Printer Friendly

Airline Finance News.

For more airline finance news, data and analysis, please go to: http://www.airguideonline.com/professional.htm Jun 12, 2006

IATA met for its annual gathering of the great and good last week in Paris with Giovanni Bisignani, director general, in his usual good form. He noted that the industry had made tremendous progress since 9/11 brought about a crisis. "Labor productivity improved 33%. Sales and distribution costs dropped 10% and non-fuel unit costs reduced 13%," said Bisignani. "Oil remains the wild card. The break-even fuel price increased from $14 per barrel to $50 since 2001. But in just one year, the fuel bill ballooned $21bn and is expected to top $112bn. He noted that 70 airlines are implementing bar coded boarding passes and 46 airports are implementing IATA common-use self-service kiosks. 50% of all tickets are electronic. The deadline for 100% ET is less than two years away. BA's somewhat reclusive Willie Walsh ventured to say that the resolving of the airlines' pension funds issues were high on his agenda and that with a relatively new fleet replacement aircraft were not a priority. It emerged that BA will move into Heathrow Terminal 5 on 31 March 2008. The full text of Mr Bisignani's speech is at http://www.iata.org/pressroom/speeches/index Jun 11, 2006

Airlines want general aviation to pay their share of ATC costs. Airlines think general aviation users should pay their fair share to support the nation's air traffic control system. Meanwhile, companies that manufacture small jets say higher fees will harm their market by making smaller planes less affordable. Jun 9, 2006

Airlines search for creative ways to cut fuel costs. Airlines are searching for ways to offset the soaring price of jet fuel. Some carriers are buying more efficient planes and reducing the amount of weight planes carry. http://www.airguideonline.com/onlineairl.htm Jun 7, 2006

Group supports phasing out paper tickets in 2007. Paper tickets should be phased out next year, according to one industry group. Currently, almost 48% of tickets issued worldwide are electronic tickets. Phasing out paper tickets will make the carriers more efficient and lower costs. http://www.airguideonline.com/onlineairl.htm Jun 7, 2006

Global airline industry may post $3B loss in 2006. Airlines throughout the world are expected to lose $3 billion in 2006, according to an industry trade group. Losses related to soaring fuel costs could push some carriers to cancel aircraft orders. High fuel prices create uncertainty for carriers. Airlines continue to face higher expenses from soaring fuel prices. "When we began the restructuring process last year, we prudently planned for oil prices averaging $65 per barrel in 2006, and $60 per barrel thereafter," Northwest Airlines Chief Financial Officer Neal Cohen said. "With recent persistent record-high fuel costs, along with significant volatility in the markets, there remains great uncertainty around this key element of our plan." Jun 6, 2006

IATA tempers 2006 outlook in face of higher fuel prices. IATA yesterday moderated industry profit and loss expectations for 2006 in the face of expectations that the price of oil will average $66 a barrel, a level that is offsetting revenue growth and efficiency gains. Jun 6, 2006

Airlines focus on operating profitable flights. Many airlines are posting better financial results after five years of losses. Carriers are now focusing on making each flight profitable by decreasing capacity, boosting revenue and becoming more efficient. The airlines' combined mainline operating fleet fell 21% in 2005 from 2000, according to the Air Transport Association. Some airlines reported higher revenue per available seat mile for May. http://www.airguideonline.com/onlineairl.htm Jun 5, 2006
COPYRIGHT 2006 Pyramid Media Group, Inc
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 2006, Gale Group. All rights reserved. Gale Group is a Thomson Corporation Company.

Article Details
Printer friendly Cite/link Email Feedback
Publication:Airguide Online
Date:Jun 12, 2006
Words:608
Previous Article:Airline Finance News - North America.
Next Article:Airport News.
Topics:


Related Articles
Airline Finance News - Europe.
Airline Finance News - Africa / Middle East.
Airline Finance News.
Airline Finance News - Africa / Middle East.
Airline Finance News.
Airline Finance News.
Airline Finance News - Africa / Middle East.

Terms of use | Privacy policy | Copyright © 2020 Farlex, Inc. | Feedback | For webmasters