Jeffrey's Feed
Jul 30, 2015

Checked bag fees are here to stay: United Airlines CEO

NEW YORK (Reuters) – Still hoping for the day airlines let all customers check bags and make reservation changes for free?

Forget it, said United Continental Holdings Inc’s (UAL.N: Quote, Profile, Research, Stock Buzz) Chief Executive Jeff Smisek at an industry lunch on Thursday, defending airlines even as they reap billions in profit and face federal probes into pricing practices.

Jul 30, 2015

Currents consistent with Reunion debris being from MH370-experts

SYDNEY/NEW YORK, July 30 (Reuters) – Vast, rotating currents
sweeping the southern Indian Ocean could have deposited wreckage
from a missing Malaysia Airlines passenger jet near Africa,
thousands of kilometres from where it is thought to have
crashed, oceanographers said on Thursday.

France’s air crash investigation agency is studying a piece
of plane debris found on Reunion Island, off the east coast of
Madagascar, to determine whether it came from Flight MH370,
which disappeared without a trace 16 months ago with 239
passengers and crew on board.

Jul 28, 2015

JetBlue bucks airline industry outlook, sees strong demand

NEW YORK, July 28 (Reuters) – JetBlue Airways Corp
on Tuesday forecast a potential rise in July unit revenue even
as competitors projected steep drops, profiting from new
premium-class seats while escaping capacity gluts in Dallas and
Chicago.

The New York-based airline expects that passenger revenue
per available seat mile, which measures sales relative to the
capacity and distance of flights, will stay flat or rise as much
as 1 percent in July from a year earlier. JetBlue did not share
its revenue outlook beyond the month, but analysts say the
forecast bodes well for the quarter.

Jul 24, 2015

U.S. probing possible price-gouging by airlines after rail crash

WASHINGTON (Reuters) – U.S. authorities are investigating
possible price gouging by four U.S. airlines while train service
was disabled between New York and Washington after a deadly
Amtrak crash in Philadelphia in May, the Transportation
Department said on Friday.

Transportation Secretary Anthony Foxx said the investigation
involved Delta Air Lines Inc, American Airlines Group
Inc, Southwest Airlines Co and JetBlue Airways
Corp in the Northeast Corridor.

Jul 24, 2015

American Airlines beats second-quarter estimate, declares buyback, dividend

By Jeffrey Dastin

(Reuters) – American Airlines Group Inc (AAL.O: Quote, Profile, Research, Stock Buzz) on Friday reported second-quarter profit that topped analysts’ expectations and declared a stock buyback and dividend as cheap fuel continued to benefit its bottom line.

American, the world’s largest passenger carrier, grew profit 97 percent from a year earlier to earn $1.7 billion last quarter. On an adjusted basis, profit was $1.9 billion, or $2.62 per diluted share, compared with the average analyst estimate of $2.60, according to Thomson Reuters I/B/E/S.

Jul 24, 2015

American Airlines beats 2nd-qtr estimate, declares buyback, dividend

July 24 (Reuters) – American Airlines Group Inc on
Friday reported second-quarter profit that topped analysts’
expectations and declared a stock buyback and dividend as cheap
fuel continued to benefit its bottom line.

American, the world’s largest passenger carrier, grew profit
97 percent from a year earlier to earn $1.7 billion last
quarter. On an adjusted basis, profit was $1.9 billion, or $2.62
per diluted share, compared with the average analyst estimate of
$2.60, according to Thomson Reuters I/B/E/S.

Jul 23, 2015

U.S. airlines return to fuel hedging, get burned again

By Jeffrey Dastin

(Reuters) – At least two U.S. airlines have started hedging their fuel costs after a months-long hiatus. The early result: more losses.

Southwest Airlines Co (LUV.N: Quote, Profile, Research, Stock Buzz) and United Continental Holdings Inc (UAL.N: Quote, Profile, Research, Stock Buzz) have added new hedges against a rise in oil prices just months after bets last year cost them hundreds of millions of dollars. With U.S. crude prices falling 21 percent since early June, Southwest appeared to regret the decision.

Jul 23, 2015

United Airlines steps up backup plans in wake of tech glitches-CEO

July 23 (Reuters) – United Continental Holdings Inc
has invested in backup plans for disruptions in the wake of tech
glitches that have grounded its planes twice since early June,
the airline’s Chief Executive Officer Jeff Smisek said on
Thursday.

“We know areas where we can beef up backups,” Smisek said on
a call with investors, adding that the airline was investing “a
significant amount of time and money” into making sure the bugs
are a thing of the past.

Jul 23, 2015

United Airlines plans $3 bln buyback, but expects unit revenue drop

July 23 (Reuters) – United Continental Holdings Inc
on Thursday forecast a drop in unit revenue and trimmed plans
for capacity growth as the U.S. dollar weighs on demand abroad,
but it announced new share buybacks because its profit continues
to rise.

The Chicago-based airline said it expects passenger unit
revenue to decrease between 5 and 7 percent in the third
quarter. Capacity will only grow between 1 and 1.5 percent in
2015 compared to a year earlier, it said, lowering a prior
forecast for growth of as much as 2 percent.

Jul 22, 2015

LaGuardia, JFK workers suspend plans to strike Wednesday – union

By Jeffrey Dastin

(Reuters) – Command Security Corp employees who work
at New York’s John F. Kennedy International Airport and
LaGuardia Airport have called off plans to strike on Wednesday,
the 32BJ SEIU service workers union said.

In a statement, the security services provider said it
reached an agreement with the employees that maintained “their
right to choose representation or not,” and “guaranteed a
peaceful environment in which to make this decision.”