May 20 (Reuters) – The shares of U.S. airlines plunged on
Wednesday on concerns that several big carriers are gearing up
for a fare war, with Dallas as ground zero.
Southwest Airlines Co shares plummeted more than 9
percent in a wider selloff of U.S. airline stocks after the
carrier forecast its capacity would grow as much as 8 percent
this year from 2014.
May 14 (Reuters) – U.S. lawmakers have stepped up pressure
on the Obama administration to take a stance on allegations that
three Gulf airlines received market-distorting subsidies, asking
it to answer several questions by May 20.
In a letter released to media on Thursday, 19 House
Judiciary Committee members including its Republican chairman
and ranking Democrat said they wanted to know whether the
government was aware of foreign airline subsidies, and if so,
how it would respond to them.
May 13 (Reuters) – United Continental Holdings Inc
on Wednesday announced plans to lease up to 25 used aircraft
from AerCap Holdings NV, one of the world’s largest aircraft
lessors, to reduce its dependence on smaller, 50-seat
The Chicago-based airline said it expects delivery of 11
used Airbus Group NV A319 aircraft over the next two
years, with the right to add up to 14 more of the single-aisle
planes over the next five years, subject to certain conditions.
By Rohit T. K. and Jeffrey Dastin
(Reuters) – Delta Air Lines Inc (DAL.N: Quote, Profile, Research, Stock Buzz) said it will return more than $6 billion to investors through share buybacks and dividends by the end of 2017, and raised its target for operating profit margin.
The Atlanta-based carrier promised on Wednesday to return at least 50 percent of its free cash to stockholders via a new $5 billion share repurchase program, and by hiking its dividend to 13.5 cents per share from 9 cents, starting in the third quarter.
May 13 (Reuters) – Southwest Airlines Co’s board of
directors on Wednesday raised the company’s quarterly dividend
and authorized a new $1.5 billion share buyback program,
according to a news release.
The board of directors declared a quarterly dividend of 7.5
cents per share, up from a previous dividend of 6 cents per
share. Southwest estimated the new dividend payments will amount
to $200 million annually, based on shares outstanding on May 11.
(Reuters) – American Airlines said on Tuesday it will begin uniting its reservations platform with US Airways’ as early as July, setting a three-month timeframe for a data migration process other merged carriers have struggled with.
Parent American Airlines Group Inc (AAL.O: Quote, Profile, Research, Stock Buzz), formed by the two airlines’ 2013 merger, said that as early as July it will transfer about 10 percent of reservations booked on US Airways to American’s existing reservations platform. The move will set in motion a transfer of the remaining US Airways reservations to American over some 90 days, the company said.
(Reuters) – United Continental Holdings Inc (UAL.N: Quote, Profile, Research, Stock Buzz) said on Friday it plans to cut certain transatlantic flights after the peak summer travel season ends as the strong U.S. dollar weighs down international demand.
The Chicago-based carrier said in a statement it plans to halt service to Stockholm and Oslo from its Newark, New Jersey, hub between Sept. 5 and May 4, 2016.
By Jonathan Stempel and Jeffrey Dastin
(Reuters) – Dov Charney, the ousted chief executive of
American Apparel Inc, has filed a $30 million defamation
lawsuit against a New York hedge fund that controls a large
stake in the clothing company he founded, and which refused to
support his return.
The lawsuit filed Thursday in Los Angeles Superior Court is
one of several arising from Charney’s suspension last June and
dismissal six months later.
May 7 (Reuters) – Orbitz Worldwide Inc on Thursday
reported a quarterly loss, missing analysts’ expectations of a
profit as a rise in fraudulent transactions added to costs.
The online travel services company, which larger rival
Expedia Inc plans to acquire pending regulatory
approval, lost $20.9 million in the first quarter, or 19 cents
per diluted share, versus a year-earlier loss of $5.9 million,
or 5 cents per diluted share.
May 7 (Reuters) – The Priceline Group Inc on
Thursday reported first-quarter profit that was up just slightly
from a year ago, but expects growth to slow in the second
quarter as weak foreign currencies relative to the U.S. dollar
crimp its sales.
Priceline Group, the world’s largest online travel services
company and owner of its namesake website, as well as
Booking.com and others, said first-quarter net income grew less
than one percent from a year earlier to $333 million, or $6.36
per diluted share. Excluding certain items, the company earned
$8.12 per diluted share.