Airline Finance News - North America

AirGuide Business, June 23, 2008

Air Transat

Canadian media speculated yesterday that aircraft groundings could be coming for Air Transat following a statement to analysts by CEO Jean-Marc Eustache in which he said that "if it goes very, very bad, we could put the planes on the ground." But Transat issued a statement clarifying that "Transat and Air Transat currently have no intention whatsoever of grounding aircraft in the short, medium or long terms" and expressed confidence that it will be able to navigate the current economic environment. Transat's fleet comprises 17 aircraft, a combination of A310s and A330s. Jun 16, 2008

AirTran Airways

AirTran Airways said it now expects nonfuel CASM to fall 2%-2.5% year-over-year rather than 1%-1.5% owing to "improved efficiencies and solid operating performance." It also announced an additional 5% capacity cut beginning in September on top of the reduction announced this spring. That cut will result in a 5% total reduction year-over-year and a 15% drop from its initial plans for late 2008. AirTran has sold two new 737-700s this quarter and said it has written agreements for the sale or disposal of an additional five unidentified aircraft this year. The capacity cut includes the cessation of services at New York Stewart. It now expects to operate 135-140 aircraft by year end, down from its original target of 147. It is "prepared to further reduce its fleet size" if conditions warrant. Jun 17, 2008

AirTran Airways

AirTran Airways said second-quarter "yield growth has been slower" than expected "despite numerous fare increases," leading it to drop its unit revenue forecast to a year-over-year improvement of 1.5%-2% from April's prediction of 5%-6%. It said in a filing with the US Securities and Exchange Commission that in "some" markets. It did say, however, that bookings for the third quarter are ahead of last year at higher fares and that unit revenue should surpass the first half. Jun 17, 2008

Allegiant Air

Allegiant Air flew 307.7 million RPMs in May, a 44.1% increase over the year-ago month. Capacity climbed 34.8% to 342.1 million ASMs and load factor was up 5.8 points to 89.9%. Jun 16, 2008

Continental Airlines

Whether through regulation or some other means, "I'm personally in favor of some changes in the airline industry," Larry Kellner, chief executive of Continental Airlines, said during a transportation conference Wednesday. First, he said, the proposed modernization of the nation's air traffic control system, which would ease congestion at airports, needs to go forward. Jun 17, 2008

Continental Airlines

Continental Airlines has boosted its fuel hedges, according to a regulatory filing. The airline has hedged 43% of its fuel in the third quarter and 48% in the fourth quarter. Jun 16, 2008

Continental Airlines, Boeing

Continental Airlines said it will retire all its Boeing 737-300s by 2009 and exit 15 cities as part of a plan to offset the surging cost of jet fuel. Executives noted that the high price of fuel makes mergers risky but said the carrier will not rule out consolidation. Jun 19, 2008