Tag Archives: Inc.

SkyWest Airlines to remove all remaining Embraer EMB-120 Brasilias from service

SkyWest, Inc. (SkyWest Airlines and ExpressJet Airlines) (St. George, Utah) has announced fleet transitions and contract updates designed to improve SkyWest’s overall efficiency and long-term profitability.

Specifically, SkyWest announced that SkyWest Airlines, Inc., its wholly-owned subsidiary, intends to transition to an all-jet fleet by removing all remaining 30-seat Embraer EMB-120 Brasilia turboprop aircraft from service by summer 2015. The EMB-120 fleet retirement comes, in part, in response to increased costs and additional challenges associated with new FAR117 flight and duty rules, implemented in January 2014.

Separately, SkyWest announced that ExpressJet Airlines, Inc., its wholly-owned subsidiary, has executed an agreement with United Airlines, Inc. to reduce the term of the existing 50-seat ERJ 145 contract between ExpressJet and United from November 2020 to December 2017, subject to certain extension rights by United. ExpressJet Airlines anticipates the reduction in the ERJ 145 operations will improve its overall operational reliability and financial results.

As a result of the decision to remove the EMB-120 aircraft from service by June 2015 and as a result of the reduced term to operate the ERJ 145 aircraft, SkyWest, Inc. anticipates recording pre-tax special charges (primarily non-cash) ranging from $55-70 million in the fourth quarter of 2014.

It is unclear how the grounding and retirement of the Brasilia fleet will affect air service to remote communities.

Top Copyright Photo: Michael B. Ing/AirlinersGallery.com. SkyWest Airlines mainly operates its Brasilias under the United Express brand however 13 EMB-120s wear the SkyWest house livery (below). Embraer EMB-120ER brasilia N294SW (msn 120321) arrives in Los Angeles.

United Express-SkyWest Airlines aircraft slide show:

SkyWest Airlines aircraft slide show:

Bottom Copyright Photo: Michael B. Ing/AirlinersGallery.com. Embraer EMB-120ER Brasilia N217SW (msn 120286) arrives in Las Vegas.

Atlas Air Worldwide Holdings reports adjusted net income of $27.4 million for the third quarter

Atlas Air Worldwide Holdings, Inc. (Atlas Air and Polar Air Cargo) (New York) has issued this financial statement for the third quarter:

Atlas Air Worldwide Holdings, Inc. announced adjusted net income attributable to common stockholders of $27.4 million, or $1.09 per diluted share, for the three months ended September 30, 2014, compared with $28.6 million, or $1.13 per diluted share, for the three months ended September 30, 2013.

On a reported basis, net income attributable to common stockholders in the third quarter of 2014 totaled $27.6 million, or $1.10 per diluted share, compared with $23.7 million, or $0.94 per diluted share, in the year-ago quarter.

AAWH recently placed three incremental Boeing 747 freighters, a 747-8F and two 747-400Fs, into ACMI service for the benefit of DHL Express and Etihad Cargo, the fast-growing freight division of Etihad Airways. The placements increase the number of our aircraft in ACMI to 22 from 19.

In addition, AAWH recently announced the expansion of our 767 CMI service in North America for DHL Express. This expansion covers four incremental 767-200 freighter aircraft owned by DHL that we expect to begin flying during the first quarter of 2015.

Adjusted earnings in the third quarter of 2014 excluded a tax adjustment of $0.1 million, or $0.01 per diluted share, related to the company’s Global Supply Systems Limited subsidiary. Adjusted earnings in the third quarter of 2013 excluded an after-tax loss of $4.5 million, or $0.18 per diluted share, on the early extinguishment of debt, and a loss of $0.3 million, or $0.01 per diluted share, on the disposal of aircraft.

Third-Quarter Results

Profitability in our ACMI business during the third quarter reflected an increase in 747-8F revenue and an increase in CMI flying, offset by an increase in maintenance expense on our -8F aircraft and lower 747-400 flying by certain ACMI customers.

In Dry Leasing, revenue and profitability grew following the addition of three 777F aircraft in January 2014 and two in July 2013, which raised our 777F fleet count to six. Each of these aircraft are leased to customers on a long-term basis.

Results in AMC Charter benefited from an increase in block hours and aircraft utilization, partially offset by a decrease in revenue per block hour due to a reduction of the average “pegged” fuel price set by the AMC. Stronger than expected demand for cargo flying and incremental passenger flying as a result of former competitors exiting the AMC Charter market drove contribution growth in the third quarter.

Profitability in Commercial Charter primarily reflected an increase in volumes and improvement in aircraft utilization compared with the third quarter of 2013. Charter operations during the quarter benefited from the broad-based uptick in demand, partially offset by additional travel and ground handling expenses from flying to high-cost locations.

Reported earnings for the period included an effective income tax rate of 29.1%, reflecting the ongoing beneficial impact of lower taxes for certain foreign subsidiaries in our Dry Leasing business.

Nine-Month Results

For the nine months ended September 30, 2014, adjusted net income attributable to common stockholders totaled $54.7 million, or $2.17 per diluted share, compared with $54.9 million, or $2.13 per diluted share, for the nine months ended September 30, 2013.

On a reported basis, nine-month 2014 net income attributable to common stockholders totaled $65.1 million, or $2.59 per diluted share, compared with $63.9 million, or $2.48 per diluted share, in the first nine months of 2013.

Cash and Short-Term Investments

At September 30, 2014, our cash, cash equivalents, short-term investments and restricted cash totaled $287.7 million, compared with $339.2 million at December 31, 2013.

The change in position reflected cash provided by operating and financing activities offset by cash used for investing activities.

Net cash used for investing activities during the first nine months of 2014 primarily related to the purchase of three 777F aircraft for our Dry Leasing business.

Net cash provided by financing activities primarily reflected proceeds from the issuance of debt in connection with the acquisitions of these aircraft. Those proceeds were partially offset by payments on debt obligations and debt issuance costs.

Share Repurchases

During the third quarter, we repurchased 458,937 shares of our common stock for $15.0 million, or 1.8% of our outstanding common stock at June 30, 2014.

Future repurchases under our remaining $45.0 million authority may be made at our discretion, and the actual timing, form and amount will depend on company and market conditions.

Outlook

Airfreight volumes continue to improve, and recent industry reports suggest that airfreight demand will grow by several percentage points in 2014 – outpacing supply and driving the first real growth since 2010. We are seeing a general increase in demand across all regions, with the greatest growth in the transpacific market. An increase in online shopping and several new high-tech product launches during peak season also continue to favor airfreight.

As a result, AAWH anticipates adjusted and reported fully diluted earnings per share of approximately $1.33 to $1.43 in the fourth quarter. AAWH is also raising its full-year 2014 adjusted earnings outlook to approximately $3.50 to $3.60 per diluted share, and our reported earnings outlook to approximately $3.92 to $4.02.

For the full year, the company expects to fly approximately 160,000 block hours, with more than 70% in ACMI, approximately 10% in AMC Charter, and the balance in Commercial Charter. The Dry Leasing segment should show dramatic growth compared with 2013. While our share of military flying, mainly in passenger service, has increased due to our ability to capitalize on additional flying opportunities and a reduction in the number of carriers serving the market, we expect an overall decline in military demand in the fourth quarter of 2014 compared with 2013.

The company also expects aircraft maintenance expense to total approximately $190 to $195 million in 2014, primarily due to performing several conditions-based engine overhauls for our 747-400 fleet during the fourth quarter. Depreciation this year is anticipated to total approximately $120 million, and core capital expenditures are expected to total about $30 to $35 million, mainly for spare parts for our expanded fleet.

Copyright Photo: The relationship with DHL continues to expand. Polar Air Cargo’s Boeing 747-47UF N416MC (msn 32838) taxies at Los Angeles.

Atlas Air:

Polar Air Cargo:

DHL-Polar Air Cargo:

Alaska Air Group reports a third quarter GAAP net profit of $198 million

Alaska Air Group, Inc., (Alaska Airlines and Horizon Air) (Seattle/Tacoma) today reported third quarter 2014 GAAP net income of $198 million, or $1.45 per diluted share, compared to $289 million, or $2.04 per diluted share in the third quarter of 2013. Excluding the impact of mark-to-market fuel hedge adjustments and a one-time special revenue item in the prior year, the company reported record adjusted net income of $200 million, or $1.47 per diluted share, compared to adjusted net income of $157 million, or $1.11 per diluted share, in 2013.

“This was our best quarterly result ever” said CEO Brad Tilden. “I want to thank our 13,000 employees who are keeping a focus on playing our game, and working hard every day to run a great operation, keep fares low, and deliver award winning service to our customers. All of us at Alaska would like to thank our customers for their continued loyalty.”

Financial Highlights:

Reported record third quarter net income, excluding special items, of $200 million – a 27% increase over the third quarter of 2013.
Reported adjusted earnings per share of $1.47 per diluted share, a 32% increase over the third quarter of 2013 and ahead of First Call analyst consensus estimate of $1.42 per share.
Earned net income for the third quarter under Generally Accepted Accounting Principles (GAAP) of $198 million or $1.45 per diluted share, compared to net income of $289 million, or $2.04 per diluted share in 2013.
Recorded $84 million of incentive pay through the first nine months of 2014. This includes each Air Group employee earning at least $800 by meeting or exceeding monthly customer satisfaction and operational performance goals and tracking to earn above-target payouts for full-year goals.
Increased fuel efficiency (as measured by seat-miles per gallon) by 2.8% as part of our effort to be the airline leader in environmental stewardship.
Grew passenger revenues by 7%, compared to the third quarter of 2013.
Generated record adjusted pretax margin in the third quarter of 21.8% compared to 18.4% in 2013.
Generated 15.9% pretax margin for the trailing 12-month period ended Sept. 30, 2014, compared to 11.7% for the same period in the prior year.
Achieved trailing 12-month after-tax return on invested capital of 17.2% compared to 13.0% in the 12-month period ended Sept. 30, 2013.
Repurchased 3.4 million shares of common stock for $159 million in the third quarter of 2014, and 5.3 million shares for $242 million in the first nine months of 2014, representing 3.8% of the total shares outstanding at the beginning of the year.
Paid a $0.125 per-share quarterly cash dividend on September 4, bringing total dividend payments so far this year to $51 million.
Generated $1 billion in operating cash flows for the 12-months ended Sept. 30, 2014, generating $321 million of free cash flows.
Lowered adjusted debt-to-total-capitalization ratio to 31%.
Held $1.3 billion in unrestricted cash and marketable securities as of Sept. 30, 2014.
Became one of only two U.S. airlines with investment grade credit ratings.

Alaska Airlines:

Alaska Horizon-Horizon Air:

Hawaiian Holdings reports adjusted third quarter net income of $49.5 million

Hawaiian Holdings, Inc. (Honolulu), parent company of Hawaiian Airlines, reported its financial results for the third quarter of 2014.

GAAP net income in the third quarter of $35.6 million or $0.56 per diluted share.

Adjusted net income, reflecting economic fuel expense, in the third quarter of $49.5 million or $0.79 per diluted share, an increase of $12.7 million or $0.10 cents per diluted share year-over-year.

Operating revenue per available seat mile (RASM) increase of 4.6% and passenger revenue per available seat mile (PRASM) increase of 2.2%.

Unrestricted cash, cash equivalents and short-term investments of $582 million.

Announced new service from San Francisco to Maui beginning November 2014.

Operated Los Angeles to Kona, three-times-weekly, and Los Angeles to Lihu’e, four-times-weekly, summer seasonal service through the beginning of September.

Operated Oakland to Kona, three-times-weekly and Oakland to Lihu’e, four-times-weekly, summer seasonal service through the beginning of September.

Operated Los Angeles to Maui second daily summer seasonal service through the beginning of September.

Hawaiian Airlines:

Wiggins Airways to be merged into Ameriflight

Wiggins Airways (Manchester) has been sold to and will be merged with Ameriflight (Dallas). Wiggin Airways was established in 1929.

Read the full story from New Hampshire Business Review: CLICK HERE

Wiggins describes its operations:

Wiggins Airways, Inc. is an employee-owned company, was founded in 1929. Wiggins Airways employs approximately 145 people with annual sales exceeding $24 million.

Wiggins Airways is a regional carrier of freight serving 11 states in the Northeast and offers private passenger charter service. The company is also a commercial service provider of fuel, deice and other related services for commercial airlines at the Manchester-Boston Regional Airport.

Wiggins Airways also maintains a full service Avfuel FBO with pilot and passenger lounges, and Hertz Rental cars on site.

Wiggins Airways owns and operates 29 Cessna 208 Caravans, 10 Beechcraft 99s (above), 3 Embraer EMB-110 Brasilias and one Cessna 402C principally employed in support of cargo operations, operating throughout the Northeastern US and Canada. In addition a Beechcraft King Air A100 is available for passenger charter.

All images by Wiggin Airways and Ameriflight.

Wiggins Airways service area:

Ameriflight Route Map:

Air Transat’s parent reports adjusted 3Q net income of C$26.7 million

Air Transat‘s (Montreal) (website) parent, Transat A.T., Inc. issued this quarterly financial statement for the fiscal third quarter (all amounts in Canadian dollars):

Transat A.T. Inc., one of the largest integrated tourism companies in the world and Canada’s holiday travel leader, posted revenues of $941.7 million for the quarter ended July 31, 2014, compared with $927.0 million in 2013, an increase of $14.7 million, or 1.6%. The Corporation recorded adjusted operating income of $46.8 million, compared with $54.4 million in 2013, and net income of $25.8 million ($0.66 per share on a diluted basis), compared with $41.1 million ($1.07 per share on a diluted basis) in 2013. Before non-operating items, Transat reported adjusted net income of $26.7 million in 2014 ($0.69 per share on a diluted basis), compared with $30.8 million ($0.80 per share on a diluted basis) in 2013.

Read the full report: CLICK HERE

Copyright Photo: TMK Photography/AirlinersGallery.com. Air Transat’s Boeing 737-8Q8 C-GTQB (msn 30696) in the Split Scimitar Wingslets is resting between flights at Toronto (Pearson).

Air Transat

The proposed return of the Air Florida brand as a public charter carrier

Air Florida (3rd) (St. Petersburg/Clearwater) is the latest return of an historic brand following the return of PEOPLExpress and Eastern. The paper airline has posted this plan and information on their new website:

Air Florida is a privately-held start-up carrier, incorporated as a Florida Corporation In 2014. The company has filed for registration of all logos and indicia of the iconic carrier (Air Florida 1st, 1971-1984), and will operate initially as a public charter carrier.

The carrier Is expected to name the executive team of Aviation Solutions, Inc., of Dallas, TX to manage all phases of operation.

We have reached an agreement In principle with Xtra Airways of Boise, ID for the provision of multiple Boeing 737-400 aircraft (and crews) on an ACMI lease program.

The carrier is also in discussion for a similar lease arrangement for one McDonnell Douglas MD-11 aircraft for long-haul service, initially proposed to be (Los Angeles-St. Petersburg/Clearwater-San Juan.

While Air Florida will indeed provide leisure travel services from under-served airports In the Northeast and Midwest to various destinations in our home state. Many of the cities in our launch service will become focus cities upon further expansion. The carrier will offer connecting flights and point-to-point service between Northeast and Midwest destinations.

In addition to providing both low-fare leisure and business travel, a key philosophy behind the start-up is a return to the original Air Florida’s K.I.S.S. (Keep It Sweet & Simple) principles. Air Florida does not intend to add hidden or ‘A La Carte’ fees to its fares, but will work to keep fares low while offering our customers what should be expected in air travel.

We intend to commence service in early 2015 with service from St. Petersburg/Clearwater, Daytona Beach and Ft Lauderdale/Hollywood to Chicago (Gary), St. Louis, Pittsburgh, Allentown (Lehigh Valley) and Worcester.

