Alaska Air reported its Q4 and full year 2016 results, with net profit falling in both periods. In the quarter to end December 2016, net income fell 40% to US$114m, with operating revenue up 11% at $1.52b, but expenses were up 14% to $1.28b. Major cost increases were wages and benefits, up 13%, and aircraft fuel costs which rose 12% in the quarter. Alaska Air Group carried 8.75m passengers in Q4, a 10.4% increase from the prior year period. Traffic in revenue passenger miles rose 13.1% on an ASM capacity increase of 10.3%. Load factor came in at 84.5%, a 2 percentage point increase. For the full year 2016, net income dropped 4% to $814m on an operating revenue increase of 6% at $5.93b. Expenses came in at $4.58b, a 7% rise. Alaska Air spent $123m less on fuel and hedging costs in 2016, a 13% drop to $831m, but wages grew 10% to $1.38b. “2016 was an incredible year for Alaska in almost every way, and we are even more excited as we look forward to 2017 and beyond,” Alaska Air CE Brad Tilden said.<br/>
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Ryanair capitalised on favourable rates to raise 750m in the bond market on Wednesday after CEO Michael O'Leary announced profit losses and a challenged outlook ahead of Brexit. Ryanair returned to the bond market for the first time in nearly two years, just days after announcing a 8% drop in its Q3 profits, which it attributed to the sharp decline in sterling following Britain's vote to leave the EU. "We expect sterling to remain volatile for some time and we may see a slowdown in economic growth in both the UK and Europe as we move closer to Brexit," Ryanair's CEO Michael O'Leary said Monday. The airline started marketing a euro benchmark 6.5-year deal at initial price thoughts of 105-110bp over mid-swaps, before guidance was later set at plus 95bp area. Final levels were announced at plus 92bp for an expected 1.25% coupon, on orders of around 3b.<br/>
Norwegian Air Shuttle said it has chosen the first two US bases for the trans-Atlantic flights it plans to introduce later this year using Boeing Co. 737 single-aisle planes. The discount airline will serve one airport north of New York City and another south of Boston, CEO Bjorn Kjos said Wednesday at a briefing in Brussels. He declined to name the bases since FAA approvals are still required. Kjos’s comments come after White House spokesman Sean Spicer provided a boost for his plans by saying that the US has “a huge economic interest” in the trans-Atlantic project because of Norwegian’s role as a buyer of Boeing aircraft and its commitment to employing American crews. Shares of the Fornebu, Norway-based closed 4.5% higher in Oslo after their biggest gain since Dec. 5, when the stock surged 15% following US regulatory approval for the expansion of low-cost flights using a unit registered in Ireland. Norwegian Air’s plan to deploy Boeing’s re-engined 737 Max on trans-Atlantic services is the latest move in its bid to establish a sustainable model for discounted long-haul flying. While the company already serves major American airports using 787 Dreamliner wide-bodies, the new flights will connect secondary cities in Europe with smaller US terminals where fees are lower.<br/>
Norwegian Air Shuttle said it was more optimistic about its future in the US after remarks from the Trump administration on Tuesday that signalled support for the budget carrier's transatlantic growth plans. Europe's third-largest budget airline by passenger numbers after Ryanair and EasyJet, received US approval in December for its Irish subsidiary to fly transatlantic routes despite opposition by US unions worried it could undermine wages and working standards. Pointing to job creation and to Norwegian's use of Boeing aircraft, White House spokesman Sean Spicer on Tuesday said the US has "huge economic interest" in the company's business. The comments sent Norwegian shares up 3.1% when the market opened in Oslo Wednesday morning and the stock was up 3.3% at 1106 GMT. It was the third-strongest performer in the Oslo benchmark index. "We are a big Boeing customer so I think we do exactly what Trump would like everybody to do," Norwegian Air CEO Bjoern Kjos told Reuters on the sidelines of a conference in Brussels. "Trump wants American jobs, we provide American jobs," he said.<br/>