Airline Finance News - North America.For more airline finance news, data and analysis, please go to: http://www.airguideonline.com/professional.htm Jul 31, 2006 After years of losses, some carriers post profits. Fare increases and cost-cutting efforts have helped some airlines return to profitability, but high fuel prices continue to hurt the industry. "Everyone likes to be in the black, even if it's just for a quarter," Air Transport Association Chief Economist The Chief Economist is a single position job class having primary responsibility for the development, coordination, and production of economic and financial analysis. It is distinguished from the other economist positions by the broader scope of responsibility encompassing the John Heimlich says. "To make any money at these fuel prices says a lot about the potential for this industry. But vigilance is the word of the day." Jul 28, 2006 Texas congressmen call airline pension plan unfair. A pair of House Republicans from Texas say they plan to oppose a pension reform bill if it puts Texas-based American Airlines American Airlines Major U.S. airline. American was created through a merger of several smaller U.S. airlines and incorporated in 1934. It continued to buy the routes of other airlines, becoming an international carrier in the 1970s; its routes include South America, the and Continental Airlines at a disadvantage. Reps. Sam Johnson
Samuel Robert "Sam" Johnson (born October 11, 1930) is an American politician. He currently is a Republican member of the U.S. and Kevin Brady Kevin Patrick Brady (born April 11, 1955) is a Republican politician from the state of Texas. Brady was born in Vermillion, South Dakota, one of five children of William and Nancy Brady. His father, a lawyer, was killed in 1967 in a courtroom shooting in Rapid City, S.D. note the bill would require American and Continental to make higher pension contributions than other carriers. Jul 28, 2006 Veteran pilots concerned over lack of new pilots. Veteran pilots worry that not enough young people are learning to fly. The number of pilots in the U.S. has dropped 25% over the past 25 years, and the number of student pilots has fallen 56%. Industry observers predict a shortage of airline pilots in the near future unless more young people learn to fly. Jul 26, 2006 Agents listen as carriers discuss cost savings, efficiency. Business travel agents meeting in Chicago last week heard airlines make a case for lowering costs and global distribution systems tout their new booking systems. Three carriers recently decided to impose new fees on agents using nonpreferred booking channels. Jul 24, 2006 Study: Pension law revision could weigh on weigh on Verb to be oppressive or burdensome to: the expectations that weigh so heavily on diplomats' wives Verb 1. government. Plans to retool re·tool v. re·tooled, re·tool·ing, re·tools v.tr. 1. To fit out (a factory, for example) with a new set of machinery and tools for making a different product. 2. pension system rules could result in the U.S. government paying roughly $2 billion more out of pocket while companies will carry a slightly lighter burden, according to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. Pension Benefit Guaranty Corp. analysis. Some congressional leaders disagree with the findings, saying PBGC PBGC See: Pension Benefit Guaranty Corporation overestimates current employer contributions. Jul 24, 2006 Alaska Airlines Alaska triples second-quarter net income to $55.5 million. Alaska Air Group, parent of Alaska Airlines and Horizon Air, reported net income of $55.5 million for the second quarter ended June 30, more than triple the net income of $17.4 million in the year-ago quarter, strong results that the company attributed to "a combination of revenue gains and cost improvements."Group operating revenues grew 15.4% to $873 million while expenses climbed 10.1% to $792.9 million. Operating income Operating Income The profit realized from a business' own operations. Notes: This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit. more than doubled to $80.1 million from $36.6 million last year. Jul 26, 2006 Alaska Airlines Alaska Airlines revenues rose 15.3% to $710.4 million against an 8.2% lift in expenses to $639.5 million, while Horizon revenues climbed 15.7% to $162.7 million as expenses rose 18.7% to $152.5 million. Alaska posted operating income of $70.9 million, up 178% over $25.5 million in the year-ago quarter. Horizon reported operating income of $10.2 million, down slightly from $12.1 million last year. Yield per RPM at Alaska rose 7.6% to 13.99 cents while Horizon's yield was up 5.3% to 23.25 cents. Alaska's revenue per ASM (1) (Association for Systems Management) An international membership organization based in Cleveland, Ohio. Founded in 1947 and disbanded in 1996, it sponsored conferences in all phases of administrative systems and management. climbed 9.5% to 12.18 cents on a 1.4-point gain in load factor to 79.3%. Nonfuel unit cost fell 2.1% to 7.92 cents. Horizon's CASM CASM Cost per Available Seat Mile CASM Communities and Small-scale Mining CASM Canadian Academy of Sports Medicine CASM Certificate of Advanced Study in Mathematics (Univeristy of Cambridge, UK) CASM Coherent Adaptive Subcarrier Modulation was up 11.8% to 15.14 cents while RASM RASM Revenue per Available Seat Mile RASM Reliability, Availability, Scalability and Manageability (Red Hat, Inc.) RASM Rear Admiral Submarines (UK) RASM Recorded Announcement Systems Manager grew 9% to 18.06 cents. Jul 26, 2006 American Airlines American CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. focuses on teamwork to improve efficiency. American Airlines Chief Executive Gerald Arpey says airline executives and workers must collaborate for the carrier to become more efficient. American is the only large airline that has never filed for bankruptcy protection, and Arpey credits its success to open communication and teamwork. Jul 24, 2006 Comair Comair was granted permission Friday by the US Bankruptcy Court bankruptcy court n. the specialized Federal court in which bankruptcy matters under the Federal Bankruptcy Act are conducted. There are several bankruptcy courts in each state, and each one's territory covers several counties. to void the labor agreement with its approximately 1,000 cabin staff and impose a reduced $7.9 million in annual concessions. The airline submitted a second request for relief following the breakdown of negotiations last month. The Delta Air Lines subsidiary "demonstrated beyond doubt that a material reduction in Comair's flight attendant costs is essential to the company's ability to be successful in the extraordinarily competitive regional airline market of today," Judge Adlai Hardin wrote, according to the Associated Press. Jul 24, 2006 Continental Airlines Continental finalizes agreement with Chautauqua Chau`tau´qua 1. a meeting, usually held in the summer outdoors or under a temporary tent, providing public lectures combined with entertainment such as concerts and plays. It originated in the village of Chautauqua, N. Y. for Regional service. Continental Airlines on Friday officially selected Chautauqua Airlines to provide and operate 44 regional jets as a Continental Express carrier beginning in 2007, filling a void created earlier this year when the Major failed to reach agreement with ExpressJet on a new capacity purchase deal to keep the Regional's 69 aircraft flying under the CO code. Jul 24, 2006 Delta Air Lines Delta Air Lines, currently perhaps the most aggressive US airline across the North Atlantic, has acquired from United Airlines traffic rights between New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of JFK and Gatwick. The cost for the route rights will bring in up to $21m for United but the Heathrow slots remain with that airline. Expected to start from the beginning of the winter season initially the service will be daily using a Boeing 767 doubled for summer 2007. However in spite of its much better rail connections Gatwick has never proved to be as attractive to and from New York as Heathrow, BA and Virgin having given up their services prior to the current season. In recent times only Continental has served 'Big Apple', via Newark. London will now be connected to Kennedy by American Airlines, BA and Virgin from Heathrow and Continental (Newark) and Delta from Gatwick plus Eos and Maxjet, business class airlines from Stansted. Delta, who are trading in bankruptcy, says it is still the airline's intention to fly JFK - LHR LHR Love-Hate Relationship LHR Lahore (Pakistan) LHR Laser Hair Removal LHR Lawyers for Human Rights LHR Left Hand Reverse (door opening convention) LHR Lung-To-Head Ratio LHR League for Human Rights as soon as the bilateral is sorted out. The new routing is subject to government approval. United Airlines continues with services from Heathrow to Chicago, Las Angeles, San Francisco and Washington. http://www.delta.com http://www.united.com Jul 29, 2006 Delta Air Lines, Northwest Airlines Lawmakers should pass pension reform laws: Delta Air Lines and Northwest Airlines want to honor their pension obligations to employees, writes Cathy Cone, chair of the non-pilot retiree committee in the Delta bankruptcy case. Cone says, however, that Congress should pass pension reform legislation that gives the carriers more time to fund their plans. Jul 24, 2006 Hawaiian Airlines Hawaiian Airlines flew 575.5 million RPMs in June, a 1.1% increase over the year-ago month. Capacity rose 0.2% to 661.4 million ASMs and load factor climbed 0.8 point to 87%. Jul 25, 2006 Mesa Air Mesa Air Group's profit fell 36% in the third fiscal quarter ended June 30, a drop that company officials attributed to weather, fleet repositioning and the startup of Hawaiian carrier go! Mesa reported after-tax earnings of $10.9 million on operating revenues of $339 million. Revenues were up 13.6%, primarily as a result of increases in reimbursed fuel expenses. For the nine-month period, net income was $29 million, reduced from $41 million in the year-ago period. Third-quarter capacity dipped 2.7% to 2.2 billion ASMs as aircraft were transitioned from the former US Airways system to Delta Connection. RPMs were up 8.5% to 1.8 billion. The number of regional jets flown increased by seven year-over-year to 149. Jul 27, 2006 Mesaba Airlines Mesaba Airlines flew 108.6 million RPMs in June, a 38.8% decline from the year-ago month. Capacity fell 40% to 149.3 million ASMs and load factor rose 1.5 points to 72.8%. Jul 27, 2006 Midwest Airlines, Skyway Airlines Midwest Air Group Midwest Air Group, Inc. AMEX: MEH is an airline holding company based in Oak Creek, Wisconsin now controlled by parent company, TPG Capital Texas Pacific Group. Northwest Airlines Inc,. , parent of Midwest Airlines and Skyway Airlines, reported second-quarter net income of $8.8 million, compared to a loss of $8.2 million in the year-ago quarter, on a 34.4% jump in revenues to $176.9 million. "A strong increase in passengers and an improved fare environment helped offset soaring fuel costs in the quarter," Chairman and CEO Timothy Hoeksema said. The company posted operating income of $7.5 million, an improvement over an operating loss operating loss The excess of operating expenses over revenue. As with operating income, operating losses exclude revenues and expenses from operations that are not considered a regular part of the business. Also called deficit. Compare operating income. of $8.2 million last year. Expenses rose 21.2% to $169.3 million as fuel costs surged 49.4% to $60.6 million. Jul 28, 2006 Northwest Airlines Northwest To Resume Talks With Striking Mechanics. Northwest Airlines and its striking mechanics union have agreed to resume negotiations on a new contract, the union said on Thursday. Jul 28, 2006 Northwest Airlines Judge approves Northwest flight attendants contract. A bankruptcy judge has approved a contract with Northwest Airlines flight attendants intended to save the bankrupt carrier up to $200 million a year. The agreement, reached July 17, cuts pay and benefits for the workers by 21%. Jul 27, 2006 Republic Airways Republic Airways Holdings Republic Airways Holdings, Inc. (NASDAQ: RJET) is an aviation holding corporation based in Indianapolis, Indiana, which owns three regional airlines operating in the United States: Chautauqua Airlines, Republic Airlines and Shuttle America. said Chautauqua Airlines, Republic Airlines and Shuttle America flew a combined 624.3 million RPMs in June, a 59.4% increase over the year-ago month. Capacity rose 45% to 778.6 million ASMs and load factor improved 7.2 points to 80.1%. Jul 26, 2006 United Airlines United beats forecasts, achieves profitability after six years in red. United Airlines will report its first quarterly profit excluding unusual items in six years when it releases its second-quarter results on July 31.Parent UAL UAL United Airlines (ICAO code) UAL Unified Accelerator Library (Brookhaven National Laboratory) UAL User Account Lockdown UAL User Access Layer UAL Universal Auxiliary Language UAL User Agent Layer Corp. took the unusual step of unveiling preliminary figures yesterday in a filing designed to offer guidance to investors as it prepares to issue $726 million in convertible notes to an employee trust by Aug. 1. The company anticipates net earnings of $119 million, or $141 million excluding a one-time severance payment in the June quarter, reversing a $1.43 billion loss in the year-ago quarter, or $26 million excluding reorganization and special items. Jul 25, 2006 United Airlines United Airlines expects to report operating revenues of $5.11 billion, up 15.6% over last year. Expenses will rise 10.9% to $4.85 billion and operating profit Operating profit (or loss) Revenue from a firm's regular activities less costs and expenses and before income deductions. operating profit See operating income. will grow more than fivefold fivefold Adjective 1. having five times as many or as much 2. composed of five parts Adverb by five times as many or as much Adj. 1. to $260 million from $48 million. Mainline unit revenue is expected to climb 11.5% to 12.03 cents against an 8.9% rise in mainline CASM to 11.43 cents, or 7.7 cents excluding fuel and nonairline costs, an increase of 1.6%. Jul 25, 2006 US Airways US Airways Group US Airways Group Inc. NYSE: LCC is the Tempe, Arizona-based airline holding company that operates US Airways, US Airways Express and America West Airlines. It also operates additional companies that provide associated services. profits from sum of its parts. The merger of US Airways Group and America West Airlines America West Airlines was one of the United States' ten major airlines. The airline was based in Tempe, Arizona, and is now a part of US Airways Group. At the time of its integration into US Airways, the airline maintained two hubs, one at Phoenix Sky Harbor International continues to pay big dividends, according to President and CEO Doug Parker, who said it was the "primary driver" behind second-quarter net earnings of $305 million for the combined company. Although results are not directly comparable to the year-ago period when the airlines operated independently, the figure represents a significant improvement over an approximate combined pro forma As a matter of form or for the sake of form. Used to describe accounting, financial, and other statements or conclusions based upon assumed or anticipated facts. The phrase pro forma loss of $46 million by the constituent companies, America West Airlines ($2 million) and US Airways Inc. ($44 million), in the 2005 quarter. In the 2006 quarter, US earned $246 million on a standalone basis and AWA AWA As Well As (internet chat lingo) AWA Animal Welfare Act AWA Australian Workplace Agreement AWA America West Airlines AWA Anime Weekend Atlanta (Anime convention in Atlanta, GA) earned $68 million. The result includes $35 million in merger-related transition expenses and $25 million in special gains. Jul 28, 2006 US Airways, America West Airlines Before its merger with US Airways, America West Airlines planned to merge with ATA Airlines. America West Chief Executive Douglas Parker says the failure of that agreement allowed the company to buy US Airways. "With the transition of our 59 regional jets out of US Airways now complete, we can concentrate on providing our partners with the best possible product." Parker says in an interview with the Chicago Tribune. Jul 24, 2006 US Airways, Delta Air Lines US Airways Tested Delta Merger Interest. US Airways Group's chief executive called Delta Air Lines' CEO this summer to gauge his interest in a possible merger, according to a newspaper report, citing people familiar with the situation. Jul 30, 2006 |
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