Tag Archives: Airbus A330-941

Delta Air Lines announces fourth quarter and full year 2019 profit

Delivered on August 28, 2019

  • Full year 2019 pre-tax income of $6.2 billion and earnings per diluted share of $7.30, a nearly 30% increase over prior year
  • Record $1.6 billion profit sharing for Delta’s 90,000 employees
  • Full year 2019 operating cash flow of $8.4 billion and $4.2 billion in free cash flow

Delta Air Lines today reported financial results for the December quarter and full year 2019 and provided its outlook for the March quarter 2020.

  December Quarter Financial Highlights

  • Adjusted earnings per share of $1.70, a 31% increase year over year; above guidance of $1.20 to $1.50 on stronger revenue, lower fuel and a nine-cent net gain related to the unwinding of the GOL relationship
  • Total revenue grew to $11.4 billion, up 7% over prior year when prior year period is adjusted for sale of DAL Global Services (DGS)
  • Total unit revenue (TRASM), adjusted, increased 2.4%, exceeding expectations on strong holiday travel demand
  • Non-fuel operating expense on a unit basis (CASM-Ex) up 4.4% compared to the prior year period, in line with the company’s expectations of 4% to 5%

Full Year Financial Highlights

  • Adjusted earnings per share of $7.31, a 30% increase year over year
  • Total revenue increased to a record $47 billion, up 7.5% when prior year period is adjusted for third-party refinery sales and the sale of DGS
  • Total expense increased 3.9% with CASM-Ex up 2%, in line with the company’s guidance and long-term cost targets
  • Delta’s 90,000 employees will share a record $1.6 billion profit sharing payout on Feb. 14
  • Generated $8.4 billion of operating cash flow and $4.2 billion of free cash flow
  • Returned $3 billion to shareholders through dividends and share repurchases

“2019 was a truly outstanding year on all fronts – the best in Delta’s history operationally, financially and for our customers.  Our people, and their commitment to bringing best-in-class travel experiences to our 200 million customers, are the foundation for our success.  I’m pleased to recognize their outstanding performance with a record $1.6 billion in profit sharing for 2019,” said Ed Bastian, Delta’s chief executive officer. “As we enter 2020, demand for travel is healthy and our brand preference is growing, positioning Delta to deliver another year of strong results, including earnings per share of $6.75 to $7.75.”

Revenue Environment

For the full year, operating revenue grew to nearly $47 billion, up 7.5% when prior year period is adjusted for third-party refinery sales and the sale of DGS. Premium product ticket revenue increased 9% along with strong double-digit percentage increases from loyalty and third-party maintenance revenue.

Delta’s operating revenue of $11.4 billion for the December quarter improved 7.2% or $768 million over the prior year (adjusted for the sale of DGS). This was driven by a 9% increase in premium product ticket revenue, an 18% increase in loyalty revenue and a 31% increase in third-party maintenance revenue, which was partially offset by 13% lower cargo revenue.

December quarter passenger revenue by geographic region:

  • Domestic revenue grew 7.7% in the quarter on 1.6% higher passenger unit revenue (PRASM) and 6% higher capacity.  Domestic premium product revenue grew 11% and corporate revenue grew 6%, driven by strength in business and leisure demand through the holiday period. Revenue and margin improved in all domestic hubs with revenue up 10% in coastal hubs and 6% in core hubs.
  • Atlantic revenue grew 0.8% in the quarter on 2.4% higher capacity and a 1.6% decline in PRASM, driven almost entirely by foreign exchange rates.
  • Latin revenue grew 6.7% on a 6.3% increase in unit revenue and 0.4% higher capacity.  This revenue improvement was driven by continued double-digit unit revenue growth in Brazil and Mexico.
  • Pacific revenue was down 0.5% versus prior year on a 4.4% decline in unit revenue primarily due to continued softness in China.  This was a 3.2 point improvement versus the September quarter on improved trends in Japan and strong Delta Premium Select performance.

“Our industry-leading operational performance and the unmatched service our people provide are the reasons why more customers than ever are choosing to fly Delta. Investments in reliability, product and service, airports and technology are reshaping customer perception and driving record satisfaction scores and increasing brand preference.” said Glen Hauenstein, Delta’s president. “We delivered $47 billion in revenue in 2019, a more than $3 billion increase when adjusted over prior year, while sustaining a revenue premium to the industry of more than 110%. Demand trends remain healthy and we expect momentum to continue in 2020, with revenue growth of 5% to 7% in the March quarter.”

Cost Performance

For 2019, total expense increased 3.9%, driven by higher revenue- and capacity-related expenses, profit sharing, and pension expense, which were partially offset by $501 million lower fuel cost.  CASM-Ex for 2019 increased 2% versus prior year, reflecting Delta’s continued investment in our people, product and services.

Total expense for the December quarter increased 6.9% versus the prior year on higher revenue- and capacity-related expenses and profit sharing, which were partially offset by $315 million lower fuel cost.  CASM-Ex was up 4.4% for the December quarter compared to the prior year driven by investment in our people, product and services, and a mark-up of benefit-related balance sheet obligations.

Fuel expense decreased 14% relative to December quarter 2018.  Delta’s fuel price for the December quarter was $2.01 per gallon, including a $24 million benefit from the refinery.

Non-operating expense for the quarter was $256 million higher versus the prior year, driven primarily by pension expense and lower mark-to-market adjustments on investments, including our investment in GOL, which was sold during the December quarter 2019.

“Non-fuel unit costs for 2019 increased 2% versus prior year, in line with our long-term cost target and reflecting Delta’s continued investment in our people, product and services,” said Paul Jacobson, Delta’s chief financial officer.  “These investments supporting our long-term growth will continue into 2020, and we expect our non-fuel unit costs will increase 2% to 3% for the March quarter and full year.”

Cash Flow and Shareholder Returns

For the full year, Delta generated $8.4 billion of operating cash flow and $4.2 billion of free cash flow.  Full year cash flow is net of $1 billion of voluntary pension contributions, including $500 million made in the December quarter.

The company invested $4.5 billion into the business in 2019 including $954 million in the December quarter.  This supported the delivery of 88 new aircraft during the year.  The company’s ongoing fleet transformation is driving higher customer satisfaction, premium seat growth and improved fuel efficiency.

For the December quarter, Delta generated $969 million of operating cash flow and $141 million of free cash flow.  Delta returned $484 million to shareholders, comprised of $225 million of share repurchases and $259 million in dividends during the quarter.  For the full year, Delta returned $3 billion to shareholders, including $2 billion of share repurchases and $980 million in dividends.

“Strong cash generation continues to set Delta apart and enables consistent reinvestment in the business while maintaining cash returns to owners at 70% of free cash flow,” added Jacobson. “We expect to generate free cash flow of $4 billion again this year, putting us on track to deliver a three-year cumulative free cash flow of over $10 billion by the end of 2020.”

Strategic Highlights

In 2019, Delta achieved a number of milestones across its five key strategic pillars.

Culture and People

  • Delta people earned $1.6 billion in profit sharing and $87 million in Shared Rewards, recognizing the outstanding performance of Delta’s 90,000 employees through 2019.
  • Contributed over $60 million and 800,000 volunteer hours in 2019 as part of Delta’s commitment to the communities we serve.  Introduced The Great Delta Give-Back, reinforcing commitment to the communities Delta serves around the world by providing employees an annual paid day of service.

Operational Reliability

  • Delivered 281 days of zero mainline cancellations and 165 days of zero system cancellations through 2019, an improvement of 12% and 15%, respectively, versus 2018.
  • Reached record completion factor in 2019 on a system and mainline basis, with mainline completion factor of 99.83%.
  • Carried an all-time record 204 million customers in 2019, 6% more than prior year with a record load factor of 86.3%.
  • Achieved 2% fuel efficiency improvement through fleet renewal and other initiatives.  Delta also entered into an agreement with Gevo for 10 million gallons annually of sustainable aviation fuel.

Network and Partnerships

  • Strengthened global partnerships in all international entities with: the announcement of a strategic alliance with LATAM Airlines Group including completion of a tender offer to acquire a 20% equity stake; the equity investment in Hanjin-KAL the largest shareholder of Korean Air; approval by the U.S. DOT for anti-trust immunity for the expanded joint venture between Delta, Air France, KLM and Virgin Atlantic.
  • Announced a combination between Delta Private Jets and Wheels Up, a private aviation company, to create one of the world’s largest owned and managed fleets of private aircraft, with over 190 aircraft and 8,000 customers in the combined company.
  • Extended Delta’s global reach with new service between Amsterdam-Tampa, Boston-Edinburgh, Boston-Lisbon, Minneapolis-Mexico City, Minneapolis-Seoul, New York JFK-Bogota, New York JFK-Mumbai and Seattle-Osaka.

Customer Experience and Loyalty

  • Announced an 11-year contract renewal between Delta and American Express with contribution increasing from $4.1 billion in 2019 to nearly $7 billion by 2023, including a complete relaunch where cardholders will enjoy more ways to earn miles.
  • Added a record number of new SkyMiles Members in one year with the number of new Members increasing at more than triple the rate of just three years ago and added record 1.1 million new Delta American Express cardholders, marking the third consecutive year of more than one million new cardholders.
  • Debuted an industry-leading international Main Cabin experience designed by flight attendants to elevate and differentiate the customer experience on Delta featuring thoughtful touches like welcome cocktails, hot towel service, bistro-style dining and more.
  • Took delivery of 88 new aircraft including the A220-100 and A330-900neo, with in-flight entertainment, spacious overhead bins and memory foam cushions throughout the aircraft for additional comfort.
  • Released the updated FlyDelta app, providing automatic international check-in, integrated security wait times and the ability to pre-select meals in Delta One and domestic First Class.
  • Awarded the No.1 airline in Business Travel News Airline Survey for a record ninth consecutive year, sweeping all 11 categories.

Investment Grade Balance Sheet

  • Reported a 1.7x adjusted debt to EBITDAR ratio, toward the lower end of our long-term leverage ratio target of 1.5x to 2.5x adjusted debt to EBITDAR, which is expected to allow Delta to maintain investment grade ratings through a business cycle.
  • Completed a $1.5 billion unsecured debt offering through a mix of five- and 10-year notes at a blended rate of 3.24%, the lowest unsecured rates achieved by Delta for these lengths of maturity in its history.  The proceeds from this offering were used to fund the acquisition of the 20% equity stake in LATAM Airlines Group.

December Quarter and Full Year 2019 Results

 Adjusted results primarily exclude the impact of mark-to-market (“MTM”) adjustments.

Top Copyright Photo: Delta Air Lines Airbus A330-941 N403DX (msn 1931) NRT (Michael B. Ing). Image: 948780.

Delta aircraft slide show (Airbus):

AirAsia X takes delivery of its first Airbus A330-900

First Airbus A330neo for Thai AirAsia X

AirAsia has taken delivery of its first A330neo aircraft, to be operated by its long-haul affiliate AirAsia X Thailand. The aircraft was delivered via lessor Avolon and is the first of two A330neos set to join the airline’s fleet by the end of the year.

Photo: Airbus.

With its enhanced economics, the A330neo will bring a step-change in fuel efficiency for AirAsia’s long-haul operations. The new-generation A330neo will be based at Bangkok’s Don Mueang International Airport in Thailand, supporting the airline’s growth and network expansion plans to key markets such as Australia, Japan and South Korea.

Photo: Airbus.

The AirAsia X Thailand A330-900 features 377 seats in a two-class configuration, comprising 12 Premium Flatbeds and 365 economy class seats.

AirAsia’s long-haul affiliate, AirAsia X currently operates 36 A330-300 aircraft and is the largest customer for the A330neo with 66 on firm order.

Top Copyright Photo: AirAsia – AirAsia X (AirAsia.com) (Thai AirAsia X) Airbus A330-941 F-WWYG (HS-XJA) (msn 1901) TLS (Eurospot). Image: 946285.

Aircalin takes delivery of its first of two Airbus A330neo aircraft

First flight of Aircalin's first Airbus A330neo

Aircalin has taken delivery of its first of two Airbus A330-900 at a delivery ceremony in Toulouse, France, with the second aircraft joining the fleet later in 2019, replacing its existing two A330s. Aircalin is also a customer for the A320neo and will replace its existing two A320s to become an operator of two A330-900s and two A320neos.

Aircalin’s A330neos are configured in a comfortable three-class layout with 291 seats or 25 more seats than its existing smaller A330-200s. These include 26 business, 244 economy and for the first time, premium economy with 21 seats.

The A330neos will boost capacity and nonstop connectivity between the French Pacific Island territory and markets in Japan, Australia and the Pacific Islands nations, cutting fuel burn by 25% per seat (compared with previous generation competitors) and providing passengers with the latest standards in cabin comfort. These routes provide essential links to tourism as well as business traffic, which are essential to the New Caledonia economy.

Top Copyright Photo (all others by Airbus): Aircalin Airbus A330-941 F-WWCM (F-ONEO) (msn 1937) TLS (Eurospot). Image: 947001.

Aircalin aircraft slide show:

Airbus delivers the first A330neo to Delta Air Lines

Delta's first Airbus A330neo, to become N401DZ

Delta Air Lines took delivery of its first Airbus A330-900 (N401DZ), one of 35 A330neos the Atlanta, Georgia-based airline has on order.

Delta was the launch customer for the A330-900, ordering 25 in November 2014 and an additional 10 last year. With the addition of the A330-900, Delta is now operating both of Airbus’ newest widebody models. It has 13 A350-900s in its fleet with another 12 on order. Delta operates more than 265 Airbus aircraft including A321s and A220s, and the airline’s order backlog with Airbus exceeds 270 including 100 A321neos.

An environmental milestone was set as a Delta crew ferried the new A330-900 back to the company’s Atlanta base using a jet fuel blended from conventional sources and non-petroleum synthetic fuel.

Delta will initially base its A330-900s at Seattle-Tacoma International Airport, where it will operate the aircraft on flights to Shanghai, Seoul and Tokyo Narita. Delta will configure its A330-900s for 281 passengers, including 29 in business-class suites, 28 in premium economy, 56 in extra-legroom economy seats, and 168 in standard economy. The aircraft will feature Delta’s new internally developed in-flight entertainment system.

Powered by the latest Rolls-Royce Trent 7000 engines, and featuring a new wing with increased span and A350 XWB-inspired Sharklets, the A330neo provides an unprecedented level of efficiency – with 25 percent lower fuel burn per seat than previous generation competitors.

The A330-900 can accommodate 287 seats in a typical three-class layout or up to 440 for high-density configurations with a range of up to 7,200 nautical miles.

Top Copyright Photo (all others by Airbus): Delta Air Lines Airbus A330-941 F-WWKF (N401DZ) (msn 1915) TLS (Eurospot). Image: 946565.

Video:

Delta Air Lines aircraft slide show (Airbus):

ALC delivers the first Airbus A330-900neo to Air Mauritius

ALC has made this announcement:

Air Lease Corporation has announced the delivery of one new Airbus A330-900neo aircraft on long-term lease to Air Mauritius.  Featuring Rolls-Royce Trent 7000 engines, this Airbus aircraft is the first of two A330-900neos to deliver to the airline from ALC’s order book with Airbus.

The two new aircraft will replace two older Airbus A340-300s.

Moreover, based on its future fleet requirements, Air Mauritius is maintaining its order of two Airbus A350- 900 aircraft for 2019 and has decided to reschedule the delivery of the last two A350-900 aircraft, initially planned for 2020, to 2023.

Airbus made this announcement:

Air Mauritius has taken delivery of its first A330-900, on lease from ALC during a ceremony held in Toulouse. The national carrier of the Republic of Mauritius is the first A330neo operator based in the southern hemisphere, and the first airline in the world to operate a combination of both the A330neo and A350 XWB.

Benefiting from the A330neo’s unbeatable operating economics and award-winning Airspace cabin, the aircraft (named Aapravasi Ghat in reference to Mauritius’ history) will feature a two-class cabin with 28 business class seats and 260 economy class seats. The carrier will deploy the aircraft on routes connecting Mauritius to Europe (mainly London and Geneva), India and South East Asian routes and on regional destinations including Johannesburg, Antananarivo and Reunion Island.

Air Mauritius CEO Somas Appavou stated: “I am delighted to welcome our first Airbus A330neo, another milestone in our fleet modernisation programme. The addition of two A330neos to our fleet will bring more flexibility and efficiency to our operations while supporting our network strategy. The A330neo offers similar levels of comfort as the A350 XWB, which has received very favourable feedback from our customers. I strongly believe that with the addition of the A330neo to our fleet, Air Mauritius will further reinforce its focus and emphasis on the customer who are at the very core of our business model.”

“Sugar and spice and all things nice! Like its namesake, inspired by the island’s history in developing the sugar industry, their first A330neo will pioneer Air Mauritius into a whole different level of efficiency and flexibility by operating both the A330neo and the A350 XWB, our latest generation widebodies”, said Christian Scherer, Airbus Chief Commercial Officer. “Passengers will enjoy unmatched levels comfort in our award winning ‘Airspace by Airbus’ cabins on both aircraft. Well done to our trusted partner on being the world’s first airline to operate the A330neo and the A350 XWB together – a sweet combination!”

Air Mauritius currently operates nine Airbus aircraft, of which two A350-900s, three A340-300s, two A330-200s and two A319s on its regional and long haul services.

The A330neo Family is the new generation A330, comprising two versions: the A330-800 and A330-900 sharing 99 percent commonality. It builds on the proven economics, versatility and reliability of the A330 Family, while reducing fuel consumption by about 25% per seat versus previous generation competitor aircraft and offering an unrivalled range capability. The A330neo is powered by Rolls-Royce’s latest-generation Trent 7000 engines and features a new wing with increased span and new A350 XWB-inspired Sharklets.

With an order book of more than 1,700 aircraft from 120 customers to date, the A330 is the most popular widebody family.

Air Mauritius aircraft slide show:

Bottom Copyright Photo: Air Mauritius Airbus A330-941 F-WWCN (3B-NBU) (msn 1884) TLS (Eurospot). Image: 945855.

"Aapravasi Ghat", the first Airbus A330neo

Air Senegal receives Africa’s first Airbus A330neo

First Airbus A330neo for Air Senegal

Air Senegal has taken delivery of its first A330-900 from Airbus’ production line in Toulouse. The carrier is the first African airline to fly Airbus’ new generation widebody aircraft featuring latest technology engines, new wings with enhanced aerodynamics and a curved wingtip design, drawing best practices from the A350 XWB.

Above Photo: Airbus.

Fitted with a three-class cabin comprising 32 Business class, 21 Premium Plus and 237 Economy class seats, Air Senegal plans to operate its first A330neo on its Dakar-Paris route and to further develop its medium and long-haul network.

The A330neo is the true new generation aircraft building on the best-selling widebody A330’s features and leveraging on A350 XWB technology. Powered by the latest Rolls-Royce Trent 7000 engines, the A330neo provides an unprecedented level of efficiency – with 25% lower fuel burn per seat than previous generation competitors. Equipped with the Airspace by Airbus cabin, the A330neo offers a unique passenger experience with more personal space and the latest generation in-flight entertainment system and connectivity.

Top Copyright Photo: Senegal (Air Senegal) Airbus A330-941 F-WWCM (9H-SZN) (msn 1910) TLS (Eurospot). Image: 945725.

Air Senegal (3rd) aircraft slide show:

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TAP Portugal showcases its new Airbus A330-900neo on test flights

One of three new Airbus A330-900neos - first to fly

Starting on June 19, TAP’s new Airbus A330neo made the first of a series of flight tests around the world, in the TAP colors and with some TAP flight crew. The first flight in this series brought the A330neo to Lisbon for the first time, from where it flew to Rio de Janeiro, returning to the Portuguese capital before heading off once more, this time to São Paulo, Recife and Miami (below).

By the end of June, the A330neo in TAP’s colors will have carried out a test flight plan that will have taken it to Kuala Lumpur, Manila, Jakarta, Bangkok and Mauritius. During the final stage, TAP’s new aircraft will fly to New Delhi, Reykjavik, Chicago and Atlanta, before finishing its journey around the world by returning to the Airbus factory in Toulouse.


As the final step in the aircraft certification stage, these tests are also known as route tests and include ETOPS mission, diverted airport landings and handling tests. After visiting Europe, the A330neo will go on to visit the 15 main airports on five continents to achieve 150 hours of test flights.

The route verification tests are the latest requirements for Aircraft Type Certification scheduled for this summer.

On March 20 this year, TAP made history with this aircraft when TAP pilots took the A330-900neo for a flight in Toulouse. Normally only Airbus pilots are allowed to operate these flights. The aircraft was tested in several different flight configurations that are only used in training simulators, as well as several take-off and landing manoeuvres.

TAP will be the first airline in the world to operate the new A330-900neo aircraft. This aircraft will be the first equipped with the new version of the Airspace cabin, which is a new concept shaped to meet TAP’s ambition to offer the best product in the industry to its clients. As well as this new Airspace cabin interior, the A330neo will also incorporate the latest generation Rolls-Royce Trent 7000 jet turbines and aerodynamic improvements. With its unbeatable economy, versatility and reliability, the A330neo will consume up to 14% less fuel per seat, making it the world’s most efficient wide-bodied aircraft.

Top Copyright Photo (all others by Miami International Airport and Airbus): The first A330neo before its first flight: TAP Portugal – Air Portugal Airbus A330-941 F-WWCP (CS-TUB) (msn 1836) TLS (Eurospot). Image: 941471.

TAP aircraft slide show: