Karen's Feed
Oct 18, 2012

Southwest posts profit, plans to cut costs

By Karen Jacobs

(Reuters) – Rising costs and limited growth kept quarterly profit under pressure at Southwest Airlines Co (LUV.N: Quote, Profile, Research, Stock Buzz), the carrier said on Thursday, adding that it plans to watch employment closely next year in an aggressive bid to cut costs.

Southwest is not planning layoffs, but will control its hiring so that headcount does not increase, Chief Executive Gary Kelly said during the company’s earnings call. He declined to discuss planned employment levels, but said the airline hopes to cut corporate overhead by $100 million.

Oct 18, 2012

American Airlines posts loss, but business improves

By Karen Jacobs

(Reuters) – American Airlines parent AMR Corp reported a net loss for the third quarter, but excluding one-time accounting charges it posted a higher-than-expected profit as fuel costs fell and international ventures aided revenue.

The company, which filed for Chapter 11 bankruptcy protection last November and is evaluating a potential merger with rival US Airways Group (LCC.N: Quote, Profile, Research, Stock Buzz), took nearly $350 million in accounting charges that gave it a $238 million loss for the quarter.

Oct 17, 2012

American Airlines parent AMR profit tops estimates

By Karen Jacobs

(Reuters) – American Airlines parent AMR Corp (AAMRQ.PK: Quote, Profile, Research, Stock Buzz) reported higher-than-expected adjusted quarterly earnings on Wednesday as fuel costs fell and international ventures aided revenue.

The company, which filed for Chapter 11 bankruptcy protection last November and is evaluating a potential merger with rival US Airways Group (LCC.N: Quote, Profile, Research, Stock Buzz), cited progress in reducing costs.

Oct 12, 2012

U.S. airlines had profitable Q3, but growth concerns loom

By Karen Jacobs

(Reuters) – U.S. airlines are expected to report solid profits for the third quarter, thanks to steady demand and fuel prices that declined toward the end of the period, but signs of slowing growth could spell challenges for the rest of the year.

Unit revenue – a measure of how much airlines can charge for tickets and how full planes are – decreased at many carriers in September. In addition, the number of passengers boarding planes at most big U.S. airlines fell, as travel started its seasonal slowdown in the month.

Oct 12, 2012

U.S. airlines had profitable third-quarter, but growth concerns loom

By Karen Jacobs

(Reuters) – U.S. airlines are expected to report solid profits for the third quarter, thanks to steady demand and fuel prices that declined toward the end of the period, but signs of slowing growth could spell challenges for the rest of the year.

Unit revenue – a measure of how much airlines can charge for tickets and how full planes are – decreased at many carriers in September. In addition, the number of passengers boarding planes at most big U.S. airlines fell, as travel started its seasonal slowdown in the month.

Oct 3, 2012

American Airlines, pilots resume labor talks amid turmoil

By Karen Jacobs

(Reuters) – American Airlines and its pilots union resumed contract talks Wednesday, but other problems continued to beset the bankrupt airline.

A cockpit warning light caused an American flight to return to an airport shortly after takeoff Tuesday, a court said a union organizing drive at the airline could go forward and flight delays brought more customer complaints.

Oct 3, 2012

Marriott has higher-than-expected profit, aided by cost cuts

By Karen Jacobs

(Reuters) – Hotel operator Marriott International (MAR.N: Quote, Profile, Research, Stock Buzz) reported a higher-than-expected quarterly profit on Wednesday on stronger group and corporate business and lower costs, sending its shares higher in extended trading.

Still, the company’s profit outlook for the current quarter came in below average analyst estimates as Marriott cited weakness in international markets.

Sep 14, 2012

Analysis: Cutbacks by regional airlines hurt smaller U.S. cities

Atlanta (Reuters) – Banana seller Chiquita Brands (CQB.N: Quote, Profile, Research, Stock Buzz) this month will shutter its headquarters in Cincinnati, Ohio, in large part because of cutbacks in air service to the area.

Delta Air Lines (DAL.N: Quote, Profile, Research, Stock Buzz) has significantly shrank its presence at Cincinnati/Northern Kentucky International Airport to seek profits elsewhere. It now offers only roughly 120 daily flights — most with regional partners — at that hub, down from more than 600 flights six years ago.

Sep 7, 2012

Analysis: Military spending cuts squeeze suppliers – CEOs

WASHINGTON (Reuters) – Declines in U.S. and European defense spending are putting heavy pressure on thousands of small and mid-sized companies that together build about 70 percent of major weapons systems, top defense and industry officials warned this week.

They forecast a new wave of consolidation as smaller companies adjust to more austere times, but say some may exit the arms business completely, which could result in bottlenecks and strains in the supply chain for years.

Jul 25, 2012

Delta, US Airways top estimates on strong demand

July 25 (Reuters) – Delta Air Lines and US Airways
Group topped Wall Street’s second-quarter profit
estimates on Wednesday on strong passenger revenue, sending the
major U.S. carriers’ shares higher.

Delta reported a net loss after it took charges for fuel
hedge contracts and staff buyouts, but said it expected a profit
for the third quarter.