Tag Archives: 767200

El Al reports a net profit of $3.7 million in the second quarter

El Al Israel Airlines (Tel Aviv) reported a net profit of $3.7 million in the second quarter. This is a reversal from a loss of $6.1 million in the same quarter a year ago.

The company issued this financial statement:

Profits for this quarter totaled about $3.7 million, compared to a loss of $6.1 million in the second quarter of 2012

Company revenues for the second quarter of 2013 totaled $529.7 million, compared to $516.8 million in the second quarter last year

The ratio of gross profits to turnover increased from 15.1% to 15.5% and totaled $82.0 million compared to $78.1 million in the parallel quarter of last year

Elyezer Shkedy, El Al’s President & CEO:

“The Company continues to match its activities to the realities of the market place and thus continues to become more efficient. During the second quarter of 2013 the Company increased the number of available seats for sale by 7% compared to the parallel quarter of last year, while maintaining a similar level of expenditure and a reduced number of employees. Efficient use and operation of the Company’s aircraft brought about passenger load factors of about 82.4%.

The Company reports a profit as well as positive cash flows, while it continues with its investment plans, including payments for purchases of new Boeing 737-900 aircraft as part of a business transaction for the purchase of six aircraft with options for two more.

The first 737-900 of this contract will enter in service with El Al in October 2013.

As part of the Company’s overall business and operational assessment, El Al continues to reduce the number of aircraft types in operation. During the coming months we plan to remove the fleet of 767-200s, bringing the number of aircraft types we operate to four only (reduced from seven, that included our 747-200s, the 757s and the 767-200s).

During the second quarter, El Al continued to develop its strategic plans in response to world market trend in international civil aviation (including the open-skies policies). The Company is presently crystallizing new plans for short-haul flights using five 737-800s on routes still to be decided by the Company’s Management. The aim is to integrate the new plans and schedules no later than the summer of 2014.

Further to the agreement that was achieved with the Government and the Ministry of Finance when the open skies policy into effect, the Government’s portion for security expenditures for Israeli airlines was increased to 85%, starting 1.5.2013. The balance of the agreement will be implemented during 2013 and in early 2014, if the appropriate terms and conditions of the agreement are met.

The FIMI Investment Company announced that they are giving the Company an extension of 45 days to finalize the conditions for the agreement. This period ends on August 29, 2013. They noted that the negotiations on a new comprehensive labor agreement are advancing slowly.

I do hope that the Company employees grasp the importance of reaching a new agreement. I expect the members of the workers’ committee to act responsibly and to take immediate action to formulate a new collective labor agreement, which, amongst other things, will enable FIMI to become an active investor in El Al; will allow the Company to advance and grow; and will enable the Company to face the open skies policies and the ever-increasing competition successfully.

I’d like to thank the entire El Al family – on the ground, in the air, in Israel and abroad – who work so determinedly and devotedly to overcome the difficult challenges facing us. We are committed to providing our customers with the very finest services and products through our ongoing efforts to surmount and meet the challenging market conditions.”

El Al Israel Airlines published its financial reports summarizing the first half of 2013, as well as for the second quarter of the year. The main points follow:

Financial results for the second quarter 2013:

  • Revenues for the present quarter totaled $529.7 million, compared to $516.8 million in the parallel quarter of last year, an increase of about 2.5%. Revenues from passengers increased by about 4%, the result of the increased number of passengers carried, after offsetting the drop in revenue per passenger-kilometer. Revenues from charter services dropped by about 12.9% as a result of reduced activity of our Sun D’Or charter subsidiary. Cargo revenues dropped by about 6.4% as a result of the reduction ton-kilometer revenues and the general reduction in cargo activities.
  • Operating expenses in the second quarter under review increased by about 2% to about $447.8 million, compared to $438.7 million in the parallel quarter of last year, largely as a result of increased volume of activities, the ratio of which on turnover during the second quarter of 2013 dropped from about 84.9% to about 84.5% during this quarter. In addition to an increase in cost of salaries as explained further on, and changes in currency exchange rates, after offsetting the reduction in fuel expenses – as explained further on. During the 2nd quarter of 2013 the number of permanent and temporary employees in the Company was on average 5,906, compared to 5,938 in the parallel quarter of last year.
  • Aviation fuel costs during this quarter dropped by about $7.5 million compared to in the parallel quarter of last year, a reduction of about 4.0%. Market prices of aviation fuel during the quarter dropped by about 6.9% on average, compared to in the parallel quarter of last year. During the reported quarter the Company recorded costs of $3.9 million as a result of a decrease in fair value of hedging transactions that are not recognized for accounting purposes, compared to costs of about $6.5 million for similar hedging costs in the parallel quarter of last year. On the other hand the increased activities increased fuel costs during the quarter by about $5.8 million, while aviation-fuel hedging expenses grew by about $2.0 million during this quarter, compared to in the parallel quarter of last year ($3.8 million compared to $1.8 million). Fuel costs during the reported quarter totaled about 40.0% of our total operating expenditures, compared to 42.5% in the parallel quarter of last year.
    Cost of salaries during the 2nd quarter of 2013 rose in comparison with the parallel quarter last year. Most of the increase is the result of the strengthening of the shekel exchange rate vis-à-vis the dollar, compared to in the parallel quarter of last year, plus the creeping increase in salaries.
  • Gross profits for the quarter totaled about $82.0 million (a ratio of about 15.5% on turnover), compared to $78.1 million in the parallel quarter last year (a ratio of 15.1% on turnover).
  • The operating profits were about $7.0 million compared to an operating profit of $2.4 million in the parallel quarter of last year.
  • Financing. In this quarter the Company had net financing costs (after offsetting financing revenues) about $2.1 million, compared to net financing costs of $10.4 million in the parallel quarter of last year. The change is largely the result of the benefits of receipts from foreign currency hedging but that was set off by the increases caused by changes in exchange rates.
  • Net profits for the second quarter of 2013 totaled $3.7 million, compared to a loss of about $6.1 million in the parallel quarter of last year.
  • Cash flow from regular activities during the 2nd quarter 2013 totaled about $47.8 million, compared to $14.1 million in the parallel quarter of last year. Cash flow for the first 6 months of the year totaled about $128.3 million.
  • The EBITDA for El Al for the second quarter of 2013 totaled about $31.9 million. Compared to $29.7 million in the parallel quarter of last year.

Results for the first half of 2013:

  • Revenues for the first half of this year totaled about $960.7 million, compared to $945.9 million in the parallel quarter of last year, an increase of about 1.6%.
  • Operating expenditure for the first half of 2013 totaled about $840.9 million, compared to $827.3 million in the parallel quarter of last year, an increase of about 1.6%. The change is largely the result of increased costs of salaries as explained below, while the ratio on turnover remains almost unchanged – about 87.5% in the reported half-year.
  • Gross profits for the six months totaled about 12.5%, reaching about $119.8 million, compared to $118.6 million in the parallel quarter of last year.
  • Operating losses for the first half of 2013 totaled about $29.3 million, compared to an operating loss of about $21.4 million in the parallel quarter of last year.
  • Financing. In the first half of 2013 the Company reported net financing costs (after offsetting financing revenues) of about $9.1 million. This compares to net financing costs of about $18.5 million in the parallel quarter of last year. The change is largely the result of the benefits of receipts from foreign currency hedging but that was set-off by the increases caused by changes in exchange rates.
  • Net losses for the first half of 2013 totaled about $28.8 million, compared to a net loss of about $29.4 million in the parallel quarter of last year.
  • El Al’s EBITDA for the first half year totaled about $20.7 million, compared to EBITDA of $33.1 million in the parallel quarter of last year.

Additional data:

  • As of June 30, 2013 the Company’s cash on hand, cash equivalencies and short-term deposits totaled $121.9 million. It should be noted that during the first half of 2013 the Company invested around $75 million in fixed assets, in accordance with the Company’s multi-annual investment program, in addition to prior financing of the new 737-900s. The Company also repaid current loans totaling $42.1 million and obtained loans of $45.6 million, mainly for the purchase of fixed assets.
  • Company equity, as at  June 30, 2013 totaled $107 million.


As reported above, El Al will soon retire its last Boeing 767-200, bringing down the number of aircraft types to four. The carrier had previously retired the last Boeing 757-200 last year.

When the 767-200s joined the El Al fleet, it was the first plane that allowed a direct, nonstop route to Chicago (O’Hare) and Hong Kong. Later on, two 767-200s were used for opening the nonstop route to Miami.

As part of the renewal process, El Al is adding new Boeing 737-900 ER planes.

Copyright Photo: Bruce Drum/AirlinersGallery.com. Boeing 767-27E ER 4X-EAE (msn 24832) taxies at Miami.

El Al: AG Slide Show

Jet Asia Airways expands scheduled services into China

Jet Asia Airways (Bangkok-Suvarnabhumi) has commenced three times weekly scheduled service from Bangkok’s Suvarnabhumi International Airport to Tianjin’s Bihnai International Airport and also to Nanjing’s Lukou International Airport.

