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Air Canada’s earnings exceed estimates as fuel prices decline

Air Canada reported Q2 profit that beat analysts’ estimates as revenue increased and the country’s biggest carrier benefited from lower fuel prices.<br/>Adjusted earnings amounted to 72 Canadian cents, topping the 60-cent average of estimates compiled by Bloomberg. Revenue rose 1.3% to C$3.46b, missing the C$3.53b that analysts expected. CEO Calin Rovinescu’s five-year plan to reduce costs is being helped by a decline of about 20% in jet-fuel prices over the past year. He is adding flights to the U.S. and overseas, expanding the Rouge leisure unit and adding Boeing Co. 787 jets, which burn less fuel than the older aircraft they are replacing. Fuel is one of the biggest expenses for airlines, accounting for about one-third of costs.<br/>Air Canada rose 1.8% to C$9.44 on Thursday in Toronto. That put the stock down 7.5% this year, trailing the 12% advance by Canada’s benchmark Standard & Poor’s/TSX Composite Index.<br/>

Time served, $44K restitution for airplane yoga arrest

A Korean tourist who was arrested after he became violent when he wasn't allowed to do yoga on a plane leaving Hawaii won't get additional jail time. But he must pay United Airlines more than $44,000. A federal judge in Honolulu on Thursday sentenced Hyongtae Pae to time served, which was about 13 days. He'll be under court supervision for three years, which is the amount of time he has to pay the restitution. Pae and his wife were celebrating their 40th wedding anniversary with a Hawaii vacation and the couple was headed home when he was arrested. According to court records, Pae didn't want to sit in his seat during the meal service on the March flight from Honolulu to Tokyo, so he went to the back of the plane to do yoga and meditate. Authorities say he refused to return to his seat, threatened crew members and passengers and shoved his wife. The pilot turned the plane around and returned to Honolulu. Pae told authorities after his arrest that he hadn't slept in 11 days. He pleaded guilty in April to interfering with a flight crew and was allowed to return home to South Korea, even though prosecutors warned he might not return for his sentencing. Gillmor said Pae may return to home to Korea, but before he leaves must meet with a probation officer to work out restitution payments.<br/>

United moves to make Shanghai a top Chinese destination

United Friday made another aggressive move to help cement its position as the leading US-based carrier serving the rapidly-growing Chinese travel market. United said it will launch a second daily flight between San Francisco International Airport and Shanghai's Pudong International Airport on Oct. 14, 2016. United intends to upgrade the flying experience for passengers flying between the two cities with the introduction of Boeing 787-9 aircraft on both of those daily flights as of October. The newest stretch version of the Dreamliner, the 787-9 seats 252 passengers in two cabins — 48 in United BusinessFirst and 204 in United economy, including 88 economy plus seats with added legroom. United's 787-9 seats about 30 more than the first iteration of the Dreamliner, the 787-8. Noted Marcel Fuchs, United's VP of Atlantic and Pacific sales: "Our customers tell us they rest better and feel refreshed after a long flight on the 787." United also said it has looked at research and feedback from business travellers and found that these high-margin customers put considerable importance on convenient flight arrival and departure times. United took that info into consideration when putting its second San Francisco-Shanghai flight in the system. One of the two daily departures will leave San Francisco at 3:55 p.m. and arrive in Shanghai the following day at 8:15 p.m. The return flight from Shanghai will depart at 12:05 a.m., allowing for a full day of work in the Chinese metropolis before boarding the flight, which will arrive in San Francisco at 8:50 p.m. the previous day, due to the time change.<br/>

Swiss uses bigger jets for Bangkok

Swiss International Air Lines has embarked on a major product upgrade on its Bangkok-Zurich route in a bid to appeal to passengers. The airline tarted to deploy the larger and more modern Boeing 777-300ER to replace the ageing Airbus 340-300 on the long-haul route since July 16. Bangkok is one of three Asia-Pacific cities that Swiss International has chosen to serve with its brand new wide-body long-range twin-engine jets to link with its Zurich hub. The deployment of B777-300ERs responds to stronger travel demand between the Thai and Swiss cities and to compete better with other airlines especially the Middle Eastern carriers, Peter Pullem, head of international sales and marketing, said yesterday in Bangkok. The airline's B777-300ER boasts 50% more seating capacity than the A340-300 it has replaced.<br/>