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City of Sydney, Sustainability Engagement Manager, Pip Harley
TravelEdge Group, Head of Sales, Greg Wilken

CAPA Global LCC Summit

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Feb
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Singapore: CAPA Global LCC Summit

CAPA’s Global LCC Summit attracts the highest calibre of thought-leaders in the industry. Join us as we: define the characteristics of a pure LCC; explore the Low Cost travel revolution; and determine how next gen aircraft are enabling growth.

CAPA Queensland Summit

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Brisbane: CAPA Queensland Summit

CAPA’s QLD Aviation Summit explores key issues & opportunities facing the industry in this region. A separate Corporate Travel Summit is being held at this time for buyers and suppliers on how these issues & opportunities impact their travel programmes.

Latest News Headlines

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Air Mauritius reported (14-Feb-2019) operating performance for Q3FY2019 and the period Apr-2018 to Dec-2018 was impacted by competition and rising costs. The carrier had to "modulate" capacity in Q3FY2019, resulting in a decrease in the number of seats offered and passenger numbers. Revenue remained stable overall, with a decrease in Q3FY2019 and an increase over the nine months ended Dec-2018. The carrier noted the following factors which impacted results for the nine months ended Dec-2018:

  • A 38% year-on-year increase in the price of brent crude oil to USD74 per barrel;
  • A 16.3% increase in operating costs to EUR404 million:
    • Fuel costs increased 29% to EUR126 million (31% of total costs);
    • Aircraft costs increased 21% to EUR110.6 million (27%) due to fleet modernisation, greater leasing and maintenance costs and increased depreciation;
    • Staff costs increased 15% to EUR64.3 million (16%) due to the settlement of MoUs outstanding since 2014;
  • Competition was "unprecedented", with a 29% increase in foreign airline capacity to 2.88 million seats over the three years from FY2015/16 to FY2018/19. The airline reported competition from "mega carriers" and charter/seasonal operators during peak seasons.

The airline said the results also reflect "crucial investments... to secure the company's long term economic sustainability in an environment that is becoming increasingly competitive". [more - original PR]

Aeromexico Group CEO Andrés Conesa, via the carrier's 4Q2018 financial results call, commented (14-Feb-2019) on the cancellation of New Mexico City International Airport (NMCIA) stating: "Given our business model, we need to operate from a single airport. We would never be operating some from airport A and some from airport B". Mr Conesa added that the Mexican Government has "a very aggressive plan to strengthen the infrastructure of Mexico City Juarez International Airport". He added: "They are investing a significant amount of resources in enhancing terminal 2", constructing new facilities expected to add "seven or eight" new gates.

Groupe ADP reported (14-Feb-2019) the following FY2019 guidance:

  • Traffic growth assumption for Paris Aéroport between 2% and 2.5% year-on-year;
  • Consolidated EBITDA: Decrease between 8% and 13%, taking into account the closure of Ataturk Airport;
  • Consolidated EBITDA restated of Ataturk Airport contribution in 2018 (proforma) and in 2019: Increase of between 1% and 5%;
  • EBITDA excluding full consolidation of TAV Airports and AIG: increase between 1% and 2%;
  • Maintained pay out of 60% of NRAG 2019. [more - original PR]

Copa Holdings CEO Pedro Heilbron, via the carrier's 4Q2018 financial results call, commented (14-Feb-2019) on future sales for 2H2019 stating that "sales coming in now for future travels are coming at a better year-on-year yield, but we have sold a good percentage of 2Q2019 at lower yields". He added: "We're seeing positive trends for 2H2019".

Airbus reported (14-Feb-2019) the following outlook for 2019:

  • Target of 880 to 890 commercial aircraft deliveries for the full year;
  • Airbus expects to deliver an increase in adjusted EBIT of approximately 15% compared to 2018;
  • Free cash flow before mergers and acquisitions and customer financing of approximately EUR4 billion. [more - original PR]

Singapore Airlines Group reported (14-Feb-2019) the following financial highlights for the three months ended 31-Dec-2018:

  • Revenue: SGD4342 million (USD3156 million), +6.5% year-on-year;
  • Costs: SGD3954 million (USD2874 million), +9.1%;
    • Fuel: SGD1252 million (USD910.2 million), +22.2%;
    • Labour: SGD743.3 million (USD540.4 million), +10.8%;
  • Operating profit: SGD387.6 million (USD281.8 million), -14.6%;
    • Singapore Airlines: SGD369 million (USD268 million), +0.8%;
    • SilkAir: SGD7 million (USD5 million), -63.2%;
    • Scoot: SGD1 million (USD0.7 million), -97.7%;
    • SIA Engineering: SGD16 million (USD12 million), -15.8%;
  • Net profit: SGD292.8 million (USD212.9 million), -27.3%;
  • Passenger yield: SGD 9.5 cents (USD 6.9 cents), stable;
    • Singapore Airlines: SGD 10.4 cents (USD 7.6 cents), -stable;
    • SilkAir: SGD 11.2 cents (USD 8.1 cents), -1.8%;
    • Scoot: SGD 5.9 cents (USD 4.3 cents), -1.7%;
  • Cargo yield: SGD 33.3 cents (USD 24.2 cents), +3.4%;
  • Total assets: SGD27,511 million (USD19,999 million);
  • Cash and bank balances: SGD1325 million (USD963 million);
  • Total liabilities: SGD14,857 million (USD10,801 million). [more - original PR]

*Based on the average conversion rate at SGD1 = USD0.726968

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