Jet Asia 8:2013 Route Map

In the past year, Jet Asia Airways has operated more than 200 charter flights to both cities combined. Tianjin and Nanjing are two of the fastest growing secondary cities in China.

“The charter flights now turned scheduled have proven to be popular with the Chinese travelers who wish to avoid stopping over in a primary city and prefer to fly directly to Bangkok. Jet Asia will continue to aggressively exercise ‘first mover advantage’ to capitalize on untapped markets between China and Thailand,” said Mr. Chairat Sangchan, Jet Asia’s Managing Director.

Chinese arrivals into Thailand reached 2.78 million passengers in 2012 and is expected to grow to more than 3.5 million in 2013.

Copyright Photo: Jay Selman/AirlinersGallery.com. Former United Airlines Boeing 767-222 HS-JAB (msn 21868) arrives back at the Bangkok (Suvarnabhumi) base.

Jet Asia Airways logo

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.

Delta to begin renovations on Delta Flight Museum, set to open in 2014

Delta Museum (Delta)(LRW)

Delta Air Lines (Atlanta) will begin renovations funded by a $6.3 million grant from The Delta Air Lines Foundation and will kick-off a corporate sponsorship campaign to refurbish Delta’s historic hangars on the company’s corporate campus. Upon completion of the project, the facility will open to the public as the Delta Flight Museum offering daily tours and a unique private event facility.

The hangars, originally built in the 1940s for Delta’s aircraft maintenance, were repurposed in 1995 as the site of the current Delta Air Transport Heritage Museum. Its mission then was to preserve the history of Delta’s people and culture of exceptional customer service forged by founder C.E. Woolman. The site has served as the backbone of the company’s global headquarters for more than 70 years.

“Returning Delta’s historic hangars to their original glory helps preserve the history and rich Delta employee culture for generations of aviation enthusiasts,” said Tad Hutcheson, vice president – Community Affairs and Chairman of the Board of Directors for the Delta Air Transport Heritage Museum. “The new Delta Flight Museum will offer a one-of-a-kind experience for the Atlantacommunity and visitors from around the world.”

The renovation project will last 12 months and is scheduled to be complete in advance of Delta’s 85th anniversary of commercial aviation service on June 17, 2014. Some of the major improvements include the addition of a welcome theater, installation of an elevator and construction of a new mezzanine level.

When completed, the new museum will offer a full-service event space that will accommodate private events for groups ranging from 100 to 1,200 people for a seated meal service. The facility will be among the largest capacity venues in the Atlanta metropolitan area and will offer a variety of scalable rental options.

The entrance to the Delta Flight Museum will offer convenient access for daily visitors and will include dedicated parking for museum patrons as well as capacity for valet parking services to compliment private functions held in the facility.

The Spirit of Delta will continue to be one of the largest items on display in the museum. The Boeing 767-200 (above, caption below) was purchased by Delta employees in 1982 as an expression of thanks to the company and has been located in the museum since being retired from service in 2006.

The renovation also will include preserving the hangar doors by returning them to their original condition and polishing the concrete floors to retain the distinctive markings created when Delta installed the reinforced concrete needed to handle heavier aircraft as it transitioned from the use of propeller planes to the jet age.

New air conditioning and heat controls will provide a comfortable year-round visitor experience inside the large hangar facility. A full Convair 880 cockpit already owned by the museum along with a Boeing 737-200 flight simulator will be installed as permanent exhibits and a new retail store will be built for visitors to purchase aviation memorabilia and Delta-branded items.

The hangars were designated as an official Historic Aerospace Site by The American Institute of Aeronautics and Astronautics in Feb. 2011, acknowledging them as the oldest surviving buildings currently in use at Atlanta’s Hartsfield-Jackson International Airport.

Delta moved its headquarters from Monroe, Louisiana, to Atlanta in 1941 and began use of the hangars as the primary maintenance facility for its daily commercial flight operations. Aircraft maintenance moved to the site of Delta’s current Technical Operations Center in 1960. In 1990, a group of Delta retirees launched an effort to consolidate Delta memorabilia, archival collections and one of Delta’s first 1940s era Douglas DC-3 aircraft. The effort resulted in the creation of the Delta Air Transport Heritage Museum located in the hangar facility donated by Delta.

Top Copyright Rendering: Delta Air Lines.

Middle Copyright Photo: Bruce Drum/AirlinersGallery.com. “The Spirit of Delta” in the form of donated Boeing 767-232 N102DA (msn 22214) worn several different liveries in its career with Delta. Here is the special “Celebrating 75 Years 2004” livery at Miami.

