United Airlines has a break-out year, reports net income of $1.97 billion for 2014

United Airlines (Chicago) today reported full-year 2014 net income of $1.97 billion, an increase of 89 percent year-over-year, or $5.06 per diluted share, excluding $834 million of special items. Including special items, UAL reported full-year net income of $1.13 billion, or $2.93 per diluted share. UAL reported fourth-quarter 2014 net income of $461 million, an increase of 86 percent year-over-year, or $1.20 per diluted share, excluding $433 million of special items. Including special items, UAL reported fourth-quarter 2014 net income of $28 million, or $0.07 per diluted share.

UAL earned a 12.9 percent return on invested capital in 2014.

United’s consolidated passenger revenue per available seat mile (PRASM) increased 1.6 percent for full-year 2014 compared to full-year 2013.

Full-year 2014 consolidated unit costs (CASM), excluding special charges, third-party business expenses, fuel and profit sharing, increased 1.3 percent year-over-year on a consolidated capacity increase of 0.3 percent. Full-year 2014 CASM, including those items, decreased 1.6 percent year-over-year.

In 2014, United returned approximately $320 million to shareholders as part of its previously announced $1 billion share buyback program. In addition, throughout the year, United spent $310 million to retire convertible debt that was convertible into approximately 5.8 million shares of UAL common stock.

Employees earned $235 million in profit sharing for full-year 2014, which will be distributed on Feb. 13.

UAL ended the year with $5.7 billion in unrestricted liquidity.

Fourth-Quarter Revenue and Capacity

For the fourth quarter of 2014, total revenue was $9.3 billion, a decrease of 0.2 percent year-over-year. Fourth-quarter consolidated passenger revenue increased 1.3 percent to $8.1 billion, compared to the same period in 2013. Ancillary revenue per passenger in the fourth quarter increased 9.7 percent year-over-year to more than $22 per passenger. Fourth-quarter cargo revenue grew 18.2 percent to $260 million driven by higher volumes year-over-year, as cargo traffic recovered from the prior year’s lower bookings. Other revenue in the fourth quarter decreased 14.3 percent year-over-year to $970 million mostly due to the company choosing to discontinue an agreement to sell fuel to a third party. The corresponding expense decline appears in third-party business expense.

Consolidated revenue passenger miles increased 0.1 percent and consolidated available seat miles increased 0.9 percent year-over-year for the fourth quarter, resulting in a fourth-quarter consolidated load factor of 81.7 percent.

Fourth-quarter 2014 consolidated PRASM increased 0.4 percent and consolidated yield increased 1.3 percent compared to the fourth quarter of 2013.

Fourth-Quarter Costs

Fourth-quarter consolidated CASM, excluding special charges, third-party business expense, fuel and profit sharing, increased 1.2 percent compared to the fourth quarter of 2013. Fourth-quarter consolidated CASM including those items decreased 5.3 percent.

Fourth-quarter total operating expenses, excluding special charges, decreased $420 million, or 4.7 percent, year-over-year. Including special charges, total operating expenses decreased $406 million, or 4.5 percent, in the fourth quarter versus the same period in 2013.

Fourth-Quarter Liquidity and Cash Flow

UAL ended the fourth quarter with $5.7 billion in unrestricted liquidity, including $1.35 billion of undrawn commitments under its revolving credit facility. During the fourth quarter, the company had gross capital expenditures of $1 billion, excluding fully reimbursable projects. The company made debt and capital lease principal payments of $534 million in the fourth quarter, including prepayment of $248 million of convertible debt that was convertible into approximately 4.3 million shares of United common stock.

As part of United’s $1 billion share buyback program, the company spent approximately $100 million in share repurchases in the fourth quarter. For the year, United returned a total of approximately $320 million to shareholders through share repurchases and open market transactions. In addition, for the year the company spent $310 million to retire convertible debt that was convertible into approximately 5.8 million shares.

For the 12 months ended Dec. 31, 2014, the company’s return on invested capital was 12.9 percent.

Read the full report: CLICK HERE

Copyright Photo: Michael B. Ing/AirlinersGallery.com. Boeing 737-924 ER N68836 (msn 60088) with Aviation Partners Boeing Split Scimitar Winglets departs from Los Angeles International Airport.

United Airlines aircraft slide show (historic liveries):ย AG Slide Show

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

 

United Airlines to serve up a new premium-cabin dining experience on North America flights

United Jamalaya (United)(LRW)

United Airlines (Chicago) has issued this statement:

United Airlines will treat premium-cabin customers on flights within North America to a brand new dining experience beginning February 1, when the airline elevates everything from entrees to desserts and lighter snacks for United First and United Business customers.

Additionally, United will expand North America premium-cabin meal service to include flights of at least 800 miles – or as short as two hours and 20 minutes – increasing the number of flights on which customers may enjoy meals. The airline will also offer a greater variety of dining choices.

These changes come as United is making a multi-million-dollar investment in in-flight food service.

Premium-Cabin Dining Changes

Created by United’s team of chefs and inspired by cuisine in the airline’s hub cities and other popular North American destinations, United will introduce flavorful new entrees, including cage-free scrambled eggs prepared skillet style with pepper-jack cheese, sauteed pepper mix, sliced New Mexico sausage, potato gratin and fire-roasted pepper sauce; lobster macaroni and cheese with a baked crumb topping and side of broccoli rabe; and chicken and sausage jambalaya with white rice and green onions.

Other changes include:

For short flights that offer lighter refreshments, the addition of new breakfast breads in the morning and a rotation of 25 new premium snacks in the afternoon and evening;

On meal flights less than four hours, a variety of enhanced breakfast choices, such as French toast souffle or steel-cut oatmeal, both paired with fresh fruit and Greek yogurt, plus new dinner selections, including tandoori chicken with basmati rice and paneer, to replace the current premium sandwich options;

An expanded mid-continental meal service on flights of four hours to five hours and 19 minutes, offering customers who now get two entree options a choice of three, such as creole shrimp served with Carolina grits, and a dessert of sorbet with mint-leaf topping during lunch or gelato or ice cream for dinner;

United Caprese of Asiago Baguette (United)(LRW)

New multi-course meal service on transcontinental and Hawaii flights, featuring heartier entrees, such as tamale-stuffed chicken wrapped in a corn husk and served with creamy corn sauce, roasted red and yellow tomatoes and yucca sticks, followed by sorbet during lunch or gelato or ice cream for dinner; and

Signature bake-on-board cookies in customer-chosen flavors, including triple-chocolate chunk, served for dessert on short- and medium-haul flights that offer meals, or as an afternoon or evening pre-arrival treat on transcontinental flights and flights that link Hawaii with Los Angeles, San Francisco, Denver and Houston.

United Economy Premium Wines (United)(LRW)

United will also continue to offer premium-cabin customers Prosecco sparkling wine and – on lunch and dinner flights – the airline’s signature warmed nuts.

Photos: United Airlines.

United Airlines aircraft slide show:

http://airlinersgallery.smugmug.com/Airlines-UnitedStates-3/Airlines-United-States3-QZ/United-Airlines

Boeing and Thai Airways International celebrate the 75th direct airplane delivery

777-300ER TII #1267-WE444

Boeing (Chicago) and Thai Airways International Public Company Limited (Bangkok) yesterday (January 21) celebrated the Thai flag-carrier’s 75th direct delivery of a Boeing airplane. Marking the milestone delivery, Boeing and Thai collaborated to transport 1,000 wool blankets onboard Thai’s newly delivered 777-300 ER (Extended Range). The blankets, donated by Another Joy Foundation, will be distributed by the airline to people in need in Thailand during the colder winter months.

This latest humanitarian effort, the third between Boeing and Thai, is part of Boeing’s long-running Humanitarian Delivery Flights program.

Boeing’s Humanitarian Delivery Flights program, which began in 1992, has worked in partnership with nearly 50 carriers worldwide to facilitate more than 170 humanitarian flights. On previous delivery flights, Thai and Boeing have provided medical kits and school supplies.

Thai currently operates four 787 Dreamliners and has operated nearly every model of the 777. Thai Cargo was the first carrier in Southeast Asia to utilize the 777 Freighter. The airline has an additional two 777-300 ERs on order.

Photo: Boeing. Brand new Boeing 777-3D7 ER HS-TKX (msn 42113) departs from an overcast Paine Field near Everett yesterday. The new airplane was handed over to the carrier on January 21.

Thai aircraft slide show:

http://airlinersgallery.smugmug.com/Airlines-Asia-3/Airlines-Asia3-QZ/Thai-Airways-International

Flybe flight BE 202 from Manchester to Inverness skids off the runway after landing

Flybe (Exeter) flight BE 202 from Manchester to Inverness landed at the Scottish airport at 10:14 am yesterday morning, January 20, before encountering ice on the runway and skidding off onto the nearby grass.

The aircraft involved was the pictured Bombardier DHC-8-402 (Q400) registered G-JEDW (msn 4093).

None of the 47 passengers and four crewmembers were injured by the incident and all were immediately transferred to the terminal building by bus.

Temperatures of -3ยฐ were recorded around the airport following the coldest night of the year in Scotland where temperatures dropped to -12ยฐ.

A Flybe spokesman said: โ€œFlybe can confirm that, when taxiing at low speed at the end of the runway having landed safely at Inverness Airport this morning, the wheels of the Q400 aircraft skidded on the surface of the airfield causing it to slide onto the grass.

โ€œThe 47 passengers and four crew were unharmed and exited the aircraft by the stairs for bus transfer to the terminal where they collected their luggage as normal.

“The safety of its passengers and crew is the airlineโ€™s number one priority and Flybe regrets any inconvenience experienced as a result of this incident.โ€

Report by Assistant Editor Oliver Wilcock from Manchester.

Read more (with photos) from the Mirror: CLICK HERE

Copyright Photo: Keith Burton/AirlinersGallery.com. G-JEDW before its was repainted in the new livery.

Flybe aircraft slide show:

http://airlinersgallery.smugmug.com/Airlines-Europe-2/Airlines-Europe-2/Flybe

Darwin Airline to drop four routes as it regroups

Darwin Airline (Etihad Regional) (Lugano) will drop routes from Zurich to Lugano and Linz and from Geneva to Toulouse and Nice. The four routes were unprofitable.

Etihad Airways (Abu Dhabi) has restated its confidence in the regional carrier. Darwin is attempting to finalize its business relationship and investment by Etihad with the European regulatory authorities.

Copyright Photo: Paul Denton/AirlinersGallery.com. Darwin Airline SAAB 2000 HB-IZP (msn 031) in the Etihad Regional colors taxies at Geneva.

Etihad Regional aircraft slide show:

http://airlinersgallery.smugmug.com/Airlines-Europe-1/Airlines-Europe-1/Etihad-Regional-Darwin-Airline

Eurowings signs a new wage agreement with the Vereinigung Cockpit pilotsโ€™ union, Lufthansa remains unresolved

Eurowings A320-200 (15)(Flt)(Eurowings)(LRW)

The Lufthansa Group (Frankfurt) has issued this statement about a new pilot agreement with its expanded Eurowings (Dusseldorf) subsidiary which has just taken delivery of its first Airbus A320 (D-AIZQ, msn 5497) from Lufthansa.

New wage agreements apply for the approximately 300 pilots at Eurowings GmbH as of January 1, 2015. At the beginning of the year, the airline reached agreement with the Vereinigung Cockpit pilotsโ€™ union on new settlements that are to run for five years. They govern such matters as developments in working conditions and โ€œgrandfathering clausesโ€ for the duration of the agreements. The collective bargaining partners agreed on a wage increase of 2.5 per cent for the year 2015 and at least two per cent for subsequent years, depending on the rate of inflation. Signing the wage agreements means that the forthcoming renewal of the Eurowings fleet with Airbus A320 aircraft, and thereby the safeguarding of Eurowings and its future prospects, is being aided and supported in terms of collective bargaining, too.

Sustainable settlements with various pilotsสผ unions have already been reached for other flight operations in the Lufthansa Group.

Shortly before Christmas, the management of Swiss International Air Lines and the board of the Aeropers pilotsสผ association agreed on the basis for a new overall wage agreement. In particular, agreements on productivity improvements and an increase in the retirement age to 60 have been reached. The compromise that was reached also includes greater protection against dismissals, as well as foundations for a new career model and for an involvement of both pilot corps in the introduction of the new Bombardier CSeries and Boeing 777-300 ER aircraft. The details of the contract will be hammered out over the coming weeks. Should it be adopted, the agreement shall be valid from April 1, 2015 and will replace the existing overall wage agreement. A renegotiated overall wage agreement was signed with the IPG pilotsโ€™ association back at the end of May 2014.

At Austrian Airlines, an important agreement with the airborne staff was also reached back in October 2014. The new collective Group agreement applies to roughly 900 pilots and 2,300 flight attendants. Since December 1, 2014, it has governed the future salaries and pensions, working hours and career development for cockpit and cabin crew. A key element of the new agreement is the option for pilots and flight attendants to move to Austrian Airlines from the wholly owned Tyrolean Airways subsidiary. With this agreement, the airborne staff have made an important contribution to safeguarding the future of Austrian Airlines.

Lufthansa CityLine also reached an agreement with the Vereinigung Cockpit pilotsโ€™ union at the end of 2014. The agreement lays the foundation for the deployment of the Airbus A340-300 aircraft on long haul services at the regional carrier of the Lufthansa airline group.

These recent wage settlements mean that the Lufthansa Group and almost all its pilots now have agreements that reflect changes in the industry and that introduce sustainable wage conditions.

Still outstanding, however, are wage agreements at Lufthansa German Airlines, Lufthansa Cargo and Germanwings. In December 2014, Lufthansa offered further talks on unresolved topics, along with a concrete plan for arbitration. The Vereinigung Cockpit pilotsโ€™ union turned down this offer. Lufthansa is always prepared to cooperate on a viable solution for all sides.

United Airlines considers a replacement order for 10 Boeing 777-300s, will drop service to Regina and Saskatoon from Denver

United Airlines (Chicago) is considering an order for 10 Boeing 777-300 ERs according to Bloomberg. Quoting an United representative, the stretched Triple Sevens would possibly replace other aircraft ย United has on order (i.e. 787s). Boeing needs to keep the 777-300 production line going until the new 777X version is ready for production.

In other news, United is dropping its routes from its Denver hub to Saskatchewan. The carrier will drop service to both Regina and Saskatoon on February 28.

Copyright Photo: SPA/AirlinersGallery.com. Both the old United and Continental were large Boeing 777-200 operators. The progression to the larger 777-300 ER is a logical move. United’s Boeing 777-222 ER N788UA (msn 26942) departs the runway at London (Heathrow).

United Airlines aircraft slide show:ย AG Slide Show

 

Is AirAsia Indonesia flight QZ 8501 a repeat of Northwest Airlines flight NW 705?

AirAsia Indonesia (Indonesia AirAsia) (Jakarta) vanished from radar screens over the Java Sea on December 28 on a flight from Surabaya to Singapore with 162 passengers and crew members on board. Tragically there were no survivors.

Investigators have ruled out any act of terrorism. The same group has stated it was unlikely an explosion brought down the airliner. According to the preliminary reports, there were no sounds of gunfire or explosions on cockpit voice recorder. Analysis of the flight data recorder of Airbus A320-216 PK-AXC (msn 3648) operating flight QZ 8501 showed the A320 climbing at an abnormally high rate, then plunging and suddenly disappearing from radar. The A320 was climbing at a steep ascent of 6,000 feet a minute (a normal climb rate is 1,000 to 2,000 feet a minute) before it suddenly dived and crashed in the Java Sea. This is not a normal climb rate. The crew had asked air traffic control for a higher altitude due to severe thunderstorms in the area. The request was denied due to other air traffic in the area.

Read the full report from CNN: CLICK HERE

Was flight QZ 8501 trapped in the updraft of a severe thunderstorm and then it stalled and fell to the sea?

