Low-cost carrier Flydubai reported Dh142.5m in losses for H1 2017 Monday, with the figure widening from the Dh89.9m in losses reported in the same half of 2016. The airline attributed losses to higher fuel costs and pressure on yields. The losses came despite a 9.9% year-on-year rise in revenues, which reached Dh2.5b in H1 as an increase in passenger numbers gave a boost to revenues. Passenger numbers reached 5.4m, up 10.5% year-on-year. “The demand for travel on flydubai remains strong, and the airline has seen its overall market share grow. These factors have, however, been offset by the price performance determined by the market,” the airline said, adding: “The airline also faced comparatively higher fuel expenses during the reporting period, with fuel costs accounting for 24.8% of operating costs compared to 23.5% in the previous reporting period.” The losses at flydubai come as regional airlines face pressures because of slower demand, stronger competition, and political factors. In May, Emirates airline reported an 82% plunge in its profits year-on-year reaching as the carrier cited “a turbulent year for aviation and travel.” Flydubai said it will continue to focus efforts on three main areas; improving cost performance, broadening its distribution, and optimizing its network.<br/>
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Hainan Airlines reported a net profit of CNY1.2b (US$17m) for H1 2017, down 31% over net income of CNY1.7b for the same period last year. According to a filing by the Shanghai Stock Exchange, Hainan’s subsidiary Tianjin Airlines saw a 42% profit decline to CNY84m after operating expenses jumped 70.5% to CNY12b in Q1. In February, Hainan Airlines completed the acquisition of a 48.2% stake in Tianjin Airlines, making Hainan the controlling stakeholder in the Tianjin-based carrier with an 87.3% stake. Hainan Airlines’ 1H operating revenue jumped 50.2% to CNY28.5b while operating expenses increased 75.3% to CNY24.6b. Passenger boardings grew 53.3% to 34.2m with an average load factor of 86.7%, down 1.5 points over the year-ago period. Capacity rose 53% to 67.1b ASKs against an increase of 50.4% in passenger revenue to 58.2b RPKs. Cargo traffic volume rose 11.6% to 224,082 tonnes. In the first half, Hainan accelerated its international expansion pace by opening five intercontinental routes, comprising Chongqing-Los Angeles, Chengdu-Los Angeles, Chongqing-Moscow, Tianjin-Moscow and Kunming-Moscow, as well as nine international routes to neighboring Asian countries.<br/>
Alaska Airlines could continue to operate a mixed fleet of Airbus A320 family and Boeing 737 family aircraft indefinitely, says CE Brad Tilden. "We feel we have enough scale to run the mixed fleet efficiently," he says at the Boyd International Aviation Forecast Summit in Las Vegas today. Seattle-based Alaska operated an all-737 mainline fleet from 2008 to 2016 when it acquired all-A320 family operator Virgin America. Since the acquisition, Alaska executives have said that the airline will continue to operate the Virgin America fleet through the end of the aircraft leases, the majority of which expire between 2022 and 2024. "We're going to be dual fleet for some period of time," says Tilden, adding that no decision has been made on whether to return to a single fleet type or maintain a mixed fleet. Alaska will meet with representatives of both Airbus and Boeing over the next year or so to discuss its fleet once the Virgin America leases begin to expire, he says.<br/>
Spirit Airlines is close to signing a deal to equip its entire Airbus A320 family fleet with WiFi, in a move that departs from the airline's long-held strategy of eschewing amenities on board. Spirit CE Bob Fornaro tells FlightGlobal that installations will begin in 2018. The carrier expects it will take about a year for the entire fleet to be equipped. Spirit's new in-flight connectivity service will also allow passengers to stream entertainment to their own devices, he says. "If it's just about [being able to send] e-mails, we won't be doing it," says Fornaro. He declines to specify when Spirit will announce the deal, but says the carrier is "very close" to signing an agreement. The airline's decision to equip its fleet with in-flight connectivity is a surprise, given that it has steadfastly held to an ultra low-cost business model that offers few frills on board. Fornaro says the move will cater to the airline's growing customer base of younger passengers, who are "much more computer savvy".<br/>
Bangkok Airways has dropped plans to suspend regular Bangkok-Lampang flights in the wake of calls for continuation of the service. The airline confirmed Monday the thrice-weekly flights will continue unabated with the schedule and type of aircraft remaining unchanged. The news comes ahead of a meeting next Monday called by the Department of Airports (DOA) that will include airline officials and representatives from agencies in Lampang to thwart Bangkok Airways' plan to cease the services on Oct 1. The airline's reservation system for the Lampang route has also started accepting bookings again. An industry source said that fare competition from budget airline Nok Air has been driving Bangkok Airways, a full-service airline, out of the segment.<br/>