Jeffrey's Feed
May 4, 2015

Qatar Airways’ plans to boost flights may rile U.S. airlines

NEW YORK (Reuters) – Qatar Airways on Monday said it plans to expand its services to the United States, in a move that likely will trigger a backlash from U.S. airlines that accuse it of competing unfairly through state subsidies.

The Gulf carrier announced its first direct flights to Los Angeles, Boston and Atlanta from its Doha hub and its second daily flight to New York.

May 1, 2015

Lawmakers ask Obama administration to address alleged Gulf airline subsidies

April 30 (Reuters) – More than 250 members of Congress have
signed a letter urging the U.S. departments of state and
transportation to seek consultations with Qatar and the United
Arab Emirates over subsidies the states have allegedly given
Gulf airlines.

The letter, sent Thursday, adds to political pressure on the
Obama administration since three U.S. airlines first alleged in
January that Emirates airline, Etihad Airways and
Qatar Airways have received more than $40 billion in subsidies
in the last decade. U.S. airlines say this has allowed the Gulf
carriers to drive down ticket prices and push competitors out of
key markets.

May 1, 2015

Expedia shares soar on strong bookings despite strong U.S. dollar

By Jeffrey Dastin

(Reuters) – Expedia Inc on Thursday reported first-quarter profit that exceeded analysts’ expectations as it earned more money from travel bookings in and outside the United States, despite foreign currencies falling relative to the U.S. dollar.

The online travel services company, the world’s second-largest after Priceline Group Inc, posted a 19 percent rise in travel sales, or bookings, over the year-ago period. Accounting for sales shrinking abroad in U.S. dollar terms, its bookings grew 25 percent.

Apr 30, 2015

Virgin America seeks plane financing before interest rate hike: CFO

By Jeffrey Dastin

(Reuters) – Budget airline Virgin America Inc is moving to finance five aircraft before interest rates rise, Chief Financial Officer Peter Hunt said in an interview Thursday.

The Burlingame, California-based carrier is just one of many companies that may be looking to borrow before the Federal Reserve hikes rates for the first time since June 2006. The U.S. central bank downgraded its view of the U.S. economy and labor market’s strength, suggesting it may wait to raise rates at least until September.

Apr 30, 2015

Virgin America tops expectations for first-quarter profit

April 30 (Reuters) – Virgin America Inc on Thursday
topped analysts’ expectations for first-quarter profit, helped
by flying planes with fewer empty seats, and forecast its unit
revenue would stay flat or decline slightly this quarter.

While the strong U.S. dollar has hurt sales abroad for
bigger U.S. airlines, with large international operations,
domestic-focused Virgin America is poised to benefit from sturdy
U.S. domestic demand.

Apr 28, 2015

United Express flight with engine fire forced to land in Philadelphia

April 28 (Reuters) – A plane with an engine on fire was
forced to make an emergency landing on Tuesday at Philadelphia
International Airport, where it landed safely, according to the
airport and the U.S. Federal Aviation Administration.

The fire broke out in the No. 2 engine of United Airlines
Express Flight No. 4882, bound for Newark, New Jersey,
with 71 passengers and 4 crew on board, Philadelphia
International Airport said on its Twitter feed.

Apr 28, 2015

JetBlue 1st-quarter profit tops forecasts, shares rise

April 28 (Reuters) – JetBlue Airways Corp’s
first-quarter profit soared as strong U.S. domestic demand,
lower fuel prices and cost controls helped its bottom line, the
company reported Tuesday.

The low-cost carrier earned $137 million, or 40 cents per
share, versus $4 million, or 1 cent per share, a year earlier.
This compared to analysts’ average estimate of 39 cents per
share, according to Thomson Reuters I/B/E/S.

Apr 24, 2015

American Airlines 1st-quarter profit tops expectations

April 24 (Reuters) – American Airlines Group Inc on
Friday reported first-quarter profit above analysts’
expectations and declared a $0.10 dividend as cheap fuel
continued to help its bottom line.

American, the world’s largest passenger carrier, earned $932
million last quarter, nearly double its profit a year earlier.
Excluding special items, it earned $1.2 billion, or $1.73 per
diluted share, compared to analysts’ average estimate of $1.71
per diluted share, according to Thomson Reuters I/B/E/S.

Apr 23, 2015

Southwest Airlines earnings nearly triple in first quarter

By Jeffrey Dastin

(Reuters) – Southwest Airlines Co (LUV.N: Quote, Profile, Research, Stock Buzz) on Thursday said its first-quarter profit nearly tripled but forecast a decline in unit revenue for April.

The airline reported net income of $453 million, or 66 cents a share, compared with the analysts’ average estimate of 65 cents, according to Thomson Reuters I/B/E/S.

Apr 23, 2015

United Airlines first-quarter profit tops expectations

By Jeffrey Dastin

(Reuters) – United Continental Holdings Inc (UAL.N: Quote, Profile, Research, Stock Buzz) on Thursday reported first-quarter profit that topped analysts’ expectations and cut its capacity forecast for 2015 as a strong U.S. dollar has weakened demand abroad.

The Chicago-based airline earned $508 million last quarter. Excluding special items, it earned $582 million, or $1.52 per diluted share, compared to analysts’ average estimate of $1.44 per diluted share, according to Thomson Reuters I/B/E/S.