Category: Financial

United reports first quarter net income of US$292 million

United Airlines has posted first quarter net income of US$292 million, pre-tax earnings of US$367 million and pre-tax margin of 3.8%, expanding pre-tax margin 1.8 points versus the first quarter of 2018. United reported first-quarter adjusted net income of US$309 million and adjusted pre-tax earnings of US$389 million. Adjusted pre-tax margin of 4.1% expanding adjusted pre-tax margin 2.1 points versus the first quarter of 2018. Total passenger revenue increased 7.1% versus the first quarter of 2018. First-quarter passenger revenue per available seat mile (PRASM) increased 1.1% year-over-year.

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ST Engineering completes acquisition of MRA Systems

Aerial view of MRAS facility in Baltimore, USA ©ST Engineering

Singapore Technologies Engineering refers to its earlier announcements made on September 13, 2018, March 29, 2019 and April 14, 2019, in relation to the proposed acquisition by its US subsidiary, Vision Technologies Aerospace Incorporated, of a 100% ownership in MRA Systems (MRAS). On April 18, 2019, the proposed acquisition was completed at a net consideration of about US$506m (approximately S$683m) in cash, subject to post-completion adjustments for debt-like items and working capital. MRAS is now an indirect wholly-owned subsidiary of ST Engineering, whose aerospace capabilities now include the Original Equipment Manufacturer business of high-value nacelle systems and replacement parts. With Read more

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India’s Jet Airways suspends all operations until further notice

Jet Airways ©AirTeamImages

Unable to obtain emergency funding, Jet Airways, India’s second-largest commercial airline, has cancelled all flights Wednesday, April 17. “Jet Airways is compelled to cancel all its international and domestic flights. The last flight will operate today,” it said in a statement on Wednesday, adding that the decision would take “immediate effect”. The carrier confirmed it had no other option as a consortium of lenders had refused its request for emergency interim funding, leaving it unable to pay for fuel or other critical services to keep operations going. With a current debt of approximately US$1.2 billion, the airline has recently been Read more

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Rising fuel costs and overcapacity see Lufthansa post first-quarter loss

Lufthansa ©AirTeamImages

Lufthansa Group’s Adjusted EBIT declined to €-336 million in the first quarter of 2019 compared to €52 million for the first quarter of 2018, despite a 3 percent increase in total revenue of €7.9 billion for the quarter compared to 2018 figures.  Adjusted EBIT was reduced by a EUR 202 million rise in fuel costs. According to the Group, the negative trend was accentuated by the fact that first-quarter results for 2018 had been particularly strong, owing to the capacity reductions deriving from Air Berlin’s demise. On this basis, the Lufthansa Group’s Network Airlines suffered a 5.2-percent currency-adjusted decline in Read more

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Delta Air Lines posts 2019 March quarter profit of US$730 million

Delta Air Lines has reported financial results for the March quarter 2019. Delta’s adjusted operating revenue of US$10.4 billion for the March quarter improved 7.5%, or US$728 million versus the prior year. March quarter 2019 GAAP pre-tax income was US$946 million and net income was US$730 million. Delta generated US$2 billion of operating cash flow, as improved profitability and the seasonal build of cash were partially offset by the US$1.3 billion profit sharing payment to employees for 2018 performance.  Delta generated US$760 million of free cash flow during the quarter after the investment of US$1.3 billion into the business primarily Read more

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Boeing shares drop further 4% and suppliers hit as 737 MAX production reduced

With the continued worldwide grounding of the 737 MAX, Boeing has announced that it will be reducing production of the narrow-body jet by 20 percent from 52 units per month to 42 units per month starting in mid April. The news hit the planemaker’s share price even further since the crash of a 737 MAX 8 in Ethiopia on March 10 with a further drop of four percent. Since the 737 MAX was grounded Boeing’s market value has fallen by US$26 billion, according to Reuters. It is not just Boeing’s share value that has been hit as suppliers have also Read more

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Liebherr Group achieves over €10 billion in annual turnover for the first time

The Liebherr Group notched up a turnover of €10,551 million in 2018, breaking through the €10 billion barrier for the first time in the company’s history. This represents an increase of €739 million, or 7.5 %, compared with the previous year. The Liebherr Group achieved a net profit of €321 million in 2018, slightly above the previous year’s level. The operating result remained stable compared to the previous year. The financial result declined, mainly due to negative effects of currency movements. The 2018 business year saw a significant increase in the workforce. At the end of the year, the Liebherr Read more

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airBaltic reports profit of €5.4 million in 2018

airBaltic ©AirTeamImages

Latvian airline airBaltic continued its growth in 2018 and achieved strong financial results. According to the 2018 financial year, airBaltic achieved €400 million revenue, while net income grew by more than 40% compared to 2017, reaching €5.4 million. Martin Gauss, Chief Executive Officer of airBaltic commented: “For the sixth year in a row we are showing a strong track record on profitability. With exceeding €400 million revenue and 4 million passengers, we are ready for future growth with our state-of-the-art Airbus A220 fleet.”

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Aernnova acquires Structural Integrity Engineering

Aernnova has completed the acquisition of Structural Integrity Engineering (SIE), an aircraft engineering company headquartered in Chatsworth (California) with regional offices in Seattle (Washington) and Madrid (Spain). With this acquisition, Aernnova reinforces its growth strategy in North America and adds engineering and certification expertise that complements its aeronautical engineering division and DOA services.  Dr. Matt Creager, who will continue as SIE’s President, said “We are honored to have secured the confidence of Aernnova’s management based on SIE’s strong reputation for engineering in structures and systems integration and our track record in delivering quality for our customers.  We look forward to Read more

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Latecoere welcomes Searchlight Capital’s 26% investment

Activist investor Searchlight Capital Partners (Searchlight) has confirmed its intention to acquire a 26% stake in Latecoere, the French aeronautics company, through the acquisition of existing stakes held by Apollo Capital Management, Monarch Alternative Capital and CVI Partners, at a price of US$4.31 (€3.85) per share. The total investment is valued at US$106.8 million. A number of French companies have been targeted by so-called Activist investors who feel they have been underperforming, including Elliott, which is piling pressure on drinks group Pernod, CIAM is tussling with reinsurer Scor, and Amber Capital has acquired a stake in Lagardere, according to Reuters. Read more

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