Tag Archives: Boeing 757

Is IAG’s seduction of Aer Lingus working?

International Airlines Group’s (IAG) (British Airways, Iberia and Vueling Airlines) (London) continued seduction of Irish flag carrier Aer Lingus (Dublin) seems to be finally working, as the airline is revealing the positives of a takeover by the owner of British and Spanish flag carriers British Airways (London-Heathrow) and Iberia (Madrid).

In a statement to The Guardian, Christoph Mueller, the clover-tailed carrier’s outgoing CEO says that Ireland’s entire economy will benefit if the International Airlines Group takes over Aer Lingus.

Mueller, who steps down as CEO of the airline this week, said IAG’s £1.02 billion (€1.4 billion) ($1.57 billion) offer to buy Aer Lingus would be the biggest single foreign investment in the Republic since the financial crash.

He continued that there was “a great deal of excitement” that Aer Lingus would be able to create jobs on a much larger scale if IAG took charge of the former state-run airline.

Mueller also stressed that talks between IAG and the Aer Lingus trade unions had been “very constructive”.

Aer Lingus announced on Tuesday that its profits had risen by almost 18% to €72 million ($81.6 million) from the previous year. Total revenue was up by 9.2%. For the first time in the airline’s history the number of passengers has exceeded 11 million.

On the hike in profits and the IAG take-over proposal, Mueller added: We profitably expanded our long-haul network utilizing our cost advantage and favorable geographic position and helped establish Dublin as the 7th largest European hub for transatlantic connections.

“Our short-haul business continued to demonstrate its resilience despite a highly competitive market. Commercial initiatives, in addition to cost control, led to the highest operating profit since the financial crisis and 17.8% above last year.”

Delta to add new Hawaii service from both Seattle/Tacoma and Portland, will introduce the 717 to SEA

Delta Air Lines (Atlanta) next winter is adding two additional seasonal routes from the Pacific Northwest to Hawaii. According to Airline Route, the carrier will add daily Boeing 757 service from Seattle/Tacoma to Kona (Hawaii) and Portland-Honolulu flights starting December 19, 2015.

On February 23 Delta issued this statement:

Delta Air Lines is adding service from its hub at Seattle-Tacoma International Airport to Kona International Airport and will increase service from select seasonal markets beginning as soon as summer 2015.

The new and increased Seattle service will operate as follows:

One daily flight to Kona on the Big Island of Hawaii beginning December 19, 2015

One additional daily flight to Palm Springs, California, for a total of two daily seasonal flights beginning December 19, 2015

One daily seasonal flight to Tucson, Arizona, which was previously Saturday service, beginning December 19, 2015

Extension of seasonal service to daily year-round service to Fairbanks and Juneau, Alaska, beginning May 15, 2015

Expanded seasonal service to Los Cabos and Puerto Vallarta, Mexico, beginning October 3, 2015

Service to Kona will be operated with Boeing 757-200 aircraft. Fairbanks, Juneau and Puerto Vallarta will use Boeing 737-800 aircraft, while Los Cabos will use Airbus A319 aircraft. Palm Springs and Tucson service will be operated by Delta Connection carrier SkyWest Airlines using two-class, 65-seat Bombardier CRJ700 aircraft.

Additionally, Delta will introduce Boeing 717 aircraft on some existing routes between Seattle/Tacoma and Las Vegas, Los Angeles and Phoenix starting on September 1.

As Seattle’s global airline, Delta offers customers access to a worldwide network of destinations throughout Asia, Europe and the U.S. with 85 peak-day departures to 31 destinations from Seattle. By summer, the airline will operate 126 flights to 35 destinations from its West Coast hub.

Delta will serve Seattle’s top 15 destinations in the Western U.S. when recently announced service to Boise, Idaho; Denver; and Sacramento, Calif., launches this spring. Ketchikan and Sitka, Alaska, service will also launch in May, completing the top five destinations in Alaska.

During the summer, Delta offers 10 long-haul international flights from Seattle/Tacoma, providing as much long-haul international service from Seattle/Tacoma as all other airlines combined. This includes the top five destinations in Asia and three of the top four destinations in Europe. Delta is the only carrier to offer nonstop service from Seattle/Tacoma to Amsterdam, Hong Kong, Paris, Shanghai and Tokyo-Haneda.

Copyright Photo: Brian McDonough/AirlinersGallery.com. Ex-Northwest Boeing 757-251 N549US (msn 26496) completes its final approach into Washington’s Reagan National Airport (DCA).

Delta Air Lines aircraft slide show (current livery):

Delta to reward its employees with $1.1 billion in profit sharing

Delta Air Lines (Atlanta) today issued this statement:

Delta Air Lines employees today will receive profit sharing as part of the company’s $1.1 billion total payout for 2014 – the largest payment in the company’s history – in recognition for their industry-leading performance.

Total individual payouts will equal more than 16 percent of employees’ eligible 2014 earnings, which equates to an average of nearly two months’ salary. In October 2014, Delta paid a 5 percent advance on profit sharing to employees.

The 2014 payout is a record for the airline industry, and among the highest for any U.S. corporation.

In addition to profit sharing, Delta’s Shared Rewards program pays out monthly bonuses for meeting corporate operational goals throughout the year.

In 2014, Delta employees earned more than $84 million in Shared Rewards as the company achieved history-making operational and financial results. Delta has paid out $2.9 billion to employees in profit sharing and Shared Rewards during the past five years.

Delta employees will be honored for their record-breaking performance today at events held across its global network.

Copyright Photo: Michael B. Ing/AirlinersGallery.com. Ex-Northwest Airlines Boeing 757-251 N547US (msn 26494) climbs away from Los Angeles International Airport.

Delta Air Lines aircraft slide show (current livery only):

Icelandair Group’s 2014 net profit increases 18% to $66.5 million

Icelandair Group (Icelandair, Air Iceland and Loftleidir) (Reykjavik) reported a 2014 net profit of $66.5 million, up 18% from the previous year. The airline issued this statement:

Björgólfur Jóhannsson, President and CEO commented:

“The Group’s performance in 2014 exceeded management projections from the beginning of the year, with EBITDA at the upper limits of the Company’s most recent earnings estimate. Net profit amounted to $66.5 million, up by 18% from last year. EBITDA amounted to $154.3 million, up by 7% between years. Results for the fourth quarter were in line with the earnings estimate published at the end of last October. The strong performance was the result of a number of interacting positive factors, including falling fuel prices, increased demand in the North Atlantic market – which was met by increased supply – and good results from charter operations. The depreciation of the euro against the US dollar had a negative impact on the Group’s operations, and in addition the maintenance cost of cargo aircraft was significantly higher than anticipated.

As of 2010 Icelandair Group’s operations have shown growing momentum. Income has grown by $395 million, amounting to $1.1 billion in 2014. In recent years we have continued to close the ranks of our staff and secured a steady growth of our infrastructure in preparation for the future. Prudence is and will continue to be the key to long-term profitable growth for the Company. A strong equity position and underlying cash flow will underpin our ability to undertake profitable investments to improve our competitiveness for the long term. We have a clear future vision and an outstanding staff, to whom I attribute first and foremost the good results we achieved last year.

We are assuming continued profitable organic growth in Icelandair Group’s operations in 2015. The Group’s international flight schedule will be 14% larger than in 2014, and a significant development in the Company’s hotel operations in Central Reykjavik is foreseeable. On the whole, prospects in the Icelandic tourist industry are positive, and we also believe that the outlook for cargo and charter operations in 2015 is encouraging.

The EBITDA forecast for 2015 has been raised in comparison with 2014, with EBITDA now projected in the range of $160-165 million. The fall in fuel prices is the single cost item most responsible for the rise in EBITDA. It should be noted, however, that external factors, like fluctuations in fuel price and on FX markets along with the outcome of collective-bargaining agreements in the labour market can affect the Company’s performance significantly.”

Read the full report presentation: CLICK HERE

Copyright Photo: SPA/AirlinersGallery.com. This summer Icelandair will operate 24 Boeing 757 aircraft, one aircraft more than was previously announced. Boeing 757-208 TF-FIN (msn 28989) climbs away from London (Heathrow) bound for Keflavik near Reykjavik.

Icelandair aircraft slide show:

American Airlines’ traffic declines in January, revises its guidance for the first quarter

American Airlines Group (American Airlines and US Airways) (Dallas/Fort Worth) today reported its January 2015 traffic results.

American Airlines Group’s total revenue passenger miles (RPMs) for the month were 16.8 billion, down 2.8 percent versus January 2014. Total capacity was 21.5 billion available seat miles (ASMs), down 0.2 percent versus January 2014. Total passenger load factor was 78.2 percent for the month of January, down 2.1 percentage points versus January 2014.

Based on one month of actual data and two months of forecast, the Company continues to expect its first quarter 2015 consolidated passenger revenue per available seat mile (PRASM) to be down approximately two percent to four percent. Due to the recent rise in fuel prices, the Company is currently forecasting its first quarter fuel price to be approximately 10 cents higher than its previous guidance. The Company’s current estimate for first quarter fuel price is $1.81 to $1.86 per gallon versus its previous estimate of $1.71 to $1.76 per gallon. As a result, the Company now expects its first quarter pretax margin excluding special items to be approximately 12 percent to 14 percent versus its previous guidance of 13 percent to 15 percent.

Copyright Photo: Ton Jochems/AirlinersGallery.com. US Airways continues to repaint its fleet in the 2013 American Airlines livery as it moves toward a single operating Part 121 certificate. US Airways’ Boeing 757-23N N205UW (msn 30887) taxies at Amsterdam.

American Airlines-US Airways aircraft slide show (repainted aircraft only):

http://airlinersgallery.smugmug.com/Airlines-UnitedStates-1/Airlines-UnitedStates-1/American-Airlines-US-Airways

Icelandair video: The making of Hekla Aurora Boeing 757-200 logo jet

Icelandair (Keflavik) has now officially launched its special Northern Lights color scheme on the pictured Boeing 757-256 TF-FIU (msn 26243). The airline has produced this video which explains how the special livery was put together. The airliner was actually painted two months ago as we previously reported.

Top Copyright Photo: Antony J. Best/AirlinersGallery.com. TF-FIU departs from London (Heathrow).

Video: Want to know how Hekla Aurora was made? Check out this video from Icelandair and see the new northern lights plane features in-cabin Aurora Borealis mood lighting!

Icelandair continues:

“Watch a team of amazing artists paint an entire Icelandair plane into the beautiful northern lights. A world first, bringing the northern lights to an airport near you. This livery is a part of our #MyStopover campaign. You can take an Icelandair Stopover in Iceland for up to 7 nights at no additional airfare on your way between Europe and North America. ”

Icelandair aircraft slide show:

http://airlinersgallery.smugmug.com/Airlines-Europe-2/Airlines-Europe-2/Icelandair

La Compagnie to add a new route from London Luton to Newark

La Compagnie (Paris) has announced it will add the London (Luton) – Newark route on April 24. The new route will be operated four days a week with its 74-seat business class Boeing 757-200s.

Videos:

http://video-api.wsj.com/api-video/player/iframe.html?guid=9DB799C5-31FF-4B57-B5B2-01532ABDA2D6

TACV is coming to Providence, Rhode Island this summer

TACV – Cabo Verde Airlines (Transportes Aereos de Cabo Verde) (Praia, Cape Verde Islands) is coming to T. F. Green Airport in Providence, Rhode Island starting on June 2. The airline will operate two flights a week with Boeing 757-200 aircraft. The airport issued this statement:

Transportes Aereos de Cabo Verde (TACV), announced the start of service from T. F. Green Airport (PVD) to the Cabo Verde Islands beginning June 2, 2015. The airline will offer two weekly flights on 210-seat Boeing 757-200 aircraft to the city of Praia on the island of Santiago on Tuesdays and Fridays through June 30 and will add a third weekly flight on Wednesdays during the peak travel season of July through early September. Additionally, connecting service will be available to other Cabo Verdean islands: Fogo, Sao Vicente, Sal and Boa Vista.

Located about 300 miles off the coast of Senegal, Cabo Verde is renowned for its natural beauty, picturesque beaches, and “morabeza” (Creole for hospitality) of its people. The islands that make up the arrow-shaped archipelago today were discovered and colonized by the Portuguese in the 15th century. Cabo Verde gained independence in 1975 and remains one of Africa’s most stable democratic governments. Both Portuguese and Creole are spoken by many of the 450,000 Cabo Verdeans who call the island nation home.

Copyright Photo: Jacques Guillem/AirlinersGallery.com. TACV-Cabo Verde Airlines Boeing 757-2Q8 D4-CBP (msn 30045) taxies at Paris (CDG).

TACV aircraft slide show:

http://airlinersgallery.smugmug.com/Airlines-Africa-2/Airlines-Africa2-GZ/TACV-Cabo-Verde-Airlines

Due to the write down of the Boeing 757 fleet, Allegiant reports a lower profit

Allegiant Travel Group (Allegiant Air) (Las Vegas) reported financial results for the fourth quarter and full year 2014. For the 4Q, the company reported net income of only $4.8 million, down 72.6 percent from the same period a year ago when it reported a 4Q net profit of $17.5.

For 2014, the company reported a net profit of $86.7 million versus $92.3 million for 2013.

This represents the 48th consecutive profitable quarter. The lower earnings were due to a write down in the value of its Boeing 757-200 fleet of $43.3 million in the fourth quarter as previously reported.

“We are very proud to report our 48th consecutive profitable quarter,” stated Maurice J. Gallagher, Jr., Chairman and CEO of Allegiant Travel Company. “Excluding the one-time charge related to the write down of our 757 fleet, full year operating margin increased again, for the third year in a row in spite of a number of operational challenges. Looking forward, we see better execution in 2015.”

Read the full report: CLICK HERE

Allegiant Air aircraft slide show:

http://airlinersgallery.smugmug.com/Airlines-UnitedStates-1/Airlines-UnitedStates-1/Allegiant-Air

American Airlines Group reports a record 4Q GAAP net profit of $597 million and a 2014 GAAP net profit of $2.9 billion

American Airlines Group Inc. (American Airlines and US Airways) (Dallas/Fort Worth) reported its fourth quarter and full year 2014 results.

For the fourth quarter 2014, American Airlines Group reported a record GAAP net profit of $597 million. This compares to a GAAP net loss of $2.0 billion in the fourth quarter 2013, which includes the results for US Airways only for the period from the completion of the merger on December 9, 2013, through December 31, 2013.

For full year 2014, GAAP net profit was $2.9 billion, compared to a full year 2013 GAAP net loss of $1.8 billion for AMR Corporation, which includes the results for US Airways only for the period from the completion of the merger on December 9, 2013, through December 31, of 2013.

The Company believes it is more meaningful to compare year-over-year results for American Airlines and US Airways excluding special charges and on a combined basis, which is a non-GAAP formulation that combines the results for AMR Corporation and US Airways Group. On this basis, the Company’s fourth quarter 2014 net profit excluding net special charges was a record $1.1 billion, or $1.52 per diluted share. This represents a 153 percent improvement over the combined non-GAAP net profit of $436 million excluding net special charges for the same period in 2013. The Company’s fourth quarter 2014 pretax margin excluding net special charges was a record 10.6 percent.

Excluding net special charges, the Company’s 2014 net profit was a record $4.2 billion, or $5.70 per diluted share. This represents a 115 percent improvement over the Company’s combined 2013 non-GAAP net profit excluding net special charges of $1.9 billion.

“Our record 2014 results close out a fantastic first year for our merger. These results would not have been possible without the efforts of our more than 100,000 team members,” said Doug Parker, American Airlines Group Chairman and CEO. “They have done a great job of working together to take care of our customers and restore American as the greatest airline in the world.

“We have much to do in the year ahead as we continue to integrate two large carriers. The results we have achieved thus far, combined with our economic outlook, give us confidence that 2015 will be another outstanding year for American Airlines.”

Revenue and Cost Comparisons

Total revenue in the fourth quarter was a record $10.2 billion, an increase of 2.1 percent versus the fourth quarter 2013 on a combined basis and excluding special items, on a 1.7 percent increase in total available seat miles (ASMs). Consolidated passenger revenue per ASM (PRASM) was 13.50 cents, down 1.0 percent versus the fourth quarter 2013 on a combined basis. Consolidated passenger yield was a record 16.84 cents, up 0.9 percent year-over-year.

Strong demand throughout the year led to 2014 total revenue of $42.7 billion, up 5.6 percent versus 2013 on a combined basis and excluding special items. Full year consolidated PRASM was 13.97 cents, up 2.2 percent versus 2013 on a combined basis.

Total operating expenses in the fourth quarter were $9.3 billion, a decrease of 4.1 percent compared to combined fourth quarter 2013 due primarily to a 17.3 percent decrease in consolidated fuel expense. Fourth quarter mainline cost per available seat mile (CASM) was 13.32 cents, down 6.1 percent on a 1.5 percent increase in mainline ASMs versus combined fourth quarter 2013. Excluding special charges and fuel, mainline CASM was 8.67 cents, up 1.1 percent compared to the combined fourth quarter 2013. Regional CASM excluding special charges and fuel was 15.87 cents, up 0.9 percent on a 3.8 percent increase in regional ASMs versus combined fourth quarter 2013.

For the full year 2014, total operating expenses were $38.4 billion, up 1.5 percent versus combined 2013. Excluding special charges and fuel, mainline CASM increased 2.0 percent to 8.63 cents versus combined 2013. Regional CASM excluding special items and fuel increased 3.6 percent to 15.94 cents versus combined 2013.

Liquidity

At December 31, 2014, American had approximately $8.1 billion in total cash and short-term investments, of which $774 million was restricted. The Company also had an undrawn revolving credit facility of $1.8 billion.

Also in the fourth quarter, the Company returned $959 million to its shareholders through the payment of $72 million in quarterly dividends and the repurchase of $887 million of common stock, or 20.5 million shares. When combined with the $113 million of shares repurchased in the third quarter 2014, the Company repurchased a total of 23.4 million shares at an average price of $42.72 per share in 2014.The Company’s $1 billion share repurchase program announced in July 2014 is now complete – more than one year ahead of its scheduled expiration. The Company also purchased approximately 52,000 shares from its Disputed Claims Reserve at the prevailing market price to satisfy certain tax obligations resulting from the November 4, 2014, distribution.

As of December 31, 2014, approximately $656 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 and approximately $35 million valued at 12.0 bolivars, 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. The Company’s cash balance held in Venezuelan bolivars decreased $65 million from the September 30, 2014 balance of $721 million. In the fourth quarter of 2014, the Company incurred an $11 million foreign currency loss related to the receipt of $23 million at a rate of 6.3 bolivars to the dollar for one of its 2012 repatriation requests originally valued at a rate of 4.3 bolivars to the dollar. Accordingly, the Company revalued its remaining pending 2012 repatriation requests from 4.3 to 6.3 bolivars to the dollar resulting in additional foreign currency losses of $19 million. In total, the Company recognized a $30 million special charge for these foreign currency losses in the fourth quarter of 2014.

The Company has significantly reduced capacity in this market. The Company is continuing to work with Venezuelan authorities regarding the timing and exchange rate applicable to the repatriation of funds held in local currency. The Company is monitoring this situation closely and continues to evaluate its holdings of Venezuelan bolivars for additional foreign currency losses, which could be material.

The Company also announced that its Board of Directors declared a dividend of $0.10 per share for shareholders of record as of February 9, 2015. The dividend will be paid on February 23, 2015. In addition, the Company announced that its Board also authorized an additional $2 billion share repurchase program to be completed by the end of 2016.

Shares repurchased under the program announced above 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 management’s discretion.

In the fourth quarter, the Company recognized $507 million in net special charges, including:

$280 million in merger integration related expenses
$116 million in net charges for bankruptcy related items, principally consisting of fair value adjustments for bankruptcy settlement obligations
$70 million in charges related primarily to certain asset impairments
$31 million in non-operating special items primarily relating to a $30 million special charge for foreign currency losses relating to the Company’s cash balance held in Venezuelan bolivars
$16 million in net regional operating special items including a $24 million charge relating to a new pilot contract, partially offset by an $8 million gain on the sale of certain spare parts
$6 million in non-cash deferred income tax benefits relating to certain indefinite lived intangible assets

Copyright Photo: Brian McDonough/AirlinersGallery.com. Boeing 757-223 WL N185AN (msn 32379) approaches the runway at Miami International Airport (MIA).

American Airlines aircraft slide show (current livery):

http://airlinersgallery.smugmug.com/Airlines-UnitedStates-1/Airlines-UnitedStates-1/American-Airlines