Maxjet and Silverjet, the new business class airlines operating from Stansted and Luton airports respectively, have come up with not unexpected losses in reporting to the AIM market, although each remains bullish.
Eos, a third carrier competing in the sector has secured another $50m (”25m) in equity capital from institutional and private sources.
Based in Washington DC but centred on London”s Stansted Airport, Maxjet reported a $31.9m loss for the six months ended June 2007, slightly more than was anticipated. Maxjet's first half year load factor came in at 83.1%, while its unit revenues increased 30% from 10.8 US cents per available seat mile to 14 cents.
Maxjet has increased its fleet size from three to five aircraft. The company's fourth aircraft, a B767-200ER entered service on 20 August 2007, with a fifth due shortly and a sixth under negotiation.
The airline now operates all year-round services from Stansted to Las Vegas, Los Angeles, JFK New York and Washington. Reporting to shareholders it confirmed intentions to pursue new market opportunities once the Open Skies agreement between the US and the member states of the European Community takes effect in April 2008, by adding scheduled services from London to points in the Middle East, Asia and Africa.
Maxjet has been unsuccessful in its bid to add a Seattle - Shanghai service in 2008, with the new US - China route licences going to established carriers.
”During the period, we completed our AIM offering, invested in fleet expansion and eliminated all debt from our balance sheet. We have made significant investments in the first half of 2007 to accelerate our network expansion and these have bolstered our segment-leading growth, leading to our full year guidance of revenues of not less that $80m,” said Maxjet chief executive, William Stockbridge.
Competing Luton-based airline Silverjet, which floated on AIM in May 2006, warned that higher costs will result in a bigger than expected loss for the year. The group reported a normalised loss before tax, which excludes the ”6.3m ($12.6m) impairment of goodwill resulting from the acquisition of Flyjet and Skylease, for the year to 31 March 2007 of ”11.9m ($23.8m).
”The directors have reviewed their expectation of Silverjet's performance for the current year in light of its experience in flying since January and Flyjet's performance,” said Silverjet.
”The directors anticipate Silverjet achieving its first month of profit before the end of the current financial year,” it added.
The company said yields are strong and revenue load factor has increased month on month, reaching 80% in August.
Silverjet introduced a single daily flight to Newark New York, in January, which is now double-daily. Dubai will be introduced in November.
The airline now operates three 100-seat Boeing 767s with two more due for delivery in March next year.
Eos Airlines, which made its first flight on 18 October 2005, has secured another $50m in equity capital from institutional and private sources in a transaction that closed on 17 August. Of the three new carriers, it is the most upmarket and the most expensive, although with fares significantly lower than the long-established airlines based at Gatwick and Heathrow.
The airline has expanded to 44 flights a week between JFK New York and London. Its new Club 48 lounge at Stansted reflects the number of passengers carried on each of the carriers” narrow bodied Boeing 757 aircraft.
Each is fitted with 48 suites, providing a 6”6” (198cm) fully-horizontal flat-bed providing 21sq ft (almost 2sq m) of personal space with guaranteed aisle access for every passenger.