Irish airline Aer Lingus returned to profit in 2010 despite a 10% drop in passenger numbers but higher fuel prices mean that 2011 operating profit is likely to be lower.
The yield per passenger rose 12% to €107.12 each so there was a 1% increase in overall revenue to €1.22bn. A 10% fall in operating costs helped Aer Lingus swing from a loss of €154.8m to a pre-tax profit of €30.4m in 2010.
source: sharecast.com
Irish Lowcost carrier Ryanair has agreed to display full inclusive ticket prices for its flights upfront on its website from June 1.
Ryanair will join lowcost rivals in improving price transparency including easyJet, Monarch Airlines, bmibaby and Flybe.
The UK regulatory authority said it has been working with airlines to improve the way compulsory fees and taxes are displayed up front.
source: travelweekly.co.uk
Tim Jeans, former commercial director at Ryanair, said the golden age for ”low, low fares” is coming to an end.
He blamed escalating fuel costs, increased ‘Air Passenger Duty’ and so-called green programmes like the ‘Emissions Trading Scheme’, for impacting on airline profits.
Talking about whether the ”golden era of air trave’l’ was over, Mr Jeans said: ”The only thing that can happen is fares will go up and passengers go down. The vicious circle of decline in our industry will start.”
source: dailymail.co.uk
Air France and Delta are believed to be interested in making a bid for Sir Richard Branson’s 51 per cent stake in Virgin Atlantic.
The stake is valued by analysts at anywhere between £500m and £1bn with Singapore Airlines owning the remaining 49 per cent stake, which it bought for £600m in 1999.
In November, Sir Richard hired Deutsche Bank to examine Virgin’s strategic options.
He said at the time he was being forced to review the airline’s position in the wake of British Airways’ merger with Iberia and their transatlantic tie-up with American Airlines.
source: skyport-heathrow.co.uk
Ryanair is partnering with publisher Ink to create customised ads on home-printed boarding passes, which target fliers based on their travelling routes and location.
Ink, the in-flight magazine publisher, is developing a system that will customise advertising for travellers, according to their route and demographic data.
The ads will be printed on Ryanair boarding cards and will target destination and departure points.
s0urce: marketingmagazine.co.uk
Budget airline easyJet has launched its first blog and online community in a bid to reach out to existing and new customers.
James Lee, marketing manager UK at easyJet, said: “‘Social platforms are part of everyday life for many of the people who fly with us. It is important that we participate in these platforms and make it as easy as possible for our passengers to engage with us, wherever they are online.'”
source: thedrum.co.uk
Japanese low-cost carrier Skymark could soon be offering cheap flights from Europe to Japan.
Last week, Airbus confirmed that the budget airline had ordered four of its enormous A380 “‘superjumbos'”, signalling a significant gear shift for a carrier which currently operates a fleet of relatively small Boeing 737s within Japan.
According to reports, the new A380s will be used to begin long-haul services between Tokyo and London, Paris and Frankfurt and will be introduced in 2014, potentially providing a cheaper alternative to flights between Japan and Europe currently operated by major airlines such as JAL, ANA, British Airways, Air France.
source: Independent
Ryanair has decided to pull off a route in Spain because of competition from high-speed trains.
The budget giant will cease flying between Valencia and Madrid from April in light of competition from the new AVE high-speed train service operated by Spanish state railway Renfe. The AVE service connects Madrid to Valencia in 90 minutes. Iberia also announced it was ending daily flights on the route last week.
source: travelweekly.co.uk
Southwest Airlines, the Dallas-based airline that bills itself as the nation’s biggest low-price carrier, announced a $10 round-trip fare increase to offset higher fuel costs. This is the latest of several airfare increases since December.
Several airlines, including Continental, Delta and United, matched the domestic airfare hike of $4 to $10 launched this month by American Airlines.
source: latimes.com
Budget airline Ryanair is to cut 18 routes from its base at Girona, following a disagreement with the Catalonian government.
Ryanair said the new government, which oversees operations at Girona, had “‘refused to honour’†a five-year extension of its agreement to base 11 aircraft at the airport rather than 6.
Five of the 11 aircraft will be relocated to bases elsewhere in Europe, resulting in the loss of 18 routes from Girona. These include London Gatwick, Madrid and Dusseldorf Weeze. 17 more routes will see their frequencies cut.
source: businesstraveller.com
