Tag Archives: Boeing

Alaska Air Group reports 4Q net income of $78 million and $508 net income for 2013, a new record

Alaska Air Group Inc. (Alaska Airlines and Horizon Air) (Seattle/Tacoma) today reported fourth quarter 2013 GAAP net income of $78 million, or $1.11 per diluted share, compared to GAAP net income of $44 million, or $0.61 per diluted share in 2012. Excluding mark-to-market fuel hedge gains of $2 million ($1 million after tax, or $0.01 per diluted share), the company reported record fourth quarter 2013 net income of $77 million, or $1.10 per diluted share, compared to net income excluding mark-to-market fuel hedge losses of $50 million, or $0.70 per diluted share, in 2012.

The company reported full-year 2013 GAAP net income of $508 million, compared to $316 million in the prior year. Excluding the impact of the items noted in the table below, the company reported record net income of $383 million, or $5.40 per diluted share for 2013, compared to net income of $339 million, or $4.73 per diluted share in 2012. This marks the fourth year in a row the company has exceeded its goal of a 10 percent return on invested capital.

The following table reconciles the company’s adjusted net income and earnings per diluted share (EPS) during the full year and fourth quarters of 2013 and 2012 to amounts as reported in accordance with GAAP:

	Three Months Ended Dec. 31,
	2013				2012
(in millions, except per share amounts)	Dollars		Diluted EPS		Dollars		Diluted EPS
Reported GAAP net income	$	78	$	1.11	$	44	$	0.61
Mark-to-market fuel hedge adjustments, net of tax	(1)		(0.01)		6		0.09
Non-GAAP adjusted income and per share amounts	$	77	$	1.10	$	50	$	0.70

	12 Months Ended Dec. 31,
	2013				2012
(in millions, except per share amounts)	Dollars		Diluted EPS		Dollars		Diluted EPS
Reported GAAP net income	$	508	$	7.16	$	316	$	4.40
Mark-to-market fuel hedge adjustments, net of tax	(5)		(0.06)		23		0.33
Special mileage plan revenue, net of tax	$	(120)	$	(1.70)	$	—	$	—
Non-GAAP adjusted income and per share amounts	$	383	$	5.40	$	339	$	4.73

Financial Highlights:

Record fourth quarter net income, excluding special items, of $77 million, or $1.10 per diluted share, compared to $50 million, or $0.70 per diluted share in 2012. This quarter’s results compare to a First Call analyst consensus estimate of $1.07 per share.
Record full-year net income, excluding special items, of $383 million, or $5.40 per diluted share, compared to$339 million, or $4.73 per diluted share in 2012.
Net income for the fourth quarter under Generally Accepted Accounting Principles (GAAP) of $78 million, or$1.11 per diluted share, compared to net income of $44 million, or $0.61 per diluted share in 2012. Full-year GAAP net income of $508 million, or $7.16 per diluted share, compared to net income of $316 million, or $4.40per diluted share in 2012.
Air Group employees earned $105 million in incentive pay in 2013, or nearly five weeks of pay for most employees. Over the last four years, employees have earned more than $357 million in incentive pay, averaging 8.8% of annual pay for most employees.
Achieved return on invested capital of 13.6% in 2013, compared to 13% in 2012.
Lowered adjusted debt-to-total capitalization ratio to 35% as of Dec. 31, 2013.
Fully funded the company’s defined benefit pension plans in 2013.
Held $1.3 billion in unrestricted cash and marketable securities as of Dec. 31, 2013.
Repurchased 2,492,093 shares of common stock for approximately $159 million in 2013. Since 2007, Air Group has used $478 million to repurchase 21 million shares.
Modified affinity card agreement with Bank of America and extended through 2017, estimated to generate $55 million in additional cash flows annually.
Received a credit rating upgrade from Standard and Poor’s to “BB+” with a stable outlook.

