WELCOME TO WWW.PLANESINTHEAIR.COM

TOMORROWS TRANSPORTATION NEWS TODAY!

Tag: jetblue (Page 6 of 8)

JetBlue Wants Regulators To Review Joint Ventures

November 16, 2018 /

(Reuters) – The chief executive of JetBlue Airways Corp, which has made no secret of its desire to expand into transatlantic service, said on Thursday that U.S. and European regulators should review joint ventures that have allowed big airlines to dominate the market.

JetBlue CEO Robin Hayes, speaking at an airline industry event in New York, said consumers were at risk of decades of high fares because of legacy transatlantic partnerships.

JetBlue (JBLU.O), the sixth largest U.S. airline, wants to service Europe from its main hubs in New York, Boston and Fort Lauderdale, Florida, but is concerned about challenges posed by the big three U.S. legacy airlines’ control of important foreign markets through their global alliances.

American Airlines Group Inc (AAL.O), Delta Air Lines Inc (DAL.N) and United Airlines (UAL.O) are each part of a global airline alliance that together control nearly 80 percent of the transatlantic market. The three carriers also have joint ventures with member airlines in Europe that allow them to coordinate prices and schedules and share revenues.

“We believe that regulators should be doing everything they can to make it possible for new players and new models to have a fair shot at competing,” Hayes said.

Hayes believes competition authorities in the United States, the UK and the European Union should force slot divestitures to create a level playing field for new entrants, particularly in the wake of major consolidation among U.S. carriers over the past decade.

For example, since American Airlines forged a commercial tie-up with fellow oneworld alliance member British Airways (ICAG.L) in 2010, it has merged with US Airways to become the world’s largest airline.

Such mergers have made it more difficult for younger, low-fare carriers like JetBlue to access gates and slots – as airport take-off and landing rights are known – at congested airports where the larger airlines dominate.

A handful of Europe-based budget carriers, including Norwegian Air (NWC.OL) and WOW Air, have broken into the transatlantic market, but two – Primera Air and Monarch Airlines – were forced into bankruptcy over the past year.

JetBlue argues that Mint, the carrier’s version of business class, has driven a 50 percent decline in premium fares on some competing U.S. routes. It believes it can drive a similar reduction for premium travel between the United States and Europe.

Separately on Thursday, JetBlue announced a biometric self-boarding gate for international flights at New York’s John F. Kennedy International Airport (JFK), becoming the first domestic airline to launch the use of facial recognition technology to verify passengers with a quick photo capture for international travel.

JetBlue has 14 million annual JFK customers.

(Reporting by Tracy Rucinski; Editing by Leslie Adler)

Image from www.jetblue.com

JetBlue Fare Sale To Steamboat Springs, Colorado

October 24, 2018 /

Get a jump on ski season with JetBlue’s new jet-in, jet-out service to Steamboat springs, Colorado. Flights start on 12/15/2018, so book your flights today!

JetBlue to Steamboat Springs, Colorado

JetBlue announced the new service back on April 25th of this year with the following press release:

Steamboat’s industry-leading air program continues to expand with the addition of three new nonstop markets on JetBlue beginning winter 2018. Skiers and riders in Boston, Ft. Lauderdale and Long Beach, California, will be able to access Steamboat’s Champagne Powder® snow during the 2018-19 winter via nonstop flights, which guests can begin booking today for December travel.

“Recognizing the popularity of Steamboat as a destination for guests in New England and south Florida, the resort is thrilled to partner with JetBlue to provide nonstop access for skiers and riders in these markets as well as Long Beach for West Coast vacationers,” said Rob Perlman, president and COO of Steamboat Ski & Resort Corp. “With these additional flights, Steamboat boasts the most robust winter air program of any mountain resort community in North America.”