It has happened before with devastating results. Dial the clock back to February 12, 1963 over Florida’s Everglades. While the crashes of ValuJet Airlines flight 592 and Eastern Airlines flight 401 are more well known, there was a third crash in the Everglades that is very similar to the tragedy of AirAsia Indonesia flight QZ 8501. Both involved flying into severe thunderstorms.

Northwest Airlines (Northwest Orient Airlines) flight NW 705 was a regularly scheduled flight from Miami International Airport to Chicago’s O’Hare International Airport. After takeoff from MIA the flight crew operating Boeing 720-051B N724US (msn 18354) encountered an approaching cold front with large thunderstorms. The crew tried their best to avoid the approaching line of thunderstorms.

The accident (from Wikipedia quoting the official accident report):

Prior to departing from Miami, the flight crew questioned the ground controller at the airport about the departure routes being used, and he replied that most flights were departing “either through a southwest climb or a southeast climb and then back over the top of it.”

After the jet lifted off from runway 27L, it made a left turn based on radar vectors from Miami Departure Control, to avoid areas of anticipated turbulence associated with thunderstorm activity. Another flight had followed the same guidance shortly before the jet took off.

While maintaining 5,000 feet and a heading of 300 degrees, Flight 705 contacted controllers and requested clearance to climb to a higher altitude. After a discussion between the flight and the radar departure controller about the storm activity, and while clearance to climb was being coordinated with the Miami Air Route Traffic Control Center, the flight advised “Ah-h we’re in the clear now. We can see it out ahead … looks pretty bad.”

At 13:43, Flight 705 was cleared to climb to flight level 250. They responded, “OK ahhh, we’ll make a left turn about thirty degrees here and climb…” The controller asked if 270 degrees was their selected climbout heading, and they replied that this would take them “… out in the open again…” Controllers accordingly granted the jet clearance. Following some discussion about the severity of the turbulence, which was described as moderate to heavy, the flight advised, “OK, you better run the rest of them off the other way then.”

At 13:45, control of Flight 705 was transferred to Miami Air Route Traffic Control Center. There were communication difficulties, although after the jet was provided with a different frequency to tune to, the flight crew established contact with Miami ARTCC. Several minutes after contact was established, the jet’s altitude began increasing with a rate of climb gradually increasing to approximately 9,000 feet per minute. Following this rapid ascent the rate of climb decreased through zero when the altitude peaked momentarily at just above 19,000 feet. During this time the jet’s airspeed decreased from 270 to 215 knots and as the peak altitude was approached, the vertical accelerations changed rapidly from 1G to about -2G.

In the next seven seconds the negative acceleration continued to increase at a slower rate, with several fluctuations, to a mean value of about -2.8G, the jet began diving towards the ground with increasing rapidity. As the descent continued with rapidly increasing airspeed, the acceleration trace went from the high negative peak to 1.5G, where it reversed again.

Below 10,000 feet the forward fuselage broke up due to the forces of the dive. The main failures in both wings and horizontal stabilizers were in a downward direction, and virtually symmetrical. The forward fuselage broke upward and the vertical stabilizer failed to the left. All four engines generally separated before the debris of the aircraft fell in unpopulated area of the Everglades National Park, 37 miles west-southwest of Miami International Airport.

The accident was investigated by the Civil Aeronautics Board (CAB) which later became the National Transportation Safety Board (NTSB):

Synopsis of the CAB Aircraft Accident Report:

Northwest Airlines, Inc., Boeing 720B, N724US, operating as Flight 705, crashed in an unpopulated area of the Everglades National Park, 37 miles westโ€”southwest of Miami International Airport at approximately 1350 e. s. t., on February 12, 1963. All 35 passengers and the crew of eight were fatally injured.

Flight 705 departed Miami at 1335 e.s.t. Circuitous routing was utilized during the climbout in an effort to avoid areas of anticipated turbulence associated with thunderstorm activity. At 1347 e.s.t., in response to a request for their position and altitude, the flight advised, “We’re just out of seventeen five (17,500 feet) and stand by on the DME one.” This was the last known transmission from the flight. Shortly thereafter the aircraft entered a steep dive, during which the design limits were exceeded and the aircraft disintegrated in flight.

