Airline Finance News - North America

Apr 30, 2007

Jet fuel prices drop slightly, but remain large part of costs Government statistics show U.S. airlines paid less for jet fuel in February than they did a month earlier. The Air Transport Association notes that jet fuel now accounts for up to 30% of an airline's expenses, up from between 10% and 15%. It has overtaken labor as the top cost for many carriers. On Friday, a jump in the price of crude oil sent airline stocks lower. Apr 23, 2007

Subsidies not unique to aviation A recent report by the Associated Press showed that fees paid by airline travelers subsidize corporate and private aviation. The Boston Herald editorial board writes that the U.S. economy is plagued by many such unfair subsidies. The board says the FAA "deserves to win" its proposal to eliminate many passenger taxes and replace them with user fees. Apr 23, 2007

Regional airline traffic in the US rose by just 3.1% to 155.5 million passengers in 2006, the slowest rate of growth in seven years, according to new data produced by Velocity Group. Apr 23, 2007

Alaska Air Group

Alaska Air Group, parent of Alaska Airlines and Horizon Air, recorded a first-quarter net loss of $10.3 million compared to a loss of $79.1 million in the 2006 quarter, but said that excluding special items in both years it would have reported a 2007 quarterly loss of $15.8 million versus a 2006 profit of $2.8 million. "Higher fuel costs, increased competition and a softer revenue environment in the first quarter make it imperative that we continue to drive changes to keep ticket prices affordable and attract new customers," said Chairman and CEO Bill Ayer. Apr 27, 2007

Alaska Air Group

Alaska Air Group 2006 first-quarter result included an impairment charge of $131.1 million related to the decision to retire McDonnell-Douglas MD-80s earlier than planned, while this year's result included the impact of mark-to-market adjustments related to fuel hedge contracts. Group operating revenues rose 3.3% in the quarter to $759.4 million while operating expenses dropped 9.7% to $777.5 million, sending operating loss down to $18.1 million from $125.2 million in the 2006 quarter. Apr 27, 2007

Alaska Airlines

Alaska Airlines, pre-tax loss decreased to $7.5 million from $124.7 million a year earlier as revenues rose 11.8% to $659.8 million and expenses fell 6.3% to $669.7 million. RPMs dipped 0.3% to 4.07 billion as ASMs lifted 2.8% to 5.69 billion, sending load factor down 2.3 points to 71.4%. Yield was up 2% to 13.43 cents, RASM was essentially level at 10.58 cents, CASM was down 17.6% to 10.57 cents and CASM excluding fuel and fleet transition costs declined 1.3% to 7.80 cents. Horizon Air posted a pre-tax loss of $9.2 million, worsened from a loss of $400,000 in the prior year, on a 10.5% gain in revenue to $161.6 million. Apr 27, 2007

Delta Air Lines

Delta Air Lines received confirmation of its reorganization plan yesterday from the US Bankruptcy Court, paving the way for it to exit Chapter 11 protection on April 30 after its $2.5 billion in exit financing has closed. Trading of its common stock on the New York Stock Exchange is expected to commence April 26 on a "when issued" basis and on May 3 on a "regular way" basis. Apr 26, 2007

Delta Air Lines

Judge approves Delta's plan to exit bankruptcy. A federal bankruptcy judge on Wednesday approved Delta Air Lines' plan to emerge from bankruptcy protection. Delta operated under bankruptcy protection for nearly two years and shed 6,000 jobs and $3 billion in annual costs. "I feel elated," CEO Gerald Grinstein said. "For the 47,000 (employees) ... they're the ones who went through all the angst and made the sacrifices. It's for them I feel extreme relief." The airline will exit bankruptcy early next week. Apr 26, 2007

Delta Air Lines

Delta Air Lines reported a first-quarter net loss of $130 million, significantly narrowed from a net loss of $2.1 billion in the year-ago quarter, but was profitable at the operating level and is eyeing an exit from bankruptcy as soon as the end of this month. Apr 24, 2007

Delta Air Lines

Delta Air Lines today said it is narrowing the gap to profitability, reporting a $130 million net loss - $6 million excluding special items - compared with a 2006 Q1 $2.1 billion loss in the first quarter of 2007. Thanks largely to growth in international revenue, Delta achieved a $155 million operating profit during what it plans to be its last quarter under bankruptcy protection. Apr 23, 2007

Delta Air Lines

Delta posts smaller Q1 loss Delta Air Lines reported a small first-quarter loss on Monday. The airline lost $130 million in the latest quarter, a fraction of the loss of $2.1 billion posted in the same period a year ago. Delta plans to exit bankruptcy protection later this week. Apr 23, 2007

Delta Air Lines, Continental Airlines

Airlines prepare for trans-Atlantic deregulation Airlines are eagerly positioning themselves for the deregulation of the trans-Atlantic market. Delta Air Lines and Continental Airlines are among the carriers planning new routes and forming agreements with other airlines. Apr 24, 2007