Delta Air Lines: AG Slide Show

Bottom Copyright Photo: Brian McDonough/AirlinersGallery.com. Douglas DC-3-357 NC28341 (msn 3278) lands at Baltimore/Washington (BWI).

Atlas Air to operate a Boeing 767-200 for MLW Air

Atlas Air (New York) has signed an agreement to operate a VIP-configured Boeing 767-200 passenger aircraft in CMI service for MLW Air, LLC. Flights are expected to commence this summer.

Under the new CMI (Crew, Maintenance, Insurance) agreement, Atlas Air will operate MLW Air’s unique, all-first class, 102-seat Boeing aircraft, extending Atlas Air’s innovative CMI service solution and its growing 767 aircraft platform into very high-end passenger transport. The flights will be marketed as charters to sports teams, entertainers and other high-profile users.

MLW Air’s Boeing 767-277 N767MW (msn 22694) is the only all-first class 767 commercial charter aircraft with worldwide operations registered with the Federal Aviation Administration. The dual-aisle plane features first class seats with 60-inch pitch (the distance between a row of seats) in a two-by-two-by-two configuration. The seats recline to 156 degrees for maximum comfort and come with adjustable head and foot rests. The plane is ideal to meet the needs of heads of state, celebrities, diplomats, professional sports teams, entertainers, private parties, tour groups and other charter needs. The client list includes the Dallas Stars and Dallas Mavericks and such entertainers as Bruce Springsteen, the Rolling Stones and Beyoncé.

Atlas Air currently operates 10 Boeing 767s, including three passenger aircraft and seven freighters. Its modern, efficient fleet also includes two VIP-configured Boeing 747-400 passenger aircraft, 37Boeing 747 freighters and a recently acquired Boeing 777 freighter.

Copyright Photo: Brian McDonough/AirlinersGallery.com. Pictured arriving at Washington (Dulles) with the Manchester United team on July 28, 2011 when it leased to Swift Air, the former Ansett Australia (VH-RMF) and Gadair European Airlines (N767AT) wide body 767-277 will now be operated by Atlas Air for MLW Air as N767MW.

Atlas Air: AG Slide Show

US Airways to start Charlotte-Sao Paulo flights tomorrow

US Airways (Phoenix) tomorrow (June 8) will launch daily nonstop service to Sao Paulo, Brazil from its largest hub at Charlotte, North Carolina.  The new flight is US Airways’ second destination in South America and complements the airline’s existing nonstop service to Rio de Janeiro from Charlotte. US Airways will operate service to Brazil’s largest city on Boeing 767-200 aircraft with seating for 18 in Envoy, US Airways’ international business class, and 186 in the main cabin.

The flight schedule is as follows:

Charlotte Douglas International Airport (CLT) – Guarulhos-Sao Paulo Airport (GRU) Guarulhos-Sao Paulo Airport (GRU) – Charlotte Douglas International Airport (CLT)**
Flight Departure Arrival Flight Departure Arrival
802 5:50 p.m. 4:30 a.m.* 803 8:25 a.m. 5:25 p.m.
*Flight arrives next day.**First day of operation for Sao Paulo-bound flight is June 9, 2013.

On March 4, US Airways filed an application with the U.S. Department of Transportation (DOT) for the rights to operate daily, year-round service between Sao Paulo and the airline’s international gateway at Philadelphia. The proposed service would be the airline’s third daily flight to South America and would provide customers in 75 communities with easy one-stop access to Sao Paulo.

Copyright Photo: Jay Selman/AirlinersGallery.com. Boeing 767-2B7 ER N256AY (msn 26847) climbs away from the runway at Charlotte Douglas International Airport.

US Airways: AG Slide Show

In the current US Airways onboard magazine the airline pays tribute to its past with an article on its heritage logojets (Click on the Slide Show above to see all of the logojets):

US Airways Heritage Logojets (US Airways)

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.

Cargojet earns an operating profit of C$2.7 million for the first quarter

Cargojet Inc. (Cargojet Airways) (Hamilton) announced today financial results for the first quarter ended March 31, 2013 .

