9 million ($10.8) in the same period a year ago.

However the flag carrier produced a profit ofย โ‚ฌ34.5 million ($37.8 million) for the second quarter of this year as the takeover by Willie Walsh’s IAG nears.

The airline issued this financial report for the first half in which it discussed the upcoming IAG takeover:

Aer Lingus Group plc announces its results for the three and six month periods ended June 30, 2015:

Second Quarter 2015 highlights:

  • Operating profit (before net exceptional items) of โ‚ฌ34.5 million; estimated adverse currency movement of โ‚ฌ21 million
  • Strong revenue growth of 7.1% with increases in passenger, retail and cargo revenues
  • Long haul revenue increase of 24.4% with capacity up 9.7% and revenue per seat up 14.4%
  • Successful Washington route launch, frequency additions and new business cabin introduction
  • Short haul load factor improvement delivered by a volume active strategy
  • Solid short haul forward booking profile achieved, facilitating 5.8% retail growth in Q2 and increased H2 short haul capacityย expansion
  • Network growth, positive forward booking profile and lower unit fuel costs will support H2 2015 performance

    Stephen Kavanagh Aer Lingusโ€™ CEO commented:

    โ€œI am pleased to report a profitable second quarter with Aer Lingus well positioned to deliver an improved operating performance in the key Q3 trading period and for the full year. I would like to thank my colleagues for their contribution to the delivery of this performance and for their on-going endeavours.

    Passenger, retail and cargo revenues all grew strongly in the quarter. The continued investment in our transatlantic business was rewarded with strong growth in unit revenues. The volume active strategy employed in our short haul business delivered stable unit revenue performance in an intensely competitive marketplace.

    The adverse effects of unfavourable FX movements on performance which were evident in this quarter will moderate in the second half of the year as a result of a higher proportion of US$ denominated revenues. Both short and long haul capacity are set to expand into the peak season and we are very satisfied with forward yield and load factor profiles at this time.

    Finally, I would like to reiterate the view of the independent directors of Aer Lingus that the combination with IAG will strengthen Aer Lingus and will grow our airline and contribute to growth in the tourism sector and wider Irish economy.โ€

Full year 2015 outlook

Aer Lingus is currently in an offer period as defined by the Irish Takeover Rules. The Group is therefore not issuing specific guidance with regard to 2015 operating profit performance while it remains in this offer period.

Update on Offer from International Consolidated Airline Group S.A (โ€œIAGโ€)

On June 19, 2015 IAG issued the Offer Document containing the full terms and conditions of the recommended cash offer (the โ€œOfferโ€) by AERL Holding Limited (โ€œAERL Holdingโ€), a wholly-owned subsidiary of IAG, for the entire issued and to be issued ordinary share capital of Aer Lingus. The Offer values each Aer Lingus share at โ‚ฌ2.55, of which โ‚ฌ0.05 was paid as a dividend on May 29, 2015 (โ€œthe Offerโ€). The Offer conditions include, amongst other things, approval from the European Commission (โ€œECโ€) under the EU Merger Regulation, acceptance of the Offer by Ryanair Limited and the Minister for Finance of Ireland, shareholders approving the connectivity resolutions and a 90% acceptance condition. Full details of the Offer conditions are set out in Appendix I of the Offer Document posted to Aer Lingus shareholders. The following conditions have been fulfilled to date:

  1. On July 14, 2015 the proposed merger received competition approval from the EC under the EU Merger Regulation, following the ECโ€™s initial Phase I review period. IAG offered the following remedies to the EC as part of the regulatory process:
  • Five daily slot pairs to be made available to other airlines at London Gatwick for flights between the airport and Dublin or Belfast.
  • Specifically, two of the five daily frequencies must be operated between Gatwick and Dublin.
  • One daily frequency must be operated between Gatwick and Belfast.
  • The other two frequencies can be operated between Gatwick and either Dublin or Belfast.
  • Other airlines can apply for seats on Aer Lingus’ short haul network for their transfer passengers, on normal commercial terms July 2015 Aer Lingus held an Extraordinary General Meeting (โ€œEGMโ€) and successfully passed the resolutions in relation to the

2. On July 16, 2015 Aer Lingus held an extraordinary general meeting (EGM) and successfully passed the resolutions in relation to theย connectivity commitments and received Rule 16 approval from the independent shareholders.

3. On this date IAG also confirmed the extension of the Offer until 1 pm (Irish time) on July 30, 2015.

4. On July 17, 2015 IAG confirmed the receipt of the valid acceptance of its Offer by the Minister for Finance of Ireland. The Minister forย Financeโ€™s acceptance was a condition of the Offer. At this date, IAG also announced that on July 16, 2015, AERL Holding had received valid acceptances of the Offer for 269,902,009 Aer Lingus shares, representing 50.53 per cent of the existing issued share capital of Aer Lingus, which AERL Holding may count towards the satisfaction of the acceptance condition to the Offer.

Read the full report: CLICK HERE

Copyright Photo: SM Fitzwilliams Collection/AirlinersGallery.com. Aer Lingus, under an IAG takeover, is confident it can compete against an aggressive Ryanair. Airbus A320-214 EI-EDS (msn 3755) departs from the Dublin hub.

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Has a part of missing Malaysia Airlines flight MH370 been discovered off Reunion Island?

Malaysia Airlines (Kuala Lumpur) flight MH370, from Kuala Lumpur to Beijing with 239 passengers and crew members on board, disappeared somewhere in the Indian Ocean on March 8, 2014 based on the data received from the aircraft.

A possible part, possibly a 777 flap, has been found and may be from the missing pictured Boeing 777-2H6 ER 9M-MRO (msn 28420). The debris was discovered off the coast of St. Andre on Reunion Island in the western Indian Ocean. Prevailing currents could have pushed the debris to this area.

The debris is being inspected by the authorities for confirmation. Boeing is also involved.

Read the full report from CNN: CLICK HERE

More information to follow.

Copyright Photo: Stefan Sjogren/AirlinersGallery.com. Boeing 777-2H6 9M-MRO (msn 28420) lands at Stockholm (Arlanda) before the tragic disappearance.

Map: Google Maps.

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Cathay Pacific flight CX884 to Los Angeles diverts to Shemya Island in the Aleutians with smoke in the aircraft

Cathay Pacific Airways (Hong Kong) flight CX884 has made a safe emergency landing on Shemya Island in the Aleutian Islands, Alaska after smoke was detected in the aircraft. The airline issued this statement:

Cathay Pacific 2014 logo

Cathay Pacific is making special arrangements to help passengers affected by the precautionary diversion of flight CX884 to Shemya military airport in the Aleutians Island near Alaska get to their intended destination of Los Angeles.

Flight CX884 made a precautionary diversion at around 21.30 Hong Kong time on its way from Hong Kong to Los Angeles on July 29 when smoke was detected in the aircraft, a Boeing 777-300ER. There were 276 passengers and 18 crew on the flight.

The airline is mounting a relief flight, operating as CX884D, which departed from Hong Kong International Airport at 03.45 local time this morning and will form part of the effort to help those affected by the diversion of CX884 to fly to Los Angeles.

Cathay Pacific Director Service Delivery James Ginns said: “Safety is always our top priority at Cathay Pacific and the Captain of CX884 made exactly the right decision to divert the flight as a precautionary measure. We understand that this action resulted in a long and arduous journey for those onboard the diverted flight and we apologise for the inconvenience caused. We will launch a thorough investigation into what caused the smoke that was detected on the aircraft operating CX884.”

Flight CX884 was operated as a codeshare flight with American Airlines AA8937 and Lan LA6082.

Copyright Photo: Michael B. Ing/AirlinersGallery.com. The aircraft involved is the pictured Boeing 777-367 ER B-KPQ (msn 36162) arriving previously at Los Angeles International Airport.

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Air Transat to offer winter service between Toronto and Paris via Montreal

Air Transat (Montreal) has announced itย fly from Toronto (Pearson) to Paris this winter thanks to the addition of new connecting flights to Montreal.

