Tag Archives: A319-112

Air Canada announces a major expansion to 12 U.S. destinations

Air Canada Airbus A319-112 C-GITR (msn 1577) LHR (SPA). Image: 929786.

Air Canada (Montreal) announced today new nonstop services between 12 U.S. cities and its four key Canadian hubs beginning next summer. The new transborder routes will introduce new destinations, such as Washington-Dulles-Toronto, Salt Lake City-Toronto and San Jose-Vancouver, while also creating new city-pair routings, such as Chicago-Vancouver, Houston-Montreal, Denver-Montreal and San Francisco-Calgary.

The new routes announced today will be operated by Air Canada mainline, Air Canada rouge and Air Canada Express aircraft. All routes will operate year-round except where indicated by (*).

Air Canada 11.2015 New Routes

1 Flight operated by Air Canada Express; 2 Flight operated by Air Canada rouge.

Copyright Photo: SPA/AirlinersGallery.com. Airbus A319-112 C-GITR (msn 1577) departs from London Heathrow.

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Allegiant reports its 3Q net profit increased 213.4% to $44.5 million

Allegiant Travel Group (Allegiant Air) (Las Vegas) reported its third quarter net income jumped by 213.4 percent from $14.2 million in 2014 to $44.5 million for this year.

Allegiant logo-3

Aircraft fleet plan by end of period:

Aircraft – (seats per AC) 3Q15 4Q15 YE16
MD-80 (166 seats)         51       51      46
757 (215 seats)                6          5        4
A319 (156 seats)              7       10      17
A320 (177 seats)           10        15      16
Total                                74        81      83

Aircraft listed in table above include only in service aircraft, planned retirements and future aircraft under contract

Read the full report: CLICK HERE

Copyright Photo: Keith Burton/AirlinersGallery.com. Allegiant continues to expand its Airbus fleet. The company increased the number of Airbus aircraft in service by seven versus last year. According to the company, Airbus aircraft flew over 77 percent of the incremental scheduled service ASMs in the third quarter. In addition, Airbus aircraft flew over 32 percent of the third quarter ASMs versus 22 percent a year ago. Airbus A319-112 HB-JZN (msn 2387) became N302NV with Allegiant.

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Virgin America to fly between Dallas Love Field and Las Vegas, will drop service to Austin

Virgin America (San Francisco) has announced new nonstop option between Dallas Love Field (DAL) and Las Vegas McCarran International Airport (LAS) as of December 1, 2015.

Virgin America logo-1

Las Vegas is currently the eighth largest market from Dallas Love Field in terms of guest traffic and the sixth largest destination from all Dallas airports combined (QDF). Virgin America will also be the only airline offering a red-eye from Las Vegas to Dallas, allowing Dallas-originating travelers to maximize their time taking advantage of everything Vegas has to offer before returning home.

 

In order to make aircraft available at its two Dallas Love Field gates to support the new Dallas-Las Vegas service, Virgin America will end its scheduled service between Love Field and Austin Bergstrom International Airport (AUS), effective November 30, 2015.

Copyright Photo: Jay Selman/AirlinersGallery.com. Airbus A319-112 M526VA (msn 3347) arrives in Las Vegas.

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American Airlines to fly to Merida, Mexico

American Airlines (Dallas/Fort Worth) will add new service to Merida, Mexico – a new destination for its global network. The new service will start on March 3, 2016 to Manuel Crescencio Rejon International Airport (MID) from Dallas/Fort Worth International Airport (DFW).

The new route will be operated five days a week with Airbus A319s.

Copyright Photo: TMK Photography/AirlinersGallery.com. Airbus A319-112 WL N9019F (msn 6154) taxies at Toronto (Pearson).

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Libyan Wings starts operations today with its first flight to Istanbul

Libyan Wings A319-100 5A-WLA (14)(Grd)(Libyan Wings)(LR)

Libyan Wings (Tripoli), despite the on-going civil strife in Libya, launched scheduled passenger operations this today (September 22) with a morning flight from Tripoli’s Mitiga Airport to Istanbul. The inaugural flight was delayed from yesterday.

Libyan Wings logo (LRW)

The new airline is owned by Libyan businessman Wissam Al-Masri according to the Libya Herald.

Read the full report: CLICK HERE

Photo: Libyan Wings. Airbus A319-112 5A-WLA (msn 2878) was previously operated by Philippine Airlines as RP-C8600. It was delivered on December 11, 2014.

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Finnair prepares for a national demonstration by labor unions

Finnair (Helsinki) has issued this statement for Friday, September 18:

Finnair logo

The Finnish labor unions have announced an extensive, nationwide demonstration to take place in Finland on Friday September 18, 2015. The demonstration is expected to have a wide impact on different industries, including commercial aviation.

Finnair estimates the demonstration to have significant impacts on Finnair customer service, baggage handling and different processes and services related to flight departures at Helsinki Airport on Friday. These services are affected primarily between 11:00 and 13:00 EET, but the impacts can be visible to customers both prior to the demonstration period and after it – for example, transportation services at Helsinki Airport are impacted during 06:00-22:00 EET.

“We are extremely sorry about the disruption this demonstration causes to our customers’ travel plans. We will do our utmost to serve our customers in the best possible way in this difficult situation, and thus offer them the possibility to change their flights,” says Janne Tarvainen, Head of Finnair’s Operational Control Center. “We hope that despite this demonstration that is not dependent on Finnair, as many customers as possible will get to their destinations as planned.”

Friday is the busiest day in terms of passenger numbers for Finnair, and the demonstration thus impacts thousands of Finnair customers. The demonstration’s impacts are expected to cause flight delays, time table changes and possibly also flight cancellations during Friday. Even though the demonstration takes place on Friday, some impacts can still be expected in aviation over the weekend.

Finnair has started preparations to minimise the disruptions the demonstration causes on our customers’ travel plans. Customers who have reservations on Finnair flights during September 17-19, 2015, can change their trip to another time free of charge, and avoid traveling during the time when the demonstration causes delays and other disruption on Finnair traffic.

Finnair continues to estimate the detailed impacts of the demonstration, and will communicate possible time table changes and/or cancellations starting on Wednesday, September 16. Finnair advises customers to take the following action:

  • Customers who are travelling with Finnair on September 17-19, 2015 can already now change their travel dates free of charge, following instructions given at http://www.finnair.com/info
  • Please make sure that you have the correct mobile number and other contact information in your reservation.
  • Decisions on timetable changes and/or cancellations are made starting on Wednesday, September 16,2015, and we will communicate the changes directly to customers, and also on our webpages at http://www.finnair.com/int/gb/flights/flightlist
  • If a flight is cancelled, customers can change their travel date to an earlier or later date, get rerouted when possible, or seek a refund for the ticket price.
  • We advise customers to reserve enough time to get to Helsinki Airport, as the demonstration is expected to have impacts on public transportation as well as on transportation services near the airport.

We apologize if our customer service lines are busy during the next few days.

Copyright Photo: Paul Bannwarth/AirlinersGallery.com. Airbus A319-112 OH-LVC (msn 1309) arrives at Zurich.

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Finnair narrows its second quarter loss, hopes to break even or better for the year

Finnair (Helsinki) reported a second quarter net loss of €6 million, down from a larger 2Q net loss of €23.9 million in the same period a year ago.

Finnair logo

CEO Pekka Vauramo commented on the results:

Our passenger traffic revenue from tickets and ancillary services saw strong growth in the second quarter of 2015, and we achieved a new record in June by carrying more than 37,500 passengers in one day. At the same time, ancillary sales grew by one third from the previous year. Our customers have heartily welcomed the Chicago route as well as our new seasonal summer routes, with demand exceeding our expectations. Furthermore, business travel has picked up noticeably.

Profitability improved significantly, although the operational result still showed a loss of 12.9 million euros. The result improvement is attributed to revenue growth in our core business operations, the progress of cost reduction measures and the decline in fuel prices, which is reflected in our costs gradually due to our hedging policy. The appreciation of the dollar diluted the benefit from fallen jet fuel price and significantly increased our other dollar-denominated costs, but at the same time, the appreciation of our income currencies boosted our revenues particularly in Asia. In addition, our positive performance was supported by the result improvement at Aurinkomatkat Suntours.

While we cannot be satisfied with our loss-making result, our financial position and liquidity are very strong. Our long-haul fleet renewal, which will start this autumn, will significantly improve the cost-competitiveness and customer experience of our long-haul traffic. At the same time, we will continue to focus on increasing our revenue through, for example, ancillary services and product improvements in intercontinental traffic.

We are moving in the right direction and our strategy, which was updated in the spring, is clear. Our goal is profitable growth, which we will be better equipped to achieve once the Airbus A350 aircraft start joining our fleet later this year. They will enable the gradual growth of capacity and substantially reduce our fuel costs on long-haul flights. In addition, we have begun to recruit cabin crew with a view to future growth. Our whole team is enthusiastically preparing for Finnair’s next phase.

Here are the details:

Finnair Plc. Interim report August 14, 2015:

April-June 2015

  • Revenue on a par with second quarter of 2014, at 561.0 million euros (565.7).
  • Operational result improved to -12.9 million euros (-19.6).
  • Operational EBITDAR was 37.4 million euros (35.5).
  • Net cash flow from operating activities stood at 88.4 million euros (69.2), and cash flow from investments totalled -53.7 million euros (-92.3).
  • Unit cost at constant currency excluding fuel (CASK excl. fuel) increased by 0.7% year-on-year.
  • Unit revenue at constant currency (RASK) decreased by 1.9% year-on-year.
  • Earnings per share amounted to -0.06 cents (-0.20).

January-June 2015

  • Revenue on a par with first half of 2014, at 1,101.4 million euros (1,109.0).
  • Operational result improved to -41.3 million euros (-53.9).
  • Operational EBITDAR was 56.6 million euros (53.0).
  • Net cash flow from operating activities stood at 101.4 million euros (48.7), and cash flow from investments totalled 89.2 million euros (141.4).
  • Unit cost at constant currency excluding fuel (CASK excl. fuel) increased by 0.9% year-on-year.
  • Unit revenue at constant currency (RASK) decreased by 1.2% year-on-year.
  • Earnings per share amounted to -0.16 cents (-0.44).
  • Finnair updates its guidance and estimates that, in 2015, its operational result is around break-even or slightly positive.

Outlook

Outlook published on May 7, 2015

The demand outlook for passenger and cargo traffic in Finnair’s main markets still involves uncertainty. Finnair estimates that, in 2015, its capacity measured in Available Seat Kilometres will grow by approximately 3 per cent and that its revenue will remain at the 2014 level. Finnair further estimates, as a change to its previous guidance, and when calculated with the same accounting principles as earlier, that its unit costs excluding fuel will increase from the 2014 level due to the structural changes in the company’s business and the strong appreciation of the US dollar. By applying the changed calculation method, that neutralises the effect of these changes as defined in notes 16 and 18 to the interim financial statements, Finnair estimates that its 2015 unit costs excluding fuel at constant currency will decrease from the 2014 level.

The lower price of jet fuel and the full impact from the completed savings program are supporting the financial performance of Finnair 2015.

According to its disclosure policy, Finnair will issue guidance on the expected development of its operational result in connection with the January–June interim report. As a separate guidance Finnair estimates that, when calculated using the exchange rates effective at the end of the review period, the non-recurring items associated with the long haul fleet renewal in 2015 will have a substantial positive impact on Finnair’s operating result due to the strengthened US dollar. Finnair has previously estimated that the long haul fleet renewal would not have a significant effect on its operating result in 2014 and 2015. The non-recurring items related to the long haul fleet renewal react substantially to changes in the euro-dollar exchange rate.

Outlook on August 14, 2015

Finnair estimates that, in 2015, its operational result is around break-even or slightly positive.

Finnair reiterates its previous estimate that its capacity measured in Available Seat Kilometers will grow by approximately 3 per cent and that its revenue will remain approximately at the 2014 level. As a change to its previous estimate, the company now estimates that its 2015 unit costs excluding fuel at constant currency will remain at the 2014 level.

Finnair also reiterates as a separate guidance that, when calculated using the exchange rates effective at the end of the review period, the non-recurring items associated with the long haul fleet renewal in 2015 will have a substantial positive impact on Finnair’s operating result due to the strengthened US dollar.

Copyright Photo: Paul Bannwarth/AirlinersGallery.com. Airbus A319-112 OH-LVG (msn 1916) arrives in Zurich.

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Video: Finnair is depending on the new Airbus A350-900 to boost its bottom line later this year.

Syphax Airlines suspends all operations

Syphax Airlines (Sfax, Tunisia) yesterday (July 30) announced it had suspended all operations from Tunisia.

Syphax logo-2

The company was launched in 2011 by Mohamed Frikha, CEO of TELNET Group, Syphax Airlines is a limited company.

The airline commenced operations on April 21, 2012 as previously reported.

Syphax was based at Sfax Thyna, and its network consisted of international destinations, mainly to France and Turkey.

Tunisia has seen a dramatic drop in tourism after it suffered severe blows following the Bardo National Museum attack and the Sousse attack in 2015.

Copyright Photo: Christian Volpati Collection/AirlinersGallery.com. Airbus A319-112 TS-IEF (msn 3853) wears a special livery as the “Official Airline of the Carthage Eagles”, the Tunisia national football (soccer) team.

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American to start Dallas/Fort Worth – Quito flights

American Airlines (Dallas/Fort Worth) will start a new route from its Dallas/Fort Worth (DFW) hub to Ecuador in December. The carrier will start DFW – Quito flights five days a week starting on December 18 per Airline Route.

Copyright Photo: Tony Storck/AirlinersGallery.com. Airbus A319-112 N756US (msn 1340) prepares to land at Baltimore-Washington Thurgood Marshall International Airport (BWI).

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American Airlines Group reports its highest quarterly profit in company history

American Airlines Group (American Airlines and US Airways) today (July 24) issued this financial statement for the second quarter:

American Airlines Group logo

American Airlines Group Inc. (AAL) today reported its second quarter 2015 results.

  • Reported record quarterly net profit of $1.9 billion excluding net special charges, a 27 percent increase versus the second quarter 2014
  • Reported record quarterly GAAP net profit of $1.7 billion, a 97 percent increase versus last year’s second quarter
  • Repurchased over $750 million of common stock and authorized an additional $2 billion share repurchase program
  • Declared a dividend of $0.10 per share to be paid on August 24, 2015, to shareholders of record as of August 10, 2015

American Airlines Group’s second quarter 2015 net profit, excluding net special charges, was a record $1.9 billion, or $2.62 per diluted share versus a second quarter 2014 net profit excluding net special charges of $1.5 billion, or $1.98 per diluted share. The Company’s second quarter 2015 pretax margin excluding net special charges was a record 17.2 percent, up 4.4 percentage points from the same period last year.

On a GAAP basis, the Company reported a record net profit of $1.7 billion, or $2.41 per diluted share. This compares to a GAAP net profit of $864 million in the second quarter 2014, or $1.17 per diluted share.

See the accompanying notes in the Financial Tables section of this press release for further explanation, including a reconciliation of GAAP to non-GAAP financial information.

“Reporting the highest quarterly profit in our history is another indication that our team is on the path to restoring American as the greatest airline in the world,” said Chairman and CEO Doug Parker. “These results are especially remarkable considering the significant and successful work underway to integrate two airlines. The more than 100,000 dedicated team members of American Airlines are doing a phenomenal job and we are grateful for their commitment to our customers.”

Revenue and Cost Comparisons

Total revenue in the second quarter was $10.8 billion, a decrease of 4.6 percent versus the second quarter 2014 on a 1.9 percent increase in total available seat miles (ASMs). Consolidated passenger revenue per ASM (PRASM) was 13.57 cents, down 6.9 percent versus the second quarter 2014. Consolidated passenger yield was 16.28 cents, down 6.1 percent year-over-year.

Total operating expenses in the second quarter were $8.9 billion, a decrease of 10.5 percent compared to the second quarter 2014, due primarily to a 36.9 percent decrease in consolidated fuel expense. Second quarter mainline cost per available seat mile (CASM) was 11.87 cents, down 12.8 percent on a 1.5 percent increase in mainline ASMs versus the second quarter 2014. Excluding net special charges and fuel, mainline CASM was 8.77 cents, up 2.5 percent compared to the second quarter 2014. Regional CASM excluding special charges and fuel was 16.02 cents, up 1.4 percent on a 5.5 percent increase in regional ASMs versus the second quarter 2014.

Cash and Investments

As of June 30, 2015, the Company had approximately $9.7 billion in total cash and short-term investments, of which $747 million was restricted. The Company also had an undrawn revolving credit facility of $1.8 billion.

American continues to invest in its product. As part of an extensive fleet renewal plan that has made American’s fleet the youngest of any U.S. network airline, the Company expects to spend $5.4 billion on new aircraft this year. During the second quarter, the Company took delivery of 24 new mainline aircraft and nine new regional aircraft and retired 34 older mainline and eight older regional aircraft. In addition to this fleet renewal program, American is in the midst of investing $2 billion to further enhance its product, including improvements to aircraft interiors, international Wi-Fi connectivity and upgrades to its Admirals Club lounges.

In the second quarter, the Company returned $823 million to its shareholders through the payment of $70 million in quarterly dividends and the repurchase of $753 million of common stock, or 17.3 million shares, at an average price of $43.53 per share. When combined with the dividends and shares repurchased during the first quarter, the Company has returned approximately $1.1 billion to its shareholders in the first half of 2015, including $943 million of shares repurchased under the existing $2 billion share repurchase program approved in January 2015.

Due to the Company’s strong financial performance, its projected cash flow and the repurchase activity to date, the American Airlines Group Board of Directors has authorized an additional $2 billion share repurchase program to be completed by December 31, 2016. This brings the total amount of share repurchase programs authorized in 2015 to $4 billion. The Company also declared a dividend of $0.10 per share to be paid on August 24, 2015, to shareholders of record as of August 10, 2015.

Share repurchases under the share repurchase program may be made through a variety of methods, which may include open market purchases, privately negotiated transactions, block trades or accelerated share repurchase transactions. Any such repurchases will be made from time to time subject to market and economic conditions, applicable legal requirements and other relevant factors. The program does not obligate the Company to repurchase any specific number of shares or continue a dividend for any fixed period, and may be suspended at any time at the Company’s discretion.

Approximately $629 million of the Company’s unrestricted cash and short-term investment balance was held in Venezuelan bolivars. This balance includes approximately $621 million valued at 6.3 bolivars per U.S. dollar and approximately $8 million valued at 12.8 bolivars per U.S. dollar, with the rate depending on the date the Company submitted its repatriation request to the Venezuelan government. These rates are materially more favorable than the exchange rates currently prevailing for other transactions conducted outside of the Venezuelan government’s currency exchange system.

During 2014, the Company significantly reduced capacity in the Venezuelan market and is no longer accepting bolivars as payment for airline tickets. The Company is monitoring this situation closely and continues to evaluate its holdings of Venezuelan bolivars for additional foreign currency losses or other accounting adjustments, which could be material, particularly in light of the additional uncertainty posed by the recent changes to the foreign exchange regulations and the continued deterioration of economic conditions in Venezuela. More generally, fluctuations in foreign currencies, including devaluations, cannot be predicted by the Company and can significantly affect the value of its assets located outside the United States. These conditions, as well as any further delays, devaluations or imposition of more stringent repatriation restrictions, may materially adversely affect the Company’s business, results of operations and financial condition.

Special Items

In the second quarter, the Company recognized $150 million in net special charges, including:

  • $231 million in merger related integration expenses, including $221 million in mainline special charges and $10 million in regional special charges
  • $77 million in net special credits, including a $68 million credit for bankruptcy related items, principally consisting of fair value adjustments for bankruptcy settlement obligations
  • $11 million non-operating net special credits comprised of a $22 million gain associated with the sale of an investment, offset in part by $11 million in charges principally related to non-cash write offs of unamortized debt discount and debt issuance costs associated with refinancing the Company’s secured term loan facilities
  • $7 million in tax special charges related to certain indefinite-lived intangible assets

Notes:

(1) The 2015 second quarter mainline operating special items totaled a net charge of $144 million, which principally included $221 million of merger integration expenses related to information technology, professional fees, severance, share-based compensation, fleet restructuring, re-branding of aircraft and airport facilities, relocation and training. These charges were offset in part by a net $68 million credit for bankruptcy related items primarily consisting of fair value adjustments for bankruptcy settlement obligations. The 2015 six month period mainline operating special items totaled a net charge of $447 million, which principally included $437 million of merger integration expenses as described above and a net $99 million charge related to the Company’s new pilot joint collective bargaining agreement. These charges were offset in part by a net $73 million credit for bankruptcy related items primarily consisting of fair value adjustments for bankruptcy settlement obligations.

The 2014 second quarter mainline operating special items totaled a net charge of $251 million, which principally included $163 million of merger integration expenses related to information technology, professional fees, severance, share-based compensation, re-branding of aircraft and airport facilities, relocation and training as well as a net $38 million charge for bankruptcy related items primarily consisting of fair value adjustments for bankruptcy settlement obligations and $37 million in charges related to the buyout of leases associated with certain aircraft. The 2014 six month period mainline operating special items totaled a net charge of $114 million, which principally included $365 million of merger integration expenses, $40 million in charges primarily related to the buyout of leases associated with certain aircraft and a net $5 million charge for bankruptcy related items, all as described above. These charges were offset in part by a $309 million gain on the sale of Slots at Ronald Reagan Washington National Airport.

(2) The 2015 and 2014 second quarter and six month period regional operating special items principally related to merger integration expenses.

(3) The 2015 second quarter nonoperating special items totaled a net credit of $11 million and primarily included a $22 million gain associated with the sale of an investment, offset in part by $11 million in charges principally related to non-cash write offs of unamortized debt discount and debt issuance costs associated with refinancing the Company’s secured term loan facilities. The 2015 six month period nonoperating special items totaled a net credit of $19 million and principally included the $22 million gain associated with the sale of an investment as described above and a $17 million early debt extinguishment gain associated with the repayment of American’s AAdvantage loan with Citibank. These special credits were offset in part by $20 million in charges principally related to non-cash write offs of unamortized debt discount and debt issuance costs associated with the debt refinancing as described above and the prepayment of certain aircraft financings.

The 2014 second quarter and six month period nonoperating special items were primarily due to non-cash interest accretion of $2 million and $33 million, respectively, on bankruptcy settlement obligations.

(4) The 2015 second quarter and six month period tax special items were the result of a non-cash deferred income tax provision related to certain indefinite-lived intangible assets.

During the 2014 second quarter, the Company sold its portfolio of fuel hedging contracts that were scheduled to settle on or after June 30, 2014. In connection with this sale, the Company recorded a special non-cash tax provision of $330 million in the second quarter of 2014 that reversed the non-cash tax provision which was recorded in other comprehensive income (OCI), a subset of stockholders’ equity, principally in 2009. This provision represents the tax effect associated with gains recorded in OCI principally in 2009 due to a net increase in the fair value of the Company’s fuel hedging contracts. In accordance with Generally Accepted Accounting Principles, the Company retained the $330 million tax provision in OCI until the last contract was settled or terminated. In addition, the Company recorded a special $7 million non-cash deferred income tax provision related to certain indefinite-lived intangible assets in the 2014 second quarter. The 2014 six month period included the $330 million non-cash tax provision related to the settlement of fuel hedges discussed above as well as a special $15 million non-cash deferred income tax provision related to certain indefinite-lived intangible assets.

Read the full report: CLICK HERE

Copyright Photo: Ken Petersen/AirlinersGallery.com. American Airlines and US Airways are already operating under a single AOC. However the last US-coded flight will be flight US 434, a red-eye flight from San Francisco to Philadelphia, on October 17, 2015. After that date, all mainline flights will operate under the AA code. Former US Airways Airbus A319-112 N741UW (msn 1269), operated under the US code but now painted in American’s new 2013 livery, approaches the runway at Raleigh-Durham International Airport (RDU).

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