A weaker Q2 performance has dealt a setback to THAI's financial turnaround efforts, dragging the carrier into the red for the first half of the year. The airline reported a net loss of THB5.2b (US$156.6m) for the 3 months through June 30, which was 79% higher than the THB2.9b loss in the same period a year earlier. This was enough to outweigh its Q1 profit, and tip the airline into a THB2b loss for the first 6 months of the year. This is a reversal from a THB3.1b profit in 2016. THAI is partway through a multi-year turnaround plan. In 2016, the airline managed to return to the black with a slim THB47m profit, versus a THB13b loss in 2015. The latest results will make it more difficult for the airline to build on last year’s improvement. <br/>
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Citing significant Q2 gains in yield, operating income, revenue and traffic, Avianca Holdings raised its full-year EBIT margin guidance to between 7%-9%, up 1 point from Q1 2017, the company reported Aug 15. “[Our] focus on increasing revenues, cost reduction and … efficiency throughout our organisation have enabled the company to capture important benefits over the past 3 months,” Avianca CE Hernán Rincón said. “In addition, we saw stable economies in the region after more than 2 years of economic downturn, as well as a relative stable oil price after [recent] ups and downs.” Avianca reported a net profit of US$10.6m for Q2 2017, a reversal of the company’s $23.2m net loss in Q2 2016. Operating revenue increased 13% year-over-year to $1.1m. <br/>
Avianca Holdings expects to finalise a partnership with United Continental Holdings in 2017, although board and regulatory approvals could delay finalisation of the deal by up to a year, the airline's CE, Hernan Rincon, said Tuesday. The strategic commercial partnership, about which the airlines have offered few details, faces a legal challenge in New York from Avianca's No.2 shareholder, Kingsland Holdings. Kingsland has sought to halt talks between the airlines until shareholders vote on whether to appoint an auditor to examine transactions between Avianca and its controlling shareholder, Synergy Group. Avianca expects a favourable ruling on the case next month, Rincon said, adding, "our plan is to try and close the deal this year." <br/>
SWISS phased out its last Avro RJ100 with a special flight from Geneva to Zurich Aug 15. SWISS is replacing the Avros with Bombardier CSeries 100/300 aircraft. SWISS currently has 8 CS100s and 2 CS300s in service. By the end of 2018, SWISS will add another 20 CSeries aircraft to its fleet. The 4-engine narrowbody Avro RJ100 and its smaller RJ85 variant formed the backbone of the SWISS European fleet since the company was founded in 2002. SWISS’ 21-strong Avro fleet completed over 700,000 flying hours, operating over half-a-million flights with the BAe aircraft. The former SWISS aircraft—which remain in high demand because of their excellent maintenance record despite their age—will be placed into service with other airlines,” SWISS CE Thomas Klühr said. <br/>
The govt has infused another INR9.27b into Air India this month as part of a fund infusion agreed upon almost a decade ago, and which it has promised to continue even as it works towards selling part of its stake in the airline. The infusion is timely because the airline has been facing a cash crunch and, in fact, delayed salaries for some employees. Many state-owned banks have also become cautious about lending to the airline, given the move to privatise it. The airline has asked its parent ministry (the ministry of civil aviation) to speak to the finance ministry on this count. The aviation ministry told Parliament this month that it would continue to support Air India as per the approved turnaround plan and would honour financial obligations till further directions. <br/>