profit news

[Pieter C. 5]

Air Asia:

 

DAILY EXPRESS NEWS

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AirAsia profits jump to RM126m

Kuala Lumpur: Budget carrier AirAsia said Tuesday it had beaten high oil prices and intense competition to post an increase of 14 percent in annual profits, thanks to increases in fares and passenger loads.

 

Southeast Asia's leading low-cost carrier said net profits reached 126.94 million ringgit over the year to June, compared to 111.1 million ringgit a year ago.

 

"AirAsia has again delivered record traffic growth and profits in the face of significantly higher fuel prices, intense competition and volatile currency movements," chief executive officer Tony Fernandes said in a statement.

 

"This strong performance validates our belief that the low fare, low cost model will continue to grow profitably in both good and bad times."

 

Revenues were higher at 855.6 million ringgit compared to 666.1 million ringgit a year ago, driven by a 5.7 percent increase in average fares to 130 ringgit in the current quarter.

 

Passenger load factors also increased to 83 percent in the fourth quarter from 80 percent in the previous quarter. AirAsia said however that the high cost of jet fuel remained a concern.

 

"The board does not anticipate fuel prices falling significantly and is of the view that they will remain at high levels in the short term," it said in a statement.

 

Despite the challenges, AirAsia remained positive that its long-term business outlook is geared for growth, the statement said.

 

Air Asia's joint venture operations in Thailand and Indonesia both posted losses.

 

Fernandes said the Thai operations saw the load factor rise to 76 percent in the fourth quarter compared to 68 percent for the same period last year.

 

However, currency translation losses cancelled out 30 million baht of operating profits and Thailand posted a net loss of 36 million baht, he said.

 

"We are looking at structures and resources to better manage our currency exposure and have hired additional qualified personnel in this area to oversee this portfolio," he said. In Indonesia, losses have been stabilised and the operation is on track to break even in the 2007 financial year, Fernandes said.

 

The government's decision to allow us to advertise fares and levy fuel surcharge has significantly improved the Indonesian operations. We have seen load factors and average fares improving significantly," he said.- AFP

 

Air China:

 

Air China's first-half profit fell 22.5% to CNY458 million ($57.4 million) from the CNY591 million earned in the first six months of 2005, according to press reports. Revenues climbed 17.7% to CNY19.93 billion. CA's offering on the Shanghai Stock Exchange earlier this month (ATWOnline, Aug. 2) met with an unenthusiastic response, according to Reuters, forcing the carrier to repurchase 123 million A shares. It reduced the number of shares sold by nearly 40% and said it would repurchase up to an additional 600 million shares if they dropped below the initial price by year end.

 

MAS:

 

Malaysia Airlines reported a second-quarter net loss of MYR177.1 million ($48.2 million), narrowed from a net loss of MYR277.5 million in the year-ago quarter, on a 6% rise in revenues to MYR609.6 million, according to press reports. MD and CEO Idris Jala said the company's cost-cutting program is "showing positive results," evidenced by an 18% improvement in passenger yield and a 10.5% gain in cargo yield, according to Malaysian national news agency Bernama. Jala added that MAS is "on track" to achieve profitability in 2008 but projected a full-year 2006 loss of MYR620 million. "Competition remains intense and fuel prices will continue to be a major factor influencing the profitability of airlines," he said.

 

Air France-KLM:

 

August 31, 2006

Average fare yields pushed up Air France KLM's profits sharply in the first quarter, prompting the Franco-Dutch airline group to strengthen its forecast for the rest of the year.

 

The world's largest airline by revenues posted April-June current operating profit up 84 percent to EUR411 million euros (USD$529 million) from the same period a year ago.

 

Net profit more than doubled to EUR244 million (USD$314 million) from EUR112 million (USD$144.2 million), the airline said on Thursday.

 

Its adjusted operating margin rose 2.7 points to 8.0 percent.

 

It strengthened its outlook for the rest of the year, predicting a "significant" increase in operating profit rather than the simple increase it had previously forecast.

 

Air France and KLM, which operate separate fleets and networks under the umbrella of a common holding company, both raised fuel charges earlier this month after oil prices rose above USD$70 a barrel, though they have retreated somewhat.

 

Air France KLM had already reported an 11.9 percent rise in first quarter revenue to EUR5.802 billion (USD$7.47 billion), driven by all of its sectors, especially passenger business.

 

The yield -- revenue per passenger and kilometre flown -- rose 4.5 percent, and the group has benefited from hedging a higher proportion of its fuel bill than its rivals British Airways and Lufthansa.

 

The airline group reported its quarterly results amid mounting speculation of a merger with struggling Italian airline Alitalia.

 

Shares in Italy's largest airline rose more than 2 percent on Wednesday and another 1.5 percent on Thursday on speculation that talks between French and Italian government leaders on Friday might help shore up the long-awaited deal.

 

The French government owns 18 percent of Air France-KLM.

 

Analysts have also been speculating on a merger to help ensure the long-term survival of Italy's flag carrier, which has seen its share of the domestic market fall from around 80 percent at the end of 1994 to just over half at the end of 2005.

 

Earlier this month, a French newspaper reported that France was considering approving the merger if Italy's Enel renounced any intention to bid for French utility Suez. The government denied the report.

 

The airline industry is recovering from a battering from high fuel prices, while competition makes it difficult for carriers to raise fares.

 

International airlines association IATA on Thursday reduced its 2006 loss estimate for the global airline industry to USD$1.7 billion from USD$3 billion, helped by cost-cutting efforts and higher revenues.

 

Director-General Giovanni Bisignani said in an interview he saw no sign of slowing demand after British police said they foiled a plot to blow up trans-Atlantic flights, but said airports need to be better prepared for emergencies.

 

(Reuters)

 

Air France-KLM doubles first-quarter profit as rumors of Alitalia merger persist

Friday September 1, 2006

Air France-KLM Group yesterday raised its full-year forecast and said it expects to "generate a significant increase in operating income compared to last year" as it reported a net profit of €244 million ($313 million) for its fiscal first quarter ended June 30, more than double the €112 million earned in the year-ago quarter.

 

Operating income rose 84.3% to €411 million from €223 million on an 11.9% increase in revenues to €5.8 billion. Expenses climbed 11.8% to €3.24 billion, driven by a 24.8% jump in fuel costs to €1.01 billion.

 

Activity was "dynamic" in both the passenger and cargo segments, AF-KLM noted, and was accompanied by improvements in unit performance. Yield rose 4.5% to 8.76 euro cents as passenger revenues grew 12.1% to €4.61 billion and traffic lifted 7.7%. Unit revenues increased 7.2% to 7.14 euro cents and CASK rose just 2.9% to 6.47 euro cents. It fell 0.9% on a constant currency and fuel price basis. Capacity was up 5% and load factor gained 2 points to 81.5%.

 

Turnover from the cargo business rose 10.5% to €729 million and operating income more than doubled year-over-year to €28 million from €11 million. Net debt dropped to €3.72 billion from €5.5 billion on June 30, 2005.

 

The company yesterday once again denied mounting rumors of a pending tie-up with financially struggling Alitalia. "There are clear conditions set for a merger with Alitalia, and they are not fulfilled," AF-KLM Deputy CEO Pierre-Henri Gourgeon told analysts during a teleconference. "Alitalia should be privatized, and its recovery plan should demonstrate with real figures that recovery is on track."

 

Gourgeon also brushed aside recent reports in the French and Italian press of a secret deal between the French and Italian governments that would exchange French support for the merger with AZ for renunciation by Italy's Enel energy company of any intention to bid for France's SUEZ. The French government holds 18% of AF-KLM. The group and Alitalia hold small cross-shareholdings of about 3%.

 

by Cathy Buyck

 

 

 

of another note:

 

August 31, 2006

Italy's government and Alitalia looked to yet another turnaround plan on Thursday as Air France KLM dampened talk of a rapid merger with the Italian airline until its outlook improved.

 

Italy's government said Alitalia's chief executive believed a new industrial plan was needed, just two years after he launched a turnaround effort that included cutting jobs and spinning off ground services.

 

"The government views as positive the comments by the CEO Giancarlo Cimoli about the need for a new industrial plan," the prime minister's office said in a statement. It did not elaborate, nor did it make any reference to Air France KLM.

 

The airline said late on Wednesday it would announce new measures within a few weeks but did not go as far as to say it would present a new plan.

 

Its old plan had called for Italy's largest airline, which is nearly 50 percent owned by the state, to turn a profit in 2006 after years of losses. Alitalia withdrew that pledge in May, at least temporarily, when it announced a year-on-year widening of its first-quarter operating loss.

 

Air France KLM dampened talk of a rapid merger with Alitalia on Thursday, just a day ahead of scheduled talks between the French and Italian prime ministers in Rome, which were once seen as a possible milestone towards a deal.

 

"The conditions have not yet been fully met," Air France KLM Deputy Chief Executive Pierre-Henri Gourgeon told analysts.

 

"Alitalia should be privatized, and its recovery plan should demonstrate with real figures that recovery is on track," he said, adding that Alitalia's latest results indicated a delay.

 

Analysts have been speculating on a merger to ensure the long-term survival of Italy's flag carrier, which has seen its share of the domestic market fall to just over half at the end of 2005 from around 80 percent at the end of 1994.

 

Alitalia is due to post its first-half results on September 12, when it has said it will offer an indication of whether a profit in 2006 will still be possible.

 

The airline's operating loss widened to EUR128.8 million euros (USD$165.3 million) in the first three months as fuel costs and strikes weighed on results. Revenues also fell just over 3 percent against the same period last year.

 

Alitalia has blamed its troubles on a series of factors including fuel prices, European deregulation, loss of slots at Milan's Linate Airport, antitrust decisions and even what it said was an inadequate government transport policy.

 

Italy's government said on Thursday it would move ahead with regulatory reforms to the airline sector agreed last year, which were meant to help Alitalia.

 

But unions, which are planning a 24-hour strike on September 7, have suggested that management is to blame and have called on the government to replace Cimoli.

 

(Reuters)

 

 

 

 

[Andrew Yong 0]

Good news to Malaysian, at least this 4 years baby seen grow in positive future !!!!Hope can maintance such excellent result!!!!

Even this is good news to AirAsia seen no big change on their equity!!!

[Isaac 0]

"Alitalia should be privatized, and its recovery plan should demonstrate with real figures that recovery is on track," he said, adding that Alitalia's latest results indicated a delay.

Totally agree with ... erm ... whoever makes that statement. I'm gonna say the same for our national carrier.

 

[William Tee 0]

Air Asia:

 

 

Kuala Lumpur: Budget carrier AirAsia said Tuesday it had beaten high oil prices and intense competition to post an increase of 14 percent in annual profits, thanks to increases in fares and passenger loads.

 

Revenues were higher at 855.6 million ringgit compared to 666.1 million ringgit a year ago, driven by a 5.7 percent increase in average fares to 130 ringgit in the current quarter.

 

Passenger load factors also increased to 83 percent in the fourth quarter from 80 percent in the previous quarter. AirAsia said however that the high cost of jet fuel remained a concern.

MAS:

 

Malaysia Airlines reported a second-quarter net loss of MYR177.1 million ($48.2 million), narrowed from a net loss of MYR277.5 million in the year-ago quarter, on a 6% rise in revenues to MYR609.6 million, according to press reports. MD and CEO Idris Jala said the company's cost-cutting program is "showing positive results," evidenced by an 18% improvement in passenger yield and a 10.5% gain in cargo yield, according to Malaysian national news agency Bernama. Jala added that MAS is "on track" to achieve profitability in 2008 but projected a full-year 2006 loss of MYR620 million. "Competition remains intense and fuel prices will continue to be a major factor influencing the profitability of airlines," he said.

 

 

Maybe MH after 2 years

 

Air Asia:

 

 

 

Italy's government said Alitalia's chief executive believed a new industrial plan was needed, just two years after he launched a turnaround effort that included cutting jobs and spinning off ground services.

 

"The government views as positive the comments by the CEO Giancarlo Cimoli about the need for a new industrial plan," the prime minister's office said in a statement. It did not elaborate, nor did it make any reference to Air France KLM.

 

The airline said late on Wednesday it would announce new measures within a few weeks but did not go as far as to say it would present a new plan.

 

Its old plan had called for Italy's largest airline, which is nearly 50 percent owned by the state, to turn a profit in 2006 after years of losses. Alitalia withdrew that pledge in May, at least temporarily, when it announced a year-on-year widening of its first-quarter operating loss.

 

 

 

The airline's operating loss widened to EUR128.8 million euros (USD$165.3 million) in the first three months as fuel costs and strikes weighed on results. Revenues also fell just over 3 percent against the same period last year.

 

Alitalia has blamed its troubles on a series of factors including fuel prices, European deregulation, loss of slots at Milan's Linate Airport, antitrust decisions and even what it said was an inadequate government transport policy.

 

 

 

scary thought.... cross my fingers, hope MH will turnaround....