Other Highlights and Achievements:

Ranked “Highest in Customer Satisfaction Among Traditional Network Carriers” by J.D. Power for the sixth year in a row.
Ranked as the best U.S. major airline by The Wall Street Journal’s “Middle Seat” scorecard.
Named Airline Industry Leader in the 2013 Temkin Customer Service Rankings.
Held the top spot in U.S. Department of Transportation on-time performance among major U.S. airlines for the 12 months ended November 2013.
Alaska Airlines received the FAA’s “Diamond Certificate of Excellence” award for the 12th consecutive year; and Horizon Air received the certificate for the 12th time in the last 14 years.
Improved employee productivity in 2013 by 4.0% compared to 2012.
Signed five-year collective bargaining agreements with Alaska pilots and Horizon flight attendants.
Named most fuel-efficient airline in the U.S. in a report released by the International Council on Clean Transportation.
Donated $7.6 million to more than 1,300 charitable organizations, including support for the grand opening of Aviation High School in Seattle and other educational efforts. Our employees also volunteered more than 10,500 hours of community service.
Signed an exclusive multi-year partnership with Seattle Seahawks quarterback, Russell Wilson, and named him our “Chief Football Officer.”

New routes:

New routes launched and announced in the fourth quarter are as follows:

New Nonstop Routes Launched in Q4	New Nonstop Routes (Launch Date)
Seattle – Colorado Springs	Portland – Salt Lake City (6/9/14)
Portland – Tucson	San Diego – Salt Lake City (6/10/14)
Portland – Boise	Los Angeles – Salt Lake City (6/11/14)
San Diego – Boise	San Jose – Salt Lake City (6/12/14)
Seattle – Omaha	Boise – Salt Lake City (6/16/14)
Portland – Reno	Las Vegas – Salt Lake City (6/16/14)
Seattle – Steamboat Springs	San Francisco – Salt Lake City (6/18/14)
Anchorage – Phoenix
Anchorage – Las Vegas
San Diego – Mammoth Lakes

Copyright Photo: Michael B. Ing/AirlinersGallery.com. Boeing 737-990 N318AS (msn 30018) in the “We’re Going to Disneyland Resort” special livery arrives in Los Angeles.

Alaska Airlines:

Alaska Horizon:

Horizon Air:

Copa Airlines is coming to Fort Lauderdale, Georgetown and Montreal

Copa Airlines (Panama City) has announced growth plans for the first half of 2014, which include the launch of new nonstop flights from Panama to Montreal (Trudeau); Canada, Fort Lauderdale/Hollywood, Florida, and Georgetown, Guyana. In addition, Copa will add aircraft to its fleet, for a 10 percent growth in capacity.

The airline will add eight new Boeing Next Generation 737-800 aircraft in 2014, bringing its total fleet to 98 state-of-the-art aircraft, and increasing capacity by 10 percent.

New Destinations:

Montreal, Canada: As part of its effort to increase its route network in the northern part of the continent, Copa will offer four-times-weekly flights to the city of Montreal, a major world cultural center and a well-known tourism destination. The new flight, which will begin June 3 of this year, is Copa’s second Canadian destination.
Fort Lauderdale/Hollywood, Florida: Copa will offer flights four times a week between Fort Lauderdale, Fla., and the Hub of the Americas, beginning July 11, 2014. The coastal region, with its booming tourism industry and growing Latin American population, will be Copa’s fourth destination in the state of Florida and its 10^th in the United States.
Georgetown, Guyana: Beginning July 11, 2014, Copa will offer twice-weekly flights to Georgetown, the capital and principal city of the Co-operative Republic of Guyana. The new route, Copa Airlines’ first to this South American country, connects the area with Panama and the region.

The new cities served will bring Copa Airlines’ total number of destinations to 69 in North, Central and South America and the Caribbean served from its Hub of the Americas at Tocumen International Airport in Panama City, Panama – the hub with the most destinations and international flights on the continent.

Copa Airlines major accomplishments for 2013 include:

Transported 11,316,678 million passengers
Increased capacity by 14 percent
Received Skytrax awards for “Best Airline and “Best Cabin and Airport Crew” in Central Americaand the Caribbean
Added two destinations to its route network: Boston, Massachusetts, and Tampa, Florida.
Added 13 flight frequencies to key destinations already served.
Achieved an on-time performance of nearly 90 percent, on par with the best airlines in the world
Received seven new Boeing 737-800 Next Generation aircraft, ending 2013 with a fleet of 90 aircraft
Ended the year with 8,644 employees throughout the Americas, of which 5,783 are in Panama.

Copyright Photo: Michael B. Ing/AirlinersGallery.com. Boeing 737-8V3 HP-1825CMP (msn 40780) in the colorful “Biomuseo” livery climbs briskly from the runway at Los Angeles International Airport.

Copa Airlines:

AeroMexico to introduce the Boeing 787 on the Mexico City – Madrid route

AeroMexico (Mexico City) will introduce the new Boeing 787-8 Dreamliner on the Mexico City-Madrid route with three new weekly frequencies.

The new type will offer 243 seats – 32 of them in Premier Class with new individual entertainment systems.

The new flights will supplement the daily Boeing 777-200 ER service.

As previously reported, starting in May, AeroMexico will introduce the 787 on the Mexico City- London (Heathrow Airport) route.

Since October 2013, AeroMexico has been operating the Boeing 787 on the Mexico City-Paris (CDG) route.

AeroMexico:

Small Planet Italia is shut down

Small Planet Airlines (Italy) (Rome-Fiumicino) lost its Air Operators Certificate (AOC) on January 17, 2014 due to concerns of Italy’s ENAC of its financial fitness. The Italian version of Small Planet was an independent company and was using the Small Planet name and brand under a franchise agreement.

The original Small Planet Airlines (Lithuania) (formerly flyLAL Charters) (Vilnius) and (Warsaw) is still operating and issued this statement:

The Italian Civil Aviation Authority (ENAC) has issued a decision to suspend the operating license of “Small Planet Airlines Italia” in Italy.

“Small Planet Airlines Italia” is an independent company and is related to “Small Planet Airlines” only by franchise agreement. The suspension of the license of the Italian company shall in no way affect our companies in Lithuania and Poland.

The Italian company “Small Planet Airlines Italia” is owned by “Aeroservizi” (64.5%) and “Avia Solutions Group” (35.5%), whereas “Small Planet Airlines” based in Lithuania and Poland are owned by the management of the company, Vytautas Kaikaris (70%) and Andrius Staniulis (30%). Mr. Kaikaris sold his 4.5% stake in “Small Planet Airlines Italia” in April, 2013.

“Small Planet Airlines”, holder of Polish and Lithuanian Air Operator Certificates, is an independent European leisure airline.

Copyright Photo: Nik French/AirlinersGallery.com (all others by Small Planet Airlines). Small Planet Airlines Italia was operating two Boeing 737-300s. Boeing 737-3L9 LY-FLE (msn 27061) of the Lithuania version of Small Planet arrives at Manchester.

Small Planet Airlines (Lithuania):

Small Planet Airlines (Poland):

SAS to reinstate the Stockholm-Hamburg route starting on April 22

Scandinavian Airlines-SAS (Stockholm) announced it will launch a new nonstop route between Stockholm’s Arlanda Airport and Hamburg Airport with two return flights every weekday and one return flight on Sundays starting on April 22. Today, over 100,000 passengers fly between Stockholm Arlanda and Hamburg every year. Hamburg is one of Germany’s largest cities. The last time SAS operated this route was 2009, but it is now being reopened in order to meet SAS passengers’ needs for direct routes within Europe.

The route will be operated by a Boeing 737-600 (pictured) with capacity for 120 passengers and a Boeing 717 with capacity for 115 passengers. The flight time is 1 hour 30 minutes.

