ARC NEWS
SkyWest boosts CRJ550 fleet as third quarter profit soars
November 04, 2024
SkyWest Airlines more than doubled its operating profit for the quarter ended 30 September to $131 million and reached a new multi-year agreement with United Airlines to operate 40 MHIRJ CRJ550s on its behalf. The operating profit was a significant improvement from an operating profit of $49.3 million during the same period last year. The Utah-based airline says it generated $913 million in operating revenue during the quarter, up 19%, outpacing 9% growth in operating expenses to $781 million, as block hour production increased 15%. During the quarter it recognised $19 million in deferred revenue under its flying contracts, and at the end of the period had $342 million in deferred revenue remaining on its balance sheet. Its net profit rose from $23.5 million to $90 million, up from $23.5 million in the previous corresponding period. As of 30 September, the airline leased 35 MHIRJ CRJ700s and five CRJ900s to third parties and had 17 CRJ200s that are configured for service under charter operations. During the quarter, SkyWest acquired the first CRJ550 as part of a multi-year contract with United Airlines to operate 40 of the type. Under the agreement, the airline will add 11 used CRJ550s and convert 29 of its CRJ700s to the CRJ550 model. These aircraft are anticipated to enter service gradually from late 2024 through the end of 2026. Additionally, the airline took delivery of nine Embraer 175 partner-financed aircraft under a previously announced agreement with United. By the end of 2026, SkyWest is scheduled to operate 278 E175s. At 30 September, SkyWest had $836 million in cash and marketable securities, similar to the $835 million balance at 31 December 2023.


Spirit to furlough over 300 pilots from January 2025
November 01, 2024
Spirit Airlines will furlough around 330 more pilots from 31 January 2025 as it scales back its operations. The US carrier confirmed the new round of furloughs in a statement provided, noting that the decision was taken to "align with our expected flight volume", as part of the wider plan to slash costs and regain profitability. This latest move comes after Spirit furloughed 186 pilots in September 2024, citing aircraft groundings caused by the enhanced inspections of Pratt & Whitney geared turbofans. That number was down from a planned 260 furloughs announced after the airline posted an operating loss of $153 million for the quarter ended 30 June. Schedules data shows that in its latest update the carrier has culled over 1,600 flights in January, over 1,200 in February and just over 1,000 in March compared with the schedule filed the previous week. To preserve cash, it has rescheduled new aircraft deliveries from Airbus that were due in the period from the second quarter of 2025 to the end of 2026, while it agreed to sell 23 A320ceo-family jets to GA Telesis for $519 million.


September passenger demand up 7.1%, air freight up 9.4%: IATA
November 01, 2024
Air passenger demand increased 7.1% year on year in September, an all-time high for the month, according to the latest data from IATA. The airline association says international demand was up 9.2% and domestic demand was up 3.7%. Total capacity rose 5.8%, and load factor gained one percentage point to reach 83.6%. Capacity growth was led by Asia-Pacific and Latin America, with increases of 17.7% and 13.9%, respectively, while in other regions there were single-digit rises in capacity. Asia-Pacific airlines saw the highest growth in international traffic at 18.5%, followed by Latin American and African carriers at 12.4% and 11.9%, respectively. European carriers recorded 7.6% growth in international demand. Middle Eastern carriers saw a 4.4% increase, while North American airlines had the slowest growth at 0.5%. IATA notes that all key markets showed stable growth in domestic demand, and all except Japan saw all-time highs for September domestic traffic. "We will soon face a capacity crunch in some regions, which threatens to curtail these economic and social benefits," states IATA director general Willie Walsh. "Governments will face a choice: lose out to more dynamic nations who value global connectivity, or forge a consensus for sustainable growth." IATA also released figures showing air freight rose by 9.4% in September, representing the 14th consecutive month of growth, IATA figures show. The airline association says capacity was increased by 6.4% overall and 8.1% for international operations. This was largely related to the growth in international belly capacity, which rose 10.3%, extending the trend of double-digit annual capacity growth to 41 consecutive months, it adds. Demand growth was highest in Latin America at 20.9%, followed by Asia-Pacific and Europe, both at 11.7%. Middle Eastern carriers saw 10.1% year-on-year demand growth. North American carriers recorded 3.8% growth, while African carriers had the lowest figure, at 1.7%. IATA notes that industrial production rose 1.6% while global goods trade increased 2.8% for a sixth consecutive month of growth. Monthly trade grew by 1.4%, the highest in seven months. Both the Purchasing Managers Index (PMIs) for global manufacturing output and the PMI for new export orders were below the 50-mark at 49.4 and 47.5, respectively, indicating contraction. The US headline inflation, based on the annual Consumer Price Index, declined by 0.2 percentage points to 2.4% in September, marking the seventh straight month of easing inflation, while the inflation rate in the EU fell by 0.3 percentage points to 2.1%. China's consumer inflation remained low at 0.4% in September amid concerns of an economic slowdown. "For longer-term trends, the air cargo world will be closely following the outcome of the US election for indications of how US trade policy will evolve," states IATA director general Willie Walsh.


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