Tag Archives: 737500

United Airlines posts a second quarter net profit of $469 million

United Airlines (Chicago) today reported second-quarter 2013 net income of $521 million, or $1.35 per diluted share, excluding $52 million of special charges. Including special charges, UAL reported second-quarter 2013 net income of $469 million, an increase of 38 percent year-over-year, or $1.21 per diluted share.

  • UAL generated $10 billion of revenue in the second quarter of 2013, its highest ever second-quarter revenue result.
  • Leading the U.S. airline industry in year-over-year passenger revenue per available seat mile (PRASM) growth for the second consecutive quarter, United’s PRASM increased 1.0 percent in the second quarter compared to the second quarter of 2012.
  • Second-quarter consolidated unit costs (CASM), holding fuel rate and profit sharing constant and excluding special charges and third-party business expense, increased 4.5 percent year-over-year on a consolidated capacity (available seat miles) reduction of 2.1 percent. Second-quarter consolidated CASM increased 0.7 percent year-over-year.
  • UAL ended the second quarter with $7.0 billion in unrestricted liquidity.

Second-Quarter Revenue and Capacity

For the second quarter, total revenue was $10.0 billion, an increase of 0.6 percent compared to the same period in 2012. Second-quarter consolidated passenger revenue decreased 1.1 percent year-over-year to $8.7 billion, on a consolidated capacity decrease of 2.1 percent year-over-year. Cargo and other revenue in the second quarter increased 13.8 percent versus the second quarter of 2012, or $162 million, to $1.3 billion.

Consolidated revenue passenger miles (RPMs) decreased 1.7 percent on a consolidated capacity decrease of 2.1 percent year-over-year in the second quarter, resulting in a consolidated load factor of 84.7 percent, the highest second-quarter consolidated load factor in United’s history.

Second-quarter consolidated PRASM increased 1.0 percent compared to the same period in 2012. Consolidated yield for the second quarter increased 0.6 percent year-over-year.

Mainline RPMs in the second quarter decreased 2.1 percent on a mainline capacity decrease of 2.4 percent year-over-year, resulting in a mainline load factor of 84.9 percent. Second-quarter mainline yield increased 0.5 percent compared to the same period in 2012. Second-quarter mainline PRASM increased 0.7 percent year-over-year.

Second-Quarter Costs

Total operating expenses decreased $133 million, or 1.4 percent, in the second quarter versus the same period in 2012. Excluding special charges, second-quarter total operating expenses increased $21 million, or 0.2 percent, year-over-year.

Second-quarter consolidated and mainline CASM increased 0.7 and 1.3 percent year-over-year, respectively. Second-quarter consolidated and mainline CASM, excluding special charges and third-party business expense, increased 1.1 percent and 1.8 percent, respectively, compared to second-quarter 2012. Third-party business expense was $170 million in the second quarter of 2013.

In the second quarter, consolidated and mainline CASM, excluding special charges and third-party business expense and holding fuel rate and profit sharing constant, increased 4.5 percent and 5.2 percent, respectively, compared to the second quarter of 2012.

Liquidity and Cash Flow

UAL ended the second quarter with $7.0 billion in unrestricted liquidity, including $1.0 billion of undrawn commitments under its revolving credit facility. During the second quarter, UAL generated $1.1 billion of operating cash flow. The company’s gross capital expenditures and purchase deposits for the quarter were $549 million. The company made debt and capital lease principal payments of $540 million in the second quarter, including $144 million of pre-payments.

