Category: Financial

Airbus shares hit record high as Boeing now suggests June return to service of 737 MAX

As Airbus shares hit a record high on Wednesday, January 22, the planemaker’s North American rival, Boeing, has just announced that certification of the beleaguered 737 MAX may not be obtained until June. As a result, while Airbus shares were heading in one direction, those of Boeing and also of many of its customers and suppliers fell on disclosure of this latest news. Airbus shares peaked at €139.32 at 1215 GMT on Wednesday, while those of TUI Group and Norwegian fell by 5% and 1.7% respectively. A spokesman for Norwegian said: “We are continually taking steps to minimize any disruption Read more

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United Airlines reaches 2020 adjusted earnings per share target ahead of schedule

United Airlines (UAL) has reached its 2020 goal — first announced in January 2018 — to achieve adjusted diluted earnings per share (EPS) target of US$11 to US$13 a full year ahead of schedule. UAl has reported fourth quarter net income of US$641 million, up 50% versus the fourth quarter of 2018, pre-tax earnings of US$844 million and pre-tax margin of 7.8%, expanding pre-tax margin 2.5 points versus the fourth quarter of 2018. Fourth-quarter adjusted net income has reached US$676 million, adjusted diluted EPS of US$2.67, up 11% versus the fourth quarter of 2018, adjusted pre-tax earnings of US$889 million Read more

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BAE invests US$2.2bn on two acquisitions to strengthen U.S. electronic systems foothold

BAE Systems plc (BAE), the British multinational defense, security and aerospace company, has announced that it is to make two major purchases in the U.S. – the military Global Positioning System (GPS) business belonging to Collins Aerospace, and the Airborne Tactical Radios (ATR)  business belonging to Raytheon. The opportunity to acquire two sector-appropriate businesses has come about through the antitrust requirements set out for the impending merger of Raytheon, and United Technologies Corporation which is the parent company of Collins Aerospace. Both acquisitions comprise asset transactions with tax benefits with BAE paying US$1.925bn in cash for Collins Aerospace’s GPS business Read more

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StandardAero acquires TRS Global Services subsidiary, TRS Ireland

StandardAero has acquired TRS Global Services subsidiary, TRS Ireland, a highly specialized provider of component repair and manufacturing processes for a large range of industrial, aeroderivative and aircraft gas turbines.  The acquisition will continue to expand StandardAero’s Components, Helicopters & Accessories (CH&A) division and its worldwide portfolio of MRO and component repair services.   TRS Ireland is a privately held company operating from Cork, Ireland, with nearly 70,000 ft ² of MRO operations and more than 100 employees.  The company has a large installed base of current customers that includes Siemans, GE, Rolls-Royce, MTU, Safran, ITC, Doncasters and many others. Read more

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DAE signs new US$300 million four-year unsecured term loan

Dubai Aerospace Enterprise (DAE) has signed a US$300 million four-year unsecured term loan with China Construction Bank (DIFC Branch) and China Construction Bank (Asia) Corporation Limited. The principal amount of the loan can be increased to US$500 million. The loan will support the future financing needs of the business.

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Profit warning sees Bombardier share price plummet by over 38%

With the announcement on Thursday by Bombardier Inc that problematic rail contracts in Europe will mean 2019 profits will be lower than expected, and because it may also have to write down the value of the joint venture with Airbus for the former C Series commercial narrow-body jet, the company’s share price fell by up to 38.6% at one point as a consequence. The company has been hit hard by a US$350 million charge over three European rail projects it is struggling with, while it also feels that the joint venture with Airbus over the renamed A220 will need further Read more

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Alcoa Corporation reports fourth-quarter 2019 net loss of US$303 million

Alcoa has posted a net loss of US$303 million in the fourth quarter of 2019 compared with a net loss of US$221 million in the third quarter of 2019. In the fourth quarter of 2019, the Company took several actions in alignment with its strategic priorities, including taking the first steps in a multi-year portfolio review and continuing work to strengthen the balance sheet. The announced closure of the Point Comfort alumina refinery in Texas and additional actions taken on pension and other post-employment benefits were the primary drivers of the US$246 million in special items for the fourth quarter Read more

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Immediate backlash as U.K. government agrees to help struggling Flybe

Flybe ©AirTeamImages

No sooner had the U.K. government confirmed it was prepared to provide financial assistance to help keep struggling domestic carrier Flybe afloat than the backlash from competitive airlines began. There have also been a number of questions raised as to why the government is prepared to help Flybe when it refused to provide any help for the now defunct Thomas Cook last year. IAG chief Willie Walsh has already lodged a complaint with the EU that the actions of the U.K. government represent a “blatant misuse of public funds.” The European commission said it was ready to discuss the bailout Read more

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Boost for Delta as carrier exceeds all expectations for quarterly revenue

©Delt Air Lines

Delta Air Lines’ (Delta) share value increased as much as 4.5% with the announcement that fourth-quarter earnings had exceeded analysts’ highest profit estimate, according to Bloomberg data. The carrier also posted a 2.4% uptick for revenue per available seat mile and beat all expectations for quarterly revenue. According to Delta CEO Ed Bastian: “2019 was a truly outstanding year on all fronts – the best in Delta’s history operationally, financially and for our customers. As we enter 2020, demand for travel is healthy and our brand preference is growing, positioning Delta to deliver another year of strong results, including earnings Read more

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Flybe trying to dismiss talk of its imminent collapse

©AirTeamImages

Despite having been taken over by a consortium of businesses less than a year ago, Flybe, which handles over half of all U.K. domestic flights outside of London, is fighting for its survival, with wide speculation that the low-cost domestic carrier is about to fold. When Virgin Atlantic Cyrus Capital and Stobart Group bought the struggling carrier last year for £2.8m for its operations and a further £2.2m for its parent company, the consortium promised to inject £100m into a turnaround plan. It was also intended to rebrand the carrier as Virgin Connect this year. While Flybe’s chief executive has Read more

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