JetBlue’s nonstop service from Boston Logan International Airport (BOS) and Long Beach Airport (LGB) will operate twice a week, and the Ft. Lauderdale-Hollywood International Airport (FLL) flight will operate once a week from Dec. 15 through March 30 on an A320 aircraft, capable of accommodating 150 passengers. In addition to serving skiers and snowboarders in these three markets, JetBlue offers convenient connections from additional destinations across the country. The new JetBlue service contributes to the 10 nonstop markets Steamboat has added in the past seven years.

JetBlue nonstop service to the Steamboat/Hayden airport (HDN) is currently scheduled as follows:

“We are thrilled to provide direct service from three of our JetBlue focus cities to Steamboat Springs — a world-class ski destination and home of Champagne Powder®,” said John Checketts, vice president of network planning. “With JetBlue, a wonderful winter getaway is closer than ever no matter which corner of the country travelers call home.”

Image from www.visitsteamboat.com

JetBlue Announces Third Quarter 2018 Results

October 23, 2018 /

Released : 10/23/2018

NEW YORK–(BUSINESS WIRE)– JetBlue Airways Corporation (NASDAQ:JBLU) today reported its results for the third quarter 2018:

  • Reported diluted earnings per share of $0.16, inclusive of $112 million in one-time costs related to the E190 fleet transition and the recently-signed pilot contract. Excluding these costs, adjusted diluted earnings per share of $0.43(1). This compares to JetBlue’s third quarter 2017 diluted earnings per share of $0.55.
  • GAAP pre-tax income of $68 million. Excluding the one-time costs, adjusted pre-tax income of $180 million(1), a decrease of 39.5% from the third quarter of 2017.
  • Pre-tax margin of 3.4%, inclusive of the one-time costs. Excluding these one-time costs, adjusted pre-tax margin of 9.0%(1), a 7.4 point decrease year over year.

Highlights from the Third Quarter 2018

  • Third quarter 2018 revenue per available seat mile (RASM) increased 1.7%, year over year, including 0.4 points of negative impact from severe weather during September.
  • Operating expenses per available seat mile, excluding fuel (CASM ex-fuel) growth of 3.2%, at the lower end of the updated guidance range of 3.0% to 5.0%. CASM ex-fuel for the third quarter includes a 2.0 point headwind related to recurrent costs of the pilot contract, effective as of August 1st.

Key Guidance for the Fourth Quarter and Full Year 2018:

  • Capacity is expected to increase between 7.5% and 9.5% year over year in the fourth quarter 2018. The fourth quarter guidance includes a previously-announced 2.0 point ASM reduction to mitigate the impact of higher fuel prices. For the full year 2018, JetBlue expects capacity to increase between 6.5% and 7.0%.
  • RASM growth is expected to range between 1.0% and 4.0% for the fourth quarter 2018 compared to the same period in 2017.
  • CASM ex-fuel is expected to decrease between (3.5)% and (1.5)% for the fourth quarter of 2018. CASM ex-fuel for the fourth quarter includes a 3.0 point headwind related to the pilot contract. For the full year 2018, JetBlue expects year over year CASM ex-fuel to be between 0.75% and 1.75%. The headwind from the pilot contract to CASM ex-fuel for the full year 2018 is expected to be equal to 1.3 points.

For further details see the latest Investor Update and the Third Quarter 2018 Earnings Presentation available via the internet at http://investor.jetblue.com.

JetBlue will conduct a conference call to discuss its quarterly earnings today, October 23, at 10:00 a.m. Eastern Time. A live broadcast of the conference call will also be available via the internet at http://investor.jetblue.com.

(1) Note A provides a reconciliation of non-GAAP financial measures used in this release and provides the reasons management uses those measures.

Executing our Plan to Reach our EPS Commitments

“I’d like to thank our 22,000 Crewmembers, for all their hard work delivering the JetBlue experience to our Customers. Our financial performance was impacted by fuel prices that increased approximately 37% year over year. We are on track to hit our 2018 CASM ex-fuel guidance, despite pulling capacity in both the third and fourth quarters to adjust to higher fuel prices.