The would-be airline is currently in discussions to lease Embraer EMB-120 turboprops as feeder flights for its proposed long-range routes operated with Boeing 737-400s.

Copyright Photo: Bruce Drum/AirlinersGallery.com. The 1979 blue and green color scheme of the original Air Florida is seen on Boeing 737-2T4 N56AF (msn 22369).

The original Air Florida aircraft slide show:

Spirit Airlines reports record 2Q net income of $66.5 million, up 45.2%

Spirit Airlines, Inc. (Fort Lauderdale/Hollywood) has reported second quarter 2014 financial results.

Adjusted net income for the second quarter 2014 increased 45.2 percent to $66.5 million ($0.91 per diluted share) compared to $45.8 million ($0.63 per diluted share) for the second quarter 20131. GAAP net income for the second quarter 2014 was $64.8 million ($0.88 per diluted share) compared to $42.1 million ($0.58 per diluted share) in the second quarter 2013.

For the second quarter 2014, Spirit achieved an adjusted pre-tax margin of 21.3 percent compared to 17.8 percent over the same period in 20131. On a GAAP basis, pre-tax margin for the second quarter 2014 was 20.8 percent compared to 16.4 percent in the second quarter 2013.

Spirit ended the second quarter 2014 with $567.2 million in unrestricted cash.

Spirit’s return on invested capital (before taxes and excluding special items) for the twelve months ended June 30, 2014 was 32.0 percent. See “Calculation for Return on Invested Capital” table below for more details.

“The Spirit team delivered another strong quarter. While growing our capacity 17.2 percent year over year, we grew our top line 22.6 percent year over year,” said Ben Baldanza, Spirit’s Chief Executive Officer. “Our efforts to drive operational excellence have produced material improvements in controllable components of our cost structure which contributed to the 3.5 percentage point year-over-year increase in our Adjusted Operating Margin. I want to thank all our team members that contributed to these excellent results. A few months ago, we launched a series of initiatives aimed at better aligning our customers’ expectations with the Spirit business model. We are very encouraged at the early results of this effort, and the Bare Fare™ plus Frill Control™ messaging is resonating well with customers as they see the benefit of only paying for what they truly value. As we continue down this path, we expect ever increasing alignment to a business model that provides the lowest total fares and the highest consumer choice all while maintaining our commitment to deliver value to our customers and to our shareholders.”

Revenue Performance

For the second quarter 2014, Spirit’s total operating revenue was $499.3 million, an increase of 22.6 percent compared to the second quarter 2013. The increase was driven by our growth in flight volume, higher load factors, and higher operating yields.

Total revenue per available seat mile (“RASM”) for the second quarter 2014 was 12.46 cents, an increase of 4.6 percent compared to the second quarter 2013. The calendar shift of Easter occurring in April this year compared to March in 2013 contributed to the strong second quarter 2014 results.

Passenger flight segment (“PFS”) volume for the second quarter 2014 grew 14.7 percent year over year, and the Company’s load factor for the second quarter 2014 increased 1.8 points year over year to 87.5 percent. Total revenue per PFS for the second quarter 2014 increased 6.8 percent year over year to $139.90.

Cost Performance

Total operating expenses for the second quarter 2014 increased 15.7 percent year over year to $394.2 million on a capacity increase of 17.2 percent.

Spirit reported second quarter 2014 cost per available seat mile excluding special items and fuel (“Adjusted CASM ex-fuel”) of 5.95 cents, a decrease of 0.8 percent compared to the same period last year. The primary driver of the decrease was lower passenger re-accommodation expense (recorded within Other operating expense) per ASM as a result of improved operational reliability. The Company also benefited from lower aircraft rent per ASM. These benefits were partially offset by higher depreciation and amortization expense and increased salary, wages, and benefits, as well as higher maintenance, material, and repairs expense per ASM.

Selected Balance Sheet and Cash Flow Items

As of June 30, 2014, Spirit had $567.2 million in unrestricted cash and cash equivalents. For the six months ended June 30, 2014, Spirit incurred capital expenditures of $7.4 million, paid $94.0 million in pre-delivery deposits for future deliveries of aircraft, net of refunds, and recorded an increase of $14.3 million in maintenance deposits, net of reimbursements.

Fleet

In the second quarter 2014, Spirit took delivery of one new A320 aircraft, ending the quarter with 57 aircraft in its fleet. The Company has eight more new A320 aircraft scheduled for delivery by year-end 2014.

Second Quarter 2014 and Other Current Highlights

• Added/announced new service between (service start date):

– Minneapolis-St. Paul and Houston (5/1/14)2
– Minneapolis-St. Paul and Baltimore/Washington (5/1/14)2
– Chicago O’Hare and Oakland/San Francisco (5/1/14)
– Minneapolis-St. Paul and Detroit (5/22/14)2
– Chicago O’Hare and Baltimore/Washington (5/22/14)2
– Chicago O’Hare and Portland, OR (5/22/14)2
– Fort Lauderdale and New Orleans (8/1/14)
– Houston and New Orleans (8/1/14)
– Houston and Atlanta (8/1/14)
– Kansas City and Chicago (8/7/14)
– Kansas City and Dallas/Fort Worth (8/7/14)
– Kansas City and Detroit (8/7/14)
– Kansas City and Las Vegas (8/7/14)
– Kansas City and Houston (8/8/14)
– Fort Lauderdale and Houston (9/3/14)
– Houston and San Diego (9/3/14)
– Boston and West Palm Beach (11/21/14)2
– Latrobe/Pittsburgh and Fort Myers (12/18/14)2
– Latrobe/Pittsburgh and Tampa (12/19/14)2

Copyright Photo: Brian McDonough/AirlinersGallery.com. Spirit Airlines has eight more new Airbus A320 aircraft scheduled for delivery by year-end 2014. Airbus A320-232 N617NK (msn 5387) completes its final approach into Baltimore/Washington (BWI).

Spirit Airlines:

Current Route Map:

Alaska Air Group reports a net profit of $165 million for the second quarter

Alaska Air Group, Inc., (Alaska Airlines and Horizon Air) (Seattle/Tacoma) today reported second quarter 2014 GAAP net income of $165 million, or $1.19 per diluted share, compared to $104 million, or $0.74 per diluted share in the second quarter of 2013. Excluding the impact of mark-to-market fuel hedge adjustments of $13 million ($8 million after tax, or $0.06 per diluted share), the company reported record adjusted net income of $157 million, or $1.13 per diluted share, compared to adjusted net income of $105 million, or $0.74 per diluted share, in 2013.

Read the full report: CLICK HERE

Copyright Photo: Mark Durbin/AirlinersGallery.com. Alaska Airlines has already added Aviation Partners Boeing Split Scimitar Winglets to 12 Boeing 737 aircraft. Boeing 737-890 N588AS (msn 35685) with SS Winglets taxies at San Francisco.

Alaska Airlines:

Alaska Horizon:

Horizon Air:

Southwest Airlines adds the Cartoon Network

Southwest Airlines (Dallas) in a move that will excite your kids, along with the Turner Broadcasting System, Inc. announced today it will add Cartoon Network to the carrier’s inflight entertainment portal, which streams free live television programming to passengers’ WiFi-equipped personal electronic devices at all phases of flight, compliments of DISH®. Content from Cartoon Network’s popular programming such as Adventure Time, Regular Show, The Amazing World of Gumball, and Ben 10 Omniverse is now available for inflight viewing. Cartoon Network is the airline’s first complete child-centric programming being offered onboard all Southwest WiFi-equipped aircraft, representing nearly 80 percent of the airline’s fleet. The streaming TV service is provided through leading inflight content and connectivity partner Global Eagle Entertainment Inc. Cartoon Network programming is being provided by Turner Private Networks, a subsidiary of Turner Broadcasting that creates and distributes content for out-of-home networks.

Southwest Airlines: