Airlines Financial News
From bad to worse for Aer Lingus
Troubles at Aer Lingus have deepened after the former Irish flag carrier warned that operating losses quadrupled to €81 million last year due to a collapse in fares.
Qantas slashes first class as profits slide
Qantas Airways is cutting first-class seats from all but a few key routes following a 72 percent slump in profits. The flag carrier blamed the figures on falling customer demand and said it was also scrapping dividend payments.
BA reports surprise profit but still on course for record losses
British Airways has surprised the markets by posting its first operating profit in more than a year, but still expects to rack up the heaviest annual losses since privatisation in 1987.
Ryanair bullish as losses narrow
Ryanair has raised its forecast for this year as narrowing losses and a better mix of new routes are expected to put Europe’s budget carrier back into the black. It also reported a €10.9 million loss for quarter ending December 31, compared to a €101.5 million loss year-on-year.
Russian billionaire Lebedev sells Aeroflot stake for $400m
Russian oligarch Alexander Lebedev is to sell his stake in Aeroflot for $400m (£247m) in a bid to raise cash for other projects in aviation, agriculture and publishing. He was the state-controlled airline’s largest shareholder with 25.8 percent.
Back to black for Boeing
Aerospace giant Boeing has reported a sharp rise in fourth quarter revenues, up 42% to $17.9bn, ahead of forecasts. The increase came despite the poor economic climate, with net income for the period $1.27bn, compared with a loss of $86m year-on-year.
Roaring Tiger IPO marks aviation return to financial favour
Low-cost carrier Tiger Airways has made a strong debut on the Singapore stock market, signalling a return to financial favour of the aviation sector. The Singapore-based airline raised S$248m (US$177m) in the first IPO by an Asian airline for five years.
easyJet revenues soar despite snow chaos
EasyJet has managed to post strong revenue growth, despite its schedules being severely disrupted over the past month due to the big winter freeze. The budget carrier cited higher load factors, a hike in non-UK passengers and greater capacity for contributing to double-digit revenue growth over the past quarter.
Boeing orders plummet
Boeing says its customers ordered just 142 commercial aircraft last year as the recession forced airlines to shrink, leaving the aerospace company neck and neck with archrival Airbus.
Key Air Completes Recapitalization Transaction
Existing Equity Investors Acquire Key Air Debt; Transaction Ensures Key Air’s Long-Term Financial Stability and Facilitates Growth Strategy
Japanese government refuses to guarantee JAL bail-out
The Japanese government has said that it will not guarantee funding for debt-ridden national carrier Japan Airlines, meaning a tie-up with an American airline has emerged as the most likely candidate to option avoid insolvency.
Australian government relaxing foreign ownership in Qantas
Qantas will be given freer reign to raise capital following plans by Australia’s government to ease foreign ownership rules. This would allow the airline to play a greater roll in the consolidation of the global airline industry in the downturn, as well as expansion under new open skies agreements.
BA’s mushrooming pension deficit threatens Iberia merger
The odds of a merger between British Airways and Iberia have lengthened following news that the pension deficit of the British flag carrier has grown by £1.6bn over the past year. BA may now no longer be able to meet long-term payments to its entire workforce, which has been the main sticking point in the proposed tie-up with Iberia.
JAL poised for $7.8bn government bailout
The fate of Japan Airlines has taken another twist after it has emerged that the government is considering loan guarantees to the tune of Y700bn ($7.8bn) to bail out the beleaguered carrier. The move would thwart the recent take-over attempts by American Airlines and Delta despite the enormous risk to take-payers money.
Tiger poised for IPO next month
Singapore’s Tiger Airways is set for an initial public offering next month in a bid to help finance the purchase of a fleet of 50 Airbus A320s. It is planning to sell up to 51 per cent of its shares, which could raise as much as $1bn.
Air France to cut 1,700 jobs as losses widen
Air France-KLM is to cut 1,700 jobs next year after posting a worse-than-expected quarterly loss. The Franco-Dutch carrier, which is already cutting 3,000 jobs this year, reported a net loss of €147m, which it blamed on fuel hedging losses and poor cargo traffic.
Aer Lingus poised to make job cuts in US$100m cost cuts
Beleaguered Aer Lingus is expected to announce further job cuts as it concludes talks with trade unions this week as part of a new round of US$100m cost cuts.
EasyJet warns of “tough times ahead” as profits slump two thirds
EasyJet has warned of a “tough winter ahead” as it unveiled a 65 percent slump in annual pre-tax profits. It citied a fall in demand due to rising unemployment coupled with poorly-timed fuel hedging for profits falling to £43.7m in the 12 months to September 30.
JAL racks up $1.5 billion first-half loss
Japan Airlines has revealed a $1.5 billion loss as it struggles to recover from the travel industry’s deepest slump in years. The company is seeking government help to deal with creditors.
bmi can ‘survive’ despite losses
British Midland Airways, or bmi, has countered the suggestion that it will not be capable of continuing operations beyond this year and says it will be able to meet its financial commitments and had adequate resources.
