New US Airways Group lost $87 million in third quarter

the new US Airways Group reported a third quarter 2005 net loss of $87 million, compared to a net loss of $29 million for the same period last year. The Company’s third quarter 2005 results include a number of special charges primarily due to merger-related aircraft transactions. Excluding special items, the Company reported third quarter 2005 consolidated net loss of $23 million. This is the first consolidated quarterly result since the merge of America West and US Airways.

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SAS Group expects return to profitability in 2005

The SAS Group reported a net income of MSEK 529 (1994 = MSEK 133) for the third quarter and MSEK 57 (1994 = MSEK -1,094) for the nine-month period ending September 2005. The new business model in Europe and within Scandinavia, with one-way fares and simplified rules increased both the number of sold tickets and the cabin factor increased. The SAS Group is expects to gain market share. As the number of low-fare tickets increases, yield will be negatively affected in the future but this is expected to be compensated by higher volumes.

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Independence Air reaches tentative agreement with aircraft mechanics and flight attendants

FLYi, Inc., parent of Independence Air, which had previously filed for chapter 11, has reached a tentative agreement with the Aircraft Mechanics Fraternal Association (AMFA) that would enact new wage rates and work rules for Independence Air mechanics. The company and AMFA have been negotiating, under supervision of the National Mediation Board, since June 2002. The agreement is subject to membership ratification, as part of a process that will begin shortly. The company also reached agreement with the Association of Flight Attendants-Communication Workers of America (AFA-CWA) to changes in pay rates and work rules, subject to membership ratification. The agreement Read more

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FLYi, Inc. (Independence Air) files for Chapter 11 creditor protection

FLYi, Inc., parent of low-fare airline Independence Air, announced that FLYi, Inc. and its subsidiaries including Independence Air, have filed voluntary petitions for reorganization under Chapter 11 of the U.S. Bankruptcy Code in order to restructure the company

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Japan Airlines expects 47 billion yen loss in FY2006

Japan Airlines Corporation reported for the half year ending September 30, 2005 total operating revenues of 1,112.3 billion yen, up 3.4% on the same period last year. Operating costs were 1,096.5 billion yen (10.9% up on last year), resulting in half year operating income of 15.7 billion yen. Ordinary income was 9.7 billion yen and the first half net loss was 12 billion yen. The airline expects to post a 47 billion yen loss for the FY2006 ending March 31, 2006.

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Northwest Airlines reaches agreement on temporary labor cost savings with pilots and flight attendants

Northwest Airlines reached interim labor cost savings agreements with the Air Lines Pilots Association (ALPA) and the Professional Flight Attendants Association (PFAA). The ALPA Master Executive Council agreed to temporary pay and other reductions of $215 million on an annualized basis and PFAA leaders agreed to cuts of $117 million. The ALPA agreement is subject to membership ratification. Northwest also confirmed that it has reached tentative agreements on permanent wage and benefit reductions with employees represented by the Aircraft Technical Support Association (ATSA) and the Northwest Airlines Meteorology Association (NAMA). The airline hopes to reach an agreement with the Transport Read more

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JetBlue offers new shares to raise $135 million

JetBlue Airways has priced its public offering of 7,500,000 newly issued shares of its common stock at $18.00 per share, generating gross proceeds of $135 million. The Company has also granted to the underwriters of this offering an over-allotment option to purchase up to an additional 1,125,000 shares of common stock which, if exercised in full, would generate additional gross proceeds of $20.25 million. JetBlue anticipates using the net proceeds from this offering to fund working capital and capital expenditures, including capital expenditures relating to the purchase of aircraft.

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