Karen's Feed
Jul 19, 2012

Southwest profit tops estimates on solid demand

By Karen Jacobs

(Reuters) – Southwest Airlines Co topped Wall Street estimates with a 42 percent rise in quarterly profit on Thursday, helped by higher fares, and said demand was solid despite the fragile economy.

U.S. airlines have merged, raised ticket prices and shown discipline in cutting back flights to match demand to return to stability over the past two years.

Jul 17, 2012

Travel recovery looks steady despite global weakness

By Karen Jacobs

(Reuters) – Strong demand from business and leisure travelers will help U.S. hotels and airlines produce solid revenue and profit in the second and third quarters.

But aside from that bright spot, Europe’s economic woes and possible slowing growth in China and India could make for a murkier travel outlook. Those factors, combined with investor nervousness over the result of the upcoming U.S. presidential election, are spurring worries that business and leisure consumers could curb their travel a bit farther down the road.

Jul 11, 2012

Avolon commits to up to 30 Boeing 737s

FARNBOROUGH, England (Reuters) – Irish lessor Avolon placed a $2.3 billion provisional order for up to 30 Boeing jetliners on Wednesday, picking a moment when many airlines are slowing orders and prices are under pressure to expand its own fleet on hopes of an economic recovery.

Boeing Co is leading Airbus in deals at a subdued Farnborough Airshow, the aerospace industry’s showcase event, where there are signs a faltering global economy is finally catching up with demand for new aircraft.

Jul 11, 2012

Bombardier sticks to 2012 CSeries flight goal

FARNBOROUGH, England (Reuters) – Canada’s Bombardier said on Wednesday it hopes for a sales boost from first flight of its CSeries single-aisle plane that it still hopes to make by year-end, despite concerns among industry analysts that the maiden flight could slip into 2013.

“For now, we’re still driving very hard for first flight at the end of this year,” Guy Hachey, president and chief operating officer for Bombardier Aerospace, said in an interview during the Farnborough Airshow.

Jul 11, 2012

Suppliers face battle to meet plane order backlog

FARNBOROUGH, England, July 11 (Reuters) – While planemakers
are vaunting record order backlogs to draw attention from the
dearth of new deals at the Farnborough Airshow, their ability to
meet the demand on time rests on their suppliers, and it is far
from certain they will be able to cope.

U.S.-based Boeing and European rival Airbus
have orders for over 8,000 aircraft, enough to keep them busy
for the next six years, even without any new deals, and analysts
predict the industry must increase production rates by a huge 45
percent in volume by 2015 to cope with the demand.

Jul 10, 2012

Rockwell Collins mulls changes to defense business

FARNBOROUGH, England (Reuters) – Rockwell Collins, stung by U.S. program cuts, said on Tuesday it expected most of its defense portfolio would remain intact as it considers trimming its government business.

While there could be changes that result in the exploration of strategic alternatives for some parts of the defense business, Chief Executive Clay Jones said he expected most of the defense portfolio to be deemed core to the company.

Jul 10, 2012

Farnborough Airshow: Airbus fights back under dark skies

FARNBOROUGH (Reuters) – Airbus has won a potential $4.2 billion order for its A350 passenger jet, its first major deal at a subdued Farnborough Airshow, where a faltering global economy is casting clouds as dark as the skies over southern Britain.

The deal with Hong Kong airline Cathay Pacific is a major boost for the European planemaker, which has been struggling to sell its A350-1000 mini-jumbo and make a dent in Boeing’s (BA.N: Quote, Profile, Research) hold on a lucrative corner of the jet market, just below 400 seats.

Jul 10, 2012

Airbus fights back under dark skies

FARNBOROUGH, England, July 10 (Reuters) – Airbus
has won a potential $4.2 billion order for its A350 passenger
jet, its first major deal at a subdued Farnborough Airshow,
where a faltering global economy is casting clouds as dark as
the skies over southern Britain.

The deal with Hong Kong airline Cathay Pacific is
a major boost for the European planemaker, which has been
struggling to sell its A350-1000 mini-jumbo and make a dent in
Boeing’s hold on a lucrative corner of the jet market,
just below 400 seats.

Jul 9, 2012

GE aviation chief ready to fight for 777X engine

FARNBOROUGH, England (Reuters) – General Electric’s (GE.N: Quote, Profile, Research, Stock Buzz) aviation chief said he was confident the group’s technology will prove a big advantage as GE vies with other enginemakers for the right to power Boeing’s (BA.N: Quote, Profile, Research, Stock Buzz) next-generation 777.

“We feel really confident that the calling card for GE in this next generation 777 is going to be the technologies we’re developing for the GE9X,” David Joyce told a media briefing at the Farnborough Airshow on Monday.

Jul 8, 2012

Airshow: Cathay seen front-runner to ease A350 drought

FARNBOROUGH, England (Reuters) – Airbus (EAD.PA: Quote, Profile, Research) will be looking for a long-awaited new order for its A350-1000 mini-jumbo at this week’s Farnborough Airshow, with Hong Kong’s Cathay Pacific (0293.HK: Quote, Profile, Research) tipped as most likely to end a three-year order drought, industry sources said.

Cathay Pacific has 36 of the A350-900 base model on order, and may add on further orders for the stretched A350-1000 or convert some of its existing orders, or both, the sources said.