Airlines Financial News

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.

Global airline capacity up 1.04% but growth slowing
Global airline capacity for October 2009 is showing positive growth of 1.04% compared to October 2008, down slightly from September’s growth of 1.4%, reports OAG, (www.oagaviation.com), the world’s leading aviation data business, as it releases its monthly report on trends in the supply of airline flights and seats. The world’s airlines have 299.9 million seats available this month, a rise of 1.04% (3,091,580 more seats) over October 2008 levels.

JAL shelves talks with Delta and AA
Beleaguered Japan Airlines has temporarily shelved plans to seek a bailout from a foreign carrier until a Japanese government taskforce finishes a review of its financial structure. Delta Air Lines and American Airlines were in separate talks to invest in JAL as a means of gaining foothold in Japan and Asia, but must now wait for the completion of the review.

Airlines to post record-breaking losses
Airlines are predicted to lose a total of $11 billion this year according to IATA – $2 billion worse than previously predicted. The impact of the recession on the airline industry is “worse than the impact of 9/11,” according to IATA CEO Giovanni Bisignani. He predicted that losses would continue until 2010 with the industry expected to report a $3.8 billion net loss.
Iberia to cut capacity to stem growing losses
Iberia has vowed to accelerate its cost-cutting programme after sliding further into the red over the second quarter. Jobs are set to go, aircraft withdrawn from its fleet and wages frozen as Spain’s largest carrier also warned that it would be heading for its first annual loss in a decade.

Aer Lingus losses treble as low-cost tactic backfires
Losses at troubled Aer Lingus have more than trebled over the first half of 2009 as its attempts to reinvent itself as a low-cost carrier appear to have backfired. The Irish carrier reported losses of €73.9m, compared to €21.6m a year earlier, as average fares slumped 17% despite rising oil prices.