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BA Owner IAG Expects No Earnings Growth in 2019

February 28, 2019 / WIL BALDWIN

LONDON, Feb 28 (Reuters) – British Airways owner IAG said it expected earnings in 2019 to be flat after it weathered the impact of rising fuel costs and air traffic control disruption to meet expectations for its 2018 results on Thursday.

IAG reported a 9.5 percent rise in operating profit before exceptional items for the year to December 31 to 3.23 billion euros, but said there would be no growth in 2019 as earnings would be in line with the previous year’s results.

“This was a very good performance despite three significant challenges: fuel prices increasing 30 percent, considerable Air Traffic Control disruption and an adverse foreign exchange impact of 129 million euros,” Chief Executive Willie Walsh said.

IAG said that passenger revenue rose 6.2 percent across the group, with passenger unit revenue up 2.4 percent.

In a separate statement, IAG said it would order 18 Boeing 777-9s and options for 24 more for British Airways to replace 14 747-400s and four 777-200s between 2022 and 2025.

(Reporting by Alistair Smout, editing by James Davey)

International Consolidated Airlines Group, S.A., together with its subsidiaries, engages in the provision of passenger and cargo transportation services in the United Kingdom, Spain, Ireland, the United States, and rest of the world. The company operates under the British Airways, Iberia, Vueling, LEVEL, IAG Cargo, Avios, and Aer Lingus brands.

British Airways Loses New York Crown To Norwegian

October 8, 2018 / WIL BALDWIN

LONDON (Reuters) – Norwegian Air Shuttle (NWC.OL) has overtaken British Airways as the biggest non-U.S. airline on transatlantic routes to and from the New York area, in the latest illustration of the low cost carrier’s move into British Airways territory.

Norwegian carried 1.67 million passengers to or from airports in the New York area in the 12 months to the end of July, compared with the 1.63 million carried by British Airways, data from the Port Authority of New York & New Jersey showed.

No-frills carrier Norwegian has been rapidly expanding in the transatlantic market over the last five years, prompting the owner of British Airways, IAG (ICAG.L), to try to buy it earlier this year.

The data showed four U.S. airlines, led by United, are the biggest carriers of international passengers out of the main airports in the New York area, which include John F. Kennedy International, LaGuardia and Newark Liberty International.

Air Canada is the biggest non-U.S. carrier of international passengers, but its dominance is on travel between the United States and Canada.

Norwegian, and other relatively recent entrants to the market such as Wow Air, have led a charge to shake up Europe’s long-haul flight market, offering ticket prices that can be as little as half those charged by traditional carriers.

The traditional airlines have responded by selling a new budget class of ticket, as well as setting up, in IAG’s case, new airline Level to compete directly with Norwegian on price.

Lufthansa has also started budget long-haul flights using its Eurowings brand.

Norwegian said in May it had rejected two approaches from IAG, which also owns the Iberia, Aer Lingus and Vueling brands, because they undervalued the company. IAG owns a 4.6 percent stake in Norwegian.

The pace of Norwegian’s growth – figures from July 2017 show it only carried 750,000 passengers into and out of the New York region – has weighed on its finances and it faces mounting pressure to control costs and shore up its balance sheet.

British Airways did not immediately respond to a request to comment on the figures.

(Reporting by Sarah Young; Editing by Mark Potter)

Airbus & Boeing Deals @ Farnborough Airshow

July 18, 2018 / WIL BALDWIN

(Reuters) – Following is a summary of commercial aircraft deals announced by Airbus (AIR.PA) and Boeing (BA.N) at the Farnborough Airshow in southern England.

The two companies have so far signed deals worth more than $100 billion at current list prices. However, this is a gross number. Several of the deals firm up provisional ones, disclose previously unidentified buyers, or change existing orders, making it hard to gauge the level of new business.

AIRBUS DEALS – $57 billion

** GOLDEN FALCON AVIATION (for Wataniya Airways): confirmed an order for 25 Airbus A320neo jets for Kuwait’s Wataniya Airways worth about $2.8 billion at list prices.

** GOSHAWK AVIATION: a firm order for 20 Airbus A320neo jets worth about $2.2 billion at list prices.

** LEVEL (low cost of IAG): firm order for two A330-200s, worth around $477 million at list prices. https://bit.ly/2Jumrbv

** MACQUARIE FINANCE: ordered 20 A320neo jets in a deal worth about $2.2 billion at list prices.

** PEACH AVIATION: updated a previous deal for 10 A320neo, changing it to eight A320neo and two A321LR planes. The deal would be worth around $1.1 billion at list prices.

** SALAMAIR: signed an agreement to add six new A320neo aircraft to its fleet. The deal would be worth around $700 million at list prices.

