China's air travel growth fell into single digits, the first time in five years, as a slowing economy hit air travel demand, according to official data. Chinese carriers handled 4.03 million tonnes of cargo last year, up 0.3 per cent from a year earlier, and 191.91 million passengers last year, up 3.3 per cent from 2007, the Civil Aviation Administration of China said on its website. Passenger traffic in December rose 8.2 per cent to 15.67 million, but freight volume fell 15.2 per cent to … [Read more...] about China air traffic growth slows to single digits
Carriers
China Eastern: breakeven 2010, profit 2011
China Eastern Airlines is targeting a breakeven 2010 and a profitable 2011, newly appointed Chiarman Liu Shaoyong said this week, adding that the carrier is open to consolidation and a potential merger with Shanghai Airlines. The carrier hopes to offset the impact of heavy losses for 2008 by selling off its stakes in certain units and cutting orders for new planes, the Wall Street Journal reported. Liu Shaoyang, the company chairman, admitted that the chances of turning a profit this year are … [Read more...] about China Eastern: breakeven 2010, profit 2011
SAS cuts freighter unit
SAS, Scandinavia's biggest airline, is set to cease freighter services and shrink other cargo operations as part of a radical restructuring to stem losses and retain its independence in the fast consolidating European airline industry. The part state-owned carrier said in future its freight unit, SAS Cargo, "will focus on selling belly cargo capacity for the group's airline operations." It said other activities would be discontinued or outsourced to third parties. SAS will also sell Spirit Air … [Read more...] about SAS cuts freighter unit
Korean Air reports net loss
Korean Air reported a full-year 2008 net loss of KRW1.96 trillion (US$1.4 billion), reversed from a net profit of KRW11.1 billion in 2007, citing the weak won as the biggest contributor to the heavy decline. It also said yesterday that it is boosting its A380 order from eight aircraft to 10 and will initiate "more aggressive investment" this year with the aim of achieving a "black ink balance" in 2009 while building "a foundation for future growth." It said it will focus on "increasing overseas … [Read more...] about Korean Air reports net loss
S7 cancels Dreamliners
Russian airline S7 has cancelled a contract to buy 15 Boeing 787 Dreamliners for delivery in 2014 and will seek to lease the planes instead. "S7 retains interest in using the Dreamliner and wants to take the planes under a leasing scheme at an earlier date, for which it is in negotiations with several leasing companies," the airline said. … [Read more...] about S7 cancels Dreamliners
UPS reports full-year ’08 profit
UPS reported full-year 2008 net income of US$3 billion, widened significantly from a US$447 million profit in 2007 when its results were skewed by a one-time US$6.1 billion pension payment. But it said it must make "tough decisions" to cope with a "severe decline in economic activity around the world." This was more clearly indicated by its 2008 income which was down 28.6 per cent compared to US$4.2 billion in 2006. … [Read more...] about UPS reports full-year ’08 profit