Icelandair announced (13-Feb-2013) a firm order for 16 Boeing 737 MAX aircraft worth over USD1.6 billion at list prices. The airline originally announced a commitment for 12 of the aircraft in Dec-2012. The firm order includes both 737 MAX 8s and 737 MAX 9s as well as the purchase rights for eight additional 737 MAXs. Icelandair Group president and CEO Bjorgolfur Johannsson said, “The 737 MAX will complement our Boeing 757 operations seamlessly and allow us to continue our route expansion in the most fuel-efficient manner”. [more - original PR - Icelandair] [more - original PR - Boeing]
Icelandair announces firm order for 16 737 MAX aircraft
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WOW air: the fast-growing Icelandic LCC starts new widebody services to US West Coast
The rapidly growing Icelandic LCC WOW air began a new chapter in its short history on 9-Jun-2016. Just over four years after its inaugural flight – from Reykjavik to Paris on 31-May-2012 – the airline has launched its first widebody service from Reykjavik to San Francisco. This route will be joined on 15-Jun-2016 by a Los Angeles service, also deploying A330-300 aircraft and taking its North American network to six destinations.
With 20 European destinations it is developing a role as a provider of low cost trans-Atlantic connecting services to sit alongside its point-to-point offering. In this respect it is providing growing competition to its larger compatriot Icelandair, which is also growing fast (and profitably).
However for now, at least, there appears to be room for both: Icelandair is not present on 12 of WOW air's European city pairs, or on three of its North American routes. Certainly the North Atlantic needs new competition, and both Icelandic airlines are helping to provide it.
Hawaiian Airlines: cost creep casts a slight shadow over a favourable PRASM performance
Hawaiian Airlines’ geography has been a boon for the airline throughout 2016 as the company’s unit revenue performance has outpaced that of its peers. Hawaiian has benefitted from immunity to the lack of pricing traction in many domestic markets on the US mainland, and rational capacity deployment on is largest North American routes.
The company expects to continue posting a unit revenue outperformance for the remainder of 2016, driven by still favourable capacity trends in its markets. Hawaiian’s own capacity growth is expected to fall between 3% and 4% for 2016, and remain in the low- to mid- single-digit range for the foreseeable future.
Although Hawaiian continues to outperform the industry in unit revenue, the company is facing inflated unit costs in 2016 driven by several factors, including increased compensation and technology investments. The airline is also in the middle of pilot negotiations, and has acknowledged additional cost headwinds once a new collective bargaining agreement is reached.