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Scandinavian airline group SAS AB on Tuesday posted a first-quarter net loss of 1.08 billion kronor (euro115 million; US$181 million ), citing higher fuel costs and growing competition, and said it would slash 1,000 jobs to reduce costs.

The result was down from a net loss of 18 million kronor in the first quarter of last year.

Sales in the first three months of 2008 rose to 12.83 billion kronor (euro1.37 billion; US$2.15 billion), from 11.89 billion kronor in the same period last year, SAS said.

“The negative earnings trend we experienced in November and December last year continued in the first quarter of 2008,” Chief Executive Mats Jansson said.

source: Forbes

Ryanair today raised the cost of putting bags in the hold and checking in at airports as the high cost of oil forced airlines to scrabble for extra revenues.

Passengers on Europe’s largest budget carrier will have to pay £16 per bag for a return trip and £8 to use a check-in desk per return journey from next Monday, amid widespread fears for the financial health of the aviation industry.

The cost of fuelling aircraft has soared this year as the global oil price has climbed from around $80 a barrel to nearly $120. Fuel accounts for a quarter of airline budgets and the resulting financial squeeze has triggered a wave of bankruptcies on both sides of the Atlantic, amid warnings from some analysts that major carriers could go to the wall or be forced to merge with rivals in order to survive.

source: guardian.co.uk

A senior American Airlines executive said on Tuesday that London’s Heathrow was the worst airport used by the company in Europe.

Don Langford, head of customer services Europe for the airline, said its base at Terminal 3 had suffered from a lack of investment and was “‘a bit of a dump'”.

“‘I would have to say that Heathrow is in many ways the worst of all the airports that my company flies to in Europe,'” he told the BBC.

source: Reuters

Budget airline flybe, formerly known as British European, today signed an order for £520 million worth of new planes, some of which will be based at Edinburgh.

The contract, with Bombardier Aerospace of Canada, involves 17 firm orders for Q400 turboprops and an option to take a further 20, making it the largest aircraft deal signed so far this year. The first of the planes will arrive in June this year, with the other 16 over the next three years.

source: Evening News

In a joint letter written to Continental Airlines employees, company chairman Larry Kellner and president Jeff Smisek say that a merger with United Airlines or any other air carrier will not take place.

More than 45,000 Continental employees received the letter by e-mail Sunday following a meeting with the Continental Board of Directors. The board unanimously supported a management recommendation that the company not pursue a merger with another airline.

The two executives say that Continental still plans to consider potential alliances and membership in SkyTeam, but alternatives will also be considered in place of SkyTeam.

source: My Fox

When Eos Airlines Inc. launched its first flights in 2005, the startup carrier named for a Greek goddess came with enthusiastic business travelers looking for more space who didn’t mind hefty fares for premium service across the Atlantic.

The airline reconfigured Boeing 757s meant for 220 passengers with 48 seats that could extend into a fully flat bed. Flights served wine, champagne, cocktails and gourmet foods. There were individual DVD players, and helicopter rides to the airport were offered to some travelers.

source: Associated Press

New London Gatwick route starts on 21 June. Clickair announced it is launching new flights from London Gatwick to Vigo, its sixth Spanish route from the UK. The three times weekly Airbus A320 flights to Vigo will commence on 21-Jun-08 with seats already on sale.

Clickair’s decision to commence the service follows the ratification of an agreement between the Foundation Provigo, the city’s Mayor, the head of the Galician Regional Government’s Tourism Authority and clickair. It is anticipated the route will support 60,000 passengers in its first year, taking the number of passengers travelling through Vigo’s expanding international Peinador Airport to 1.5 million passengers during 2008.

source: Peanuts!

Norwegian Airlines began to offer a new flight connection between Malaga and Stockholm at the beginning of April 2008. Furthermore, the low-cost airline Volareweb, belonging to the Alitalia group, began to fly between Malaga and Milan-Malpensa. The new flight connection between Malaga and the airport of Milan-Malpensa, offer four flights a week on Mondays, Wednesdays, Fridays and Sundays.

source: eventplannerspain.com

easyJet, the UK’s largest airline, launches three new routes this week from Bristol to Biarritz, Olbia and Split . The new services this morning to Biarritz will provide the region’s travellers with access to some of the most beautiful scenery in Europe, whilst Olbia and Split will join the network from Bristol on Saturday 26 April 2008; perfect timing for the summer sun.

Biarritz is easyJet’s 39th route from Bristol and Katie Walsh from Southampton was the lucky passenger selected at check-in to receive two free flights to both Olbia in Sardinia and Split in Croatia, giving them the opportunity to experience easyJet’s new destinations from Bristol.

source: Easier

Belgium’s Brussels Airlines has announced it is slowing speeds and reducing weight on some of its aircraft in order to reduce fuel costs.

The airline said slowing its planes by about 10km/h would cut its annual fuel bill by 1m euros ($1.6m; £800,000) and add a minute or two to flight times.

The measures will also reduce the airline’s emissions of global warming greenhouse gases, a spokesman said.

source: BBC News