Frontier Airlines Reports $9M Operating Loss

Low-cost carrier Frontier Airlines has reported a third-quarter operating loss of $9 million, according to data from the federal Bureau of Transportation Statistics.

The results, released Monday, show the loss for the Denver-based airline amounted to 2.6 percent of its total operating revenue. That marks an improvement from 12.2 percent in the second quarter, but is still the second-highest operating loss among the discount carriers.

Only AirTran reported a higher operating loss at $46 million. Southwest Airlines had an operating profit of $86 million.

Among larger carriers, United Airlines posted an operating loss of $469 million.

United, Frontier and Southwest are the top three carriers at Denver International Airport.

Japan Airlines Post $1 Billion Q1 Loss News

Japan Airlines Corp (JAL) said on Friday it suffered a US $1 billion loss in the April-June quarter which is larger than its loss for the entire last year. The carrier’s revenues took a heavy hit under the double whammy of the economic downturn and the outbreak of swine flue resulting in a net loss of ¥99.04 billion in the three months ended 30 June. The loss was much larger than the ¥3.41 billion net loss it posted in the previous year quarter last year.

“The net loss was Y10 billion more than expected,” Yoshimasa Kanayama, a JAL senior vice president, said at a press conference.

Like other airlines, JAL has been feeling the pinch of the economic downturn which has hit demand for business trips and cargo transport. The swine flu has also forced travelers to cancel their trips to several countries while rising oil prices have also come as another headache for the industry already reeling under the downturn.

JAL is focusing on turning around its falling earnings through paring workforce, inducting fuel-efficient aircraft and streamlining its non-airline businesses.

The carrier has also been granted ¥100 billion syndicate loan by two government-backed banks – Development Bank of Japan and Japan Bank for International Cooperation and three commercial banks to enhance its financial ability to effect a turnaround.

JAL’s smaller local rival All Nippon Airways Co also raised ¥130 billion in a public share offering which will partly help acquisition of new fuel-efficient aircraft.

British Airways Chiefs Sign £3m Shares Deal, as Cabin Crew Still on Strike

British Airways Chiefs are set to sign a deal worth £3million shares. Seven top executives will cash in as staff, some on just £11,000, are compelled to battle over a 3% rise and are ruled out from the share scheme. The Sunday Mirror can disclose that the bosses are being given out 1.18million shares in a £2.88million deal generated if BA achieves targets over the next three years.

Meanwhile, this is liable to annoy the cabin crew specifically, who have already walked off twice and are all set to strike again later this month in a growingly bitter clash over pay and job cuts.

The deal was signed off on March 19, the day BA’s Chief Executive Willie Walsh declined to give cabin crew a raise and stormed out of strike peace talks with Unite Union Leaders, saying, “They have lost interest in the lives of ordinary people”.

According to documents, Chief Financial Officer Keith Williams, who earns £450,000 a year, will benefit most. Williams, inclined to substitute Walsh as Chief, gets 325,123 shares worth over £800,000 at the existing price from the deal.

Len McCluskey, Unite Assistant General Secretary, said, “It beggars belief that on the very day Unite was working furiously to avert strikes and negotiate a settlement, BA’s boardroom were more concerned with finalizing their bonanza. Cabin crews aren’t luxuriating in share windfalls – they’re too busy fighting to save their livelihoods”.

The airline said, “This plan is in line with most FTSE 100 companies and ensures we are able to attract the best candidates and remain competitive”.

Airlines Manufactured : Bombardier Inc. Says American Eagle Orders 22 Jets

Bombardier Inc. said Thursday that the parent of regional airline American Eagle ordered 22 jets with a value of $779 million.

Eagle, the regional sister carrier of American Airlines, held options on the planes and converted them to firm orders, said Bombardier said, which is based in Canada.

In a regulatory filing with the Securities and Exchange Commission, Eagle parent AMR Corp. said it reached an agreement with Canada’s export agency and another party, which it did not name, to provide financing for the full cost of the order.

AMR said Eagle expects to receive two planes per month beginning next June and running through April 2011. Eagle has 270 planes, mostly Brazilian-made Embraers, according to its Web site.

Bombardier said despite the Eagle order, projected sales were too weak to maintain current production. The company announced cuts in production last month.

The sale to Eagle covers CRJ700 regional jets, which are smaller planes used to ferry passengers to and from the big hub airports.

Bombardier announced the order as it released financial results for the quarter ended Oct. 31. It said the order was placed after the quarter ended.

Shares of AMR Corp., which is based in Fort Worth, rose 6 cents to $6.85 in afternoon trading.

source : Associated Press

Southwest Airlines Reported Flight Traffic Increase 3.4 percent in July

Southwest Airlines said traffic increased 3.4 percent in July, and its load factor hit 84.9 percent, a monthly record.

Load factor measures how much of an airline’s carrying capacity is filled.

The company’s revenue passenger miles — a measure of available seats sold — hit 7.5 billion in July, up from 7.2 billion a year ago.

Year-to-date, Southwest also is filling more flights with the airline’s load factor now at 78.8 percent, up from 75 percent.

In July 2010, Southwest boarded 10 million passengers, up 4.7 percent from last year.