Transportation Information Update, August 2018
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Transportation Information Update * “This attached Transportation Information Update was prepared by Joseph Monteiro and Gerald Robertson for the Canadian Transportation Research Forum and distributed to CILTNA’s members with permission” Editor: Joseph Monteiro* August 2018, No. 168 Associate Editor: Gerald Robertson* AIR TRANSPORTATION 1. WestJet reports second quarter net loss of $20.8 million AIR WestJet on July 31, 2018 announced its second quarter results for 2018, TRANSPORTATION with a net loss of $20.8 million, or $0.18 per fully diluted share. This Canada result compares with net earnings of $48.6 million, or $0.41 per fully 1. WestJet reports second quarter net diluted share reported in the second quarter of 2017. Based on the loss of $20.8 million, July 31, 2018, www.westjet.ca trailing twelve months, the airline achieved a return on invested capital 2. WestJet posts smaller-than-expected of 7.7 per cent, down from 9.8 per cent in the second quarter of 2017. loss as traffic growth offsets rising fuel Year-to-date, WestJet recorded net earnings of $16.4 million, or $0.14 prices, July 31, 2018, per fully diluted share. Ed Sims, WestJet President and CEO said "The www.globeandmail.ca 3. IATA, CFM International Sign Pro- impact of the threat of industrial action, in combination with the Competitive Agreement on Engine dramatic increase in fuel price and competitive capacity provided Maintenance, July 31, 2018, particularly significant challenges in the second quarter." … "While we www.iata.org are disappointed with these results, all WestJetters can take great 4. Monthly civil aviation statistics, May 2018, July 31, 2018, satisfaction from the successful delivery of key strategic initiatives like www.statcan.gc.ca Swoop and WestJet Link." 5. Airport activity, 2017, August 2, 2. WestJet posts smaller-than-expected loss as traffic growth offsets 2018, www.statcan.ca rising fuel prices 6. Aimia Rejects Bid by Air Canada, TD, CIBC and Visa Canada WestJet Airlines Ltd reported a smaller-than-expected loss on July 31, Consortium for Aeroplan Program, 2018 as it flew fuller planes and improved a key revenue metric, August 2, 2018, www.aircanada.ca offsetting a steep rise in aviation fuel prices. The country’s second- 7. Aima and Porter Airlines form new largest carrier said revenue passenger miles (RPMs) increased 6.2 per Aeroplan points partnership, August 3, 2018, www.nationalpost.ca cent in the second quarter ended June 31, 2018. The Calgary-based 8. Air Canada Sets New Single Day company said aircraft fuel expenses rose 34.4 per cent to $302.3 million, Record for Customers Carried, August while overall expenses increased 13.8 per cent. 3, 2018, www.aircanada.ca 3. IATA, CFM International Sign Pro-Competitive Agreement on 9. Freight Growth Slowdown Continues In June, August 8, 2018, Engine Maintenance www.iata.org The International Air Transport Association (IATA) announced that it 10. Porter Airlines and Aeroplan has entered into an agreement with CFM International (CFM) that will announce new comprehensive lead to increased competition in the market for maintenance, repair and partnership, August 3, 2018, www.flyporter.com overhaul services (MRO) on engines manufactured by CFM, a 50/50 11. American Airlines Cargo achieves partnership between GE and Safran Aircraft Engines. “Airlines spend a record-setting quarter, August 9, 2018, tremendous amount of money on the maintenance and repair of aircraft www.transportweekly.com and engines to ensure we are always operating to the highest levels of 12. Air Canada Cargo receives IATA certification for transport of live safety and reliability. This milestone agreement with CFM will lead to animals, August 9, 2018, www.ctl.ca increased competition among the providers of parts and services related 13. Government of Canada investing in to the servicing of CFM engines. We expect increased competition will safety at Michel-Pouliot Gaspé Airport, reduce airline operating costs and help to keep flying affordable. And August 9, 2018, www.tc.gc.ca 14. Passenger Demand Accelerates in we hope that this agreement will be an example for other manufacturers June, August 9, 2018, www.iata.org to follow,” said Alexandre de Juniac, IATA’s Director General and 15. AA Cargo volume up 9.7pc, CEO. August 13, 2018, 4. Monthly civil aviation statistics, May 2018 www.transportweekly.com 16. Aircraft movement statistics: Small The six Canadian Level I air carriers flew 6.6 million passengers on airports, April 2018, August 13, 2018, scheduled and charter services in May 2018 up 6.3% from www.statcan.gc.ca May 2017 and continuing the upward year-over-year monthly trend that * The views indicated are those of the authors and not of Industry Canada or the CTRF. 1 began in April 2014. Traffic