 

The airline continued:

Air Transat logo

Air Transat will also be offering a new Montreal – Toronto route allowing passengers to leave from Montreal and board Toronto flights for London, Manchester or Glasgow as well as a new Calgary – Vancouver route allowing passengers to leave from Calgary and board a Vancouver – London flight.

The new flights between Toronto and Paris and Montreal and the United Kingdom (London , Manchester and Glasgow ) will operate from Sunday to Thursday inclusively effective in November 2015.

Connecting flights will also be offered for Malaga, Spain for passengers travelling from Toronto to Montreal effective January 2016 and for three destinations in Portugal ( Lisbon and Porto as of November 2015 and Faro as of January 2016 ) for passengers travelling from Montreal to Toronto , all destinations renowned for vacations under the sun.

Air Transat will also be offering a new Calgary – Vancouver route this winter effective December 2015 allowing passengers to leave from Calgary and board a Vancouver – London flight on Mondays.

Travellers who want to enjoy the Air Transat experience when flying domestically will also be able to take advantage of the new flights between Toronto and Montreal and Calgary and Vancouver which run during peak business travel hours.

Copyright Photo: Steve Bailey/AirlinersGallery.com. Airbus A330-243 C-GTSZ (msn 971) approaches the runway at Vancouver International Airport.

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Jin Air celebrates the delivery of the first direct Boeing 737-800

Jin Air.com 737-800 WL HL8012 (08)(Grd) BFI (Boeing)(LRW)

Jin Air (subsidiary of Korean Air) (Seoul) and Boeing (Chicago, Seattle and Charleston) on July 27 celebratedย the airlineโ€™s first direct-delivered Next-Generation 737-800 in Seattle.

Jin Air logo (small)

Jin Air is the low-cost affiliated company of Korean Air. The delivery marks the 13th Boeing 737-800 to join Jin Airโ€™s all-Boeing fleet. The airline currently serves 16 routes in Asia and operates a total of 15 airplanes, including two 777-200 ERs.

Photo: Boeing. The pictured Boeing 737-8SH HL8012 (msn 41348) was handed over at Boeing Field in Seattle on July 27.

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Transaero Airlines to introduce its first Airbus A321

Transaero Airlines (Moscow) has taken delivery of its first Airbus A321. The company is planning to introduce the new type on routes from Moscow toย Paris, Tel Aviv, Astana, Almaty and Novosibirsk.

On July 28, the company issued this statement:

Transaero logo

Transaero Airlines on July 28 received delivery of its first Airbus A321 as a result of a long-term leasing agreement between the airline and ICBC Leasing of China.

The delivery from Airbus’s Hamburg plant is part of Transaero’s fleet renewal program and business efficiency enhancement program. Under this program, Transaero’s fleet is being expanded with new fuel efficient aircraft with optimal passenger capacity for the current market conditions.

By the end of the year, Transaero plans to receive three more A321 aircraft.

The A321 is the first Airbus medium-range aircraft in the airline’s fleet. It is configured with two classes and can accommodate 184 passengers. The Business class cabin has eight highly comfortable seats with a seat pitch of 55 inches. The Economy class cabin has 176 ergonomic B/E Aerospace slimline seats. The seat pitch is 31 inches.

The aircraft is fitted with sharklets. Its passenger cabin is equipped with LED lighting. The seats are fitted with power and USB sockets.

The A321 was delivered in a new corporate identity, which the airline uses for all new aircraft joining its fleet.

Transaero will start operating its first A321s on the high-demand, medium-range routes, i.e. to Paris, Tel Aviv, Astana, Almaty and Novosibirsk.

Copyright Photo: Gerd Beilfuss/AirlinersGallery.com.ย Transaero Airlines’ first Airbus A321-211 registered as EI-VKO (msn 6678) taxies at Hamburg (Finkenwerder) before the handover.

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Hawaiian reports second quarter adjusted net income of $37.5 million

Hawaiian Holdings, Inc, (Hawaiian Airlines) (Honolulu) has reported the financial results of its second quarter:

Hawaiian logo-1

  • GAAP net income of $48.8 million or $0.79 per diluted share.
  • Adjusted net income, reflecting economic fuel expense and excluding loss on extinguishment of debt, of $37.5 million or $0.61 per diluted share, an increase of $15.1 million or $0.26 cents per diluted share year-over-year.
  • Adjusted pre-tax margin of 10.7% compared to 6.4% in the prior year period.
  • Unrestricted cash, cash equivalents and short-term investments of $606 million.
  • Lowered leverage ratio to 3.4x.

“We are pleased with the results for the quarter,” said Mark Dunkerley, Hawaiian Airlines president and chief executive officer. “Strong demand across our network, coupled with low fuel prices, more than compensated for the adverse impacts of the strengthening US dollar, the significant reduction in most fuel surcharges and the high levels of industry capacity growth from North America. Our financial performance for the second half of the year seems set to be a continuation of what we’ve seen so far in 2015. In this environment, the company expects to generate free cash flow, strengthen its balance sheet and improve its profit margins. As ever, the whole team has done a great job of looking after our customers, enhancing our reputation, and burnishing our brand. They have my thanks.”

Statistical data, as well as a reconciliation of the reported non-GAAP financial measures, can be found in the accompanying tables.

Liquidity and Capital Resources

As of June 30, 2015 the Company had:

  • Unrestricted cash, cash equivalents and short-term investments of $606 million.
  • Outstanding debt and capital lease obligations of approximately $947 million consisting of the following:
  1. $689 million outstanding under secured loan agreements to finance a portion of the purchase price for 11 Airbus A330-200 aircraft.
  2. $127 million outstanding under secured loan agreements to finance a portion of the purchase price for 15 Boeing 717-200 aircraft.
  3. $100 million in capital lease obligations to finance the acquisition of an Airbus A330-200, two Boeing 717-200 aircraft and aircraft-related equipment.
  4. $27 million outstanding under floating rate notes to finance the acquisition of two Boeing 767-300 ER aircraft.
  5. $4 million of outstanding convertible senior notes.

In the second quarter, the Company repurchased $4 million (principal balance) of its convertible senior notes outstanding. Repurchases to date have totaled $82 million (principal balance) or 95%, of the originally issued principal amount, thereby eliminating the need for the Company to issue 10.4 million shares when the notes may have otherwise converted to common stock.

In addition, during the second quarter the Company repurchased 0.8 million shares of its common stock for approximately $18 million under its previously announced $100 million stock repurchase program.

Second Quarter 2015 Highlights

Operational

  • Ranked #1 nationally for on-time performance for the months of March, April and May 2015.
  • Ranked as one of the top domestic airlines by Travel + Leisure for 2015.

Product and loyalty

  • The comprehensive interior retrofit of the Company’s neighbor island fleet remains on schedule for completion in the fourth quarter of 2015 with 12 of 18 Boeing 717 aircraft completed to date.

Fleet and financing

  • Added an A330-200 aircraft under lease financing and retired a Boeing 767-300 at the end of its lease.
  • Updated the fleet plan and entered into a six-year lease agreement for one A330-200 with a delivery date of summer 2016 and accelerated the planned retirement date of certain of its Boeing 767-300 aircraft.
  • Announced the purchase of three ATR 72 turbo-prop aircraft in an all-cargo configuration for expansion of its cargo service.

Schedule

  • Los Angeles to Kona, three-times-weekly, and Los Angeles to Lihu’e, four-times-weekly, summer seasonal service reintroduced in May.
  • Oakland to Kona, three-times-weekly and Oakland to Lihu’e, four-times-weekly, summer seasonal service reintroduced in May.
  • Los Angeles to Maui second daily seasonal summer service reintroduced in May.
  • Announced year round service from Los Angeles to Lihu’e, three-times-weekly, beginning in January 2016.

Read the full report: CLICK HERE

Copyright Photo: Michael B. Ing/AirlinersGallery.com. Airbus A330-243 N396HA (msn 1488) taxies to the runway at Seattle-Tacoma International Airport (SEA).

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Frontier announces new routes from Orlando and Las Vegas

Frontier Airlines (2nd) (Denver) is adding new routes from the two biggest leisure markets in the United States, Orlando and Las Vegas.

Today the carrier announced two new routes from Orlando to both Indianapolis and Los Angeles.

From Las Vegas, the ultra low-fare carrier is adding four new routes to Houston (Bush Intercontinental), Miami, Milwaukee and San Francisco.

Additionally, the airline will start new service from Philadelphia to both Fort Myers and Montego Bay.

The new routes begin on October 25.

The company issued this statement on the new service:

Frontier (2nd) 2015 logo

Frontier Airlines will add new nonstop service in leisure markets across its network with the addition of new flights in eight cities throughout the United States and Caribbean. This new service begins October 25.

Four new cities from Las Vegas

Frontier will add four daily nonstop flights between Las Vegas and Miami, Milwaukee, Houston and San Francisco. These flights will operate daily on Frontier’s fleet of Airbus A320 family aircraft. The addition of the four new cities brings Frontier’s nonstop destinations from Las Vegas to 13. Currently, Frontier serves Atlanta; Austin Texas; Chicago O’Hare; Cleveland; Cincinnati; Denver; Orlando; St. Louis and Washington — Dulles from Las Vegas.

Four new markets in Florida and the Caribbean

Frontier also will add new service between Orlando and Indianapolis and Los Angeles as well as adding new service between Philadelphia and vacation destinations, Fort Myers and Montego Bay. From Orlando the number of nonstop Frontier destinations will increase to 12, more than doubling its level of service in the past year.

New Service Summary:

LAS VEGAS (LAS) — HOUSTON (IAH)
F9 1238 Leave LAS: 2:30 p.m. Arrive IAH: 7:30 p.m.
F9 1239 Leave IAH: 9 p.m. Arrive LAS: 10:25 p.m.
Aircraft: A319
Frequency: Daily

LAS VEGAS-MIAMI (MIA)
F9 1232 Leave LAS 11:20 p.m. Arrive MIA: 6:45 a.m. (+1 arrives next day)
F9 1233 Leave MIA 9 a.m. Arrive LAS: 11:20 a.m.
Aircraft A319
Frequency: Daily

LAS VEGAS-MILWAUKEE (MKE)
F9 1226 Leave LAS: 1:30 p.m. Arrive: MKE 6:55 p.m.
F9 1227 Leave MKE: 6:40 p.m. Arrive: LAS 8:40 p.m.
Aircraft A319
Frequency: Daily

LAS VEGAS-SAN FRANCISCO (SFO)
F9 1125 Leave LAS: 7:00 p.m. Arrive: SFO 8:35 p.m.
F9 1124 Leave SFO: 9:29 p.m. Arrive: LAS 10:59 p.m.
Aircraft A320
Frequency: Daily

ORLANDO (MCO) — INDIANAPOLIS (IND)
F9 1197 Leave MCO: 2:45 p.m. Arrive IND: 5:05 p.m.
F9 1196 Leave IND: 3:45 p.m. Arrive MCO: 6:05 p.m.
Aircraft: A320
Frequency: Daily

ORLANDO-LOS ANGELES (LAX)
F9 1181 Leave MCO: 4:55 p.m. Arrive LAX: 7:25 p.m.
F9 1180 Leave LAX 8:50p.m. Arrive MCO: 4:30 a.m. (+1 arrives next day)
Aircraft: A319
Frequency: Daily

PHILADELPHIA (PHL) – FORT MYERS (RSW)
F9 1095 Leave PHL: 5 p.m. Arrive RSW: 8 p.m.
F9 1096 Leave RSW: 8:45 p.m. Arrive PHL: 11:25 p.m.
Aircraft: A320
Frequency: Daily except Tuesday

PHILADELPHIA – FORT MYERS
F9 1095 Leave PHL: 5:30 p.m. Arrive RSW 8:30 p.m.
F9 1096 Leave RSW: 9:15 p.m. Arrive: PHL 11:55 p.m.
Aircraft: A320
Frequency: Tuesday

PHILADELPHIA — MONTEGO BAY
F9 107 Leave PHL: 7:30 a.m. Arrive MBJ: 11:25 a.m.
F9 108 Leave MBJ: 12:20 p.m. Arrive PHL: 4 p.m.
Aircraft: A320
Frequency: Sunday, Tuesday, Thursday

 

Copyright Photo: Brian McDonough/AirlinersGallery.com. Airbus A320-214 N227FR (msn 6184) arrives at Dulles International Airport near Washington.

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UPS exceeds forecasts for the second quarter, international operating profit jumps 17%

UPS (United Parcel Service) (UPS Airlines) (Atlanta and Louisville) today announced second quarter 2015 diluted earnings per share of $1.35, a 12% increase over adjusted results for the same period last year. All three segments improved operating profit and margin, led by International and Supply Chain and Freight performance.

The company continued:

UPS-We Love Logistics logo

Highlights:

  • All Segments Improve Profitability and Expand Margins
  • International Operating Profit Jumps 17%
  • Export Shipments up 5.5% with Strong Intra-Europe Growth
  • Supply Chain and Freight Operating Profit Climbs 18%
  • Revenue Growth Dampened by Changes in Currency and Fuel Prices
  • 2015 EPS Growth at Higher End of 6%-to-12% Guidance Range

Currency exchange rates and lower fuel surcharges reduced total reported revenue growth. Total revenue declined 1.2% from the same quarter last year to $14.1 billion. Pricing initiatives continue to drive base rates higher.

โ€œDuring the quarter, UPS continued to invest for the future by expanding capacity and launching new capabilities that provide higher value to customers,โ€ said David Abney, UPS chief executive officer. โ€œThe strong momentum in our International segment is expected to continue and gives us confidence in achieving the upper end of our guidance range.โ€

On a reported basis, operating profit increased $1.2 billion, and diluted earnings per share was up $0.86. In the second quarter of 2014, UPS reported diluted earnings per share of $0.49, which included a $665 million after-tax charge for the transfer of certain post-retirement liabilities to defined contribution healthcare plans.

Total company shipments increased 2.1% over the second quarter last year to 1.1 billion packages, led by U.S. Deferred Air products and International Export shipments.
Cash Flow

For the six months ended June 30, UPS generated $3.3 billion in free cash flow. The company paid dividends of $1.3 billion, an increase of 9.0% per share over the prior year. UPS also repurchased 13.5 million shares for approximately $1.4 billion.

U.S. Domestic Package

U.S. Domestic revenue increased $140 million over the second quarter last year to $8.8 billion. Shipment growth was led by Deferred Air products up 15% and UPS SurePost which increased more than 8%. Total daily deliveries grew 1.8% due to a slower pace of B2C (business-to-consumer) growth.

Operating profit was $1.2 billion, up $35 million or 3.0% over prior-year adjusted results. Operating margin expanded to 13.6% as improved pricing and productivity offset higher benefit costs.

On a reported basis, operating profit increased $992 million after the transfer of certain post-retirement liabilities to defined contribution healthcare plans, which occurred in the second quarter of last year.

Continued improvements in base rates were offset by lower fuel surcharges. Revenue per package was flat, as changes in fuel surcharges dropped reported yield by almost 300 basis points.

International Package

Currency-adjusted International revenue was up 1.5% over the same period last year. UPS daily Export shipments increased 5.5%, primarily due to an 8.5% increase in intra-Europe shipments. The strong dollar drove U.S. imports higher, while U.S. exports were down slightly.

International operating profit increased $81 million, or 17% over the adjusted results for the same period in 2014. Network improvements, volume growth and pricing initiatives all contributed to expanded operating margin and increased profitability. The segment experienced growth from middle-market accounts and improved premium product sales.

On a reported basis, operating profit increased $108 million after the transfer of certain post-retirement liabilities to defined contribution healthcare plans in the second quarter of last year.

Underlying base rates were up across all regions, though revenue per package decreased 2.4% on a currency-neutral basis. Lower fuel surcharges reduced reported revenue per package by about 350 basis points.

