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Airline Finance News.

Oct 9, 2006

IATA reported that international passenger traffic growth continued to soften in August as member airlines reported a 4.8% increase in international RPKs compared to August 2005. According to IATA, this is the smallest monthly passenger traffic increase since the end of 2003 "and marks the fourth consecutive month of declining growth in passenger demand." With ASKs up 4.3%, load factor was 79.4%. The organization noted, however, that a strong revenue environment and capacity discipline, in combination with declining oil prices and efficiency gains, mean the industry "may end the year better off than our current $1.7 billion loss projection." It also said that the UK terror alert "had no clear impact on traffic growth" in August. International freight traffic rose 4.7% in the month against the year-ago period. Year-to-date through August, IATA members' international traffic grew 6.1% against a 4.7% rise in capacity. FTKs were up 5.2% with ATKs increasing by 5.3%. Oct 2, 2006


Airlines Review Fleet Needs After A380 Delay. The world's airlines were forced to review growth plans on Wednesday after Airbus revealed more delays to its troubled A380 superjumbo. Airbus on Tuesday delayed deliveries of the world's largest passenger jet by another year, leaving it two years behind schedule, because of wiring installation problems. EADS predicted a profit shortfall of EUR2.8 billion euros (USD$3.55 billion) over four years on top of EUR2 billion (USD$2.54 billion) disclosed in June and announced a EUR2 billion annual cost-savings program, far above previous measures. It also took provisions for penalties to airlines and acknowledged the risk of further charges for its new A350 aircraft, which needs to be redesigned to counter Boeing's 787 Dreamliner. Debt rating agency Standard & Poor's said overnight it might cut its rating on EADS on the back of the profit warning and the delay, due mainly to problems installing wiring in the USD$300 million double-decker. Oct 4, 2006

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Oct 2, 2006
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Publication:Airguide Online
Date:Oct 2, 2006
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