For the First Quarter Ended March 31, 2013:

  • Total Revenues were $40.7 million, an increase of $0.6 million or 1.5% versus the previous year.
  • Gross Margin was $4.9 million, a decrease of of $0.6 million or 10.9% versus the previous year
  • EBITDA was $2.7 million (all amounts in Canadian dollars), an increase of $0.8 million or 42.1% versus the previous year

“We are very pleased with the improvement in financial and operating results, as compared to the previous year, despite two less operating days in the quarter”, said Ajay K. Virmani, President and Chief Executive Officer.  “We continue to see modest improvements in demand and volumes from all revenue sectors, although overall yields and pricing remain under pressure”. “We will continue to manage our cost prudently and gain efficiencies where available”, he concluded.

Copyright Photo: Rainer Bexten. Boeing 767-223 (F) C-FMCJ (msn 22316) makes a stop at Cologne/Bonn.

Cargojet: AG Slide Show

Cargojet logo

European Routes:

Cargojet 5:2013 European Routes

US Airways applies for rights from Charlotte and Philadelphia to Sao Paulo, Brazil

US Airways (Phoenix) has filed an application with the U.S. Department of Transportation (DOT) for the rights to operate daily, year-round service between the airline’s hubs in Charlotte, N.C., and Philadelphia, and Sao Paulo, Brazil.  US Airways will begin service between Charlotte and Sao Paulo on June 8 using frequencies leased from another carrier. An award of rights for Charlotte – Sao Paulo flights will ensure US Airways avoids a service interruption due to the frequency lease terminating prior to Open Skies between the United States and Brazil commencing in 2015.

US Airways’ proposed service between Philadelphia and Sao Paulo would be the airline’s third daily flight to South America and would complement its existing service to Sao Paulo and Rio de Janeiro from its Charlotte hub.

Copyright Photo: Bruce Drum. Boeing 767-2B7 ER N252AU (msn 24765) taxies to the runway at the Charlotte hub.

US Airways: AG Slide Show

AeroMexico posts a net profit of $103.6 million for 2012

Grupo Aeromexico S.A.B. De C.V. (AeroMexico) (Mexico City), the largest intercontinental airline in Mexico, reported consolidated unaudited results for the fourth quarter and full year 2012.

Grupo AeroMexico logo

  • Net income during the fourth quarter 2012 was MXP $612 million ($47.9 million); an increase as compared to the MXP $294 million ($23 million) net income reported for the same period in 2011. Full year net income was MXP $1,323 million ($103.6 million) despite record-high fuel prices and the negative impact of a 5.8% exchange rate depreciation.
  • Fourth quarter operating profit before other non-operating revenues and expenses was MXP $356 million, with a 3.6% margin. 2012 operating profit before other non-operating revenues and expenses was MXP $2,529 million, with a 6.4% margin. Operating margin was 6.5%, excluding the effect of Aeromexico Cargo consolidation.
  • 2012 EBITDAR was MXP $6,811 million, the second highest annual EBITDAR in the Company’s history, despite negative impacts related to the fuel price increase and the aforementioned exchange rate depreciation. EBITDAR margin was 17.2%; after adjusting for the cargo consolidation effect, this margin was 17.6%.
  • Grupo Aeromexico reported record revenues of MXP $39,569 million in 2012; 10.5% growth year-over-year. This growth was driven primarily by increased yields, higher passenger flows and an increase in cargo revenues. Fourth quarter revenues reached MXP $9,897 million; a 1.7% increase year on year.
  • Cost per available seat kilometer (CASK) excluding fuel and adjusting for the accounting effect of consolidating Aeromexico Cargo (AM Cargo), increased 5.4% in 2012 compared to last year. This is primarily due to the exchange rate depreciation. This indicator, expressed in U.S. dollars, decreased 1.7%. CASK in pesos, excluding fuel and the cargo business consolidation, grew 3.7% in the fourth quarter as compared to the same period last year.
  • During the year, Grupo Aeromexico executed the most ambitious investment program in the Company’s history, making payments of MXP $4,261 million in fixed assets investments, aircraft purchase prepayments, guarantee deposits and the amortization of debt not related to the purchase of aircraft. The Company’s cash position as of December 31, 2012 was MXP $3,452 million.
  • Grupo Aeromexico took delivery of eight new Embraer-190 in 2012. Six of these were delivered as part of the aircraft acquisition program through the BNDES credit line and two were delivered through operating leases. The Company also took delivery of three Boeing 737-800 through US Ex-Im Bank financing. Three Embraer 170 aircraft also were added to the fleet through operating leases. Additionally, two Boeing 737-800, one Boeing 767-200 and one Embraer ERJ 145 aircraft were re-delivered.

Copyright Photo: Wingnut. Boeing 767-284 ER XA-JBC (msn 24762) in the SkyTeam motif prepares to taxi to the runway at London (Heathrow).

AeroMexico: AG Slide Show