Tag Archives: Boeing 757200F

Cargojet posts a pre-tax profit of C$4.2 million in the second quarter

Cargojet Inc. (Cargojet Airways) (Hamilton) announced today financial results for the second quarter ended June 30, 2013 (all dollar figures are stated in Canadian dollars) .

For the Second Quarter Ended June 30, 2013:

  • Total Revenues were $42.7 million , an increase of $2.2 million or 5.4% versus the previous year.
  • Gross Margin was $6.3 million , a decrease of $0.9 million or 12.5% versus the previous year
  • EBITDA was $4.2 million , a decrease of $0.3 million or 6.7% versus the previous year

For the Six Months Ended June 30, 2013:

  • Total Revenues were $83.4 million , an increase of $2.8 million or 3.5% versus the previous year.
  • Gross Margin was $11.2 million , a decrease of $1.6 million or 12.5% versus the previous year
  • EBITDA was $6.9 million , an increase of $0.5 million or 7.8% versus the previous year

“Core overnight and charter revenues have shown some upward trends,” says Ajay K. Virmani, President and Chief Executive Officer.  “The major challenge we continue to face is the pricing pressures from the marketplace and we will continue to ensure strict cost control and prudent financial management to ensure our margins stay on plan,” he concluded.

Copyright Photo: Ton Jochems/AirlinersGallery.com. Boeing 757-236 (F) C-FKCJ (msn 24792) waits for its evening departure from Vancouver International Airport.

Cargojet Airways: AG Slide Show

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ATI keeps the Cargo Cargo livery alive in a modified version

ATI-Air Transport International (Little Rock) has apparently decided to keep the Capital Cargo International Airlines (Orlando) 2011 livery alive. Like the United Airlines-Continental Airlines merger, the surviving airline has adopted the color scheme of the airline that was closed down. The airline has not yet announced this decision.

Capital Cargo was merged into ATI-Air Transport International on March 11, 2013. Founded in 1995, Capital Cargo International Airlines (CCIA) was a FAA 121 Supplemental Air Carrier. The airline operated five Boeing 727-200 and three 757-200 freighters.

In April 2013 the pictured Boeing 757-2G5 (F) converted freighter was rolled out of the paint shop at Wilmington, Ohio in the Capital Cargo brand but now with ATI-Air Transport International Airlines titles.

The ATI version now includes red and dark blue stripes below the window line (above). The Capital Cargo version had a single red stripe (below).

Top Copyright Photo: Tony Storck/AirlinersGallery.com. This former National Airlines (5th) aircraft was previously operated as N151GX and never was operated on the  Capital Cargo certificate. It was delivered to ATI on March 14, 2013.

ATI-Air Transport International: AG Slide Show

Capital Cargo International Airlines: AG Slide Show

Bottom Copyright Photo: TMK Photography. Former United Airlines Boeing 757-222 (F) N531UA (msn 25042) was the only 757 to wear the new 2011 color scheme with Capital Cargo. Notice the differences with the cheatlines. N531UA is pictured operating to Memphis.

Capital Cargo 757-200F N531UA (11)(Grd) MEM (TMK)(LRW)

Gestair Cargo rebrands back to Cygnus Air

Gestair Cargo (Madrid) has rebranded back to its original name of Cygnus Air Corporacion.

Gestair Cargo logo

The airline is currently owned by the Macholfam International (Grupo Gestair) (60%) and IMES (Grupo ACS) (40%) according to Wikipedia.

Top Copyright Photo: Ole Simon/AirlinersGallery.com. This Gestair Cargo color scheme  and name was introduced in 2008.

Bottom Copyright Photo: Gunter Mayer. Now ex-Iberia Boeing 757-236 EC-KLD (msn 24121), pictured at Nuremberg at night, is wearing the basic Gestair livery now with Cygnus Air Corporacion titles and the new (old) tail logo.

Cygnus Air (2nd) 757-200F EC-FTR (13)(Grd) NUE (GM)(LRW)

FedEx Corporation reports net income of $679 million in the fiscal 4Q and $1.98 billion for the year

FedEx Corporation (FedEx Express) (Memphis) reported earnings of $2.13 per diluted share for the fourth quarter ended May 31. This excludes a $0.98 per diluted share business realignment program charge and a previously announced $0.20 per diluted share noncash aircraft impairment charge at FedEx Express. Including these charges, fourth quarter earnings were $0.95 per diluted share.

Last year’s fourth quarter earnings were $1.99 per diluted share, excluding a $0.26 per diluted share noncash aircraft impairment charge at FedEx Express. Including last year’s charge, earnings were $1.73 per diluted share.

“FedEx Ground posted another strong year and FedEx Freight margins continued to improve,” said Frederick W. Smith, FedEx Corp. chairman, president and chief executive officer. “These positive developments did not fully offset tepid economic growth and customer preference for less costly international shipping services. FedEx Express results improved in the fourth quarter, and while near-term challenges remain, we are confident we are positioning FedEx for profitable, long-term growth.”

Fourth Quarter Results

FedEx Corp. reported the following consolidated results for the fourth quarter:

Fiscal 2013 Fiscal 2012

Adjusted
(non-GAAP)

As Reported
(GAAP)

Adjusted
(non-GAAP)

As Reported
(GAAP)

Revenue

$11.4 billion

$11.4 billion

$11.0 billion

$11.0 billion

Operating Income

$1.10 billion

$502 million

$990 million

$856 million

Operating Margin

9.6%

4.4%

9.0%

7.8%

Net Income

$679 million

$303 million

$634 million

$550 million

Diluted EPS

$2.13

$0.95

$1.99

$1.73

As announced on June 3, during the quarter FedEx Express permanently retired 10 aircraft and related engines. As a consequence, a noncash impairment charge of $100 million ($63 million, net of tax, or $0.20 per diluted share) was recorded in the fourth quarter.

Excluding business realignment program costs and aircraft impairment charges from this year and aircraft impairment charges from last year, “adjusted” operating results improved due to continued strong FedEx Ground performance and better FedEx Express performance.

Full Year Results

FedEx Corp. reported the following consolidated results for the full year:

Fiscal 2013 Fiscal 2012

Adjusted
(non-GAAP)

As Reported
(GAAP)

Adjusted
(non-GAAP)

As Reported
(GAAP)

Revenue

$44.3 billion

$44.3 billion

$42.7 billion

$42.7 billion

Operating Income

$3.21 billion

$2.55 billion

$3.28 billion

$3.19 billion

Operating Margin

7.3%

5.8%

7.7%

7.5%

Net Income

$1.98 billion

$1.56 billion

$2.09 billion

$2.03 billion

Diluted EPS

$6.23

$4.91

$6.59

$6.41

Capital spending for fiscal 2013 was $3.4 billion, down from $4.0 billion in fiscal 2012.

Business Realignment Program Update

In October, the company announced profit improvement programs, which include a voluntary employee separation program. The program was completed during the fourth quarter, and approximately 3,600 employees will be voluntarily leaving the company in phases to ensure a smooth transition. Approximately 40% of the employees vacated their positions on May 31, 2013 in the first phase. Approximately 25% of the employees will vacate their positions in the final phase at the end of fiscal 2014.

The company incurred costs of $496 million ($313 million, net of tax, or $0.98 per diluted share) during the fourth quarter and $560 million ($353 million, net of tax, or $1.11 per diluted share) during fiscal 2013, associated with the business realignment activities. The cost of the voluntary employee separation program is included in the “Business realignment, impairment and other charges” line of the company’s statements of income. Business realignment program costs at FedEx Services have been allocated to the operating segments through the “Intercompany charges” line of each segment’s statement of income.

Outlook

FedEx is revising its earnings guidance practices to focus on full fiscal year projections with quarterly updates. For fiscal 2014, the company projects earnings per share growth of 7% to 13% from fiscal 2013 adjusted results. This assumes the current market outlook for fuel prices, U.S. GDP growth of 2.3% and world GDP growth of 2.7%. Capital spending for fiscal 2014 is expected to be approximately $4 billion.

“We remain focused on improving margins and returns in all of our businesses. The pace of that improvement is expected to be moderate in fiscal 2014 and then accelerate in fiscal 2015,” said Alan B. Graf, Jr., FedEx Corp. executive vice president and chief financial officer. “Our profit improvement program is progressing, but we continue to see the effects of customers selecting lower-rate international services. FedEx Express will further decrease capacity between Asia and the United States in July.”

FedEx Express Segment

For the fourth quarter, the FedEx Express segment reported:

  • Revenue of $6.98 billion, up 3% from last year’s $6.80 billion
  • Adjusted operating income of $460 million, up 11% from $415 million a year ago. Including charges, operating income of $0, down from $281 million last year.
  • Adjusted operating margin of 6.6%, up from 6.1% the previous year. Including charges, operating margin of 0.0%, down from 4.1% last year.

Adjusted operating income and margin improved despite the demand shift toward lower yielding international services, as the net impact of the fuel surcharge timing lag, capacity reductions and other cost reduction activities benefited the quarter’s results. Direct and intercompany costs associated with the business realignment programs and the aircraft impairment charge impacted operating income and margin by $460 million and 6.6 percentage points, respectively. Last year’s results included a $134 million aircraft impairment charge.

Revenue increased due to this year’s business acquisitions and growth at FedEx Trade Networks. U.S. domestic average daily package volume increased 2% and U.S. domestic revenue per package increased 1%, as higher rate per pound and weight per package were offset by lower fuel surcharges. FedEx International Economy volume grew 11%, while FedEx International Priority volume decreased 2% during the quarter. International export revenue per package fell 2% due primarily to lower rates.

FedEx Express is pleased to have been selected as the sole awardee of the recent U.S. Postal Service air cargo solicitation, representing the majority of the USPS’s air line-haul traffic. This new seven year agreement, valued at approximately $10.5 billion, begins on October 1, 2013. The agreement provides reduced rates for the USPS versus the prior FedEx Express agreement and offers the opportunity for incremental revenue.

In other news, FedEx Corporation also announced that it has completed the first stage of a strategic acquisition by signing agreements to acquire the businesses operated by its current service provider Supaswift (Pty) Ltd. in five countries in Southern Africa, including South Africa, Malawi, Mozambique, Swaziland and Zambia, and is also in discussions to acquire Supaswift’s businesses in Botswana and Namibia. These acquisitions will operate under the FedEx Express business unit and the transaction is subject to necessary regulatory approvals and customary closing conditions.

Once the acquisition is completed, FedEx Express will have direct access across the seven markets to 39 facilities and will welcome approximately 1,000 of Supaswift’s team members, who will join the ranks of more than 300,000 FedEx team members globally. FedEx Express will then offer a complete suite of FedEx branded export, import and domestic solutions, connecting Southern Africa to more than 220 countries and territories worldwide, enhancing customers’ business flexibility and speed to market.

Copyright Photo: Ken Petersen/AirlinersGallery.com. FedEx has been building up a large Boeing 757 fleet to replace its older Boeing 727s. Formerly operated by Britannia Airways/Thomsonfly/Thomson Airways as G-BYAS, 757-204 (F) N925FD (msn 27238) departs from the Memphis sorting hub.

FedEx Express: AG Slide Show

FedEx Express to acquire 14 Boeing 757-200s from United Airlines

FedEx Express (Memphis) has agreed to acquire 15 Boeing 757-200s from United Airlines (Chicago) and convert the passenger aircraft to freighters according to this report by Bloomberg. FedEx also secured options for another 16 757-200s. Deliveries will be 2013 through 2015.

Read the full report: CLICK HERE

Copyright Photo: Brian McDonough. Former USAir/US Airways Boeing 757-2B7 (F) N901FD (msn 27122, ex N610AU) now with FedEx as a freighter, completes its final approach into Washington (Dulles).

World Airline News block logoEditor’s “To The Point” Observation: FedEx currently operates 67 Boeing 757-200 converted freighters. The first (the pictured N901FD) was added to the cargo fleet on May 9, 2008. The newer 757s have been replacing the older Boeing 727s. FedEx has 30 727-200Fs still in service so it is likely it will take the full option.

 

 

FedEx Express: AG Slide Show

United Airlines: AG Slide Show

Icelandair reports a second quarter net profit of $14.3 million, considers acquiring additional aircraft types

Icelandair Group (Icelandair) (Keflavik) reported a second quarter net profit of $14.3 million.

In addition, in its report, the group stated it is looking at its fleet options with a long-term fleet strategy. Here is the official statement:

TWO OPTIONS CURRENTLY UNDER CONSIDERATION

  • |  Work in progress on a long-term strategy for Icelandair Group’s fleet
  • |  The work done in close co-operation with the manufacturers Boeing and Airbus
  • |  Other aircraft manufacturer are also being monitored
  • |  A decision on the future fleet will be made in near future
  • |  Options being evaluated:

Option 1: Single fleet of Boeing 757 aircraft until 2022

Option 2: Mixed fleet of Boeing 757 and smaller aircraft

Read the full report: CLICK HERE

Copyright Photo: Keith Burton. Besides utilizing its Boeing 757 fleet for scheduled passenger and charter operations, the flag carrier also operates the Boeing 757 as a freighter. Icelandair Cargo Boeing 757-23A PCF TF-FIG (msn 24456) climbs away from Southend with its additional “Absolutely Fresh” titles and logo for its fish-hauling operations.

Icelandair: