Airlines r a great public service, endorsed by Skol.

[Skol]

The post above from someone who says I give the goldbugs too much stick.
Maybe you should check this thread out and see how much stick I've taken.

Anyway the airline industry is looking good, yields and load factors are up and some good press for the airlines recently in the USA.



From the WSJ.
LONDON—International air-passenger traffic soared 12% in May on a year-to-year basis, rebounding strongly from the chaos in April when clouds of volcanic ash caused massive disruption in Europe.

Strong traffic growth is contributing to a strengthening industry bottom line, according to the International Air Transport Association, which represents some 230 airlines world-wide comprising 93% of scheduled international air traffic.

Airlines are expected to post a $2.5 billion profit in 2010, a dramatic turnaround from the $9.9 billion lost in 2009.

"This is good news, but it is only a 0.5% margin," said Giovanni Bisignani, IATA's director general. "We are still a long way from sustainable profitability."

He cautioned that in the short term, airlines needed to focus on nurturing the recovery by continuing to match capacity to demand and controlling costs.

Mr. Bisignani criticized some government policy initiatives, including a departure tax in Germany, and the U.K. government for talking about a future without domestic aviation and no capacity growth.

"The traveling public and Europe's struggling economy deserves much better than this short-sighted policy myopia," he said.

Growth in international passenger traffic last month was weakest for European airlines, which posted 8.3% growth year-to-year. IATA expects the region to continue to show weaker growth in demand than other parts of the world due to tepid economic conditions, questions over financial stability and tightening fiscal policies.

Europe was hit hard in April by eruptions at a volcano in Iceland which produced clouds of volcanic ash that drifted across much of the continent. Air-traffic controllers considered the clouds a danger to commercial airlines and closed down affected airspace for days. The airline industry was left to foot the bill for the havoc, which is estimated at $2 billion.

Airlines in North America reported 11% growth in passenger traffic in May. Their ability to match capacity to demand meant that load factor, the percentage of seats filled with paying passengers, was 82%, the highest among the regions and above the average of about 79%.

Robust economic growth in China continues to drive expansion in the Asia-Pacific region, where growth in May was 13%. Latin America boasted the strongest growth in May at 24%, followed by the Middle East at 18%, down from rates of more than 20% earlier in the year. Growth in Africa was 17%, but load factor there was weakest at 67%.

Air freight surged 34% in May, up from 26% in April, as demand for air cargo continued to soar. Cargo jumped 39% in the Asia-Pacific region, which accounts for 45% in the market for air freight.

[Skol]

189 airliners sold on the first day of the Farnborough Airshow.
tricha's prophecy of the demise of the aviation industry seems a little out of touch.

[Skol]

Day 2 at Farnborough.
Total of 298 jetliners sold.

[Oiler]

189 airliners sold on the first day of the Farnborough Airshow.
tricha's prophecy of the demise of the aviation industry seems a little out of touch.

Skol I think you have driven Tricha underground. Last seen riding the underground from Mapua to Nelson Airport to catch one of those Boeing Dreamliners.

I dont get all the doom and gloom in the airline industry. I flew AKL to LAX 2 weeks ago (NZ Business) in the middle of the week and the flight was full, same with the return flight a week later. Took Continental from LAX to NYC and back and it was full both ways.

The smart airlines seem to be doing well.

Note: I am not a holder of any airline stocks but I do have a lot of respect for the way AIR has managed there business during and since the GFC

[Skol]

Hi Oiler,
tricha's probably busy fixing that tinny 'petrol miser' car he bought, you get what you pay for.
I reckon things are going well for the airlines.
VBA is doing OK, it's Virgin Australia that's causing them some grief.
AIR is doing OK, flights seem to be full, well managed company, but competition next year from Continental.
Who knows how well they'll do, this is their 3rd foray into the South Pacific.

[Skol]

half year profit for Cathay Pacific
Updated at 9:59am on 5 August 2010

Hong Kong's largest air carrier has returned a record half-year profit and announced plans to significantly expand its fleet.

Cathay Pacific reported an eight-fold increase in first-half profit to $NZ1.2 billion and expects that to improve further in the second half of the year.

It's also annouced an order for 30 new Airbus A350's, as well as six Boeing 777 aircraft, worth more than $NZ13 billion.

Chief executive Tony Tyler says cargo is back to pre-crisis levels and passengers numbers are almost there as a turnaround that began in late 2009, continues to gain momentum.

Meanwhile, he International Air Transport Association expects global airlines to turn a profit of $US2.5 billion this year, compared to last year's loss of $US2.8 billion.

Copyright © 2010 Radio

[tricha]

Airlines are doomed, as soon as oil goes past $100 a barrel, back to recession, dam. Think outside the square get a bike, Mapua part of the great coastal route.

3 August 2010 Last updated at 18:32 GMT
Mexico airline Mexicana files for bankruptcy

http://www.bbc.co.uk/news/10857774

[macduffy]

VBA to withdraw from NZ domestic routes.

THE VIRGIN BLUE GROUP OF AIRLINES ANNOUNCES FIRST PHASE OF NETWORK REVIEWBRISBANE MONDAY 16 AUGUST 2010 The Virgin Blue Group of Airlines (VBA) Chief Executive Officer John Borghetti today announced the first phase of the Group's network review aimed at delivering increased competition and capturing growth opportunities. Mr Borghetti said: "As we enter a new era for Virgin Blue it is vital that we have the right aircraft on the right routes if we are to fully exploit our competitive advantages in the context of the Group's three core business: domestic short haul, international medium haul and international long haul. "We are adding capacity to routes with strong revenue potential and accordingly, removing capacity from services which are underperforming," he said. "These changes will maximise yields, increase aircraft utilisation and also provide a more attractive schedule for the business market, including better integration of our international and domestic schedules." Mr Borghetti said that Pacific Blue would expand as an international medium haul airline with operations across the Tasman, the Pacific Islands and South East Asia.


"Pacific Blue will cease flying New Zealand domestic routes and redeploy its New Zealand‐based aircraft on to trans‐Tasman and medium haul international routes. Guests holding forward bookings on New Zealand domestic routes from 18 October onward will be provided with reaccommodation and refund options," he said. Mr Borghetti said that growing capacity on trans‐Tasman routes was a positive step that would see an increase in New Zealand‐based staff. "By restructuring our Pacific Blue operations we are now able to free up our long haul V Australia aircraft to capture the growing demand for travel to the USA.

[Skol]

Good for AIR, up 3c this morning.

[tricha]

Good for AIR, up 3c this morning.

Good for air, good for this govt backed ........., but us the consumer it suks, we will pay for it, in a poorer service and higher costs.