In addition to new freighters and options, FedEx has let a contract to Singapore Technologies Aerospace for freighter conversions covering 87 Boeing 757 aircraft. The seven-year, $450 million contract will begin converting aircraft in May for December delivery. Future conversions are expected to require less than 120 days to complete.
As part of its conversion from narrowbody freighters to widebodies, FedEx confirmed it has contracts and/or letters of intent for just fewer than 90 Boeing 757s. According to Air Transport World magazine, FedEx declined to identify the sellers.
In other news, Continental Airlines reported 2006 net income of $343 million, up from a $68 million loss in 2005. Excluding special items, Continental’s net full-year income was $304 million. Comparable figures for 2005 (excluding special items) showed a $205 million loss.
Cargo revenue was up 3.4% for the quarter and 9.9% for the year, registering $122 million for the quarter and $457 million for the full year. Cargo ton-miles rose 2.5% for the quarter or 5.6% for the year.