Tag Archives: Airbus A350-941

Delta orders 10 additional Airbus A330-900neos to replace older wide body jets

Delta Air Lines is adding 10 Airbus 330-900neo aircraft to its fleet under an agreement with Airbus and Rolls-Royce, expanding its order of the next-generation widebody jet from 25 to 35.

The first delivery of the state-of-the-art aircraft, which is powered by next-generation and fuel-efficient engine technology, is expected next year.

These changes are consistent with Delta’s long-term philosophy of investing 50 percent of operating cash flow back into the business, West said.

Delta will be the first U.S. airline to operate the next-generation A330-900neo, which will offer the latest in innovative design and technology for customers. It will be the first Delta aircraft to feature all cabins – Delta One suites, Delta Premium Select, Delta Comfort+ and Main Cabin. The jet also will be the first Delta aircraft to feature memory foam cushions throughout the aircraft for hours of comfort, and the first Delta widebody aircraft featuring its new wireless in-flight entertainment system in every seat.

Simultaneously, Delta has agreed to terms with Airbus to reduce its near-term A350-900 purchase commitment to a total of 15 aircraft from 25. The 10 previously on order A350 aircraft have been deferred to 2025-26 with certain flexibility rights including the right to convert these orders to A330-900s.

Delivered on December 12, 2017

Delta currently operates 11 Airbus A350-900 aircraft (above) and expects to take delivery of two A350s in 2019 and two in 2020.

In addition, Delta plans to retire older Boeing 767-300ERs in the years ahead as the aircraft reach the end of their serviceable life cycle.

Above Copyright Photo: Delta Air Lines Airbus A350-941 N505DN (msn 164) LAX (Michael B. Ing). Image: 943857.

Delta aircraft slide show (Airbus):

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Singapore Airlines to fly nonstop to Seattle/Tacoma

Singapore Airlines Airbus A350-941 9V-SMS (msn 158) SIN (Michael B. Ing). Image: 944221.

Seattle will become the fifth US city in Singapore Airlines’ route network – and the fourth to be served nonstop from Singapore – when new flights are introduced next year.

The nonstop Singapore-Seattle/Tacoma flights are due to be launched on September 3, 2019 and will initially be operated three times per week before increasing to four times per week in October 2019.

Airbus A350-900 aircraft will be used on the route, fitted with 42 Business Class, 24 Premium Economy Class and 187 Economy Class seats.

Subject to regulatory approvals, flight SQ28 will initially depart Singapore at 0925 hrs every Tuesday, Thursday and Saturday and arrive in Seattle/Tacoma at 0905 hrs on the same day (all times local). The return sector, operated as SQ27, will depart Seattle/Tacoma at 1040 hrs every Tuesday, Thursday and Saturday and arrive in Singapore the following day at 1730 hrs. From October 2019, flight SQ28 and flight SQ27 will operate every Tuesday, Thursday, Saturday and Sunday.

The new Seattle flights will complement Singapore Airlines’ existing services to the US cities of Houston, Los Angeles, New York (both JFK and Newark airports) and San Francisco. Singapore Airlines recently  introduced daily nonstop flights between Singapore and Newark and from tomorrow will fly nonstop between Singapore and Los Angeles using Airbus A350-900ULR (ultra-long-range) aircraft. Existing nonstop services to San Francisco will also be increased from seven to 10 flights per week with effect from November 28, 2018.

Singapore Airlines will operate 53 flights per week to the US by December 2018, including 27 nonstop Singapore-US services. With the introduction of the new Seattle flights next year, total US frequency will increase to 57 flights per week.

Top Copyright Photo (all others by the airline): Singapore Airlines Airbus A350-941 9V-SMS (msn 158) SIN (Michael B. Ing). Image: 944221.

Singapore aircraft slide show:

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Philippine Airlines launches its nonstop New York route

First flight June 7, 2018, first Philippines Airbus A350-900

On October 29, 2018, Philippine Airlines marked another milestone in aviation history as the first airline to fly nonstop service to New York from the Philippines.

A brand-new PAL Airbus A350-900 commenced the historic flight when it departed as flight PR126 from Manila’s Ninoy Aquino International Airport for a 16-hour nonstop journey across the North Polar regions, to land at New York’s John F. Kennedy International Airport on the evening of the same day.

From October 29 to November 3, 2018 PAL will operate a four times weekly service (Monday / Tuesday / Thursday / Saturday) from Manila to New York.

PR126 departs from Manila at 8:10 PM and arrives in New York JFK at 11:15 PM (local time) on the same day. By November 5, Manila departure will shift to 9:00 PM and arrival in New York JFK remains at 11:15 PM. Starting on December 6, 2018, PAL will start serving the MNL-JFK route five times weekly with the introduction of the 5th frequency (every Wednesday).

From October 30 to November 5, PAL will serve the New York to Manila route four times weekly (Tuesday/ Wednesday / Friday / Sunday).

PR127 will leave New York JFK at 1:45 AM (local time) and touch down in Manila is at 6:25 AM the following day. By November 7, arrival in Manila will be at 7:25 AM (note: departure from New York remains at 1:45 AM local time.)

PAL will operate the 5th frequency (every Thursday) out of New York starting December 13.

All PAL flights to New York will depart from NAIA Terminal 2. PAL flights from New York will arrive at NAIA Terminal 1. However, PAL flights to and from Canada, i.e. Vancouver and Toronto, will use NAIA Terminal 1 as their point of departure and arrival in Manila.


Above Photo: PAL. Leading the Flight: PAL A350 Chief Pilot Captain Emmanuel ‘Butch’ Generoso (second from the left) and Captain Jose David (left).

Top Copyright Photo: Philippines (Philippine Airlines) Airbus A350-941 F-WZNA (RP-C3501) (msn 221) TLS (Eurospot). Image: 942285.

PAL aircraft slide show:

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Iberia to bring the Airbus A350-900 to Chicago O’Hare and Buenos Aires

Iberia Airbus A350-941 F-WZHC (EC-MYX) (msn 227) TLS (Paul Bannwarth). Image: 942971.

Iberia is assigning the new Airbus A350-900 to two new routes; Chicago (O’Hare) (May 2019) and Buenos Aires (February 2019) from the Madrid hub.

A350-900.jpg

Top Copyright Photo (all others by Iberia): Iberia Airbus A350-941 F-WZHC (EC-MYX) (msn 227) TLS (Paul Bannwarth). Image: 942971.

Iberia aircraft slide show:

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Delta proposes Minneapolis-St. Paul – Shanghai route to begin in 2020

Delivered on April 13, 2018

Delta Air Lines plans to connect its Minneapolis-St. Paul hub and China for the first time in 2020, with a proposed route to Shanghai operated with its state-of-the-art Airbus A350-900 aircraft, subject to government approvals from the United States and China.

The announcement follows recently announced new Delta service from MSP to Seoul-Incheon, which begins April 1, 2019, and complements existing Asia nonstop Delta service to Tokyo-Haneda International Airport from MSP.

Commercial airline service between the U.S. and China is governed by existing agreements that limit the ability of U.S. and Chinese carriers to establish new flying between the two countries. Currently, however, there is availability for additional U.S.-China service that is not being utilized.

In its proposal to the DOT, Delta outlines its ability to offer travelers access to more than 70 destinations in China beyond Shanghai in cooperation with partners China Eastern and Shanghai Airlines. In addition, Chinese customers would be able to connect to more than 100 U.S. destinations through a single, convenient connection at Delta’s MSP hub.

Delta’s flagship A350-900 aircraft has 306 total seats, including 32 award-winning Delta One suites, 48 seats in the Delta Premium Select cabin, and 226 main cabin seats. All seats offer personal inflight entertainment, power ports and ample overhead bin space. All cabins of service include complimentary meals, snacks and beverages.

Top Copyright Photo (all others by Delta): Delta Air Lines Airbus A350-941 N509DN (msn 199) LAX (Michael B. Ing). Image: 943941.

Delta air4craft slide show:

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Hainan Airlines today puts the first Airbus A350-900 into service

First Airbus A350-900 for Hainan Airlines

Hainan Airlines flight HU7607 took off from Beijing and landed at Shanghai Hongqiao International Airport at 11:00 am on October 13 Beijing time, marking the successful completion of the maiden commercial revenue flight of the first Airbus A350 aircraft owned by Hainan Airlines Holding Co., Ltd.

The A350-900 provides passengers with a new standard of travel experience with its leading modern cabins. The business class comes equipped with the Staggered seat layout for enhancing passenger privacy and the classic Straight-Line design. In addition, the front section of economy class is equipped with 18″ wide seats that deliver up to 34-35″ in legroom, providing economy class passengers with priority seat selection of extra legroom. Every seat of the aircraft comes with the seat-back entertainment system. Passengers on selected aircraft are also served cappuccino or espresso brewed by a high-end fully-automatic Nespresso capsule coffee machine.

Hainan Airlines’ young luxury fleet now counts over 400 aircraft, mainly consisting of Boeing 737s, 787s and Airbus 330s.

In 2018, the airline will add four new A350-900 aircraft, which will serve Hainan Airlines’ international and domestic routes with the aim of providing passengers with a more convenient and comfortable travel experience.

Copyright Photo (all others by Hainan): Hainan Airlines Airbus A350-941 F-WZFG (msn 226) TLS (Eurospot). Image: 943405.

Hainan Airlines aircraft slide show:

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Delta announces its third quarter profit

Delivered on March 6, 2018

Delta Air Lines today reported financial results for the September quarter:

2018. Highlights of those results, including both GAAP and adjusted metrics, are below and incorporated here.

Adjusted pre-tax income for the September quarter 2018 was $1.6 billion, and adjusted earnings per share were $1.80, at the high end of guidance. Adjusted earnings per share were up 16 percent compared to the prior year quarter, driven by revenue momentum, tax reform benefits and a four percent lower share count. Results reflect a $30 million negative impact from Hurricane Florence.

“Our solid eight percent revenue growth, combined with flat non-fuel unit cost performance, helped offset 85 percent of the $655 million fuel cost increase in the quarter. These achievements are a testament to the strength of the Delta business model and the hard work of the Delta people, and I am pleased to recognize their performance with an additional $395 million toward 2018 profit sharing,” said Ed Bastian, Delta’s chief executive officer. “Our commercial momentum and improved cost trajectory give us confidence that we are on a path to deliver continued top-line growth and expand margins as we move into 2019.”

Revenue Environment

Delta’s adjusted operating revenue of $11.8 billion for the September quarter improved eight percent, or $912 million versus the prior year. This quarterly revenue result marks a record for the company, driven by improvements across Delta’s business, including a nearly 20 percent increase in premium product ticket revenues and double-digit percentage increases in cargo, loyalty and Maintenance, Repair and Overhaul revenue.

Total unit revenues excluding refinery sales (TRASM) increased 4.3 percent during the period driven by strong demand and improving yields. Foreign exchange benefit of approximately half a point was offset by the impact of Hurricane Florence.

“We generated record revenues in the September quarter on strong demand across the business and a favorable yield environment. In the December quarter we expect total unit revenue growth of three to five percent, driving full year revenue growth to eight percent, the high end of our guidance,” said Glen Hauenstein, Delta’s president. “The benefits of our brand, industry-leading network, and relentless focus on the customer are driving revenue growth, improving margins and accelerating the pace of our recapture of higher fuel costs.”

 

Increase (Decrease)

3Q18 versus 3Q17

Change Unit
Revenue 3Q18 ($M) YoY Revenue Yield Capacity

Domestic $ 7,395 9.2% 3.3% 3.2% 5.6%

Atlantic 1,996 10.7% 7.8% 7.0% 2.7%

Pacific 730 3.0% 4.8% 6.3% (1.7)%

Latin America 675 (2.6)% (2.9)% (0.8)% 0.3%

Total Passenger $ 10,796 8.2% 4.2% 4.2% 3.9%

Cargo Revenue 226 18.5%

Other Revenue 931 4.4%

Total Revenue $ 11,953 8.1% 4.0%

Third Party Refinery Sales (108)

Total Revenue, adjusted $ 11,845 8.3% 4.3%

December Quarter 2018

Despite an expected 30 percent increase in fuel price, Delta expects pre-tax margins to stabilize in the December quarter driven by continued top-line growth and improving cost performance.

See Note A for information about reconciliation of projected non-GAAP financial measures

Cost Performance

Total adjusted operating expenses for the September quarter increased $1.0 billion versus the prior year quarter, with more than half of the increase driven by higher fuel prices.

CASM-Ex was flat for the September quarter 2018 compared to the prior year period, a three-point improvement from the June quarter. Efficiency gains successfully offset cost pressures from higher revenue-related costs and product and employee investments.

“The September quarter marked an important inflection point in changing our non-fuel cost trajectory, and we expect to deliver on our full-year target of one to two percent non-fuel unit cost growth,” said Paul Jacobson, Delta’s chief financial officer. “Continued focus on cost control, along with incremental efficiency gains from refleeting and One Delta, give us confidence in our ability to keep our non-fuel unit cost growth below two percent next year.”

Adjusted fuel expense increased $655 million, or 35 percent, relative to September quarter 2017. Delta’s adjusted fuel price per gallon for the September quarter was $2.22, which includes $12 million of benefit from the refinery.

Adjusted non-operating expense improved by $30 million versus the prior year, driven primarily by pension expense favorability. The company expects 2018 full-year adjusted non-operating expense to be approximately $300 million, representing a $160 million improvement over prior year due to favorable interest and pension expenses, offsetting reduced partner earnings due to higher fuel.

Adjusted tax expense declined $221 million for the September quarter primarily due to the reduction in Delta’s book tax rate from 34 percent to 23 percent.

 

4Q18 Forecast

Earnings per share

$1.10 – $1.30

Pre-tax margin

9% – 11%

Fuel price, including taxes, settled hedges and refinery impact

$2.47 – 2.52

Total revenue growth (year-over-year)

Up ~8%

Total unit revenue excluding refinery sales (year-over-year)

Up 3% – 5%

CASM – Excluding fuel and profit sharing (year-over-year)

Flat – down 1%

System Capacity (year-over-year)

Up ~4%

 

Cash Flow and Shareholder Returns

 

Delta generated $1.5 billion of operating cash flow and $655 million of free cash flow during the quarter, after the investment of $865 million primarily for aircraft purchases and modifications.

For the September quarter, Delta returned $566 million to shareholders, comprised of $325 million of share repurchases and $241 million in dividends.

Strategic Highlights

In the September quarter, Delta achieved a number of milestones across its five key strategic pillars.

Culture and People

  • Received certification as a great workplace by the independent analysts at Great Place to Work for a third straight year, with 93 percent of employees proud to work for Delta, reiterating the importance of the Delta culture.
  • Earned a spot in the transportation section of the Dow Jones Sustainability North America Index for the eighth consecutive year, as the first airline to offer carbon offsets to customers and the only airline to cap emissions at 2012 levels through purchase of carbon offsets.Operational Reliability
  • Delivered 97 days of zero system cancellations across the combined mainline and Delta Connection operations on a year-to-date basis, up 46 days from 2017 and exceeding the previous full-year record in the first nine months of the year.
  • Achieved industry-leading operational performance with mainline on-time performance (A0) of 71.5 percent year-to-date; and top baggage performance as measured in the latest Department of Transportation report.Network and Partnerships
  • Achieved major milestones in the Delta/Korean joint venture including the completion of pricing harmonization, co-location of teams in Seoul and Atlanta, and broad alignment of commercial strategy.
  • Signed a definitive agreement with WestJet that, after regulatory approval, will create a transborder joint venture serving more than 30 cities, which covers over 95 percent of U.S.-Canadian demand, providing enhanced offerings and more choice for customers.
  • Continued Delta’s global and domestic expansion with the announcement of plans to expand access to London-Heathrow and Paris-Charles de Gaulle from key hubs and gateways including Detroit, Los Angeles, New York-JFK, and Portland, Ore; new Boston to Lisbon service; new Tampa to Amsterdam service; additional frequency to Tel Aviv from New York-JFK; and, new Honolulu service from Detroit.Customer Experience and Loyalty
  • Installed seat-back entertainment on its 600th aircraft, more than any airline in the world, giving more customers than ever convenient access to free in-flight entertainment on Delta Studio.
  • Announced the launch of the first biometric terminal in the United States, transforming the customer journey with a seamless travel experience through the Maynard H. Jackson International Terminal in Atlanta.
  • Launched personalized company sites to allow individual corporate travelers to stay up to date on benefits they receive through their company’s Corporate Sales Agreement with Delta.Investment Grade Balance Sheet

• Received reaffirmation of an investment-grade credit rating by S&P Ratings, showing the confidence of the market in the sustainability and durability of the company.

 

 

September Quarter Results

Special items for the quarter consist primarily of mark-to-market adjustments on refinery fuel hedges and unrealized gains/losses on investments.

 

GAAP Adjusted

($ in millions except per share and unit costs) 3Q18 3Q17 3Q18 3Q17

Pre-tax income 1,674 1,776 1,601 1,696

Net income 1,312 1,159 1,236 1,109

Diluted earnings per share 1.91 1.61 1.80 1.54

Operating revenue 11,953 11,061 11,845 10,933

Operating expense 10,311 9,238 10,220 9,184

Fuel expense 2,498 1,785 2,514 1,859

Average fuel price per gallon 2.21 1.61 2.22 1.68

Consolidated unit cost (CASM/CASM-Ex) 14.15 13.17 9.62 9.62

Non-operating income/(expense) 32 (47) (24) (53)

Total unit revenues (TRASM/TRASM, adjusted) 16.40 15.77 16.25 15.58

Copyright Photo: Delta Air Lines Airbus A350-941 N508DN (msn 190) LAX (Michael B. Ing). Image: 943863.

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