Air France-KLM Group said it expects a third-quarter loss as a result of lower passenger traffic and a ¡°strong decline¡± in cargo revenue. ¡°The deterioration in the economic environment during the third quarter has led to a slight weakening in passenger unit revenues and a strong decline in cargo revenue,¡± Air France said in the statement. Air France-KLM¡¯s cargo traffic in December slumped 20.4 per cent from a year ago as its key Asia-Pacific market collapsed. Like many of its … [Read more...] about Air France anticipates Q3 loss on lower pax and cargo
fuel hedging
4Q loss for Southwest Airlines
Southwest Airlines has reported a fourth quarter loss of US$56 million, in part due to losses resulting from its fuel-hedging strategy. This compares with a gain of US$111 million in the same period a year earlier. Southwest paid 23 per cent more for fuel than a year earlier. … [Read more...] about 4Q loss for Southwest Airlines
Losses at both American and United
US carrier parents AMR (American) and UAL (United) have reported fourth quarter losses of US$214 million and US$547 million respectively. AMR chief executive Gerard Arpey said he now was "guardedly optimistic" that his company can regain momentum this year, but said AMR "faces continued economic uncertainty, slower travel demand and fuel price volatility in 2009". Both American and United will continue to cut capacity in 2009, with American cutting capacity by more than 8.5 per cent in the first … [Read more...] about Losses at both American and United
More bad news from China carriers
Air China and Shanghai Airlines joined China Southern Airlines and China Eastern Airlines in announcing that they expect to report losses for 2008. Both carriers cited declining market demand along with the impact of May's Sichuan earthquakes, stricter security measures surrounding the Beijing Olympics, the global financial crisis and the mid-year spike in fuel prices, followed by fuel hedge losses. Air China noted that it suffered a US$993.3 million loss resulting from a writedown in the value … [Read more...] about More bad news from China carriers
Air China expects first loss in 8 years
Air China is expecting to post its first annual loss in eight years due to slumping demand and bad bets on fuel prices, state media reported. The company said in a statement filed with the Hong Kong stock exchange on Friday that it lost US$994.5 million on fuel hedging in 2008. Chinese carriers are banned from hedging purchases on fuel used for domestic flights, which in the past made Air China less vulnerable than its competitors to rising fuel prices. But jet-fuel prices have fallen more than … [Read more...] about Air China expects first loss in 8 years
Americas : Northwest blames loss on fuel hedges
Northwest Airlines reported a thirdquarter net loss of US$317 million, reversed from a US$244 million profit a year earlier, citing a US$410 million noncash charge related to fuel hedging as the reason. Third-quarter revenue rose 12.4 per cent to US$3.8 billion while expenses increased 37.5 per cent to US$4.01 billion, producing an operating loss of US$216 million, reversed from an operating profit of US$459 million in the same period a year earlier. Excluding the hedging loss resulting … [Read more...] about Americas : Northwest blames loss on fuel hedges