Copenhagen, Denmark – A.P. Moller – Maersk (OTC: AMKBY) reports a second quarter of 2023 ahead of expectations, while the ongoing market normalisation continued through the quarter leading to lower volumes and lower rates. Revenue stood at USD 13.0bn compared to USD 21.7bn in Q2 2022 while profitability was strong at 12.4% although significantly lower compared to the extraordinarily strong Q2 2022. Reflecting the strong first half performance, Maersk raises its financial outlook and now expects underlying EBITDA of USD 9.5 – 11.0bn (previously USD 8.0 – 11.0bn), underlying EBIT of USD 3.5 – 5.0bn (previously USD 2.0 – 5.0bn) despite a weakened second half market outlook.
Ocean revenue decreased to USD 8.7bn from USD 17.4bn driven by a decrease in freight rates and loaded volumes. While the volume and rate environment stabilized at a lower level during Q2, Ocean continued to be impacted by lower demand, driven by a significant inventory correction in particular in North America and Europe. A strong cost management allowed to partially offset the top line impact on financial performance in Ocean.
Revenue in Logistics & Services was USD 3.4bn compared to USD 3.5bn. The segment was also impacted by lower volumes due to the continued destocking and weaker consumer demand, as well as low rates. As in Ocean, market demand is expected to continue to be subdued as long as the inventory correction is ongoing.
Revenue in Terminals decreased to USD 950m from USD 1.1bn and was influenced by the normalisation of storage revenue and lower volumes amid lower consumer demand and less congestion in North America. Strong cost control contributed to a continued solid financial performance.
Mesa Air Group, Inc. (NASDAQ: MESA) announced that it has finalized a new contract, which replaces the previous agreement with American Airlines, to operate 40 CRJ-900’s for a five-year term beginning January 1, 2021 through December 31, 2025. Under the previous contract 30 CRJ-900 aircraft were set to expire in 2021 with an additional 17 expiring in 2022.
“I want to express my appreciation to the American Eagle team leaders who worked with us on this new contract,” said Jonathan Ornstein, Chairman and Chief Executive Officer of Mesa Air Group. “This new contract will help to position Mesa for long term stability and improved performance on our American operation. This year has been difficult for our entire industry due to the Covid-19 pandemic, but I’m thankful that despite the obstacles, American has chosen to continue its long-standing relationship with Mesa.”
“I want to thank everyone involved for making this deal happen, especially our employees, who have shown unmatched professionalism and dedication throughout this difficult year,” said Brad Rich, Executive Vice President and Chief Operating Officer. “Efficiency and flexibility have been the pillars of our operation and the key to our low-cost structure. We are optimistic about our relationship with American and believe this new contract will be beneficial to both parties.”
KiwiRail is delighted to announce the return of its acclaimed TranzAlpine train service between Christchurch and Greymouth.
“I’m excited to be able to say that this award-winning train, which last ran on March 22 before the lockdown, will be back from July 4,” KiwiRail Group Chief Executive Greg Miller says.
“We will resume with a weekend and school holiday timetable in July and August as KiwiRail continues to assess demand in a difficult season for tourism, with borders still closed to international visitors.
“We’re conscious of how important this service is to the West Coast economy and we’re looking forward to bringing visitors to the Coast again, allowing them to see the snow-capped Southern Alps along the way.
“This will be an ideal time for New Zealand families to try something new, and together experience what Lonely Planet has described as one of the world’s 10 most amazing rail journeys.”
During July and August, the TranzAlpine will run on weekends, departing Christchurch at 8.15am, and spending an hour in Greymouth before leaving at 2.05pm on Saturdays and Sundays. It will also run every day of the school holidays, July 6-17 inclusive, on the same timetable as weekends. KiwiRail hopes this will be an opportunity for families to share this unique experience. All fares will be changeable, fully refundable and available at the winter special rate of $75 per seat one way.
Opening the TranzAlpine is KiwiRail’s priority for its scenic train services which, on average, have more overseas than domestic customers. The company also operates the Coastal Pacific train between Picton and Christchurch, which does not run during winter, and the Northern Explorer between Auckland and Wellington which is not currently considered financially viable. No decisions have yet been made on the return of the Northern Explorer and Coastal Pacific. KiwiRail also runs a commuter rail service between Palmerston North and Wellington, which resumed in late April.
“Covid-19 has taken a heavy toll on tourism everywhere and unfortunately, like other tourism providers, KiwiRail and the communities we serve have suffered the impact,” says Mr Miller.
“We have utilised this downtime to look at exciting opportunities and options, including offering different classes of service onboard the TranzAlpine, beginning this spring. We are confident we can serve the market at different levels with an enhanced service for those who want something extra, while still ensuring more accessible fares are also on offer.”
The booking system at www.greatjourneysofnz.co.nz/tranzalpine/ is open now for TranzAlpine bookings in July and August, and bookings will open shortly for September and beyond. KiwiRail will be contacting those people who have bookings on services that have been cancelled. Those people already booked on the Northern Explorer – which has very light advanced bookings – will be given a 100 per cent refund or, if they prefer, a letter of credit. People booked on the TranzAlpine on days when it will not now run can choose to be rebooked, or receive either a 100 per cent refund, or a letter of credit for a future booking.
In addition, anyone with an existing booking on the TranzAlpine for one of the winter weekends or the July school holidays will receive a refund of the difference between the higher fare they paid, and the new winter special rate of $75 per seat. For example, if you have already paid $150 for a ticket on the TranzAlpine, we’ll either refund you the $75 difference, or give you a voucher for $75 to spend onboard, or you could use the difference to buy another ticket for a friend or family member.
“We know that our customers all look forward to their trips with us, just as we look forward to serving them. We apologise to affected customers for any inconvenience as we urgently consider how to make long-distance train journeys more attractive, more diverse and more financially sustainable.
“Our Interislander ferries and scenic trains play a significant role in New Zealand’s tourism sector but 2020 has turned out to be difficult for all operators. We are focussed on our return, and on better days ahead.
“We’re working hard on options and opportunities, are looking forward to making further announcements. In the meantime, we will welcome families and holidaymakers aboard the TranzAlpine from Saturday, July 4.”
São José dos Campos, Brazil, May 26th, 2020 – Congo Airways have converted the firm order made in December 2019 for two E175 aircraft, with purchase rights for two more, into a firm order for two E190-E2 jets, with purchase rights for a further two. The new deal has a total value of USD 256 million at current list prices with all purchase rights exercised, and will be included in Embraer’s second quarter backlog.
Desire Bantu, CEO of Congo Airways said, “These new jets will be replacing our legacy turboprops and will allow us to extend our operations within the Democratic Republic of Congo, and regionally to West, Central, and Southern Africa. Despite the current difficult circumstances, the fundamentals of our market have not changed; so we expect the momentum we’ve seen in the past to redevelop. I said in December that we may need to make an additional order for E2s due to the agility required to adapt to market changes – we have now reached that point. As we prepare for future success, we will have the flexibility, and the right sized, most efficient aircraft, to serve our customers as the market returns.”
“It’s great to welcome another airline to the E2 and the Embraer family of operators, especially in Africa where the demand for regional travel had been growing strongly before the current crisis. Africa has long been a market with low frequencies and long thin routes. As airlines start ramp up their operations, the E2 family of aircraft is perfectly positioned to right size routes previously operated by narrowbodies, while keeping frequencies and adjusting capacity to new levels.” said Raul Villaron, Vice President Sales, Africa and Middle East, Embraer Commercial Aviation. “We look forward to supporting Congo Airways as they continue to upgrade their offering to their customers.”
The aircraft will be configured in a dual class layout seating 96 passengers in total, with 12 staggered business class seats. Deliveries are expected to begin in the second quarter of 2022. This is second E2 order received from an African customer. There are currently 189 Embraer aircraft operating in Africa with 54 airlines in 27 countries.
Embraer is the world’s leading manufacturer of commercial aircraft up to 150 seats with more than 100 customers across the world. For the E-Jets program alone, Embraer has logged more than 1,800 orders and 1,500 aircraft have been delivered. Today, E-Jets are flying in the fleets of 80 customers in 50 countries. The versatile 70 to 150-seat family is flying with low-cost airlines as well as with regional and mainline network carriers.
Qantas Group shares came perilously close to dropping below $2 on the day the airline announced it was suspending two-thirds of its staff.
Shares plummeted from $2.53 on Wednesday to a low of $2.03 before making a partial recovery to close out the day on $2.14. In December, stocks in Qantas were selling for $7.46.
Virgin Australia had a difficult day itself, with shares closing down 12 per cent to just $0.059.
Earlier in the day, Qantas Group dramatically said it was cancelling all international flights from late March and “standing down” 20,000 employees.