Finance, Network and Fleet

  • United issued $300 million of senior unsecured notes due 2018 at an interest rate of 6.375 percent.
  • During the quarter, the company expanded its industry-leading global route network, launching new nonstop service between Paris and San Francisco; between Tokyo and Denver and between Shannon, Ireland, and Chicago. The company also launched new nonstop service to Austin, Texas; Charleston, S.C.; Fairbanks, Alaska; Edmonton, Alberta, Canada; Grand Rapids, Mich.; Guatemala City, Guatemala; Mobile, Ala.; Portland, Ore.; Saint George, Utah; San Jose, Costa Rica; San Jose del Cabo, Mexico; Traverse City, Mich.; Vancouver, British Columbia, Canada; and Wichita, Kan. United also added three new cities to its network: Dickinson, N.D.; Fort McMurray, Alberta, Canada and Santa Fe, N.M. The company announced future new nonstop markets, including the company’s first nonstop service to St. Lucia, as well as additional service to Austin, Texas, and Gunnison, Colo.
  • United welcomed back the Boeing 787 Dreamliner with commercial service between Houston and its other domestic hubs. The airline launched the highly anticipated Denver to Tokyo-Narita service in June, marking a successful return of the Dreamliner to United’s international skies. United also launched temporary 787 service from Houston to London in June, and in August the company will start additional 787 international service from Houston to Lagos, Nigeria, and from Los Angeles to Tokyo and Shanghai.
  • The company increased its Dreamliner order to 65. United will be the North American launch customer for the Boeing 787-10. The company also converted its existing order for 25 A350-900s into A350-1000s and added an additional 10 aircraft to the order, totaling 35 aircraft. United expects delivery for both the 787-10 and A350-1000 beginning in 2018, enabling the airline to further modernize its international widebody fleet by replacing older, less efficient aircraft to reduce fuel and operating costs, enhance the customer experience and maximize network opportunities.
  • United will introduce 70 Embraer 175 aircraft into the United Express fleet beginning in 2014. These aircraft – with 76 seats, a larger first-class cabin and larger overhead bins – will be operated by SkyWest Airlines, Inc. and another United Express carrier, with deliveries expected in 2014 and 2015.
  • The company took delivery of six Boeing 737-900 ERs and removed from service two Boeing 757-200s and the last five Boeing 737-500s and the last five Boeing 767-200s from its fleet.
  • The company executed a definitive purchase agreement with AltAir Fuels for 15 million gallons of cost-competitive, commercial-scale, sustainable aviation biofuel to be used on flights departing LAX in 2014. AltAir Fuels’ renewable jet fuel is expected to achieve at least a 50 percent reduction in greenhouse gas emissions on a lifecycle basis.

Product, Loyalty Program and Facilities

  • United reached a milestone of being the only U.S. carrier offering 180-degree flat-bed seats and personal on-demand entertainment in premium cabins on all scheduled, long-haul international flights from the continental U.S.
  • The company continued outfitting aircraft with global satellite Wi-Fi, offering inflight connectivity on long-haul international flights. The airline now has 57 aircraft complete and is installing satellite Wi-Fi at a rate of over 25 aircraft per month for the remainder of 2013.
  • The airline introduced its 200th aircraft with live television, offering customers more than 100 channels of live programming while in-flight. United operates more live television-equipped aircraft than any other airline in the world.
  • United launched subscription options that offer customers access to Economy Plus seating or pre-paid checked baggage charges for a year, providing new choices for customers to tailor their travel experiences.
  • United introduced a revenue component to its MileagePlus premier status qualification requirements for the 2015 program year.
  • United debuted the MileagePlus Small Business Network, a first-of-its-kind loyalty program that enables businesses to earn and redeem miles by purchasing goods and services from the program’s vendor partners, including leading providers of printing, shipping, credit card payment processing, office supplies and computing services.
  • United opened its new Terminal B south concourse at Houston’s George Bush Intercontinental Airport. The $97 million south concourse is a new 225,000-square-foot facility dedicated to United Express regional flights.
  • United signed a 20-year lease extension at Newark Liberty International Airport and committed to invest an additional $150 million in the region’s largest hub to ensure the airport remains one of the country’s premier global gateways. The facility upgrades include a redesign of the airline’s check-in facilities, a new catering facility and an advanced checked baggage screening system.

Top Copyright Photo: Jay Selman/AirlinersGallery.com. During the second quarter United Airlines again retired the last five Boeing 737-500s and the last five Boeing 767-200s from its fleet. Boeing 737-524 N16642 (msn 28903) climbs away from the runway at Charlotte Douglas International Airport.

United Airlines: AG Slide Show

Bottom Copyright Photo: Ton Jochems/AirlinersGallery.com. Boeing 767-224 ER N69154 (msn 30433) rests between flights at Los Angeles International Airport.

