- Passenger numbers: 884,000, -3.0% year-on-year;
- Load factor: 88.3%, -0.7 ppt.
Air France-KLM reports 3% fall in trans-Atlantic pax in Aug-2010
You may also be interested in the following articles...
Norwegian Air's NAI awaits final approval of US rights. Credibility of US-EU open skies is at stake
All objections and further comments on the tentative grant of a US foreign air carrier permit to Norwegian's Irish subsidiary Norwegian Air International (NAI) by the Department of Transportation (DoT), on 15-Apr-2015, have now been made. Not surprisingly, a number of labour organisations and some US senators filed to reiterate their opposition. Many supportive comments were also received.
The opponents' central contention is that NAI's business model contravenes the US-EU open skies agreement's Article 17 bis, aimed at upholding labour standards. This is merely a retread of the argument rejected by the legal counsels of the DoT and the US State Department, and by the Office of Legal Counsel. Some also repeat the unfounded claim that NAI poses a threat to safety. Both positions forget that NAI's employment and safety regulations are those of Ireland, an EU nation. They also forget that NAI will create new jobs in the US and EU.
It would be remarkable if the DoT were to reverse its tentative approval, reached after more than two years of deliberation. The US-EU agreement was designed to stimulate competition, to the benefit of consumers. Approval for NAI is essential to its ongoing credibility. A final decision now awaits.
IAG keeps FY2016 guidance in spite of weak unit revenue as 1Q2016 results benefit from low fuel
IAG's financial results for 1Q2016 are the first indication from a leading European legacy airline group of how this year is working out financially. For IAG the seasonally weak first quarter went well, with operating profit increasing by more than six times and the net result recording a rare positive figure.
Unit revenue weakness, seen in 2015, continued into 1Q2016 and accelerated its fall after the Brussels terrorist attacks. Coming relatively soon after the Paris attacks, this event may have a slightly longer impact than previous incidents of this nature. IAG's unit cost fell more rapidly than unit revenue, thanks to lower fuel prices. With pricing expected to remain a little softer than previously anticipated, IAG is accelerating cost measures and expects underlying ex fuel unit cost to fall by 1% in FY2016.
IAG still expects more than EUR900 million of year-on-year operating profit improvement in 2016, with a further margin increase. The IAG group is already the most profitable of Europe's three leading legacy airline groups, and the gap looks set to widen this year.