In the short term, we are focused on improving our earnings, particularly in the areas we can control, and have a plan to improve margins in 2019, and again in 2020. We are taking actions to recapture higher fuel costs through price – both with fare increases over recent months and through higher ancillary revenue initiatives. At our Investor Day in early October, we showed how our five building blocks will help us improve our margins and achieve our earnings target between $2.50 and $3.00 per share by 2020,” said Robin Hayes, JetBlue’s Chief Executive Officer.

“Since 2014 we have a track record of executing our plans – and we have a path to continue improving our relative margins, starting in 2019. We have the culture, the brand and the geography we need to be successful,” said Joanna Geraghty, JetBlue’s President and Chief Operating Officer.

Revenue Performance and Outlook

Third quarter RASM increased 1.7%. Excluding the 0.4 point impact from severe weather during September, RASM was above the mid-point of our updated guidance of 1.0% to 3.0%. During the quarter we saw close-in demand trends improve across the network,” said Marty St. George, JetBlue’s EVP Commercial and Planning.

“We continued to grow our capacity on the lower end of our mid to high single digit range. For the fourth quarter, we expect capacity growth between 7.5 and 9.5 percent. Given the 2.9 points of lost capacity from hurricanes in the fourth quarter of 2017, our schedule-to-schedule capacity growth is approximately 6 percent for the fourth quarter of 2018. We expect to see some revenue benefits from the network changes and the ancillary revenue changes launched during the third quarter.”

Cost Performance, Outlook and Balance Sheet

Third quarter CASM ex-fuel was 3.2%, at the low end of the updated guidance of 3.0% to 5.0%, driven by improvements in unit maintenance costs. “We are on track to hit our 2018 plan despite the added pressure from reducing our capacity in the second half. We will continue to find opportunities to mitigate these pressures, in addition to the savings from the Structural Cost Program that build each quarter,” said Steve Priest, JetBlue’s EVP Chief Financial Officer.

“We continue to see sequential improvement in our underlying non fuel costs, and reached an inflection point during the second half this year, as we execute our Structural Cost Program. We are confident we can deliver on our 2019 commitments made at Investor Day, and are on track to achieve our 0-1 CASM CAGR through 2020.”

Capital Allocation and Liquidity

JetBlue ended the quarter with approximately $937 million in unrestricted cash and short term investments, or about 12.6% of trailing twelve month revenue. In addition, JetBlue maintains approximately $625 million in undrawn lines of credit.

In its commitment to maintaining a balanced approach to capital allocation, JetBlue executed an additional $125 million in share repurchases during the quarter.

During the third quarter, JetBlue repaid $54 million in regularly scheduled debt and capital lease obligations, and raised $261 million in net proceeds in secured aircraft debt. JetBlue anticipates paying approximately $45 million in regularly scheduled debt and capital lease obligations in the fourth quarter and approximately $223 million for the full year 2018. JetBlue anticipates maintaining a 30-40% adjusted debt to cap range and liquidity between 10% and 12%.

Fuel Expense and Hedging

The realized fuel price in the quarter was $2.32 per gallon, a 36.6% increase versus third quarter 2017 realized fuel price of $1.69.

JetBlue entered into forward fuel derivative contracts to hedge approximately 7.7% of its fuel consumption during the fourth quarter of 2018. Based on the fuel curve as of October 15th, JetBlue expects an average price per gallon of fuel of $2.48 in the fourth quarter of 2018.

About JetBlue

JetBlue is New York’s Hometown Airline®, and a leading carrier in Boston, Fort Lauderdale – Hollywood, Los Angeles (Long Beach), Orlando, and San Juan. JetBlue carries more than 40 million customers a year to 103 cities in the U.S., Caribbean, and Latin America with an average of 1,000 daily flights. For more information please visit www.jetblue.com.

Notes

(1) Consolidated operating cost per available seat mile, excluding fuel and related taxes, and operating expenses related to other non-airline businesses (CASM Ex-Fuel) is a non-GAAP financial measure that we use to measure our core performance. Note A provides a reconciliation of non-GAAP financial measures used in this release and provides the reasons management uses those measures.

Image from http://blog.jetblue.com

Embraer Delivers 15 Commercial, 24 Executive Jets In Q3

October 19, 2018 /

Embraer has released the following press announcement on its website:

São José dos Campos, Brazil, October 19th, 2018 – During the third quarter of 2018 (3Q18), Embraer (NYSE: ERJ; BM&FBOVESPA: EMBR3) delivered 15 jets to the commercial aviation market and 24 business jets, being 17 light jets and 7 large jets. On September 30, Embraer’s firm order backlog totaled USD13.6 billion.

Regarding the commercial aviation market, Embraer forecasted in its Market Outlook a demand for 10,550 new aircraft with up to 150 seats worldwide over the next 20 years,. The in-service fleet is set to increase to 16,000 aircraft, up from the 9,000 aircraft currently in operation. Market growth will drive 65% of this demand, while the remaining 35% of the projected demand will be to replace ageing aircraft.

Embraer and Helvetic Airways signed a contract for a firm order of 12 E190-E2 jets during 3Q18. The agreement was announced at the Farnborough Airshow in July as a Letter of Intent. The contract also includes purchase rights for another 12 E190-E2 aircraft, with the possibility of conversion to the E195-E2 model, raising the order potential for up to 24 aircraft. Deliveries should occur between the end of 2019 and 2021. Also in Farnborough, United Airlines made a firm order for 25 E175 jets in a 70-seat configuration. Deliveries will begin in the second quarter of 2019.

In 3Q18, Embraer also signed a contract with an undisclosed customer for up to five E195-E2s, being three firm orders and two purchase rights. This agreement was previously announced as a Letter of Intent (LoI) during the Farnborough Airshow. In addition, the Company continues to work on finalizing its recent LoI signed at the Farnborough Airshow for 100 E175 aircraft for Republic Airways, with the expectation that a significant portion of these jets should enter the Company’s backlog by the end of 2018.

A total of 134 jets were removed from Embraer’s backlog in 3Q18. The majority of these planes belong to an order placed by Skywest for 100 E175-E2s, and were removed largely due to IFRS accounting changes. Given current timing uncertainty of the scope clause changes in the U.S. market to allow the heavier E175-E2 to be flown by regional airlines under capacity purchase agreements (CPAs) for mainline airlines, Embraer has proactively adopted best practices to align with the latest IFRS principles and remove the order from backlog given its conditionality terms. Skywest remains committed with the E175-E2 order and its terms are unchanged. The other 34 jets that were removed from the Company’s backlog in 3Q18 are related to cancellations, including an order for 24 E190 jets that were cancelled by JetBlue following its recent fleet renewal decision.

In the business jets segment, Embraer first exhibited the Phenom 100EV, Phenom 300E and Legacy 650E aircraft with full interior at Labace, the largest Latin American executive aviation fair which took place in São Paulo in August. Embraer also delivered its first Phenom 300E in Asia Pacific.

Embraer Services & Support signed relevant agreements in Europe and Africa during the quarter. LOT Polish Airlines, the national carrier of Poland and leading airline in Central Europe, signed an extension of its pool agreement to support LOT’s fleet of 34 Embraer E-Jets. Kenya Airways also joined a service program whereby Embraer will take over the planning and replenishment of a sizeable portion of Kenya Airways’ spare parts stock covering the 15 Embraer E190 aircraft operated by the airline. Sahara Africa Aviation also signed a multi-year Pool Program Agreement for spare parts and support covering more than 500 components for their two recently acquired Embraer ERJ 145 jets.