United Airlines quietly retires two Boeing aircraft types in late May

United Airlines (Chicago) without any fanfare or publicity retired two classic Boeing types again in late May according to Airline Business. Former Continental Airlines Boeing 737-524 N62631 (msn 27535) operated the last Boeing 737-500 flight (UA 1705) between Cleveland and Houston (Bush Intercontinental) on May 30.

Additionally Boeing 767-224 ER N68159 (msn 30438) operated the last 767-200 flight between Munich and Newark on May 27.

Ironically United had previously retired both types but inherited both types again when the Continental fleet was merged. The 737-500 was previously retired on August 27, 2009 and the 767-200 on March 28, 2005.

Top Copyright Photo: Bruce Drum/AirlinersGallery.com. N62631 when it was with Continental Airlines.

Continental Airlines: AG Slide Show

United Airlines: AG Slide Show

Bottom Copyright Photo: Andi Hiltl/AirlinersGallery.com. Sister ship Boeing 767-224 ER N73152 (msn 30431) lands at Zurich.

Rossiya retires its last Boeing 737-500

Rossiya Russian Airlines (St. Petersburg) in April retired its last Boeing 737-500.

Read the full account (in Russian) from ATO.RU: CLICK HERE

Copyright Photo: Stefan Sjogren. Boeing 737-548 EI-CDD (msn 24989) in the Pulkovo colors prepares to land at Stockholm (Arlanda).

Rossiya: AG Slide Show

Rossiya logo

Routes from St. Petersburg:

Rossiya St Petersburg 5:2013 Route Map

United Continental Holdings reports a 4Q net loss of $190 million but a 2012 net profit of $589 million

United Continental Holdings, Inc. (United Airlines) (Chicago) today reported full-year 2012 net income of $589 million, or $1.59 per diluted share, excluding $1.3 billion of special charges. Including special charges, UAL reported a full-year 2012 net loss of $723 million, or $2.18 per share. UAL reported a fourth-quarter 2012 net loss of $190 million, or $0.58 per share, excluding $430 million of special charges. Including special charges, UAL reported a fourth-quarter 2012 net loss of $620 million, or $1.87 per share.

  • UAL full-year 2012 consolidated passenger revenue increased 0.2 percent year-over-year. Consolidated passenger revenue per available seat mile (PRASM) increased 1.7 percent in 2012 compared to 2011.
  • Superstorm Sandy reduced fourth-quarter revenue by approximately $140 million and profit by approximately $85 million.
  • Full-year 2012 consolidated unit costs (CASM), holding fuel rate and profit sharing constant and excluding special charges and third-party business expense, increased 2.5 percent year-over-year on a consolidated capacity reduction of 1.5 percent. Full-year 2012 consolidated CASM increased 6.7 percent year-over-year.
  • UAL ended 2012 with $7.0 billion in unrestricted liquidity.
  • Co-workers earned $119 million in profit sharing for full-year 2012, which will be distributed on Feb. 14, 2013.

Fourth-Quarter Revenue and Capacity

For the fourth quarter of 2012, total revenue was $8.7 billion, a decrease of 2.5 percent year-over-year. Fourth-quarter consolidated passenger revenue decreased 3.6 percent to $7.5 billion, compared to the same period in 2011.

Consolidated revenue passenger miles (RPMs) decreased 3.2 percent on a consolidated capacity (available seat miles) decrease of 4.2 percent year-over-year for the fourth quarter, resulting in a fourth-quarter consolidated load factor of 82.3 percent.

Fourth-quarter 2012 consolidated PRASM increased 0.6 percent compared to the same period in 2011. Consolidated yield for the fourth quarter of 2012 decreased 0.4 percent year-over-year.

Mainline RPMs in the fourth quarter of 2012 decreased 3.7 percent on a mainline capacity decrease of 4.3 percent year-over-year, resulting in a fourth-quarter mainline load factor of 82.5 percent. Mainline yield for the fourth quarter of 2012 decreased 0.9 percent compared to the same period in 2011. Fourth-quarter 2012 mainline PRASM decreased 0.3 percent year-over-year.

“While we didn’t meet our revenue goals in 2012, we have addressed the integration issues that drove our underperformance,” said Jim Compton, UAL’s vice chairman and chief revenue officer. “We’re now positioned to capitalize on market opportunities across our network, and to earn back our share of revenue, based on solid operations and great customer service.”

Passenger revenue for the fourth quarter of 2012 and period-to-period comparisons of related statistics for UAL’s mainline and regional operations are as follows:

4Q 2012PassengerRevenue  

(millions)

Passenger Revenue vs.

4Q 2011

PRASM  vs. 4Q 2011 Yield vs. 4Q 2011 Available Seat Miles vs.
4Q 2011
Domestic $2,953 (6.2%) (1.8%) (1.9%) (4.5%)
Atlantic 1,214 (7.5%) (0.3%) (0.3%) (7.2%)
Pacific 1,156 4.1% 5.9% 3.8% (1.7%)
Latin America 590 (5.4%) (4.2%) (6.5%) (1.3%)
International 2,960 (2.8%) 1.3% 0.0% (4.1%)
Mainline 5,913 (4.6%) (0.3%) (0.9%) (4.3%)
Regional 1,620 0.0% 3.7% 0.4% (3.6%)
Consolidated $7,533 (3.6%) 0.6% (0.4%) (4.2%)

Year-over-year cargo and other revenue in the fourth quarter of 2012 increased 5.0 percent, or $56 million, to $1.2 billion.

Fourth-Quarter Costs

Total operating expenses, excluding special charges, increased $94 million, or 1.1 percent, in the fourth quarter versus the same period in 2011. Including special charges, fourth-quarter total operating expenses increased $284 million, or 3.2 percent, year-over-year. Third-party business expense was $118 million in the fourth quarter.

Consolidated and mainline CASM, excluding special charges and third-party business expense, increased 4.8 percent and 5.0 percent, respectively, in the fourth quarter of 2012 compared to the same period of 2011. Fourth-quarter consolidated and mainline CASM, including special charges, increased 7.7 and 8.5 percent year-over-year, respectively.

In the fourth quarter, consolidated and mainline CASM, excluding special charges and third-party business expense and holding fuel rate and profit sharing constant, increased 4.8 percent and 4.7 percent, respectively, compared to the results for the same period of 2011.

“While we reported a full-year profit in 2012, these results clearly fell short of our expectations and the return goals we have set,” said John Rainey, UAL’s executive vice president and chief financial officer. “2013 will be an important year for us as we take the necessary steps to create economic value and achieve a sufficient level of profitability.”

Liquidity, Cash Flow and Return on Invested Capital

UAL ended the year with $7.0 billion in unrestricted liquidity, including $500 million of undrawn commitments under a revolving credit facility. During the fourth quarter, the company generated $31 million of operating cash flow and had gross capital expenditures and purchase deposits of $1.0 billion, which included the delivery of 11 aircraft. The company made debt and capital lease principal payments of $270 million in the fourth quarter. For the full year, the company made debt and capital lease principal payments of $1.5 billion, including prepayments. The company’s return on invested capital for the year ended Dec. 31, 2012, was 8.0 percent, below the company’s goal of a 10 percent return over the business cycle.

