EasyJet plans to operate from London Heathrow, following the UK govt’s decision to back a third runway. EasyJet said the decision opens up the airport to increased competition. “With the right charging structure and the right infrastructure for our efficient model, EasyJet plans to operate from Heathrow, in addition to our existing London bases, providing new routes and lower fares to customers,” EasyJet CE Carolyn McCall said. Oct 25, a UK govt committee selected the third runway over extending Heathrow’s northern runway (Heathrow Hub), or adding a runway at London's Gatwick Airport. However, the selection is not the end of the process. The third runway must still be put to a govt vote and that is not expected until winter 2017-18. This is likely to be followed by further challenges. <br/>
unaligned
JetBlue’s Q3 results were a mixed blessing: better revenue but also higher costs. And the carrier expects those trends to continue in the current quarter. The carrier said Tuesday that the calendar timing of Christmas this year, on a Sunday, is expected to compress the holiday travel season and could reduce unit revenue by 3 percentage points in Q4. Q3 unit revenue sagged by 3.5% year-over-year, with the average one-way fare falling 6% to US$157.87. At the same time, JetBlue expects its unit costs, excluding fuel and profit-sharing, to jump 4.5% to 6.5% in the December quarter, which will include a half a percentage point from the effects of Hurricane Matthew. In the September quarter, that metric rose 3.1%, mostly due to unexpected timing of some aircraft maintenance costs. <br/>
Jet Blue Airways has taken a minority stake in fast-growing, California-based jet charter company JetSuite. JetBlue CE Robin Hayes said Tuesday JetSuite was “changing the game in short-haul travel in the west coast.” JetSuite was launched in 2009. Its JetSuiteX product operates up to 4X-daily flights between the California cities of Burbank, Carlsbad, Concord and San Jose, as well as Las Vegas. It sells tickets on its small jets via its website as a public charter operation. Hayes said JetBlue’s investment was “small” but could grow. “We are very active in thinking about how this industry could change and be disrupted in future years. In JetSuite, we see a great opportunity on the west coast in terms of offering customers much more convenient alternative in how to fly,” he said. <br/>
Spirit Airlines reported US$81.4m net income for Q3 2016, down 16.2% year-over-year from a $97.1m net profit in Q3 2015. Excluding special items, which in Q3 2016 were primarily related to lease termination costs, Spirit’s adjusted net income for Q3 2016 was $86.3m. Spirit’s Q3 revenue increased 8.1% YOY to $621.3m, as expenses grew 16.4% YOY to $486.1m, producing an operating profit of $135.2m, down 14% from the airline’s $157.2m operating income in the prior-year September quarter. “During the quarter we benefited from our own revenue initiatives, as well as a modest improvement in the industry pricing environment,” Spirit president and CE Bob Fornaro said. “We continue to see constructive trends that support additional yield improvements in Q4.” <br/>