Airline Finance News - North America.


New York (AirGuideBusiness - Airline Finance News North America) Apr 28, 2013

Air Canada Air Canada Announces Private Offering of Enhanced Equipment Trust Certificates. Air Canada announced today the private offering of two tranches of enhanced equipment trust certificates, in the aggregate face amount of U.S. $606,270,000. The certificates will represent an interest in two separate pass through trusts. The trusts will use the proceeds from the offering to acquire equipment notes that will be issued to finance the acquisition of five new Boeing 777-300ER aircraft which will be added to Air Canada's fleet and which are currently scheduled for delivery during the period from June 2013 to February 2014. The equipment notes will be secured by the five Boeing 777-300ER aircraft being acquired, and the security interest in each of the aircraft will benefit from the protections of the Cape Town Convention on International Interests in Mobile Equipment and the Protocol thereto on Matters Specific to Aircraft Equipment, as enacted in Canada. The certificates are being offered and sold only to qualified institutional buyers in reliance on Rule 144A under the Securities Act of 1933, as amended (the "Securities Act"), and to certain non-U.S. persons in transactions outside the United States in reliance on Regulation S under the Securities Act. The certificates have not been and will not be registered under the Securities Act or the securities laws of any other jurisdiction and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements of the Securities Act and state securities laws. The certificates have not been and will not be qualified for sale to the public under applicable Canadian securities laws and, accordingly, any offer and sale of the certificates in Canada will be made on a basis that is exempt from the prospectus requirement of such securities laws. This press release shall not constitute an offer to sell the certificates or the solicitation of an offer to buy the certificates, nor shall there be any sale of the certificates, in any state or jurisdiction where such offer, solicitation or sale is not permitted. Apr 24, 2013

Air Canada Air Canada shares plunge. Air Canada shares fell Monday after the countryOs largest airline issued a surprise preliminary profit warning that it will record a loss in the first quarter. In Toronto, the share price fell more than 12 per cent to $2.62, down 38 cents on heavy trading volume of more than 5.5 million shares. In a news release, Air Canada issued preliminary results for the first three months of 2013, ahead of the May 3 scheduled earnings release. It is forecasting a net loss of about $260 million for the first quarter, compared with a net loss of $274 million in the first quarter of 2012. After adjustments, the net loss narrows to $143 million for the first quarter of 2013, compared with an adjusted net loss of $162 million in the same period in 2012. Air Canada said it issued the profit warning as it is required to do under Canadian securities law, as it begins to explore a range of debt financing options. However, it did not elaborate on its specific debt financing plans. It is unclear whether it is looking to refinance existing debt or to pay for upcoming fleet expansions including new Boeing 777 jets due this summer and Boeing 787 Dreamliner planes expected next year. Its adjusted net debt was estimated at $3.98 billion at March 31, a decrease of $246 million from March 31, 2012. Air Canada also blamed severe weather in the first quarter that led to flight cancellations at the airlineOs major Canadian hubs, including TorontoOs Pearson airport, which was hit with de-icing delays in February. It estimates weather issues cost the airline $10 million. Other factors included an earlier Easter holiday in March which lead to a higher proportion of leisure passengers compared with business travellers, as well as foreign currency impact on passenger revenues. The airline is also taking a $24 million charge related to Airbus A340-300 aircraft that it no longer flies. David Tyerman, an analyst at Canaccord Genuity, said he was not surprised by Air CanadaOs announcement, in part because his forecast was lower than the consensus given by other analysts. Tyerman said he expected Air Canada would be down in the first quarter due to lower yield as well as higher forecasted maintenance costs. But he added that the first quarter for an international airline like Air Canada always tends have lower revenues due to lower traffic. Fewer people are flying certain routes, such across the North Atlantic, in the first quarter, which is not peak vacation time. OThereOs nothing necessarily wrong with them. ItOs just the way the year has been unfolding,O he said. Air Canada will be able to lower some its costs later in the year as Air Canada transfers 15 Embraer 175 planes to Sky Regional airline as well enjoying some small benefits from the startup of the leisure carrier Rouge, he added. The airline also begins to take delivery of its new 777 planes for long-haul routes and will introduce premium economy on its Montreal-to-Paris flight in July. In a research note on Monday, RBC Capital Markets analyst Walter Spracklin, who downgraded the stock last week to sector perform, wrote that with Air CanadaOs share price up 250 per cent year over year, OWe believe the AC stock is particularly vulnerable to negative surprises. OThis morningOs unexpected profit warning is an example of this risk, with the lower-than-expected RASM (revenue per available seat mile) and yields certainly a cause for concern,O he said, adding increasing competition is another factor. Apr 22, 2013

Air Lease, Ethiopian Airlines, Boeing Air Lease Corporation Announces the Placement of Two New Boeing 777-300ERs with Ethiopian Airlines. Air Lease Corporation (AL) announced a lease agreement with Ethiopian Airlines for two new Boeing 777-300ER aircraft, both on lease for twelve years. The aircraft are scheduled for delivery in May and June 2015. "We are proud to expand our relationship with Ethiopian Airlines by placing two brand new 777-300ERs into their long haul fleet. These aircraft will enhance their intercontinental operations with leading fuel efficiency and a premier passenger experience,O said Kishore Korde, Air Lease CorporationOs Senior Vice President. OWe are very happy to finalize this deal with our strong partner, Air Lease Corporation. These two new Boeing 777-300ERs are critical for our rapidly expanding non-stop long haul routes. Today, our network of 72 international destinations covers four continents through our main hub in Addis Ababa, offering the most convenient connections to passengers traveling between Africa and the rest of the world. The introduction of these two new Boeing 777s into our young and modern fleet is part of our continuing commitment to afford our customers the best possible on-board long haul experience,O said Tewolde Gebremariam, CEO of Ethiopian Airlines. Forward-Looking Statements This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including expected delivery dates. Such statements are based on current expectations and projections about our future results, prospects and opportunities and are not guarantees of future performance. Such statements will not be updated unless required by law. Actual results and performance may differ materially from those expressed or forecasted in forward-looking statements due to a number of factors, including those discussed in our filings with the Securities and Exchange Commission. Apr 22, 2013

Alaska Airlines Alaska Air Group Reports Record Adjusted First Quarter 2013 Results. Reported record first quarter net income, excluding special items, of $44 million, or $0.62 per diluted share, compared to adjusted net income of $28 million, or $0.39 per diluted share in the prior year quarter. This quarter's results compare to a First Call analyst consensus estimate of $0.56 per share. Recorded net income for the first quarter under Generally Accepted Accounting Principles (GAAP) of $37 million, or $0.51 per diluted share, compared to net income of $41 million, or $0.56 per diluted share in 2012. Achieved trailing twelve-month return on invested capital of 13.4 percent compared to 11.6 percent in the twelve months ended March 31, 2012. Lowered adjusted debt-to-total-capitalization ratio by 1 point, to 53 percent, since Dec. 31, 2012. Repurchased 373,185 shares of common stock for $19 million. Since 2007, Air Group has used $340 million to repurchase 19 million shares. Held $1.3 billion in unrestricted cash and marketable securities as of March 31, 2013. Operational Highlights: Awarded 2012 On-Time Performance Service Award among major North American airlines by Held the No. 1 spot in U.S. Department of Transportation on-time performance among the 10 largest U.S. airlines for the twelve months ended February 2013. Improved employee productivity by 4.3 percent. New routes: Began new service between San Diego and Boston and between Seattle and Salt Lake City. Will begin new service between San Diego and Lihue and seasonal service between Portland and Fairbanks in June. Alaska Air Group, Inc., (ALK) today reported first quarter 2013 GAAP net income of $37 million, or $0.51 per diluted share, compared to $41 million, or $0.56 per diluted share in 2012. Excluding the impact of mark-to-market fuel hedge adjustments of $12 million ($7 million after tax, or $0.11 per diluted share), the company reported record first quarter 2013 net income of $44 million, or $0.62 per diluted share, compared to net income excluding mark-to-market fuel hedge adjustments of $28 million, or $0.39 per diluted share, in 2012. "Our record performance in what is seasonally our weakest quarter is due to steady...

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