2012 Events

  • For the fourth quarter, United recorded a U.S. Department of Transportation domestic on-time arrival rate of 80.1 percent, exceeding its goal for the quarter. For the full year, United recorded a domestic on-time arrival rate of 77.3 percent and a system completion factor of 98.6 percent. For international flights, United recorded an on-time arrival rate of 73.7 percent. The on-time arrival rates are based on flights arriving within 14 minutes of scheduled arrival time.
  • United co-workers earned cash incentive payments for on-time performance totaling $26 million during 2012.
  • Pilots ratified a new joint labor agreement for all United Airlines pilots, and flight attendants from the company’s United, Continental and Continental Micronesia (CMI) subsidiaries ratified new labor agreements. United also reached an agreement with technicians from the CMI subsidiary. The company began the joint collective bargaining process with its flight attendants, technicians, dispatchers and airport and reservation agents.
  • United introduced its Outperform Recognition Program, awarding cash prizes each quarter to employees for excellence in customer service.
  • The company took delivery of six Boeing 787-8 Dreamliners in 2012 and launched its first commercial 787 flight in early November. United also took delivery of 19 Boeing 737-900 ERs, and removed from service 19 Boeing 737-500s, one Boeing 757-200 and three Boeing 767-200s. In addition, the company sold or returned to lessors 37 aircraft that had been parked in long-term storage.
  • United announced an order to purchase 100 Boeing 737 MAX 9 aircraft and 50 Boeing 737-900 ER aircraft for delivery beginning in 2013. These new aircraft will allow United to replace older, less-efficient aircraft to reduce fuel and operating costs, enhance the customer experience and maximize network opportunities.
  • UAL raised $2.2 billion of debt financing through multiple issuances of enhanced equipment trust certificates at an average interest rate of approximately 4.5 percent, with each issuance setting new average interest rate lows for this type of security. The debt proceeds are being used to finance the acquisition of seven new Boeing 787-8 and 32 new Boeing 737-900ER aircraft and to refinance the debt relating to three Boeing 737-900ER aircraft delivered in 2009.
  • The company expanded its industry-leading global route network, launching nonstop flights to numerous international destinations including Istanbul; Manchester, England; Dublin; Buenos Aires, Argentina; Monterrey, Mexico; San Salvador, El Salvador; Kelowna, British Columbia, Canada; and Doha, Qatar, via Dubai, United Arab Emirates. United also announced new nonstop international flights beginning in 2013 to Taipei, Taiwan; Shannon, Ireland; Paris; Edmonton, Alberta, Fort McMurray, Alberta, and Thunder Bay, Ontario, Canada; and Denver’s first service to Asia with non-stop service to Tokyo. The company started 18 new domestic routes in 2012, including the company’s first service to Fairbanks, Alaska; Grand Forks, N.D.; Williston, N.D.; and Sarasota, Fla. United also announced eight new domestic markets for 2013 including the company’s first service to Fayetteville, N.C. and Santa Fe, N.M.
  • United opened its new Network Operations Center in downtown Chicago with leading technology and tools for employees who manage the 24/7 global operation.
  • United converted to a single passenger service system, launched a single website, united.com, and a single loyalty program, MileagePlus, and made policy and procedure changes to become a single airline for its customers.
  • The company continued to install flat-bed seats in premium cabins on its international fleet and now has the new seats on 176 aircraft, more than any other U.S. carrier.
  • United continued to install Economy Plus seating, and it is now on 91 percent of the mainline fleet.
  • The company began installing global satellite-based Wi-Fi on its mainline fleet and expects to have more than 300 aircraft equipped with Wi-Fi by the end of 2013.
  • United and Chase launched the premium MileagePlus Club co-brand card, building on the strong performance of the MileagePlus Explorer card launched in 2011.

Copyright Photo: Michael B. Ing. United Airlines is again getting to retire its last Boeing 737-500s this year for the second time. Previously the airline retired it original 737-522s but reacquired the type with the United-Continental merger with Continental 737-524s. 737-524 N16648 (msn) 28909) completes its final approach into Los Angeles International Airport.

United Airlines: AG Slide Show

Czech Airlines to resume long-haul services with Airbus A330s, will retire the last Boeing 737-500 at the end of the winter season

Czech Airlines-CSA (Prague) is again getting back into the long-haul business with leased Airbus A330s (previously operated with Airbus A310s). The first route will be to Seoul starting in June 2013. The airline is also adding short-range flights to Florence, Nice and Perm (Russia) on March 31, 2013. Czech Airlines is also retiring the last Boeing 737-500 (pictured) at the end of the current winter schedule. The company has issued the following statement:

After a three-year hiatus, Czech Airlines is again including its own long-haul flights in its flight schedule. A wide-body Airbus A330 will join the airline’s fleet, enabling Czech Airlines to launch new scheduled service to Seoul, South Korea, and to initiate more intensive code-share cooperation with Korean Air in operating long-haul flights from Prague via Seoul to the East Asia, based on the model of cooperation being successfully employed with Etihad Airways. The new agreement will also ensure better connections to Czech Airlines flights from Prague to Europe for Korean Air’s clients. In addition to Seoul, Czech Airlines will introduce new service to Perm, Nice, Munich, Zurich and Florence in the 2013 summer season.

The twice-weekly Airbus A330-300 service to Seoul (Incheon) will commence on June 1 per Airline Route. The carrier is expected to also launch A330 service to Almaty, Ekaterinburg and Moscow (Sheremetyevo).

Next June, a long-haul Airbus A330 hired on the basis of operative leasing will join the Czech Airlines fleet. Among other flights, the aircraft will be deployed on Czech Airlines’ new scheduled long-haul service to Seoul. The flights will leave Prague every Saturday and Sunday, and Seoul every Sunday and Tuesday, supplementing the four weekly Korean Air flights. The two airlines will share codes on the route.

Seoul is not the only new destination in the Czech Airlines flight schedule in the 2013 summer season. The airline will open regular service to Perm in Russia, as well as Nice, Munich, Zurich and Florence. To certain destinations, it is introducing a noon flight wave, and increasing the number of flights compared to the 2012 summer season. These destinations include Berlin, Düsseldorf, Hamburg, Copenhagen, Milan, Stockholm and Warsaw. In making a year-on-year comparison, the airline will also offer more weekly flights to Nizhny Novgorod, Rostov-on-Don and Ufa. Czech Airlines will newly add Brisbane, Singapore and Nairobi to its flight schedule, which will be operated in cooperation with Etihad Airways. Another innovation in the summer flight schedule is a change in the model of operation to Baltic destinations. Vilnius, Riga and Tallinn will remain in Czech Airlines’ offer, and will be operated by airBaltic on a code-share basis.

In the 2013 summer season, only Airbus (A330, A320, A319) and ATR (ATR 72 and ATR 42) aircraft will be deployed on Czech Airlines flights. The airline will have thereby complied with one of its last restructuring tasks – the transition to a fleet of just two aircraft makes. Boeing 737-500 aircraft will be retired from the fleet by the end of the current winter season.

Copyright Photo: Ton Jochems. Boeing 737-55S OK-XGE (msn 26543) is currently painted in the SkyTeam colors. The airliner is pictured at Palma de Mallorca.

Czech Airlines-CSA: AG Slide Show

Frameable Color Prints and Posters: AG Prints-Gifts

AG Ad - Captain's Log

Estonian Air introduces a new “Fly to Estonia” logoplane, will retire the last Boeing 737-500 on October 21

Estonian Air (Tallinn) has repainted its SAAB 340B ES-ASO (msn 223) from the “Hockeybird” to a special “Fly to Estonia” livery to promote winter travel to the country. The first flight from Tallinn in the new design was completed on October 11 and the special livery will stay until the end of this year.

The aircraft will operate from Tallinn to Vilnius, Helsinki, Joensuu, Jyväskylä, St Petersburg and Tartu.

The airline issued the following statement:

In the framework of an ongoing co-operation between Estonian Air and EAS (Enterprise Estonia), one of the SAAB 340 aircraft in Estonian Air fleet was given a special livery to attract tourists from the regional destinations of Estonian Air to spend winter holidays in Estonia. This is a continuation of the marketing campaign carried out in October in Lithuania, Russia, Finland, Sweden and Norway, promoting the possibilities of spending winter holidays in Estonia.

“EAS and Estonian Air have common goals – to be visible on world map, bring a lot of foreign tourists to Estonia and do so in a special way. This beautiful aircraft design is a good example of co-operation between domestic organisations,” says Marketing Director of the Estonian Tourist Board at Enterprise Estonia, Tarmo Mutso.

“Research shows that aircraft is the advertising channel with the highest level of message recall, i.e. people recall afterwards not only the medium of the advertisement but even the message itself”, explains Gunnar Mägi, head of marketing and development in Estonian Air. “Since European airports enjoy a very high concentration of people, I am confident that our invitation will not go unnoticed”, he added.

In other news, the company will retire the last Boeing 737-500 on October 21 when the assigned aircraft completes a round trip between Tallinn and Paris (CDG) per Airline Route.

Top Copyright Photo: Estonian Air.

Estonian Air: 

Bottom Copyright Photo: Keith Burton. Boeing 737-53S ES-ABH 9msn 29074) climbs away from Southend.

Belavia to start nonstop Minsk-Barcelona flights on December 26

Belavia Belarusian Airlines (Minsk) has announced it will launch a new route from its Minsk hub to Barcelona, Spain on December 26. The new route will be operated twice-weekly with Boeing 737s.

Copyright Photo: Richard Vandervord. Boeing 737-524 EW-253PA (msn 26339) completes its final approach at London (Gatwick).

Belavia: 

Routes from Minsk: