New York, Geneva (AirGuideBusiness - Airline Finance News Africa / Middle East) Jan 8, 2012
IATA Reports Airlines Making Profits, Despite Tough Times Airline share prices are falling to levels not seen since 2009, but their profits are good, according to the International Air Transport AssociationOs November-December Airline Financial Monitor. What has helped is the fact that despite weak passenger travel in November, load factors were solid. Airlines are seeing some relief from jet fuel prices, but the market is still above last year. Although airline profits have declined over the past year, airlines did Oquite wellO in the third quarter, said IATA, with a sample of 61 carriers reporting USD5 billion in net profits. While operating profits were down over the year, the decline was contained to 20 percent. Regions such as Europe, with weak economic performance, limited their third-quarter profit contraction to 5 percent, year-on-year. But the outlook for airlines remains tough. While jet fuel prices are down from March 2011, theyOre still up over 2010. Passenger load factors remained flat when compared to October 2011. However, careful capacity management -- which U.S. airlines are doing particularly well at -- are helping improve yields. Average international fares also show improved yields, and are now over 8 percent higher than in November 2010. These fare levels have helped to cover costs, such as fuel, and have contributed to the reasonable profit results in the third quarter. Jan 5, 2012
IATA Reports Continued Weakening in Air Passenger, Cargo Markets The International Air Transport Association reported that global air passenger traffic continued to soften in November while cargo markets remained weak when compared to last year. Passenger traffic was 4.3 percent above November 2010 levels but this is skewed because November 2010 was a particularly weak month. The softening in passenger markets becomes apparent when comparing November 2011 to October 2011. This shows a 0.5 percent decline on a seasonally adjusted basis. Freight markets were 3.1 percent below November 2010 levels despite a 1.1 percent increase on October 2011 performance. OWeak global economic performance is being reflected in air transport markets,O said Tony Tyler, IATAOs director general and CEO. OFreight markets have contracted some 4 percent compared to January. Although passenger markets have had some growth relative to the beginning of the year -- about 2 percent -- the trend has been both soft and volatile. Continuing economic uncertainty will likely mean market shortcomings deepening as we enter 2012.O Globally, passenger load factors have fallen sharply to 76.3 percent from 78.5 percent in October. This shows that the weakness in passenger demand is outpacing airlinesO ability to adjust capacity accordingly. Regional differences are sharp. While North American carriers saw a 0.8 percent decline in travel, carriers in the Middle East experienced a 10.1 percent increase, followed by 9 percent for Latin American airlines. Jan 2, 2012
Aviation Partners Boeing, Ethiopian Airlines Ethiopian Airlines Orders 767-300ER Blended Winglets. Aviation Partners Boeing (APB) today announced Ethiopian Airlines has ordered Blended Winglets for its 767-300ERs. Ethiopian Airlines will install the winglets in Addis Ababa at their maintenance facility at Bole International Airport. Initial installations, on 3 aircraft, are planned to commence in February 2012 . "Ethiopian Airlines has made the choice of purchasing winglets for our B767 because of the enormous performance and operating value they bring. The winglets will contribute greatly to our constant and comprehensive effort to continuously reduce our carbon footprint, through lower airport noise and emissions," said Tewolde Gebremariam , CEO of Ethiopian Airlines. Blended Winglet technology installed on a 767-300ER reduces fuel burn by up to 500,000 gallons per aircraft per year while reducing carbon dioxide emissions by over 5,000 tons per year. Mr. Gebremariam also commented, "From an economics point of view, they will allow the airline to make substantial cost saving, through lower fuel burn, which is highly critical at a time when the industry as a whole is feeling the brunt of persistent high fuel prices, and also reduce engine maintenance cost. Specifically from our high altitude hub, the winglets will enhance our take-off performance and increase our payload and flight range, which means additional revenue for the airline." 767-300ER Blended Winglets can extend the range of the aircraft by as much as 320 nautical miles, or increase the payload of the aircraft by as much as 16,000 pounds. APB estimates...