Chicago O'Hare International Airport

Steady demand fuels strong revenue performance for Canadian carriers in first quarter

Favourable demand trends helped Canada’s two main carriers record strong unit revenue performance year-over-year during 1Q2012. But the similarities end there as WestJet recorded a profit of CAD68.3 million (USD68.6 million) while Air Canada widened its loss from CAD19 million (USD19.1 million) to CAD210 million (USD210 million) year-over-year as its fuel expense grew by CAD147 million (USD147.7 million). Both carriers face challenges heading into the rest of year as WestJet has revised its cost guidance upwards and Air Canada continues to manage the fallout from its prolonged labour strife.

WestJet’s 6% growth in passenger unit revenues beat the carrier’s own forecast as CEO Gregg Saretsky explained the revenue growth allowed WestJet to fully recover the 19.6% rise in fuel costs the airline recorded year-over-year.

Total revenue at WestJet increased 15.3% during 1Q to CAD891 million (USD895.2 million) as yields increased 4.8% on a 8.8% rise in supply.

Integration headaches trigger 1Q loss at United as its revenue performance lags the industry

Persistently high fuel costs and challenges in a passenger system information technology cutover pushed United Airlines into a loss for 1Q2012 as its unit revenues lagged behind US legacy peers. Forecasts for the month of Apr-2012 show the lacklustre revenue performance continuing before heading into May-2012 when comparisons become increasingly difficult due to numerous fare increases pushed through in 2011. Despite the weak performance relative to the rest of the US airline industry, United remains confident it is taking the right steps through its merger with Continental Airlines to remain competitive over the long term. But for the moment the carrier is not disclosing a timetable of when it might close the unit revenue gap with its industry peers.

Special charges related to the passenger service system cutover in March and other integration expenses pushed United to a 1Q USD448 million loss compared with a loss of USD213 million the year prior. The cutover was the final step in combining United and Continental, and now that it is complete the Continental name has been retired.

American ups capacity at Fort Lauderdale by 30%

In an interesting move that may smack of déjà vu, American Airlines announced it is adding flights from Fort Lauderdale to its DFW and Chicago O’Hare hubs, and in November will begin a non-stop flight from FLL to Los Angeles International.

CAPA Profiles: What's driving the world's busiest airports? #3 Chicago O’Hare still a vital hub

Long before airplanes existed, Chicago was already a transportation hub. Since the mid-1800s it has been a rail hub, linking the Eastern US with the central states and points west. A quick look at the US interstate highway network reveals that the city is also a vital intersection for surface transport.

oneworld carriers revamp trans-Atlantic routes

While short-haul shuttle-like services have been around for a long time, American and British Airways will soon move to a shuttle-like service to London, and are finally seeing the benefits of their alliance’s potential.

World Airport Rankings 2010: Hong Kong eclipses Memphis as the world’s busiest cargo hub

It’s official: Hong Kong International Airport (HKIA) is the world’s busiest cargo hub – ending Memphis International Airport’s 18-year reign at the top of the world rankings. HKIA’s rise to the top reflects surging exports from China’s Pearl River Delta, while Hong Kong-based Cathay Pacific became the world’s largest international air cargo carrier last year, overtaking Korean Air.