increased 8.0% year over year 17. Air cargo growth slows in June, yet to 17.1 billion passenger-kilometres in May 2018. Capacity IATA sees 4pc increase in 2018, August 15, 2018, www.transportweekly.com rose 7.7% to 20.8 billion available seat-kilometres. This resulted in a 18. WestJet gives Canadians more sun slightly higher passenger load factor in May 2018 (82.2%) compared and fun this winter, August 13, 2018, with the same month a year earlier (82.0%), as the increase in www.westjet.ca demand for travel was stronger than the rise in capacity. Total 19. WestJet gives Calgary more sun and fun this winter, August 13, 2018, operating revenue increased 10.3% from the same month a year www.westjet.ca earlier to $1.8 billion in May 2018. 20. Pack your bags, Saskatoon, you're 5. Airport activity, 2017 heading to Orlando, August 13, 2018, The number of passengers enplaned and deplaned at Canadian www.westjet.ca 21. WestJet reports July load factor of airports reached 149.6 million in 2017, an increase of 6.2% compared 85.2 per cent, August 8, 2018, with the previous year. This marked the eighth consecutive annual www.westjet.ca increase in air passenger traffic following the economic slowdown of 22. Straighten Up and Fly Right, 2009. The largest airports contributed significantly to the strong August 16, 2018, www.inboundlogistics.com growth in passenger traffic, with increases seen at Toronto/Lester B. 23. May 2018 U.S. Airline Traffic Data, Pearson International (+5.9%), Vancouver International (+8.8%) and August 16, 2018, www.bts.gov Montréal/Pierre Elliott Trudeau International (+9.6%). All sectors 24. London Stansted experiences 4.5pc experienced growth in 2017, as the domestic sector expanded 5.4% increase in cargo traffic in July, August 20, 2018, www.transportweekly.com (+4.5 million passengers), other international traffic was up 9.6% 25. Air Canada, TD, CIBC, Visa and (+2.9 million) and transborder traffic (between Canada and the Aimia Reach Agreement in Principle for United States) increased 4.9% (+1.3 million). Acquisition of Aeroplan Loyalty 6. Aimia Rejects Bid by Air Canada, TD, CIBC and Visa Business, August 20, 2018, www.aircanada.ca Canada Consortium for Aeroplan Program 26. June 2018 U.S. Passenger Airline Air Canada, The Toronto-Dominion Bank ("TD"), Canadian Imperial Employment Data, August 20, 2018, Bank of Commerce ("CIBC"), and Visa Canada Corporation ("Visa") www.bts.gov on August 2, 2018 announced that Aimia Inc. ("Aimia") has rejected 27. Air Canada Expands Acceptance of Alipay and WeChat Pay to North their proposal to acquire its Aeroplan loyalty business disclosed on American and Hong Kong Websites, July 25, 2018. The parties had set a deadline of August 2, 2018 for August 21, 2018, www.aircanada.ca Aimia to accept the proposal. Air Canada, TD, CIBC and Visa 28. European air cargo growth enhanced the offer and engaged in extensive discussions with Aimia continues to stagnate in July, August 22, 2018, www.transportweekly.com over the past several days to attempt to reach an economically viable 29. WestJet hears you loud and clear, agreement. Edmonton, August 22, 2018, 7. Aima and Porter Airlines form new Aeroplan points www.westjet.ca partnership 30. Strategies to Support Sustained Airline Financial Health, August 22, Aimia Inc. says it has a new deal from Toronto-based Porter Airlines 2018, www.iata.org to become a preferred Canadian airline for the Aeroplan loyalty 31. WestJet becomes first Canadian points program as of July 2020, when the current arrangement with airline to launch an AI Chatbot, August Air Canada ends. The announcement follows Aimia’s rejection of a 27, 2018, www.westjet.ca 32. Air Canada, WestJet raising bid for Aeroplan from an Air Canada-led group that includes the key checked baggage fees for lowest-fare Aeroplan credit card partners Toronto-Dominion Bank, Canadian passengers, August 27, 2018, Imperial Bank of Commerce and Visa Canada. www.globeandmail.ca 8. Air Canada Sets New Single Day Record for Customers 33. Boeing forecasts greatest demand for pilots, technicians, cabin crew in Carried Asia Pacific region, August 28, 2018, Air Canada on August 3, 2018 welcomed more than 178,000 www.transportweekly.com customers on board its aircraft, a new, single-day record for Canada's 34. Moderate Freight Growth Continues flag carrier. It also had a record breaking July 2018 carrying more in July, Up 2.1%, August 29, 2018, www.iata.org than 5.2 million customers. 35. Air fares, 2017, August 29, 2018, 9. Freight Growth Slowdown Continues In June www.statcan.gc.ca The International Air Transport Association (IATA) released data for global air freight markets showing that demand, measured in freight tonne kilometers (FTKs), rose 2.7% in June 2018, compared to the same period the year before. This continues the slowdown in air cargo growth that began earlier in 2018.