Delta Air Lines reported Thursday that Q4 profit slipped 8%, but the results still beat expectations as average prices for passengers continued to creep higher. The airline also raised its forecast of 2018 earnings, partly because it expects that a new, lower tax rate on businesses will help spur corporate travel. Delta, which earned nearly US$3.6b in 2017, doesn't pay income taxes because it is able to offset income with billions of dollars in losses from previous years. But the company expects to start paying taxes in 2019 or 2020 and believes that the new law will eventually cut its tax bill by $800m a year or more. Airlines are benefiting from strong travel demand that is resulting in many full flights and higher prices. At Delta, average fares and fees rose for the third straight quarter, reversing a 2-year slide. <br/>
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Delta Air Lines expects South Korean regulatory approval of its proposed joint venture with Korean Air in the first half of this year, says CE Ed Bastian. The carriers plan to begin implementing the partnership, which will allow them to more closely coordinate transpacific flying, as soon as they receive the approval, he said Thursday. However, he does not provide a target launch date. Delta and Korean Air received US regulatory approval for the tie-up in Nov 2017. The airlines will be able to coordinate schedules and fares between South Korea and the US, jointly sell and market their flights, and share revenues under the planned partnership. However, US regulators have barred them from being exclusive partners in the market. For example, Delta cannot stop Korean Air from codesharing with Hawaiian Airlines and vice versa. <br/>
An Aeromexico passenger jet was ordered to abort a landing at San Francisco International as it descended toward a runway occupied by another commercial jet, the third close call at the busy airport in 6 months, officials said Thursday. Aeromexico Flight 668 from Mexico City had been cleared to land Tuesday and it was about a mile from the airport when controllers saw the aircraft was lined up for a runway occupied by a Virgin America Airbus A320 jet waiting to take off for Hawaii. The tower ordered the Aeromexico Boeing 737 jet to circle around. "Aeromexico 668 go around!" an air traffic controller is heard saying on audio recordings. Pilots and safety experts said air traffic controllers did a good job when they quickly redirected the Aeromexico jet at an airport that many pilots say is notoriously difficult to land at. <br/>
Garuda Indonesia confirms that it will not add any aircraft in 2018, and will instead work to maximise the utilisation of its existing fleet. The airline said that it has pushed back the delivery of its 49 Boeing 737 Max 8s on order from 2017 to 2020. The jets, which will gradually replace its 737-800s, are now scheduled to be delivered from 2020 to 2024. The carrier will also take 3 Airbus A330neos in 2019. Asked about the 14 ATR 72-600s on order, the airline would only say that discussions are still ongoing. Last June it was reported that Garuda has approached Boeing, Airbus and ATR seeking to defer the majority of its aircraft deliveries in the coming years amid financial woes. The airline has also said that it is considering removing smaller aircraft such as the ATR and Bombardier CRJ from its fleet. <br/>