Supply Chain & Freight

Supply Chain & Freight revenue declined 4.5% to $2.2 billion, due to Forwarding revenue management initiatives, currency and lower fuel surcharges at UPS Freight. Operating profits improved $31 million, or 18% over the adjusted results for the same quarter 2014, driven by gains in Forwarding.

On a reported basis, operating profit increased $113 million after the transfer of certain post-retirement liabilities to defined contribution healthcare plans that occurred in the second quarter of 2014.

UPS Forwarding operating profit and margin expanded as the business unit continued to implement a disciplined pricing strategy across key trade lanes. The unit also benefited from improved market conditions and customer mix. Forwarding tonnage and revenue dropped during the quarter, primarily due to revenue management initiatives and the impact of currency fluctuations.

Distribution revenue increased at a mid-single digit growth rate. Growth in Mail services, Healthcare and Aerospace industries contributed to revenue improvements.

UPS Freight revenue declined 2.5% due to lower fuel surcharges and a drop in tonnage driven by changes in customer mix and slowing market growth. LTL (less-than-truckload) revenue per hundredweight growth remained positive, with a 1.4% gain.

Outlook

โ€œThe second quarter results reflect continuing gains in our International business,โ€ said Richard Peretz, UPS chief financial officer. โ€œEven though the U.S. economy appears to be growing at a slower pace, our global portfolio and performance reinforces our expectations to attain the higher-end of the guidance range.โ€

The companyโ€™s guidance for 2015 full-year diluted earnings per share is $5.05 to $5.30, a 6% to 12% increase over adjusted 2014 results.

Copyright Photo: Michael B. Ing/AirlinersGallery.com. Boeing 767-34AF N302UP (msn 27240) arrives in Anchorage, Alaska.

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Xiamen Air launches the Xiamen – Amsterdam route

Xiamen Airlines (Xiamen Air) (Xiamen) has launched its first route to Europe. The Chinese airline issued this statement:

Xiamen Air logo

On July 26, Xiamen Airlines officially launched the carrier’s very first intercontinental route, the Xiamen-Amsterdam route. The new route marks a key milestone in the airline’s implementation of its globalization strategy.

Xiamen Airlines will operate the new route, flight numbers MF811 and MF812, with a Boeing 787 Dreamliner featuring 4 seats in first class, 18 in business and 214 in economy. The flight departs Xiamen at 11:50 p.m. every Tuesday, Thursday and Sunday, and arrives at Amsterdam’s Schiphol at 5:45 a.m. the next day. The flight duration is 11 hours and 55 minutes. The return journey departs Amsterdam at 12:35 p.m. every Monday, Wednesday and Friday, and arrives in Xiamen at 5:30 a.m. the next day, with a flight duration of 10 hours and 55 minutes. The above are all local times, and were arranged to facilitate connections to other flights after passengers reach their destinations.

The new route complements KLM Royal Dutch Airlines’ existing Xiamen-Amsterdam route — also on a three-times-a-week schedule, signifying that, starting from July 26, there will be six direct flights between Xiamen and Amsterdam weekly.

Xiamen Airlines has upgraded both the air and ground services for the new intercontinental route, with a concerted effort on integrating Chinese cultural elements into its services. As an example, the new tableware for the first class and business class cabins are made of blanc de chine, and authentic highly-reputed lapsang souchong tea will be on offer in the two cabins.

Xiamen Airlines operates a fleet of 119 Boeing jets, which is the biggest all-Boeing fleet in China. The fleet now has 5 Boeing 787-8 Dreamliners, with the sixth to be delivered soon. As part of the expansion plans for further intercontinental routes originating from Fujian province, the airline has ordered 4 more advanced Boeing 787-9aircraft, forming a fleet of 10 Boeing 787s.

Chairman and general manager Che Shanglun explained that Xiamen Airlines will launch a direct Xiamen-Sydney route at the end of this year. Next year, the carrier plans to launch routes to North America, completing a route network covering Europe, America and Australia, and supporting China’s “One Belt, One Road” strategy by creating a “Silk Road in the Sky.”

Copyright Photo: Ton Jochems/AirlinersGallery.com. Boeing 787-8 Dreamliner B-2762 (msn 41542) taxies at Amsterdam.

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