Korean Air concluded a challenging FY05 with net earnings of KRW202.3 billion ($205.6 million), a 61.1% plunge from its 2004 profit of KRW519.5 billion. Chairman and CEO Yang-Ho Cho acknowledged last year's difficulties, saying, "High fuel prices throughout the year combined with the pilots strike in December caused a decrease in the airline's net profit. However, our efforts to enhance profitability through cost savings and fuel surcharges brought about an increase in Korean Air's overall operating profit." Indeed, operating profit rose 12.6% to KRW432.2 billion on a 5.2% gain in revenues to KRW7.58 trillion and a 4.8% climb in expenses to KRW7.15 trillion.

Rising demand from long-haul business class passengers helped British Airways increase profits significantly in the third quarter and offset a jump in fuel and other cost increases.

United Airlines formally, and finally, exited bankruptcy yesterday after 1,150 days during which it cut annual costs by approximately $7 billion including more than $3 billion in concessions from labor unions, reduced and reconfigured its fleet to fly more profitable international routes and launched its low-cost subsidiary Ted."Today, we have the business platform we need to compete with the strongest carriers and a clear strategy of offering the right service to the right customer at the right price," Chairman, President and CEO Glenn Tilton said in a statement. "As we move ahead, United is committed to continuous improvement in costs, revenue and operations to optimize our resources and sustain competitive margins."

Qantas confirmed to ATWOnline last week that its evaluation of the 777-200LR is ongoing despite local media reports indicating it had been shelved. Qantas CFO Peter Gregg told this website that the 777-200LR is "definitely under serious evaluation," although he was coy on the finer details of the operational options under examination.

Boeing yesterday raised its earnings outlook for 2006-07 on the back of strong sales and earnings momentum as it reported that fourth-quarter net income more than doubled to $460 million from $186 million in the year-ago period.The result propelled full-year income up 37% to $2.57 billion from $1.87 billion in 2004.

JetBlue Airways' inability to control costs and misplaced capacity increases cost it dearly in the final quarter of 2005 as it suffered a net loss of $42.4 million--by far its worst quarterly performance since it started service in February 2000.JetBlue earned $1.5 million in the year-ago quarter. The surprising 2005 result plunged the carrier into the red for the fiscal year ended Dec. 31. It posted a $20.3 million annual loss compared to a $46.2 million profit in 2004. In addition, it is forecasting a loss in both the current quarter and for full-year 2006.

Varig paid $56 million owed to aircraft leasing companies last Thursday, eliminating the threat that 40 of its aircraft--around 70% of its fleet--would be repossessed.

British Airways, Europe's third-largest airline by traffic, on Friday dismissed as ludicrous an actuary's suggestion the carrier would need to declare bankruptcy to clear its pensions deficit.

Although SAS Group has succeeded in reducing costs by SEK14 billion ($1.8 billion) over the past three years through its Turnaround 2005 program, the company's namesake airlines, collectively known as Scandinavian Airlines Businesses, continue to underperform. Furthermore, SAS says ongoing contract negotiations with unions are not progressing toward the cost-saving goals it needs, according to a recent edition of the company's internal newsletter. As a result, it is looking at shrinking SAB by eliminating unprofitable routes and cutting frequencies, resulting in layoffs and aircraft disposals. SAS Sverige (Sweden) laid off 120 employees in December while a further 150 were given a choice between transfer and redundancy.

Brazilian jet maker Embraer said on Friday it had suspended plans to build a factory in Jacksonville, Florida, after the US Army canceled a contract for a new spy-plane program.