Airline Finance News - Asia / Pacific

Airguide Online, August 28, 2006

For more airline finance news, data and analysis, please go to: http://www.airguideonline.com/professional.htm Aug 28, 2006

Air New Zealand

Air New Zealand operating revenue for the year was up 5 percent to NZD$3.8 billion (USD$2.41 billion), while expenses rose 7 percent to NZD$3.7 billion (USD$2.35 billion). It said its fuel bill had risen by NZD$275 million (USD$174.6 million) although it had booked fuel hedge gains of NZD$70 million (USD$44.4 million). For the coming year it has 60 percent of its oil usage hedged at USD$71 a barrel. Aug 25, 2006

Air New Zealand

Air New Zealand Profit Down On Fuel Costs. Air New Zealand posted a 47 percent fall in annual profit on Friday as higher fuel costs offset increased passenger numbers and cost cutting. The national carrier, which has been undergoing restructuring and outsourcing of various operations, said a 44 percent rise in the price of jet fuel was largely responsible for the fall in profits and would directly influence the coming year's result. Net profit after tax for the 12 months to June 30 was NZD$96 million (USD$60.9 million), compared with last year's NZD$180 million (USD$114.2 million). Aug 25, 2006

China Airlines

China Airlines' second-quarter loss doubles. Taiwan's China Airlines lost TWD257.1 million ($7.8 million) in the second quarter, double its TWD124.1 million loss in the year-ago quarter, according to a filing with the Taiwan stock exchange cited by the Associated Press in Taipei. Aug 25, 2006

China Southern Airlines

China Southern Shares Suspended. Shares in China Southern Airlines were suspended on Thursday as the country's largest carrier by fleet size prepared to announce an upgrade of its planes using jets already ordered. Aug 25, 2006

Hainan Airlines

Hainan Airlines posted an CNY8.7 million ($1.1 million) profit in the second quarter, a reversal from a CNY3.4 million loss in the year-ago period, the carrier said in a filing with the Shanghai stock exchange cited by press reports. Revenues climbed 26% to CNY2.95 billion. Six-month profits doubled to CNY20.8 million on a 16% increase in passenger volume and 20% growth in freight. Turnover was up 26% to CNY5.75 billion against a 29% surge in costs to CNY4.61 billion. Hainan also said it netted approximately CNY5.6 billion from a June share sale in order to finance aircraft acquisitions. Aug 22, 2006

Japan Airlines

Japan Airlines parent JAL Group applied to the Japanese Ministry of Land, Infrastructure and Transport to increase fuel surcharges on all international passenger tickets from Oct. 1. The proposed new surcharges will rise from [yen]1,300 ($11.20) to [yen]2,000 on a Seoul-Tokyo ticket, from [yen]11,500 to [yen]17,100 on a Japan-Brazil ticket and from [yen]8,000 to [yen]13,600 on flights from Japan to Europe and North America. JAL said fuel costs in the quarter ended June 30 increased 11.6% to [yen]97.4 billion. Aug 23, 2006

Korean Air

Korean Air to seek $12 million from Boeing for Connexion expenses. Korean Air said it will ask Boeing for about $12 million to reimburse it for costs associated with preparing 29 aircraft for the Connexion by Boeing service that was pulled from the market last week. An airline official told The Korea Times that it cost $400,000 to furnish a plane with the Connexion service. The carrier planned to introduce the service in an additional 25 aircraft by 2008. Korean was the first Asian carrier certified by Boeing to introduce Connexion, the paper said, and accounted for 16% of the aircraft offering the Internet product worldwide. Aug 23, 2006

Qantas

Qantas saw a 26% fall in the year ended 30 June 2006 of profit before tax to A$671m. Tucked away in the shareholders' report was the mention that Airbus had agreed to A$104m for the delays on the 12 A380 on firm order. In spite of increasing fuel costs Qantas was upbeat, maintaining the dividend and CEO Geoff Dixon praising newcomer Jetstar for its efforts. Aug 26, 2006

Qantas

Qantas nearly doubled its fuel surcharge on flights to the UK to A$185 ($141.70) effective Aug. 31. The surcharge on flights to the US jumps from A$98 to A$145, while short-haul sectors lift to A$65 from A$56. It will eliminate its per-sector charge and introduce a new four-tier system based on distance traveled. Aug 21, 2006

Regional Express, Sunshine Express

Regional Express of Australia pulled the plug on its previously announced plans to acquire Brisbane-based Sunshine Express. Rex MD Geoff Breust said that Sunshine came up with new, last-minute conditions that were "not acceptable" to the company or its shareholders. "We extend our best wishes to Sunshine Express and hope that its management and owners are able to overcome its current difficulties," Breust said. "We have been assured that its current owners Aeromil will continue to provide full backing to the airline." Aug 25, 2006

Singapore Airlines

Singapore Airlines flew 7.76 billion RPKs in July, a 5.5% increase over the year-ago month. Capacity climbed 2.3% to 9.56 billion ASKs, raising load factor 2.5 points to 81.2%. Aug 22, 2006