Follow us on Twitter: @Embraer

Story and image from http://www.embraer.com

Electric Airplane Startup Zunum Chooses Safran Engine

October 4, 2018 /

SEATTLE (Reuters) – Aircraft manufacturer Zunum, backed by Boeing Co, will use an engine turbine from France’s Safran SA to power an electric motor for the hybrid regional airplane it aims to bring into service in 2022, the company said on Thursday.

Zunum, based near Seattle, is among several companies seeking to reduce emissions, noise and travel costs with electric planes, underscoring growing investment in lightweight propulsion systems to bring the benefits of electric-cars to the sky.

Siemens AG, Rolls-Royce Holdings PLC, and Airbus SA joined forces last year on a hybrid electric aircraft propulsion system, while Honeywell International Inc has developed a high-capacity generator that could be used for electric flight.

Zunum, which is also funded by JetBlue Airways Corp’s investment arm, will offer its 12-seat, 700-mile aircraft – dubbed the ZA10 – to charter airlines, private companies and regional carriers globally, starting in 2022.

Zunum’s planes will be battery powered, with a jetfuel-powered turbogenerator to extend range. It chose the Safran Helicopter Engines’ Ardiden 3Z turbine over competing turbines from General Electric, Honeywell, Pratt & Whitney, and Rolls Royce.

The ZA10 will cost less than $300 million to develop, compared to the billions of dollars required to bring a traditional regional jet to market, Zunum’s Chief Executive Officer Ashish Kumar told Reuters.

Norway in June tested a two-seater electric plane, built by Pipistrel in Slovenia, and predicted a start to passenger flights by 2025 as the country moves to reach a government goal of making all domestic flights in Norway electric by 2040.

“This is the future,” Kumar said. “This class of aircraft is going to replace conventional airplanes over these (short-haul) distances.”

Siemens’ e-aircraft unit told Reuters earlier this year its system will work like a Toyota Prius: a gas-fueled engine inside the plane will spin a generator, sending electricity to small propulsion motors on the wings.

In Zunum’s plane, those motors are powered by the battery packs and the turbogenerator installed near the rear of the fuselage.

Kumar said the new aircraft will deliver operating costs of 8 cents per available seat mile or $250 per hour, which is 60-80 percent lower than comparable conventional aircraft.

Zunum’s prototype motor is due to be tested in early December, with an improved version flying on a test aircraft in summer 2019, Kumar said. Conversely, the Airbus, Siemens, Rolls-Royce system is scheduled to begin test flights in 2020.

(Reporting by Eric M. Johnson in Seattle)

Image from https://zunum.aero/

Airlines Win, Passengers Lose As Congress Drops Reasonable Fee Rule

September 24, 2018 /

WASHINGTON, Sept 22 (Reuters) – The U.S. airline industry scored a win on Saturday as bipartisan congressional legislation dropped plans to mandate “reasonable and proportional” baggage and change fees, but included other new passenger protections.

After weeks of negotiations, a 1,200-page bill to reauthorize the Federal Aviation Administration (FAA) was unveiled early Saturday that would require the FAA to set minimum dimensions for passenger seats — including legroom and width — and prohibits airlines from involuntarily removing passengers from flights after they’ve cleared the boarding gate.

In April 2017, video went viral on social media of 69-year-old passenger David Dao being dragged from a United Airlines flight at Chicago’s O’Hare International Airport after he refused to give up his seat to make room for crew members. United apologized and promised not to remove seated passengers to make room for other passengers.

But airlines had heavily lobbied against new rules limiting fees. U.S. airlines revenue from baggage and reservation change fees increased from $5.7 billion in 2010 to $7.5 billion in 2017. Other fees are not reported to regulators.

The compromise bill did not include language adopted by a Senate Committee in 2017 that would have required the reasonable fee rules. It was struck in a compromise unveiled by Senate Commerce Committee Republican chairman John Thune and House Transportation and Infrastructure Committee chairman Bill Shuster, a Republican, along with the top Democrats on the two committees Senator Bill Nelson and Representative Peter DeFazio.

