unaligned

Norwegian posted the results from Q1 2016 Thursday. While the company reported an underlying improvement of more than NOK400m (U$49m), losses of NOK528m from forward jet-fuel contracts resulted in an overall pre-tax loss of NOK992m. Forward jet-fuel contracts can result in losses to the airline if the actual fuel price dips too far below the contracted level. Exchange rate fluctuations were also stated by the company to have affected its overall profits. Norwegian posted losses of NOK777m for the same period in 2015. Despite the negative nature of the figures, the company said that the results reflected strong business activity, with 85% of its seats sold in a season that is traditionally slow. The airline carried 6m passengers during the first 3 months of 2016, an increase of 17% on 2015. <br/>

Norwegian Air Shuttle is seeking US backing for an expansion of its UK-based long-haul operations that would allow the carrier to offer services such as South Africa to New York via London. A successful outcome following an application to the US DoT could lead Norwegian Air to exercise an option to buy 10 more Boeing 787 Dreamliners, swelling the fleet in service or on order to 50, CE Bjorn Kjos said . While Norwegian can fly from Britain to certain cities in the Americas, Africa and Asia under a UK air operators certificate granted last year, that doesn’t include US routes. A foreign-carrier permit is therefore being sought from the DoT that would provide “maximum flexibility,” including flights such as Cape Town or Johannesburg to the US via the carrier’s London Gatwick hub. <br/>

The turnaround story of SpiceJet has not only been in financial terms, but even that of attracting fresh talents from the industry. In order to shelve threat from new airlines, the management is now planning to give ESOP option to high-performing executives. The carrier saw an exodus of executives, pilots and cabin crews as it faced a near death experience. According to industry sources, around 40 executives in the mid and senior level are set to join the airline from rival IndiGo. “Not only have many of our former executives joined back the company, people from other airlines also want to join the company now,” said Ajay Singh, chairman of SpiceJet. He has also decided to give greater roles to the loyal mid-level executives by promoting them to senior positions. <br/>

Shareholders at Jazeera Airways have approved a board proposal for the distribution of a cash dividend of KD3m (US$9.94m) for 2015, equivalent to 15% of the share's nominal value. Jazeera Airways registered a net profit of KD15.4m for 2015, on operating revenues of KD58.6m. Operationally, the company said that it saw a 4.5% increase in passengers and an on-time performance of 94.3% last year. Marwan Boodai, Jazeera Airways chairman, said: "2015 was another profitable year for Jazeera Airways, and a transformational one too. We successfully readjusted the airline's capital to match its size, issued record shareholder pay-outs worth KD52.7m in cash, and settled all debts. The company is now debt-free, has over KD30.9m in cash and operates a growing, profitable business." <br/>

Alaska Air Group reported better-than-expected earnings in the latest quarter amid declining fuel costs, as the company seeks regulatory approval for its proposed marriage with Virgin America. US airliners have reported strong financial performance in recent quarters, the result of slower growth, less competition and cheaper fuel. Alaska Air reported its aircraft fuel expenses, including hedging gains and losses, had declined 29% to US$167m. In the quarter ended March 31, Alaska Air’s unit revenue fell 6.1% compared with the prior-year quarter. Unit revenues have been declining across the industry because of relatively rapid expansions. Overall for Q1, Alaska Air reported a profit of $184m, or $1.46 a share, compared with $149m, or $1.12 a share, in the prior-year period. <br/>

Alaska Air expects it will be challenging to keep customers who are loyal to Virgin America after the 2 companies merge, Alaska Air's CE said Thursday. Alaska Air said earlier this month that it would buy Virgin America, a carrier with cult status among leisure and business travellers on the US West Coast, for US$2.6b. CE Brad Tilden said "the biggest challenge" ahead will be appealing to its own customers as well as Virgin America's passengers, after that airline is merged into the Alaska brand. Virgin America has a distinctive style, with in-flight mood-lighting and media-rich entertainment. "We are aware of the value that that company has brought to its customers. Our goal isn't to lose that," Tilden said. "Our goal is to gain that as a foothold in the state of California as something that we grow in the decade or two ahead." <br/>

Southwest Airlines reported a 13% increase in Q1 net income and said it expected unit revenue to rise "modestly" in Q2. The carrier said it earned US$511m in Q1, up from $453m a year earlier. The airline offered a bright picture of US travel demand that contrasted with Wednesday's report from United Airlines, which said flights were exceeding consumer interest. "Solid bookings and revenue trends have continued," Southwest CE Gary Kelly said. Southwest also said it had moved up plans to retire older Boeing 737s in its fleet to no later than Q3 of 2017 to resolve uncertainty about US-mandated pilot training requirements for flying those aircraft and their next-generation model, the 737 MAX. This will result in fewer aircraft and lower growth in flight capacity than Southwest previously forecast, it said. <br/>