AIRLINE NEWS
Tuesday, July 08, 2008
Air France-KLM Trims Capacity Growth Plans
Air France-KLM Monday responded to soaring fuel costs by scaling back its capacity growth expectations for this winter and next summer, although it's still faring better than many of its U.S. and European rivals.
In a press release, the world's biggest airline by revenue said it now expects capacity for both this winter and next summer to be 2% up on the year. It didn't say what its previous expectations were, but a spokeswoman told Dow Jones Newswires it had cut back on its planned capacity expansion in response to higher fuel bills.
The move came amid speculation that Air France-KLM would have to follow the lead of many of its rivals and cut capacity from this fall in response to record fuel prices and weakening economies. In Europe, several airlines, including big rival British Airways, have said they will cut capacity. U.S. airlines have been even more drastic. American Airlines plans to cut 12% of capacity in the fourth quarter.
On the back of soaring oil prices, jet fuel prices have shot up to over $1,300 a metric ton from $850 a ton at the start of the year. Fuel is now typically either the top or second-highest single cost item for network airlines, representing some 34% of the cost base, according to the International Air Transport Association.
The trade body last month warned that airlines could turn in a combined net loss of $6.1 billion this year if the oil price remained at $135 for the rest of the year or a loss of $2.1 billion at an average 2008 price of $107.
Despite the planned capacity cuts starting this fall, many airlines are still enjoying passenger growth this summer. U.S. airlines last week reported passenger growth in June as travelers made good on their summer vacation plans, and several of Europe's big carriers Monday also reported growth.
Air France-KLM said traffic in June, measured in revenue passenger kilometers, was up 2.6% on the year. The number of passengers carried rose 1.3% to 6.8 million, from 6.7 million, although its load factor, a measure of how full seats were, fell to 81.5%, from 82.7%, because capacity was up 4.1%.
The Franco-Dutch airline said last year's figures had been boosted by two important trade shows in Paris, while this year's figures were hit by an air traffic control strike at Paris Orly airport.
Its cargo operations fared less well, with traffic down 1.5% and capacity up 1.8%.
One of Europe's major short haul budget airlines, easyJet, said it carried just over 4.1 million passengers in June, compared with 3.4 million a year earlier. The 19.5% rise is due mainly to the acquisition of GB Airways from British Airways, but analysts said the figures were solid.
The carrier's load factor rose slightly to 86.9%, from 86.8% a year earlier. It said that total revenue per seat continues to improve and nearly 70% of seats for the second half of this year have already been sold.
Irish airline Aer Lingus, meanwhile, said it carried 7.6% more passengers on the year in June, with short haul numbers up 7.8% and long haul numbers up 6.7%. Load factors fell slightly, to 81.% on short haul and 82.1% on long long haul, but the airline had increased capacity 13.8% and 12.8% on the year, respectively.
Source: money.cnn.com
In a press release, the world's biggest airline by revenue said it now expects capacity for both this winter and next summer to be 2% up on the year. It didn't say what its previous expectations were, but a spokeswoman told Dow Jones Newswires it had cut back on its planned capacity expansion in response to higher fuel bills.
The move came amid speculation that Air France-KLM would have to follow the lead of many of its rivals and cut capacity from this fall in response to record fuel prices and weakening economies. In Europe, several airlines, including big rival British Airways, have said they will cut capacity. U.S. airlines have been even more drastic. American Airlines plans to cut 12% of capacity in the fourth quarter.
On the back of soaring oil prices, jet fuel prices have shot up to over $1,300 a metric ton from $850 a ton at the start of the year. Fuel is now typically either the top or second-highest single cost item for network airlines, representing some 34% of the cost base, according to the International Air Transport Association.
The trade body last month warned that airlines could turn in a combined net loss of $6.1 billion this year if the oil price remained at $135 for the rest of the year or a loss of $2.1 billion at an average 2008 price of $107.
Despite the planned capacity cuts starting this fall, many airlines are still enjoying passenger growth this summer. U.S. airlines last week reported passenger growth in June as travelers made good on their summer vacation plans, and several of Europe's big carriers Monday also reported growth.
Air France-KLM said traffic in June, measured in revenue passenger kilometers, was up 2.6% on the year. The number of passengers carried rose 1.3% to 6.8 million, from 6.7 million, although its load factor, a measure of how full seats were, fell to 81.5%, from 82.7%, because capacity was up 4.1%.
The Franco-Dutch airline said last year's figures had been boosted by two important trade shows in Paris, while this year's figures were hit by an air traffic control strike at Paris Orly airport.
Its cargo operations fared less well, with traffic down 1.5% and capacity up 1.8%.
One of Europe's major short haul budget airlines, easyJet, said it carried just over 4.1 million passengers in June, compared with 3.4 million a year earlier. The 19.5% rise is due mainly to the acquisition of GB Airways from British Airways, but analysts said the figures were solid.
The carrier's load factor rose slightly to 86.9%, from 86.8% a year earlier. It said that total revenue per seat continues to improve and nearly 70% of seats for the second half of this year have already been sold.
Irish airline Aer Lingus, meanwhile, said it carried 7.6% more passengers on the year in June, with short haul numbers up 7.8% and long haul numbers up 6.7%. Load factors fell slightly, to 81.% on short haul and 82.1% on long long haul, but the airline had increased capacity 13.8% and 12.8% on the year, respectively.
Source: money.cnn.com
Labels: Air France-KLM
Friday, May 23, 2008
Air France feels pinch as oil prices hit home
Air France-KLM said Thursday it expects the coming year to be "challenging" amid sharply higher oil prices and a sluggish global economy which contributed to a net loss in its fourth quarter.
Europe's largest airline said in a statement it lost $853.81 million in the three months ending March 31.
CEO Jean-Cyril Spinetta said the group expected operating profit for the coming fiscal year to fall as skyrocketing fuel costs clouded the outlook for the industry.
Oil prices were setting new records nearly every day, and on Thursday hit a record above $135 a barrel before falling back.
For the full year, Air France-KLM reported a 16 percent drop in net profit to $1.2 billion.
Shares fell 10.2 percent to $26.37 in Paris morning trade. ABN Amro said the full year net profit was "well below" its forecasts.
The airline group booked an exceptional charge in the quarter of $834 million to cover possible penalties arising from an anti-trust probe into airline cargo activities.
Air France-KLM said it had an operating loss -- a measure of earnings from ongoing operations -- of $72.46 million in the quarter. In the full year, operating profit rose 13.3 percent to $2.21 billion.
The Franco-Dutch group said was targeting an operating profit of $1.58 billion in the coming year.
Spinetta said the soaring cost of fuel meant the industry was in for a "profound transformation," predicting capacity reductions, the acceleration of mergers and the exit of some players from the market.
Given its young fleet of fuel-efficient aircraft, a hedging policy which softens the impact of higher oil prices, and synergies from the merger of Air France and KLM, he said the airline group was well-placed to weather the storm.
"We have strong qualities to come out of this reinforced," he said at a Paris news conference.
To compensate for higher oil prices, some airlines raised ticket prices again last week. Air France, which operates separately from its Dutch partner KLM, announced its 17th oil price linked hike, bringing the total fuel surcharge for passengers to $156 for a one way long haul flight.
Airlines paying about 82 percent more for jet fuel than they did a year ago have preferred to cope by raising fares and charging for extra bags and other amenities.
American Airlines on Wednesday announced drastic measures to cope with record high fuel prices including layoffs.
Air France-KLM recently broke off merger talks with struggling Italian airline Alitalia, and CFO Philippe Calavia said the Italian carrier's situation "is much more difficult today than it was two months ago."
Air France-KLM said its yearly fuel bill rose 7.4 percent to $7.2 billion. In the coming fiscal year, Calavia said he expected the fuel bill to rise by an extra $1.89 billion.
Source: cnn.com
Europe's largest airline said in a statement it lost $853.81 million in the three months ending March 31.
CEO Jean-Cyril Spinetta said the group expected operating profit for the coming fiscal year to fall as skyrocketing fuel costs clouded the outlook for the industry.
Oil prices were setting new records nearly every day, and on Thursday hit a record above $135 a barrel before falling back.
For the full year, Air France-KLM reported a 16 percent drop in net profit to $1.2 billion.
Shares fell 10.2 percent to $26.37 in Paris morning trade. ABN Amro said the full year net profit was "well below" its forecasts.
The airline group booked an exceptional charge in the quarter of $834 million to cover possible penalties arising from an anti-trust probe into airline cargo activities.
Air France-KLM said it had an operating loss -- a measure of earnings from ongoing operations -- of $72.46 million in the quarter. In the full year, operating profit rose 13.3 percent to $2.21 billion.
The Franco-Dutch group said was targeting an operating profit of $1.58 billion in the coming year.
Spinetta said the soaring cost of fuel meant the industry was in for a "profound transformation," predicting capacity reductions, the acceleration of mergers and the exit of some players from the market.
Given its young fleet of fuel-efficient aircraft, a hedging policy which softens the impact of higher oil prices, and synergies from the merger of Air France and KLM, he said the airline group was well-placed to weather the storm.
"We have strong qualities to come out of this reinforced," he said at a Paris news conference.
To compensate for higher oil prices, some airlines raised ticket prices again last week. Air France, which operates separately from its Dutch partner KLM, announced its 17th oil price linked hike, bringing the total fuel surcharge for passengers to $156 for a one way long haul flight.
Airlines paying about 82 percent more for jet fuel than they did a year ago have preferred to cope by raising fares and charging for extra bags and other amenities.
American Airlines on Wednesday announced drastic measures to cope with record high fuel prices including layoffs.
Air France-KLM recently broke off merger talks with struggling Italian airline Alitalia, and CFO Philippe Calavia said the Italian carrier's situation "is much more difficult today than it was two months ago."
Air France-KLM said its yearly fuel bill rose 7.4 percent to $7.2 billion. In the coming fiscal year, Calavia said he expected the fuel bill to rise by an extra $1.89 billion.
Source: cnn.com
Labels: Air France-KLM, fuel
Friday, April 04, 2008
Alitalia announces new chairman
Italian airline Alitalia has announced a new chairman, after takeover talks with Air France-KLM collapsed.
news.bbc.co.uk
news.bbc.co.uk
Labels: Air France-KLM, Alitalia
Monday, March 17, 2008
Alitalia accepts Air France offer
Troubled Italian carrier Alitalia has agreed to be bought by rival Air France for a cut-price 138m euros(£106m:$215m) in a move to save the state airline.
news.bbc.co.uk
news.bbc.co.uk
Labels: Air France-KLM, Alitalia, takeover
Thursday, December 27, 2007
AirFrance-KLM buys Belgium's VLM
Aviation giant AirFrance-KLM is to buy out Belgium's VLM, a major regional airlines operating out of London City Airport, VLM said in a statement Monday.
afp.google.com
afp.google.com
Labels: Air France-KLM, takeover, VLM
Saturday, December 22, 2007
Alitalia picks Air France for bid
Alitalia has picked Air France-KLM as its preferred bidder, clearing the way for takeover talks to pick up pace.
news.bbc.co.uk
news.bbc.co.uk
Labels: Air France-KLM, Alitalia, takeover
Tuesday, December 18, 2007
Alitalia rivals outline bid plans
Air France-KLM has said that it has offered to buy troubled Italian airline Alitalia through a share swap.
news.bbc.co.uk
news.bbc.co.uk
Labels: Air France-KLM, Alitalia
Friday, December 07, 2007
Alitalia on runway for takeover
Alitalia, Italy's nearly bankrupt flag carrier facing acquisition by Italian rival Air One or European giant Air France-KLM, has recorded losses in eight of the past 10 years.
theage.com.au
theage.com.au
Labels: Air France-KLM, air one, Alitalia, takeover
Wednesday, October 17, 2007
Air France, Delta to target Heathrow-U.S. routes
Air France-KLM and Delta Air Lines will team up on routes linking major U.S. cities and London's Heathrow airport in a direct challenge to rival British Airways.
uk.reuters.com
uk.reuters.com
Labels: Air France-KLM, British Airways, Delta, Heathrow, US
Tuesday, October 09, 2007
Air France-KLM says traffic rose 5.3 percent in September
Air France-KLM, the world's largest airline by revenue, said Monday that its passenger traffic rose 5.3 percent in September after the company boosted capacity.
nytimes.com
nytimes.com
Labels: Air France-KLM, profit
Saturday, October 06, 2007
Air France, Lufthansa Are Holding Talks on Alitalia
Air France-KLM Group and Deutsche Lufthansa AG, Europe's two biggest airlines, are holding talks with Alitalia SpA as the Italian government seeks a buyer for the unprofitable carrier, two people with direct knowledge of the matter said.
bloomberg.com
bloomberg.com
Labels: Air France-KLM, Alitalia, lufthansa
Wednesday, September 19, 2007
Air France-KLM eyes carriers
Air France-KLM, the European airline, is studying potential merger moves with either Alitalia or Iberia.
ft.com
ft.com
Labels: Air France-KLM, Alitalia, Iberia, merger
Wednesday, August 15, 2007
Europe's Midsize Airlines Are Getting Squeezed
As carriers such as Iberia lose altitude to cut-rate competitors, they also face takeover threats from high-flying giants like Air France-KLM.
businessweek.com
businessweek.com
Labels: Air France-KLM, europe, Iberia
Tuesday, July 17, 2007
Air France-KLM May Be Interested in Buying Iberia
Air France-KLM Group, Europe's biggest airline, said it may be interested in buying Iberia Lineas Aereas de Espana SA, Spain's largest carrier.
bloomberg.com
bloomberg.com
Labels: Air France-KLM, Iberia
Thursday, June 07, 2007
Air France-KLM May Traffic Rises on Demand for Flights to U.S.
Air France-KLM has announced that passenger traffic rose 3.9 per cent in May due to increased travel to the Americas and Asia.
bloomberg.com
bloomberg.com
Labels: Air France-KLM, increase, passenger
Thursday, May 24, 2007
Air France-KLM profit rises 32 per cent
Air France-KLM has announced a plan to save 1.4 billion euros over three years after it posted a 32.5 per cent rise in profit for the 06-07 operating year.
cnn.com (page not found)
cnn.com (page not found)
Labels: 32.5 per cent, Air France-KLM, profit
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