Germany is a large market for SAS, and the airline has several daily direct departures from Stockholm Arlanda to the three German destinations of Frankfurt, Düsseldorf and Berlin. In total, SAS operates around 500 flights a week between Scandinavia and Germany.

Copyright Photo: Antony J. Best/AirlinersGallery.com. Boeing 737-683 LN-RPY (msn 28292) waits for runway clearance at Manchester.

Scandinavian Airlines:

Etihad Airways announces new code share agreements with AirEuropa and JetBlue Airways

Etihad Airways (Abu Dhabi) has announced new code share agreements with both AirEuropa (Palma de Mallorca and Madrid) and JetBlue Airways (New York).

Under the terms of the agreement with AirEuropa and subject to regulatory approvals, AirEuropa plans to commence a three times a week direct service between Madrid and Abu Dhabi in late 2014.

Etihad Airways will place its EY flight code on the new Airbus A330 operated flights, offering direct access to Madrid for the very first time through its global Abu Dhabi hub.

The two airlines will work together in the run up to the route launch, with Etihad Airways initially placing its code on AirEuropa-operated flights to Madrid from Amsterdam, Brussels and Milan Malpensa and beyond Madrid to Barcelona and Palma de Mallorca.

In return, AirEuropa will place its UX flight code on Etihad Airways flights from Amsterdam, Brussels and Milan Malpensa to Abu Dhabi.

Furthermore, during summer 2014, both airlines plan to expand the number of codeshare destinations to include new cities in Spain and South America via Madrid, and more cities beyond Abu Dhabi across the Gulf region, Africa, Asia, and Australia.

For the new code share agreement with JetBlue Airways, Etihad will connect with JetBlue at New York (JFK) and Washington (Dulles). Etihad flies daily from JFK’s Terminal 4 and from Washington Dulles’ Concourse A to its hub in Abu Dhabi and in March will begin a second daily nonstop service from JFK. The airline also serves Chicago (O’Hare) and Toronto (Pearson) and later this year will begin service to Los Angeles and Dallas/Fort Worth.

JetBlue Airways will announce further details today.

Copyright Photo: Bernhard Ross/AirlinersGallery.com. Etihad Airways’ Boeing 777-3FX ER A6-ETB (msn 34598) is pictured at a cold Frankfurt.

Etihad Airways:

AirEuropa:

JetBlue Airways:

United Airlines announces additional flights to Newark for the Super Bowl

United Airlines (Chicago) has announced increased service between its hub at Newark Liberty International Airport and Denver and Seattle/Tacoma for the Super Bowl being played in New Jersey. Newark Liberty is the airport most convenient to MetLife Stadium, where the Denver Broncos take on the Seattle Seahawks on February 2, 2014.

For those traveling to the title game, United has added two flights each from Denver and Seattle/Tacoma to Newark Liberty on both January 30 and January 31, 2014. For fans returning home, the airline has added four additional flights back to Denver and three additional flights back to Seattle/Tacoma on February 3, 2014:

Inbound Flights to Newark Liberty

DepartureCity	Flight	DepartureTime	Arrival Time	Aircraft	Seats	Date
Seattle	1212	9:45 a.m.	5:31 p.m.	Boeing 777	267	Jan. 30
Seattle	1252	11:30 p.m.	7:23 a.m. (Jan. 31)	Boeing 777	267	Jan. 30
Denver	1189	2:58 p.m.	8:29 p.m.	Boeing 777	267	Jan. 30
Denver	1112	5:30 p.m.	10:52 p.m.	Boeing 777	267	Jan. 30
Seattle	1297	12:43 p.m.	8:29 p.m.	Boeing 777	267	Jan. 31
Seattle	371	9 p.m.	5:04 a.m. (Feb. 1)	Boeing 757	182	Jan. 31
Denver	204	9 a.m.	2:39 p.m.	Boeing 757	182	Jan. 31
Denver	1155	4:05 p.m.	9:27 p.m.	Boeing 777	267	Jan. 31

Outbound Flights to Denver and Seattle

Arrival City	Flight	Departure Time	Arrival Time	Aircraft	Seats	Date
Denver	347	8:29 a.m.	11:04 a.m.	Airbus A320	144	Feb. 3
Denver	202	10 a.m.	12:35 p.m.	Airbus A320	144	Feb. 3
Seattle	1233	10 a.m.	12:57 p.m.	Boeing 777	267	Feb. 3
Seattle	521	noon	3:12 p.m.	Boeing 757	182	Feb. 3
Seattle	548	2:59 p.m.	6:03 p.m.	Boeing 757	182	Feb. 3
Denver	363	6:59 p.m.	9:32 p.m.	Airbus A320	144	Feb. 3
Denver	254	8:10 p.m.	10:43 p.m.	Airbus A320	144	Feb. 3

United offers these flights in addition to the carrier’s regularly scheduled New York-Denver and New York-Seattle/Tacoma service. The airline regularly operates five daily flights each way between its Denver hub and both Newark Liberty and La Guardia airports, and two daily flights each way between Seattle/Tacoma and Newark Liberty.

United in New Jersey

United is New Jersey’s largest airline, offering more flights and more seats from the Garden State – and from the entire region, including New York – to more destinations around the world than any other airline. United offers 400 flights each day from Newark Liberty – the region’s premier trans-Atlantic gateway – to more than 150 destinations in North and South America, Europe, the Middle East and Asia.

Newark Liberty’s location and high-frequency rail service make it the most convenient hub airport for travelers originating in north and central New Jersey, parts of New York City including Wall Street, and southern New York state. Newark’s largest private employer, United employs more than 13,000 aviation professionals in the state.

Copyright Photo: Bruce Drum/AirlinersGallery.com. Boeing 777-222 ER N222UA (msn 30553) taxies at Seattle-Tacoma International Airport (SEA).

United Airlines (current):

United Airlines (historic):

QANTAS Airways to shift Boeing 747 maintenance work overseas

QANTAS Airways (Sydney) as previously reported, will close its Avalon, Victoria heavy maintenance base in March. Two Boeing 747-400s scheduled for overhauls in May will be sent to HAECO (Hong Kong) for the work according to the Australian. An international tender offer will determine future work. 300 workers are losing their jobs at Avalon.

Read the full report: CLICK HERE

Copyright Photo: John Adlard/AirlinersGallery.com. Boeing 747-438 VH-OJF (msn 24483) approaches the runway at the Sydney hub.

QANTAS Airways:

Delta reports fourth quarter net income of $558 million, $2.7 billion for 2013

Delta Air Lines (Atlanta) today reported financial results for the December 2013 (fourth) quarter. Key points include:

Delta’s net income for the December 2013 quarter was $558 million, or $0.65 per diluted share, excluding special items¹.
Delta’s net income for 2013 was $2.7 billion, excluding special items, a $1.1 billion increase over 2012.
Delta’s GAAP net income was $8.5 billion, or $9.89 per diluted share, for the December 2013 quarter and $10.5 billion for 2013. These results include an $8.0 billion non-cash gain associated with the reversal of the company’s tax valuation allowance.
2013 results include $506 million in profit sharing expense, including $119 million in the December quarter, recognizing Delta employees’ contributions toward meeting the company’s financial goals.
Delta generated nearly $5 billion of operating cash flow and $2.1 billion of free cash flow in 2013, allowing the company to reduce its adjusted net debt at the end of 2013 to $9.4 billion, contribute an incremental $250 million above required funding to its defined benefit pension plans, and return $350 million to shareholders through a combination of $100 million of dividends and $250 million of share repurchases.

Revenue Environment

Delta’s operating revenue improved 6 percent, or $474 million, in the December 2013 quarter compared to the December 2012 quarter. Traffic increased 2.0 percent on a 2.9 percent increase in capacity.

Passenger revenue increased 6.1 percent, or $451 million, compared to the prior year period. Passenger unit revenue (PRASM) increased 3.0 percent year over year with a 4.0 percent improvement in yield.
Cargo revenue decreased 1.0 percent, or $3 million, as higher freight volumes partially offset declining freight yields.
O ther revenue increased 2.8 percent, or $26 million, driven by higher SkyMiles revenue.

Comparisons of revenue-related statistics are as follows:

			Increase (Decrease)
			4Q13 versus 4Q12
			Change	Unit
Passenger Revenue		4Q13 ($M)	YOY	Revenue	Yield	Capacity
	Domestic	3,784	9.4 %	6.6 %	7.9 %	2.6 %
	Atlantic	1,208	1.9 %	0.1 %	0.7 %	1.8 %
	Pacific	803	(1.6) %	(2.2) %	(1.5) %	0.6 %
	Latin America	517	18.5 %	1.9 %	0.3 %	16.3 %
	Total mainline	6,312	7.0 %	3.7 %	4.5 %	3.3 %
	Regional	1,562	2.3 %	1.4 %	3.5 %	0.8 %
	Consolidated	7,874	6.1 %	3.0 %	4.0 %	2.9 %

Cost Performance

Total operating expense in the quarter increased 1.5 percent, or $125 million, year-over-year driven by higher volume and revenue-related expenses; the impact of operational, service and employee investments; and $56 million higher profit sharing expense. These cost increases were partially offset by lower fuel expense and the savings from Delta’s structural cost initiatives.

Non-operating expense declined by $116 million as a result of prior year special items for early debt extinguishment and lower interest expense from debt reduction. These items were partially offset by a $17 million negative impact from changes in foreign exchange rates.

Consolidated unit cost excluding fuel expense, profit sharing and special items (CASM-Ex²), was 1.4 percent higher in the December 2013quarter on a year-over-year basis, driven by the impact of wage increases and operational and service investments. GAAP consolidated CASM decreased 1.4 percent.

Fuel expense, excluding mark-to-market adjustments, declined $91 million as a result of lower market fuel prices and better settled hedge performance. Delta’s average fuel price³ was $3.05 per gallon for the December quarter, which includes $0.06 in settled hedge gains. On a GAAP basis, fuel expense for the December quarter decreased $186 million year-over-year, driven by lower market fuel prices and mark-to-market gains on hedges in the current quarter.

Operations at the Trainer refinery produced a $46 million loss for the December quarter and a $116 million loss for the full year. While lower crack spreads pressured results at the refinery, they also reduced market jet fuel prices and helped lower Delta’s overall fuel expense.

Cash Flow

Cash from operations during the December 2013 quarter was $1.2 billion, driven by the company’s December quarter profit and working capital initiatives, which were partially offset by the normal seasonal decline in advance ticket sales. Cash from operations is net of a $250 million incremental contribution made by Delta to its defined benefit pension plans during the quarter. The company generated $260 millionof free cash flow.

Capital expenditures during the December 2013 quarter were $900 million, including $835 million in fleet investments and $16 million for the purchase of 4 aircraft off lease. During the quarter, Delta’s net debt maturities and capital leases were $335 million.

In the December quarter, the company returned $200 million to shareholders. On Nov. 26, the company paid $51 million to shareholders, which represents a $0.06 per share quarterly dividend. In addition, the company repurchased 5.5 million shares at an average price of$27.39 for a total of $150 million. The company has completed $250 million of the $500 million share repurchase plan authorized by Delta’s Board of Directors in May 2013.

Delta ended the quarter with adjusted net debt of $9.4 billion and the company has now achieved over $7.5 billion in net debt reduction since 2009. This debt reduction strategy produced a $28 million year-over-year reduction in interest expense in the December quarter and a $153 million reduction for 2013.

Reversal of Tax Valuation Allowance

Delta’s expectations for sustainable future profitability combined with its consistent and strong profitability over the past four years resulted in the reversal of the company’s tax valuation allowance in the December quarter. The reversal of the tax valuation allowance resulted in a non-cash net gain of $8.0 billion in the December quarter. Beginning in the March 2014 quarter, net income will be reduced to reflect a 39% tax rate; however, there will be no cash impact as Delta’s net operating loss carryforwards will offset cash taxes on more than $15 billion of future taxable income.

Special Items

Delta recorded a $7.9 billion special items gain in the December 2013 quarter, including:

an $8.0 billion non-cash gain associated with the reversal of the Delta’s tax valuation allowance, as detailed above;
a $92 million mark-to-market gain on fuel hedges; and
a $160 million charge for facilities, fleet and other, including charges associated with Delta’s domestic fleet restructuring.

Delta recorded a $231 million special items charge in the December 2012 quarter, including:

a $122 million charge for facilities, fleet and other, including charges associated with the company’s domestic fleet restructuring;
a $106 million loss on early extinguishment of debt primarily due to the company’s Pacific route credit facility refinancing; and
a $3 million mark-to-market loss on fuel hedges.

March 201 4 Quarter Guidance

Following are Delta’s projections for the March 2014 quarter:

	1Q 2014 Forecast

Operating margin	6 – 8%
Fuel price, including taxes, settled hedges and refinery impact	$2.97 – $3.02
Non-operating expense	$235 – $250 million

	1Q 2014 Forecast(compared to 1Q 2013)

Consolidated unit costs – excluding fuel expense and profit sharing	Up 0.5 – 1.5%
System capacity	Up 2 – 3%

Other Matters

Included with this press release are Delta’s unaudited Consolidated Statements of Operations for the three and twelve months ended Dec. 31, 2013 and 2012; a statistical summary for those periods; selected balance sheet data as of Dec. 31, 2013 and 2012; and a reconciliation of non-GAAP financial measures.

End Notes
(1)	Note A to the attached Consolidated Statements of Operations provides a reconciliation of non-GAAP financial measures used in this release and provides the reasons management uses those measures.

(2)	CASM – Ex: In addition to fuel expense, profit sharing and special items, Delta believes excluding ancillary business costs is helpful to investors because ancillary business costs are not related to the generation of a seat mile. These businesses include aircraft maintenance and staffing services Delta provides to third parties and Delta’s vacation wholesale operations. The amounts excluded were $182 million and $185 million for the December 2013 and December 2012 quarters, respectively. Management believes this methodology provides a more consistent and comparable reflection of Delta’s airline operations.

(3)	Average fuel price per gallon: Delta’s December 2013 quarter average fuel price of $3.05 per gallon reflects the consolidated cost per gallon for mainline and regional operations, including contract carrier operations, and includes the impact of fuel hedge contracts with original maturity dates in the December 2013 quarter. On a GAAP basis, fuel price includes $92 million in fuel hedge mark-to-market adjustments recorded in periods other than the settlement period. The net refinery loss for the quarter was $46 million. See Note A for a reconciliation of average fuel price per gallon to the comparable GAAP metric.

Copyright Photo: Tony Storck/AirlinersGallery.com. Delta is adding leased Boeing 717s to the fleet. Formerly painted in the Atlanta Falcons special livery with AirTran Airways, Boeing 717-2BD N891AT (msn 55043) is now plying the skies with Delta. N891AT lands at Baltimore/Washington.

Delta Air Lines (current):

Delta Air Lines (historic):

GECAS orders 20 737 MAX 8s and 20 Next-Generation 737-800s

GE Capital Aviation Services (GECAS), the commercial aircraft leasing and financing arm of General Electric, announced today an order for 40 737s. The order, with a list-price value of approximately $3.9 billion, consists of 20 737 MAX 8s and 20 Next-Generation 737-800s.

The follow-on order increases the GECAS order book for the 737 MAX to 95 airplanes and the 737NG to 387 airplanes, the most for both models by any company in the leasing industry.