United Airlines (Chicago) is planning to add weekly Airbus A319 “ski service” from New York (LaGuardia) to Montrose, Colorado starting on December 19.
The carrier is also adding United Express Bombardier CRJ700 from the San Francisco hub to Fayetteville (Northwest Arkansas) on October 25 per Airline Route.
Copyright Photo: Michael B. Ing/AirlinersGallery.com. Airbus A319-131 N818UA (msn 882) taxies to the runway at Seattle-Tacoma International Airport.
United Airlines aircraft slide show:ย 
British Airways (London) will add weekly winter ski seasonal Airbus A319 service from Glasgow to Salzburg starting on December 12 per Airline Route.
BA is also adding Airbus A319 service from London (Gatwick) to Valencia starting on November 6 and to Porto on February 11, 2016.
In other news,ย British Airways on May 4, 2016 will resume the London (Gatwick) – Lima route with Boeing 777-200 ER aircraft. The restored route will operate three days a week.
Copyright Photo: SPA/AirlinersGallery.com. Airbus A319-131 G-EUPV (msn 1423) approaches the runway at London (Heathrow).
British Airways aircraft slide show:ย
Allegiant Air (Las Vegas) has announced an agreement to purchase its 50th Airbus aircraft, an A320, from Airbus Financial Services. The purchase marks an important milestone for the company in its long-term transition to an Airbus fleet.
By the end of 2015, the company’s in service Airbus fleet will number 25, consisting of 15 A320s and 10 A319s. The remaining 25 committed Airbus aircraft will be delivered through 2018. The aircraft announced today will enter revenue service in early 2016. Allegiant anticipates adding further aircraft commitments as opportunities for new transactions arise. At the end of this year, Allegiant will have a total of 82 aircraft in revenue service.
The younger A320 family aircraft will help Allegiant to increase operational efficiency in the coming years. The enhanced operating economics of the aircraft will also open up new growth opportunities for the company by making longer routes and off-peak flying profitable. Routes such as Sanford to Bismarck, North Dakota and Mesa to Fort Wayne, Indiana have been made successful with the introduction of the A320/A319 into the fleet.
Copyright Photo: Michael B. Ing/AirlinersGallery.com. Airbus A319-111 N304NV (msn 2265) approaches the runway at Los Angeles International Airport.
Allegiant aircraft slide show:ย
Finnair (Helsinki) reported a second quarter net loss of โฌ6 million, down from a larger 2Q net loss of โฌ23.9 million in the same period a year ago.
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 costย 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 Finnairโs next phase.
Here are the details:
Finnair Plc. Interim report August 14, 2015:
April-June 2015
January-June 2015
Outlook
Outlook published on May 7, 2015
The demand outlook for passenger and cargo traffic in Finnairโs 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 companyโs 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 JanuaryโJune 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 Finnairโs 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 Finnairโs operating result due to the strengthened US dollar.
Copyright Photo: Paul Bannwarth/AirlinersGallery.com. Airbus A319-112 OH-LVG (msn 1916) arrives in Zurich.
Finnair aircraft slide show:ย
Video: Finnair is depending on the new Airbus A350-900 to boost its bottom line later this year.
easyJet (UK) (London-Luton) on December 12 will start the twice-weekly London (Gatwick)ย ย โ Friedrichshafen route. This new service will be operated with Airbus A319s according to Airline Route.
Copyright Photo: Paul Bannwarth/AirlinersGallery.com. Airbus A319-111 G-EZDK (msn 3555) in the new 2015 livery arrives at EuroAirport.
easyJet (UK) aircraft slide show:ย
Delta Air Lines (Atlanta) issued this report on its busy summer season:
July is the only month in which each day is a part of Deltaโs busy summer schedule. So as July wraps up – and with 17 days remaining in the summer schedule – here are nine amazing facts to keep in mind the next time you see a Widget-branded aircraft soaring overhead.
Delta’s summer schedule begins in early June and runs through mid-August.
1. July 31 set an all-time single-day bookings record of more than 620,000 customers. Thatโs as if the entire population of Portland, Oregon, booked to fly Delta in one day.
2. Nearly 2,200 more flights are scheduled so far in summer 2015 than the same period in summer 2014, a 0.7 percent increase.
3. Reliability on Delta Connection – the airline’s group of regional carriers – is dramatically improving: there have been 1,400 fewer Delta Connection cancellations this summer compared to the same period last summer.
4. The Delta system’s “completion factor” – days without any canceled flights – is 99.02%, 0.44 percentage points better than the same period last summer. Thatโs an amazing 1,308 fewer cancels than in summer 2014. And it includes both mainline flights and Delta Connection.
5. In June, Delta went 139.2 consecutive hours without a mainline cancellation; the closest streak during a summer schedule was June 2014 – 80.3 consecutive hours
6. Twenty-one days of 100 percent mainline completion factor so far in summer 2015, compared with 12 during the same time period in 2014.
7. Deltaโs mainline aircraft numbers nearly 800 for the summer operation, including 41 737-900 ERs and 71 Boeing 717-200s.
8. TechOps is moving maintenance performance to new heights:
Mainline maintenance “completion factor” of 99.97 percent.
Maintenance on-time departure performance of 96.70 percent, best-ever for a summer schedule.
9. Year-to-date, Delta mainline has transported more than 2.2 billion pounds of checked bags and 987 million pounds of cargo freight.
In other news, Delta is revamping its Airbus A319 (above) and A320 fleets:
Delta will debut its latest single-aisle jet to receive a nose-to-tail interior modification this weekโthe first of 57 Airbus A319s to receive the state of the art upgrade.
The 132-seat aircraft is the latest in a series of upgrades coming to Deltaโs domestic narrowbody fleet and follows just a few short months after Ship 3235 rejoined the flight line.
Airbus A320 interior
Panasonic in-flight entertainment at every seat (above), large pivoting overhead bins capable of accommodating 60 percent more carry-on bags (below), new galleys and an innovative, pod-like overhead passenger service unit highlight just a few of the new amenities designed by Zodiac Aerospace that Delta customers will enjoy. The 9 inch high definition seat-back entertainment screens offer more content than any other domestic carrier. Each seat also as 110v and USB power to plug in electronics in flight.
The airline is the first in the world to receive the interior modifications on both Airbus fleets.
All 126 A320 and A319 aircraft will be retrofitted with the new interior by summer 2017. The larger of the two jets, the A320, will also receive in-flight entertainment, though not initially, through 2018.
Many of Deltaโs Boeing 757 jets are receiving interior enhancements as part of the airlineโs more than $770 million investment in the domestic fleet to provide a more consistent customer experience.
Fleet:
Photos: Delta Air Lines.ย All 126 of Delta’s Airbus A319 and A320s are undergoing interior upgrades.
Copyright Photo below: Copyright Photo: Michael B. Ing/AirlinersGallery.com. Airbus A319-114 N330NB (msn 1549) departs from Los Angeles International Airport.
Delta aircraft slide show (current livery only):ย
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 atย Baltimore-Washington Thurgood Marshall International Airport (BWI).
American Airlines aircraft slide show (current livery only):ย
American Airlines Group (American Airlines and US Airways) today (July 24) issued this financial statement for the second quarter:
American Airlines Group Inc. (AAL) today reported its second quarter 2015 results.
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:
Notes:
(1)ย 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)ย The 2015 and 2014 second quarter and six month period regional operating special items principally related to merger integration expenses.
(3)ย 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)ย 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).
American Airlines (current livery only):ย
US Airways aircraft slide show:ย
American Airlines (Dallas/Fort Worth) is adding winter seasonal flights from its hubs.
From Charlotte, the company will add weekly Airbus A319 service to both Curacao, Netherlands Antilles and Puerto Plata, Dominican Republic starting on December 19 per Airline Route.
From Chicago (O’Hare), the airline will add weekly Boeing 737-800 service also to Punta Cana also starting on December 19.
From Dallas/Fort Worth, AA will add weekly Airbus A319 flights to Punta Cana.
Finally from Los Angeles, American will add twice-weekly Boeing 737-800 service to Montego Bay, Jamaica on December 18.
Adding to this, American on July 13 issued this statement:
American Airlines plans to add eight new routes throughout Mexico, the Caribbean and Latin America later this year, further strengthening its position in these key regions and providing customers with increased options when traveling to these destinations.
Expanded service includes new flights to Mexico City International Airport (MEX); General Rafael Buelna International Airport (MZT) in Mazatlan, Mexico; Curacao International Airport (CUR); Sangster International Airport (MBJ) in Montego Bay, Jamaica; Punta Cana International Airport (PUJ); Gregorio Luperon International Airport (POP) in Puerto Plata, Dominican Republic; and Mariscal Sucre International Airport (UIO) in Quito, Ecuador, pending regulatory approvals.
American also plans to reinstate its service between New York’s John F. Kennedy Airport (JFK) and Simon Bolรญvar International Airport (CCS) in Caracas, Venezuela, on December 17. Flights will operate five times per week with Boeing 757-200 aircraft.
Copyright Photo: Jay Selman/AirlinersGallery.com. Airbus A319-112 N744P (msn 1287) in the legacy Piedmont Airlines livery taxies to the gate at the Charlotte hub.
American Airlines aircraft slide show (current livery):ย
Ryanair (Dublin) has agreed to sell its 29.8 percent share in Aer Lingus (Dublin) to the International Airlines Group-IAG (British Airways, Iberia and Vueling Airlines) (London). The airline issued this statement:
The Board of Ryanair Holdings PLC today (July 10) confirmed that it has voted unanimously to accept the IAG offer for Ryanairโs 29.8% shareholding in Aer Lingus Group plc. Ryanairโs stake in Aer Lingus has been available for sale since May 2012 and the Board believes that the current IAG offer maximizes Ryanair shareholder value.
In line with this decision, Ryanair will now vote in favor of the motion at the Aer Lingus EGM on July 16 (to give the Irish Government a golden share over Aer Lingusโs Heathrow slots) and Ryanair will also vote its 29.8% shareholding in favor of acceptance of the IAG offer, subject to this offer receiving regulatory approval from the European competition authorities.
Ryanairโs Michael OโLeary said:
โWe believe the IAG offer for Aer Lingus is a reasonable one in the current market and we plan to accept it, in the best interests of Ryanair shareholders. The price means that Ryanair will make a small profit on its investment in Aer Lingus over the past 9 years.
This sale of our stake is timely given that our original strategy for Aer Lingus (to use it as a mid-priced brand to offer competition to flag carriers at primary airports) has been overtaken by the successful rollout โ since September 2013 โ of Ryanairโs โAlways Getting Betterโ strategy, which has seen the Ryanair brand successfully enter many of Europeโs primary airports, being rewarded with strong growth in our network, traffic, load factor and profitability, while keeping our fares low and our punctuality high.
We wish IAG well with their takeover of Aer Lingus. When Ryanair first bid for Aer Lingus in late 2006, Ryanair (36 million passengers) carried 4 times Aer Lingus traffic (9 million). Today Ryanair (over 100 million) carries more than 10 times Aer Lingus traffic (10 million), and we will continue to deliver the vast majority of Irelandโs traffic and tourism growth in the coming months and years.โ
Ken Odeluga, a senior market analyst at www.cityindex.com.sgย comments on this latest news:
It has taken the better part of seven months for IAG to put the final pieces of the Aer Lingus puzzle in place.
Ryanair has, after much delay, which it insisted was not down to intransigence, agreed to sell its 30% to IAG, which had already struck a deal with Irelandโs government to purchase the countryโs 25%.
Reports that the EU will swiftly grant conditional approval appear credible.
Concessions by IAG were accepted by the antitrust authorities this morning. IAG offered to relinquish some slots and to give its competitors special terms, like allowing them to provide connecting at favourable terms.
All these agreements will tend to focus investorsโ minds back on the details of the โฌ1.3 billion bid, for which a strong part of the rationale rests on highly prized routes from Heathrow and lucrative routes between the UK and North America.
Aer Lingus had 300 slots at Heathrow as of December, with industry figures suggesting each is worth at least ยฃ5 million ย per annum.
Also, Aer Lingus is not the unprofitable airline it was say about 15 years ago or more. Itโs stronger in margin terms than Lufthansa, for instance, and had at least โฌ550 million in free cash at last tally.
The additional 3.5%-4% of Heathrow market share will consolidate IAGโs dominance at the hub, ahead of the extension of capacity.
But now comes the hard part.
Despite its recent forecast upgrades, IAG remains the least profitable airline operator based in the UK or Ireland.
EasyJet and Ryanair are tightly matched and each seems to swap marginal dominance over the other every few years or so.
Either way, the pair has largely locked out all other large competitors in Europe, including IAG, for the last decade.
Plus, having already written down the value of its Aer Lingus stake, Ryanairโs ยฃ400 million proceeds from the sale will go straight to its bottom line.
The only way for a rival catch and match with the two above in terms of profits, is to grow, probably inorganically, and probably not in Europe, in the medium term.
With the soon-to-be-cemented deal, IAG has given itself the best chance among any large European carrier to close the profit gap, and the scale to absorb strategic hits to margins in Europe.
Top Copyright Photo: Paul Bannwarth/AirlinersGallery.com. Ryanair Boeing 737-8AS EI-DPM (msn 33640) lands in Tenerife Sur.
Ryanair aircraft slide show:ย
Aer Lingus aircraft slide show:ย
Bottom Copyright Photo: AirlinersGallery.com. Aer Lingus Airbus A319-111 EI-EPU (msn 3102) taxies to the gate at London’s Heathrow Airport.
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