Congress is set to vote on the measure next week ahead of a September 30 deadline.

American Airlines Group Inc became the latest major airline on Thursday to hike checked bag prices by $5 for the first bag to $30, joining Delta Air Lines Inc, United and JetBlue Airways Corp.

Airlines for America, an airline trade group, has said the fee provision would result in “government-mandated price controls” and should be rejected and the Trump administration also strongly opposed the provision.

The bill also requires the U.S. Transportation Department to set new rules authorizing commercial drone deliveries and gives the Justice Department and Homeland Security Department new authority to disable or destroy drones if they pose a threat to government facilities after the Trump administration warned it did not have the legal authority it needed to address threats.

Under the bill, airlines must refund passengers for services they paid for but did not receive and will enshrine in law a prohibition on passengers making mobile phone calls while in flight or using e-cigarettes.

The bill requires airlines to allow passengers to check strollers if they are traveling with a small child and require regulators to determine if it is unfair or deceptive for airlines to tell passengers “that a flight is delayed or canceled due to weather alone when other factors are involved.”

It also makes it unlawful for any person to place a live animal in an overhead storage compartment, prompted by outrage over the death a dog in March in an overhead compartment of a United flight. It also gives the Transportation Department authority to require airlines to allow pregnant passengers to board earlier.

The bill would also authorize a return of “supersonic” transport with reduced sonic booms, and provides for an additional $1.68 billion in immediate funding for disaster relief in the wake of Hurricane Florence.

It also directs the FAA to establish an Office of Spaceports to provide guidance, support licensing for spaceports, and promote infrastructure improvements for future space travel.

The bill also addresses sexual misconduct in aviation by creating a task force to review practices and increases civil penalties for interfering with cabin or flight crew members.

(Reporting by David Shepardson)

JetBlue Adds Mint Service South of the Border

August 9, 2018 /

JetBlue has announced that it will begin seasonal service to Latin America this fall with the addition of flights between New York (JFK) and Costa Rica (LIR), and between Boston (BOS) and St. Lucia (UVF) and St. Maarten (SXM).

“Adding Mint between these cities means travelers on these routes can finally enjoy a first-class flying experience,” said Marty St. George, the executive vice president for commercial and planning at JetBlue.

Mint service brings a number of features into the fold on traditional flights with lie-flat seats, signature cocktails, amenity kits, and a special tapas menu has made Mint service a big hint among the traveling public looking for an upgraded experience. Jetblue introduced its Mint service back in 2014.

Click the link below for a youTube video on Jetblue’s Mint Suite!

JetBlue Mint Suite First Class

Embraer Gets $1.1 Billion Order From United Airlines

July 17, 2018 /

SAO PAULO (Reuters) – Embraer SA (EMBR3.SA) has signed a firm order with United Airlines (UAL.N) for twenty-five 70-seat E175 jets, the Brazilian planemaker said on Monday, providing a boost to the company shortly after JetBlue Airways Corp (JBLU.O) opted to replace its fleet of Embraer jets with ones made by Airbus SE (AIR.PA).

Under the contract, worth $1.1 billion at current market value, Embraer is set to deliver the jets in the second quarter of 2019, Embraer said in a statement.

Earlier in July, JetBlue announced it would buy 60 A220-300 narrowbody jets from Airbus, sending down shares in Embraer. The A220 will replace JetBlue’s existing fleet of 60 Embraer E190 aircraft, with those jets retiring beginning in 2020.

That came shortly after Embraer and Boeing Co (BA.N) struck a deal creating a new $4.75 billion joint venture, effectively reshaping the global passenger jet industry.

(Reporting by Gram Slattery; Editing by Steve Orlofsky)

« Older posts Newer posts »

Archives

© 2024 WELCOME TO WWW.PLANESINTHEAIR.COM

Theme by Anders Noren — Up ↑