salut0

With recent airline bankruptcies, the financial health of the airlines in Skyteam has become a topic of increasing importance. So I've collated the links below to help people follow the fortunes of the airlines in the alliance: how they're trading on the stock market (if they do trade), what they're saying in conference calls and what analysts and commentators in the financial sector think about the companies' prospects and directions.

I hope people here find this collection of links a helpful resource: please let me know if you have any suggestions for additions or improvements.

Links to financial information about Skyteam current members
Aeroflot
Air France here and here
China Airlines
China Eastern here and here
China Southern here and here
Delta Airlines
Kenya Airways
KLM here and here

also Skyteam current members: Aeromexico, Air Europa, Alitalia, Czech Airlines, Korean Air, TAROM, Vietnam Airlines

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If you're interested in other airlines, you might like my lists of links to resources for following the financial health of OneWorld airlines here, Star Alliance airlines here, and all the world's airlines here.

rurouni212

From what I've read and heard, TAROM and Czech aren't in great shape, and could realistically go the way of spanair and Malev.

ralfkrippner

salut0 - thanks for posting this thread, good idea!

I've been asked if this thread could be made a sticky in the forum. Please give me your opinion on that as a reply here or as a PM, I'll follow the majority then. After the decission is made I would delete all posts here regarding the sticky so that we are on topic again...

Edited to add: slightly more users in favour of this thread to be made a sticky, so I'll do it. I'll monitor if this thread has new posts from time to time and if nothing moves here I'll unstick the thread again. Let's hope that there is not too much need for this thread in the future... :-)

ralfkrippner,
forum moderator

31dany

Well, from ST, OK is doing really bad, but RO is relatively safe, for now at least... Albeit OK is not in the best shape, one cannot compare MA with them.

Xandrios

In what way is OK doing better than MA?

The only upside I see is that they are canceling all routes that are not extremely profitable. They will (have?) end up with a mostly domestic network and a handful intra-european routes that are underserved.

So while Malev was trying to keep up their network, losing money while doing so, Czech seems to be cutting more. But is that enough to survive? Remember, less routes equals less flights and therefore also more overhead (Staff, offices and so on)..

T.A.Music

Like Kingfisher having these days?

31dany

Mind you MA had leased all aircraft in their fleet, that should say enough I guess..

KQ321

As far as I can tell, OK only have one domestic route (PRG-OSR) - and even on that most flights are operated by 3B as a code-share. OK also have some flights out of KLV, but only international routes (not domestic).

salut0

Pinnacle airlines, which operates Delta Connection flights, has filed for bankruptcy. It will stop its United Express services by Aug. 1. (More details about Pinnacle's financials here.)

What effect do you think this will have on Delta Connection, if any?

stimpy

Why is AF separate from KL? Financially they are a single company.

Why isn't KQ's chart shown? Google will show you many sites that have it. Like this one http://investing.businessweek.com/re...ticker=KNAL:KN

I'm not sure why the KQ share price and PE ratio are so low. You could buy up the airline and sell the planes and make a profit. Of course the government wouldn't allow it.

irishguy28

Because AF and KL still have their results reported separately? Air France-KLM is indeed a single company, but it's just a holding company; Air France (the airline) and KLM (the airline) are certainly not run as a single company.

stimpy

Within the group they are reported separately, but the overall AF Group reports the total numbers, right? And that is what trades on the Paris Bourse unless I'm mistaken?

salut0

stimpy: thanks for suggesting the KQ link. I've added it to the list above and also to the broader directory of all the world's airline stocks.

Please keep the suggestions coming, if you have other resources to point out!

PotNoodle

I believe Aeromexico is making strong profits, I unfortunatley cannot find a link though.

Air France-KLM are having serious financial difficiculties, apparently KLM is fairing well while the Air France part is suffering. This link highlights http://quicktake.morningstar.com/sto...x?symbol=aflyy that they are below industry average for most metrics. For example their debt is over 10bn Euros compared to only 1bn Euros at the International Airlines Gorup (BA/Iberia). However they have announced job cuts and are rumoured to sell subsidaires like Cityjet to pay off debt. It will be tough but it looks like they can survive but if worst comes to worst KLM would probably be sold off and Air France's assets purchased and re-starting operations (ala Alitalia, Swiss etc..). Their sink certainly has not sunk yet though. Page 50 onwards on their anual sheds more light, but most importantly the new CEO is re-structuring the entire company.

I hear CSA's finanaces are dire, infact I expected them to go bust before Malev. They are backing off major routes such as axing LHR and MAN which are massive routes due to LCC competition.

Although I have no clue about Air Europa their business model does look shaky, considering Iberia who is substantially more dominant is not making a profit I struggle to see a charter turned full service carrier perform better. Most countries struggle to host one full service carrier (look at BMI/Spanair) but having to full services carriers in an economy as bad as Spain's looks tricky.

No idea about Tarom but considering that airlines like BA and Lufthansa gain profits exclusively from their longhaul networks with short hauls being used as feeders and mechanisms to gather loyality, it is concerning for an airline with no long haul network at all. All thanks to low cost carriers.

The two Chinese carriers appear to be performing significantly well, and even if they didn't I couldn't imagine the Chinese government letting them fail. So no worries on that front.

According to Delta's annual report from 2011 they are performing well, "For the full year, we had top line growth of 11% with about 30 fewer airlines, generated a net profit of $1.2 billion and $1.6 billion of free cash flow, with $3 billion in higher fuel expense"
http://seekingalpha.com/article/3221...all-transcript

No idea about Vietnam Airlines but again it is safe to say their government won't be letting them go anywhere.

MEA is highly profitable, with a nice chart shown here http://centreforaviation.com/analysi...dle-east-77028

Alitalia posted -6m Euro loss for 2011 but that is substantially better than -107m loss in 2010. I must admit getting my source from Wikipedia however I remember reading original sources through a link on another forum and this concurs with what I read.

Saudi. Again it is difficult to find such information but I cannot imagine the Saudi royal family allowing it to fail.

The airline industry is a terrible indstury for profits but Skyteam looks to be doing quite well. The members in the most financial problems appear to be the european airlines (except KLM) but things look stable.

ralfkrippner

With no more replies for 6 months now I'll unstick this thread from the top of our forum.

ralfkrippner,
skyteam forum moderator