The Board determines that the probable cause of this accident was the unfavorable interaction of severe vertical drafts and large longitudinal control displacements resulting in a longitudinal upset from which a successful recovery was not made.

The FAA later added in its Lessons Learned section this summation:

As the investigation of Northwest Flight 705 proceeded, other jet transports became involved in similar upsets. These pitch upset events were collectively referred to as “Jet Upsets.” This terminology was used because the phenomena appeared to be unique to the new generation of swept wing jet transports which began to enter service a few years earlier. The investigation of Northwest Flight 705, and associated similar pitch upset incidents, led to changes in operating procedures and design requirements for jet transports, as well as improved forecasting and dissemination of hazardous weather information to Air Traffic Control and Flight Crews. These actions proved effective in substantially reducing the occurrence of this type of pitch upset events.

Was QZ 8501 a repeat of NW 705?

Copyright Photo: Bruce Drum/AirlinersGallery.com. Sister ship Boeing 720-051B N737US (msn 18793) is pictured at New York (JFK).

Northwest Airlines aircraft slide show:

http://airlinersgallery.smugmug.com/Airlines-UnitedStates-2/Airlines-UnitedStates-2/Northwest-Airlines

 

Delta adds extra flights from Phoenix on February 2 for the Super Bowl

Delta Air Lines (Atlanta) has added nonstop service from Phoenix to Boston, Los Angeles and Seattle/Tacoma and has put larger aircraft on select flights from Seattle/Tacoma to Phoenix to accommodate customers traveling to and from the pro football championship game (Super Bowl).

The temporary service will operate as follows:

Delta 2.2.15 PHX extra flights

Flights 8789 to Los Angeles and 8799 to Seattle/Tacoma will operate using specially configured aircraft with all first or business class seats. Along with the added service, Delta has increased the size of the aircraft on one regularly scheduled flight from Phoenix to Seattle/Tacoma on February 2 from a regional jet to a 160-seat Boeing 737-800.

Delta regularly operates five peak-day flights to Phoenix from its Seattle/Tacoma hub, and two of those flights will be operated using larger aircraft to accommodate more fans traveling to the game on Friday, January 30. Delta also operates five peak-day flights from Los Angeles to Phoenix. Some service may be operated by Delta Connection carriers SkyWest Airlines and Compass Airlines.

Copyright Photo: Bruce Drum/AirlinersGallery.com. Boeing 737-832 N399DA (msn 30379) approaches the runway at Las Vegas.

Delta Air Lines aircraft slide show (current livery):ย AG Slide Show

American Airlines gets one step closer to taking delivery of its first Boeing 787-8 Dreamliner

American Airlines (Dallas/Fort Worth) was reportedly due to take delivery of its first Boeing 787-8 Dreamliner in November, then it slipped to December. The original delivery date was September 2012 before all of the delays occurred to the other 787s in front of this aircraft. The first 787 is now due to be delivered in the first quarter of this year. The pictured 787-8 N800AN (msn 40618) emerged from the paint shop on October 30, 2014. Boeing and American are currently working on the details for the delivery and entry of the new type into revenue service. However the new type has completed an important milestone in the delivery process.

As we previously reported, the pictured N800AN successfully conducted its first flight on January 6 from Paine Field via Moses Lake. Since then, the 787 has completed another test flight.

American has 42 Boeing 787s on order including 16 787-8s and 26 787-9s, with 58 options. The airline is scheduled to take delivery of two 787s this year, 11 in 2015, 13 in 2016 and nine in 2017.

American will replace some of its older Boeing 767-300s with the new 787s.

Copyright Photo: Royal S. King/AirlinersGallery.com. A splendid shot in sunshine of N800AN at Paine Field near Everett, Washington on January 19 performing another test flight.

American Airlines aircraft slide show (current livery):

http://airlinersgallery.smugmug.com/Airlines-UnitedStates-1/Airlines-UnitedStates-1/American-Airlines

Video: The first takeoff of N800AN on a rainy and overcast day at Paine Field: