Tag Archives: Anchorage

Alaska Airlines suspends operations at Anchorage due to earthquake damage

Alaska Airlines has issued this statement:

We understand there’s considerable damage being reported at Ted Stevens International Airport in Anchorage, Alaska, due to a 7.0 magnitude earthquake that hit this morning. There are no reports of any injuries to employees or guests at the airport.

As a precaution, Alaska Airlines is suspending operations at the airport until at least 12:30 p.m. Pacific (11:30 a.m. Alaska) to allow for a thorough safety assessment of the facility and infrastructure. We are pausing arrivals and departures in and out of Anchorage during this time.

Photo: Frank K./Wikipedia.

ANC issued this status report:

 

The airport is open. The arrivals and departures ramps are closed. The commercial curb where taxis and shuttles arrive is available, follow traffic control.

TSA is screening passengers. Check with your airline for current information.

The N/S Terminals have sustained some cosmetic damage. Water mains were ruptured. All elevators and escalators are out of service. Electrical Power is working, and backup generators are on standby.

Video:

Alaska Airlines opens a new hangar at Anchorage

From the Alaska Airlines blog:

By Tim Thompson, state of Alaska, public affairs

Flying Boeing 737 Next Generation aircraft in the Last Frontier has its challenges: inclement weather, remote locations, the occasional seal or caribou occupying the runway. But with over 86 years of flying experience, we’re pretty adept at meeting challenges.

This is especially true when it comes to making sure our aircraft are maintained with a focus on safety and performance. To meet the rigors of flying in Alaska and beyond, we unveiled a brand new Maintenance and Engineering Facility in Anchorage, Alaska this week.

dsc00120 New Anchorage hangar built to house two of our largest 737s

The $50 million state-of-the-art building more than doubles the size of our original ’50s-era hangar. The old hangar is also unable to accommodate the Next Generation aircraft currently flying in the state. This means maintenance and engineering (M&E) personnel have been forced to work outside in the elements for routine maintenance and repairs. The new facility, spanning 100,000 square feet, will be able to house two of our largest aircraft in a covered and controlled environment.

“Our existing facility has served us well for many years. But as we grow and add larger planes to our fleet, the time was right for us to upgrade our northernmost maintenance facility,” said Kurt Kinder, Alaska Airlines vice president of maintenance and engineering.

The new hangar is part of our “2020 Great Land Investment Plan,” an investment of over $100 million across the state of Alaska. This plan includes updating and, in some cases, expanding 11 airline-owned terminals as well as adding three 737-700 Next Generation freighter aircraft to our fleet, which will improve the ability to serve cargo customers’ needs with scheduled freighter service.

At the hangar’s grand opening, we presented a $50,000 check to Yuut Elitnaurviat for their new Airframe and Powerplant (A&P) School in Bethel, Alaska. This donation will help support the training of future aviation technicians, with the first cohort of students starting at the A&P school in February 2019.

“Alaska Airlines provides a vital and unique service in the state of Alaska, unlike any other place we fly,” said Marilyn Romano, Alaska Airlines regional vice president. “These improvements within the state allow us to better serve our communities, business partners and the people of Alaska for decades to come.”

Video:

The new hangar is a LEED (Leadership in Energy and Environmental Design) certified facility and designed to meet our fleet additions for the next 30-50 years. It will house over 80 employees, including those from M&E and Stores, and will become our new regional headquarters for the state of Alaska.

We’re the largest passenger carrier in Alaska with 126 peak season departures and 19 destinations throughout the state.

Fun facts

  • The new hangar measures 100,000 square feet, twice as big as the existing Anchorage maintenance hangar.
  • The new hangar will be able to house two Boeing 737-Max 9 aircraft, which will be the longest/widest planes in our fleet.
  • Built in 1954, our current Alaska hangar was originally owned by Northern Consolidated Airlines and designed to accommodate Douglas DC-3 aircraft.
  • Over 500 Alaskans built the new Maintenance and Engineering Hangar.
  • In addition to the Anchorage hangar, we have a maintenance hangar in Seattle.

Photos by Larry Harris.

Delta to restore the seasonal Portland – Anchorage route

Delta Air Lines Boeing 737-932 ER WL N817DN (msn 31928) SEA (Michael B. Ing). Image: 924987.

Delta Air Lines (Atlanta) will restore the summer seasonal route between Portland, Oregon and Anchorage, Alaska on May 13, 2016. The restored route will be operated four days a week with Boeing 737-900s according to Airline Route.

Copyright Photo: Michael B. Ing/AirlinersGallery.com. Delta has been building up its nearby Seattle-Tacoma International Airport hub so it is not surprising this route from the Pacific Northwest to Alaska is being restored. Boeing 737-932 ER N817DN (msn 31928) taxies to the runway at SEA.

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Alaska Airlines and Icelandair enter into a codeshare agreement

Alaska Airlines (Seattle/Tacoma) and Icelandair (Keflavik) have entered into a codeshare agreement and frequent flier partnership, which will give customers easier connections and more ways to earn benefits when flying between the U.S. and Europe.

Icelandair logo-1 (LRW)

With the new codeshare agreement, to take effect November 1 pending government approval, customers flying on Alaska Airlines and Icelandair will enjoy seamless reservations and ticketing, one-stop check-in, baggage checked to its final destination, coordinated flight schedules, the ability to earn miles and/or points on the reciprocal airline and consistent passenger service standards.

Elite-level members of each airline’s frequent flier program also will receive reciprocal club lounge benefits.

Icelandair operates flights from 16 cities in North America to Iceland with connections to more than 20 destinations in Europe, including Amsterdam, Brussels, Copenhagen, Frankfurt, London and Paris. Travelers can also enjoy an Icelandair stop-over to visit the city of Reykjavik and tour surrounding areas for up to seven nights at no additional airfare charge.

As an added benefit, starting October 1 Alaska Airlines Mileage Plan MVP Gold and Gold 75K members will receive complimentary access to Icelandair’s Saga Lounge at Keflavik International Airport in Reykjavik and Icelandair Saga Gold and Silver members will enjoy complimentary access to Alaska Board Room lounges in Seattle, Portland, Anchorage and Los Angeles.

Members of Alaska Airlines Mileage Plan can begin earning miles on Icelandair starting October 1, and through December 15, 2015 the airline is offering double miles.* Miles flown will count toward elite status in Alaska’s Mileage Plan. Members of Icelandair’s Saga Club can begin earning Saga Points for flights on Alaska starting October 1. Redemption for award travel will start later this year.

Icelandair has a long history of providing flights from the United States to Europe. The airline offers onboard Wi-Fi access, personal inflight entertainment, three cabins of service and two free checked bags for customers. Icelandair Saga Club, Icelandair´s frequent flier program, offers members multiple options to redeem their Saga Points, whether it is a flight with Icelandair, onboard refreshments and duty free items, hotel accommodations around the world or gift certificates at various retailers in U.S. and Canada. The most frequent fliers with Saga Gold and Silver status enjoy excellent benefits, such as upgrades, lounge access and extra baggage allowance.

Over the last few years Alaska has grown its codeshare and frequent flier partnerships with the world’s best airlines to provide customers with convenient service to most every point on the globe. In July, Alaska added China-based carrier Hainan Airlines as a Mileage Plan partner. Mileage Plan was ranked “Highest in Customer Satisfaction with Airline Loyalty Rewards Programs, Two Years in a Row” in the J.D. Power Airline Loyalty/Rewards Program Satisfaction Report.

Copyright Photo: Ken Petersen/AirlinersGallery.com. Boeing 757-208 TF-FIP (msn 30423) of Icelandair touches down in Anchorage, Alaska.

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Atlas Air Worldwide reports second quarter adjusted net income of $29.4 million

Atlas Air Worldwide Holdings, Inc. (Atlas Air and Polar Air Cargo) (New York) today announced adjusted net income attributable to common stockholders of $29.4 million, or $1.17 per diluted share, for the three months ended June 30, 2015, compared with $15.9 million, or $0.63 per diluted share, for the three months ended June 30, 2014.

Atlas Air Worldwide logo

On a reported basis, net income attributable to common stockholders in the second quarter of 2015 totaled $28.4 million, or $1.13 per diluted share, compared with $29.6 million, or $1.17 per diluted share, in the year-ago quarter.

Free cash flow of $68.5 million in the second quarter of 2015 compared with $59.2 million in the second quarter of 2014.

“Earnings in the second quarter were driven by contribution and margin strength in ACMI, Charter and Dry Leasing,” said William J. Flynn, President and Chief Executive Officer.

“We are seeing good demand for our aircraft and services as we enter the second half of 2015, as many of our customers are outperforming the overall market. We are working closely with our customers to provide them with the most efficient aircraft and effective operating services for their needs.

“As we gather additional insight into second-half demand, yields and military requirements, we continue to look forward to a strong year and a significant increase in earnings compared with 2014.”

Responding to market demand and customer requirements, we are implementing several previously announced fleet initiatives that are incorporated in our framework outlook for the year: placing an additional 747-400 freighter in ACMI service with DHL Express at the start of the third quarter; acquiring a new 747-8 freighter scheduled to be delivered to us in November; returning an owned, unencumbered 747-400 converted freighter to active service to meet additional Charter demand; securing a short-term operating lease on a second 747-400 converted freighter in Charter with more favorable terms; and expanding our Titan Dry Leasing portfolio by acquiring and converting two 767 passenger aircraft into freighter configuration. The freighters will be leased to DHL on a long-term basis when they are delivered in the fourth quarter.

 

Second-Quarter Results

Revenue and direct contribution in ACMI in the second quarter benefited from an increase in block hour volumes, driven by the start-up of four additional 767 CMI aircraft and an improvement in 747 cargo aircraft utilization. Segment contribution also benefited from lower heavy maintenance expense. These were partially offset by a reduction in revenue per block hour, which reflected the impact of payments received from a customer in 2014 in connection with the return of an aircraft as well as an increase in CMI flying in 2015.

In Charter, significantly higher segment revenues reflected an increase in commercial cargo demand and improvements in military passenger and cargo demand. In addition, segment contribution benefited from those higher flying levels and a reduction in heavy maintenance expense. The decrease in revenue per block hour was primarily driven by the impact of lower fuel prices.

In Dry Leasing, revenue and profitability grew as we realized revenue from maintenance payments related to the scheduled return of a 757-200 cargo aircraft in April. This aircraft was subsequently leased to DHL Express on a long-term basis during the quarter.

Reported earnings for the second quarter of 2015 included an effective income tax rate of 31.0%, which reflected our continued reinvestment of the net earnings of certain foreign subsidiaries outside of the U.S.

Half-Year Results

For the six months ended June 30, 2015, adjusted net income attributable to common stockholders totaled $55.2 million, or $2.20 per diluted share, compared with $27.1 million, or $1.07 per diluted share, for the six months ended June 30, 2014.

On a reported basis, first-half 2015 net income attributable to common stockholders totaled $57.6 million, or $2.29 per diluted share, compared with $37.5 million, or $1.49 per diluted share, in the first half of 2014.

Free cash flow totaled $148.8 million in the first six months of 2015 compared with $96.1 million in the first six months of 2014.

Liquidity and Capital Resources

At June 30, 2015, our cash, cash equivalents, restricted cash and short-term investments totaled $554.9 million, compared with $330.7 million at December 31, 2014.

The change in position reflected net cash of $171.1 million provided by operating activities; net cash of $104.4 million provided by financing activities, which included $99.1 million of debt payments; and net cash of $59.4 million used for investing activities.

In June 2015, we issued $224.5 million of convertible senior notes due June 2022 with a cash coupon of 2.25%. We used a portion of the approximately $218 million of net proceeds from the offering in June to fund the $16.6 million net cost of convertible note hedges and warrants related to the notes. These transactions are intended to offset any actual dilution from the conversion of the notes and to effectively increase the overall conversion price from $74.05 to $95.01 per share.

During the third quarter of 2015, we expect to use approximately $113 million of the net proceeds to retire higher-rate Enhanced Equipment Trust Certificates (EETCs) related to five of our 747-400 freighter aircraft. The redemption amount gives effect to the company’s ownership interests in the EETCs being retired, which have an average cash coupon of 8.1%.

We expect to use the remaining net proceeds from the convertible note issuance for working capital and capital expenditures, repayment or refinancing of debt, and general corporate purposes.

Outlook

We are encouraged by our strong first-half performance. We are seeing good demand for our aircraft and services this quarter and for the remainder of the year. And we continue to anticipate significant growth in adjusted diluted earnings per share in 2015.

On a sequential basis, we expect earnings per share in the third quarter of 2015 to be slightly better than our second-quarter 2015 adjusted earnings, followed by further earnings improvement in the fourth quarter.

Taking our first-half 2015 earnings strength into account, we continue to expect approximately 55% of our earnings to occur in the second half.

In addition, we anticipate that block-hour volumes this year will increase approximately 10% compared with 2014, including the impact of the 747-8 freighter scheduled to be delivered in November and 747-400BCF that we returned to service at the end of the second quarter. More than 70% of our total block hours should be in ACMI and the balance in Charter. Our ACMI outlook reflects expected growth in both 747 freighter operations as well as CMI flying. Our Charter outlook reflects our strong presence in the global charter market and military demand that is holding up well compared with 2014 levels.

In Dry Leasing, our portfolio is expected to include our recent acquisition and subsequent conversion of two 767 passenger aircraft to freighter configuration. Following their conversion, which should be completed during the fourth quarter of this year, the aircraft will be leased to DHL Express.

Given the flying levels that we anticipate, we continue to expect that aircraft maintenance expense in 2015 should total approximately $190 million. In addition, depreciation should be approximately $125 million. We also anticipate an effective income tax rate of approximately 30%. Core capital expenditures, excluding aircraft and engine purchases, are expected to total approximately $45 million, mainly for spare parts for our fleet. Expenditures for additional aircraft and engines should total approximately $240 million.

Copyright Photo: Michael B. Ing/AirlinersGallery.com. Polar Air Cargo’s Boeing 747-46NF N454PA (msn 30812) in DHL colors departs from scenic Anchorage, Alaska.

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UPS exceeds forecasts for the second quarter, international operating profit jumps 17%

UPS (United Parcel Service) (UPS Airlines) (Atlanta and Louisville) today announced second quarter 2015 diluted earnings per share of $1.35, a 12% increase over adjusted results for the same period last year. All three segments improved operating profit and margin, led by International and Supply Chain and Freight performance.

The company continued:

UPS-We Love Logistics logo

Highlights:

  • All Segments Improve Profitability and Expand Margins
  • International Operating Profit Jumps 17%
  • Export Shipments up 5.5% with Strong Intra-Europe Growth
  • Supply Chain and Freight Operating Profit Climbs 18%
  • Revenue Growth Dampened by Changes in Currency and Fuel Prices
  • 2015 EPS Growth at Higher End of 6%-to-12% Guidance Range

Currency exchange rates and lower fuel surcharges reduced total reported revenue growth. Total revenue declined 1.2% from the same quarter last year to $14.1 billion. Pricing initiatives continue to drive base rates higher.

“During the quarter, UPS continued to invest for the future by expanding capacity and launching new capabilities that provide higher value to customers,” said David Abney, UPS chief executive officer. “The strong momentum in our International segment is expected to continue and gives us confidence in achieving the upper end of our guidance range.”

On a reported basis, operating profit increased $1.2 billion, and diluted earnings per share was up $0.86. In the second quarter of 2014, UPS reported diluted earnings per share of $0.49, which included a $665 million after-tax charge for the transfer of certain post-retirement liabilities to defined contribution healthcare plans.

Total company shipments increased 2.1% over the second quarter last year to 1.1 billion packages, led by U.S. Deferred Air products and International Export shipments.
Cash Flow

For the six months ended June 30, UPS generated $3.3 billion in free cash flow. The company paid dividends of $1.3 billion, an increase of 9.0% per share over the prior year. UPS also repurchased 13.5 million shares for approximately $1.4 billion.

U.S. Domestic Package

U.S. Domestic revenue increased $140 million over the second quarter last year to $8.8 billion. Shipment growth was led by Deferred Air products up 15% and UPS SurePost which increased more than 8%. Total daily deliveries grew 1.8% due to a slower pace of B2C (business-to-consumer) growth.

Operating profit was $1.2 billion, up $35 million or 3.0% over prior-year adjusted results. Operating margin expanded to 13.6% as improved pricing and productivity offset higher benefit costs.

On a reported basis, operating profit increased $992 million after the transfer of certain post-retirement liabilities to defined contribution healthcare plans, which occurred in the second quarter of last year.

Continued improvements in base rates were offset by lower fuel surcharges. Revenue per package was flat, as changes in fuel surcharges dropped reported yield by almost 300 basis points.

International Package

Currency-adjusted International revenue was up 1.5% over the same period last year. UPS daily Export shipments increased 5.5%, primarily due to an 8.5% increase in intra-Europe shipments. The strong dollar drove U.S. imports higher, while U.S. exports were down slightly.

International operating profit increased $81 million, or 17% over the adjusted results for the same period in 2014. Network improvements, volume growth and pricing initiatives all contributed to expanded operating margin and increased profitability. The segment experienced growth from middle-market accounts and improved premium product sales.

On a reported basis, operating profit increased $108 million after the transfer of certain post-retirement liabilities to defined contribution healthcare plans in the second quarter of last year.

Underlying base rates were up across all regions, though revenue per package decreased 2.4% on a currency-neutral basis. Lower fuel surcharges reduced reported revenue per package by about 350 basis points.

Supply Chain & Freight

Supply Chain & Freight revenue declined 4.5% to $2.2 billion, due to Forwarding revenue management initiatives, currency and lower fuel surcharges at UPS Freight. Operating profits improved $31 million, or 18% over the adjusted results for the same quarter 2014, driven by gains in Forwarding.

On a reported basis, operating profit increased $113 million after the transfer of certain post-retirement liabilities to defined contribution healthcare plans that occurred in the second quarter of 2014.

UPS Forwarding operating profit and margin expanded as the business unit continued to implement a disciplined pricing strategy across key trade lanes. The unit also benefited from improved market conditions and customer mix. Forwarding tonnage and revenue dropped during the quarter, primarily due to revenue management initiatives and the impact of currency fluctuations.

Distribution revenue increased at a mid-single digit growth rate. Growth in Mail services, Healthcare and Aerospace industries contributed to revenue improvements.

UPS Freight revenue declined 2.5% due to lower fuel surcharges and a drop in tonnage driven by changes in customer mix and slowing market growth. LTL (less-than-truckload) revenue per hundredweight growth remained positive, with a 1.4% gain.

Outlook

“The second quarter results reflect continuing gains in our International business,” said Richard Peretz, UPS chief financial officer. “Even though the U.S. economy appears to be growing at a slower pace, our global portfolio and performance reinforces our expectations to attain the higher-end of the guidance range.”

The company’s guidance for 2015 full-year diluted earnings per share is $5.05 to $5.30, a 6% to 12% increase over adjusted 2014 results.

Copyright Photo: Michael B. Ing/AirlinersGallery.com. Boeing 767-34AF N302UP (msn 27240) arrives in Anchorage, Alaska.

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Alaska Air Group reports a record second quarter

Alaska Air Group (Alaska Airlines and Horizon Air) (Seattle/Tacoma) today reported a record second quarter GAAP net profit of $234 million.

The group issued this report:

Alaska (2014) logo

Alaska Air Group, Inc., today reported second quarter 2015 GAAP net income of $234 million, or $1.79 per diluted share, compared to $165 million, or $1.19 per diluted share in the second quarter of 2014. Excluding the impact of mark-to-market fuel hedge adjustments of $6 million ($4 million after tax, or $0.03 per diluted share), the company reported record adjusted net income of $230 million, or $1.76 per diluted share, compared to adjusted net income of $157 million, or $1.13 per diluted share, in 2014.

“We’re pleased to report our 25th consecutive quarterly profit and our best quarterly result ever,” said CEO Brad Tilden. “I want to thank our employees for their hard work and for always putting our customers first. We are focused on running a strong and balanced company that will produce the right outcomes for all of the stakeholders who depend on us, not just this quarter but over the long-term.”

Financial Highlights:

  • Reported record second quarter net income, excluding special items, of $230 million, a 46% increase over the second quarter of 2014.
  • Reported adjusted earnings per share of $1.76 per diluted share, a 56% increase over the second quarter of 2014 and ahead of First Call analyst consensus estimate of $1.73 per share.
  • Earned net income for the second quarter under Generally Accepted Accounting Principles (GAAP) of $234 million or $1.79 per diluted share, compared to net income of $165 million, or $1.19 per diluted share in 2014.
  • Recorded $58 million of employee incentive pay in recognition of Air Group employees’ progress on meeting customer service, safety, operational and financial goals.
  • Generated record adjusted pretax margin in the second quarter of 25.7% compared to 18.3% in 2014.
  • Generated 20.9% adjusted pretax margin for the trailing 12-month period ended June 30, 2015, compared to 14.9% for the same period in the prior year.
  • Achieved trailing 12-month after-tax return on invested capital of 22.0% compared to 16.1% in the 12-month period ended June 30, 2014.
  • Repurchased 2.5 million shares of common stock for $160 million in the second quarter of 2015, and 4.1 million shares of common stock for $262 million during the first six months of 2015, representing 3.1% of the total shares outstanding at the beginning of the year.
  • Paid a $0.20 per-share quarterly cash dividend on June 4, 2015, a 60% increase over the dividend paid in the second quarter of 2014.

Read the full report: CLICK HERE

Copyright Photo: Ken Petersen/AirlinersGallery.com. Alaska Airlines Boeing 737-990 ER N471AS (msn 41703) with APB Split Scimitar Winglets lands in Anchorage.

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