** SICHUAN AIRLINES: ordered 10 Airbus A350 XWB jets, confirming a deal struck earlier this year. The order is worth about $3.2 billion at list prices.

** STARLUX AIRLINES: signed a preliminary deal for 17 Airbus A350 jets worth an estimated $6 billion at list prices.

** UGANDA AIRLINES: signed memorandum of understanding for two A330-800neo aircraft, worth around $0.5 billion at list prices.

** UNDISCLOSED CUSTOMER: order for 100 A320neo family aircraft worth about $11.5 billion at list prices.

** UNDISCLOSED CUSTOMER: a preliminary deal for 80 A320neo jets with a leasing firm. The deal would be worth around $8.8 billion at list prices.

** UNDISCLOSED CUSTOMER: has signed a commitment for six A330neo family aircraft. The deal would be worth around $1.6 billion based at current list prices. https://bit.ly/2uJJsBT

** U.S. AIRLINE START-UP: a commitment for 60 Airbus A220-300 aircraft worth about $5.5 billion at list prices.

** VISTARA: a letter of intent to buy 13 Airbus A320neo aircraft and commitment to taking a further 37 A320neos from leasing firms. The deal for all 50 aircraft would be worth around $5.5 billion at current list prices.

** VIVA AEROBUS: firmed up a deal for 25 incremental A321neo and 16 conversions of A320neos to A321neos. The 41 planes are worth around $5.3 billion at list prices.

BOEING DEALS – $82 billion

** AIR LEASE CORP (AL.N): committed to buy as many as 78 Boeing aircraft in a deal valued at $9.6 billion at list prices.

** AVIATION CAPITAL GROUP: order for 20 737 MAX 8 airplanes, valued at $2.34 billion at list prices.

** DHL: a $4.7 billion deal for four Boeing 777 Freighters, and purchase rights for seven additional freighters.

** GECAS: an agreement for 35 additional 737-800 Boeing Converted Freighters. The deal includes 20 firm orders and an option for 15 more. The deal for 35 aircraft would be worth around $3.6 billion at list prices. http://bit.ly/2mme2O5

** GOL AIRLINES: an order for 30 737 MAX 10 Airplanes, 15 MAX 8s. New agreement converts some MAX 8 orders to the larger MAX 10 model, adds 15 more jets. The deal for 45 aircraft would be worth $5.7 billion at current list prices.

** GOSHAWK AVIATION: an order for 20 737 MAX jets valued at $2.3 billion at current list prices.

** JACKSON SQUARE AVIATION: a firm deal to buy 30 737 MAX 8 aircraft, valued at about $3.5 billion at list prices.

** JET AIRWAYS: ordered an additional 75 737 MAX 8 airplanes valued at $8.8 billion at current list prices.

** QATAR AIRWAYS: finalised an order for five 777 Freighters, valued at $1.7 billion at list prices.

** SEACONS TRADING: ordered a Boeing Business Jet MAX 7, worth $96 million based on current list prices.

** TAROM ROMANIAN AIR TRANSPORT: a $586 million order for five 737 MAX 8 airplanes.

** UNITED AIRLINES (UAL.N): expanded its commitment to the 787 Dreamliner programme with an order for four more 787-9 planes, worth about $1.1 billion according to current list prices. https://bit.ly/2NXKYJw

** UNDISCLOSED CUSTOMERS: sign commitments for 40 High-Capacity 737 MAX 8s, 53 MAX 8 Airplanes, worth nearly $11 billion at current list prices

** VIETJET (VJC.HM): provisionally ordered 100 Boeing 737 MAX jets, worth about $12.7 billion at current list prices

** VISTARA: confirmed an order for six Boeing 787-9 Dreamliners, with an option to buy four more. The deal for the 10 planes would be worth about $2.8 billion at list prices.

** VOLGA DNEPR: committed to buying 29 of Boeing’s 777 freighter aircraft and five of its 747-8 freighter, in a deal worth about $11.8 billion at list prices.

(Compiled by Joao Manuel Mauricio, Katarzyna Piasecka and Anna Pruchnicka in Gdynia; Editing by Mark Potter)

Airbus fights to defend A330neo market

March 6, 2018 / WIL BALDWIN

PARIS (Reuters) – Imminent airline decisions on $10 billion of wide-body plane orders could influence the fate of Airbus’ (AIR.PA) A330neo even before the recently upgraded jet completes flight trials, industry sources said.

American Airlines said in January it was reviewing the Boeing 787-9 Dreamliner and shorter-range Airbus A330-900, which is in test flights before entering service this summer.

Click the link below for the full story!

Airbus fights to defend A330neo market

BA Owner IAG Expects No Earnings Growth in 2019

British Airways Loses New York Crown To Norwegian

Airbus & Boeing Deals @ Farnborough Airshow

Airbus fights to defend A330neo market

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