Karen's Feed
May 1, 2012

Delta buys refinery, becoming first airline to make own fuel

By Karen Jacobs

(Reuters) – Delta Air Lines Inc (DAL.N: Quote, Profile, Research, Stock Buzz) will buy a Pennsylvania oil refinery from ConocoPhillips (COP.N: Quote, Profile, Research, Stock Buzz) for $150 million, an audacious bid to save money on fuel costs by investing in a sector shunned by many of the biggest oil firms.

Atlanta-based Delta said the first ever purchase of a refinery by an airline would allow it to cut $300 million annually from jet fuel costs, which reached $12 billion last year. It said production at the refinery along with other agreements to exchange refined products for jet fuel would provide 80 percent of its fuel needs in the United States.

Apr 30, 2012

Delta buys U.S. refinery for $150 million

By Karen Jacobs

(Reuters) – Delta Air Lines Inc (DAL.N: Quote, Profile, Research, Stock Buzz) will buy a Pennsylvania oil refinery from ConocoPhillips (COP.N: Quote, Profile, Research, Stock Buzz) for $150 million, the most audacious move yet by an airline trying to save money on fuel costs.

Delta said the first ever purchase of a refinery by an airline would allow it to cut jet fuel costs — which reached $12 billion last year — by $300 million. It said production at the refinery along with other agreements to exchange refined products for jet fuel would provide 80 percent of the carrier’s fuel needs in the United States.

Apr 30, 2012

Delta buys US refinery for $150 mln

April 30 (Reuters) – Delta Air Lines Inc will buy a
Pennsylvania oil refinery from ConocoPhillips for $150
million, the most audacious move yet by an airline trying to
save money on fuel costs.

Delta said the first ever purchase of a refinery by an
airline would allow it to cut jet fuel costs — which reached
$12 billion last year — by $300 million. It said production at
the refinery along with other agreements to exchange refined
products for jet fuel would provide 80 percent of the carrier’s
fuel needs in the United States.

Apr 26, 2012

U.S. defense firms boost profits by cutting costs

WASHINGTON (Reuters) – Weapons makers reported higher quarterly earnings this week, with cost cutting helping them maintain solid profit margins, even as defense budget cuts began to drive down revenues in services and other areas.

Industry executives said they would continue to squeeze out waste as the sector braces for another $500 billion in defense cuts that will kick in next January if U.S. lawmakers cannot find other deficit-cutting measures to avert “sequestration.”

Apr 25, 2012

Delta, US Air post losses but say demand solid

By Karen Jacobs

(Reuters) – Two major U.S. airlines, US Airways and Delta, reported operating losses for the first quarter as fuel costs increased, but both cited solid demand ahead of the busy summer travel season and their shares rose.

US Airways Group (LCC.N: Quote, Profile, Research, Stock Buzz), which delivered a smaller loss than Wall Street estimates, cited “overall strength in passenger demand.”

Apr 20, 2012

AMR unions, in deal with US Airways, want merger talks

April 20 (Reuters) – The three main unions at bankrupt
American Airlines said they have reached a tentative deal with
US Airways Group intended to put pressure on a reluctant
American to start merger talks with its rival.

The unions said they support a tie-up to preserve jobs that
otherwise would be lost if American’s parent AMR Corp
sticks to its plan to restructure as a stand-alone airline.
American, the third-largest U.S. airline, so far has shunned
merger interest from US Airways.

Apr 19, 2012

Southwest posts loss ex-items but still beats

By Karen Jacobs

(Reuters) – Southwest Airlines Co (LUV.N: Quote, Profile, Research, Stock Buzz) reported a narrower-than-expected quarterly loss pinched by high fuel costs but said demand was steady, sending its shares up more than 3 percent on Thursday.

The carrier, which acquired discount rival AirTran Holdings last year, said traffic and booking trends were solid for April even as oil-related price increases continued pressuring results.

Apr 19, 2012

Southwest Air posts loss but still beats; shares rise

April 19 (Reuters) – Southwest Airlines Co reported
a narrower-than-expected quarterly loss pinched by high fuel
costs but said demand was steady, sending its shares up nearly 4
percent on Thursday.

The carrier, which acquired discount rival AirTran Holdings
last year, said traffic and booking trends were solid for April
even as oil-related price increases continued pressuring
results.

Apr 16, 2012

U.S. airlines seen posting Q1 loss, 2012 profit

By Karen Jacobs

(Reuters) – Rising fuel prices pushed major U.S. airlines into the red for the first quarter and could pressure results during the peak travel season, but most carriers are likely to be profitable this year, analysts said.

While grappling with high fuel costs, carriers have merged, trimmed money-losing routes, raised ticket prices, and added charges for luggage and food to revive profits after the 2008-09 downturn. A rebound in corporate travel has bolstered the recovery.

Mar 21, 2012

Southwest Airlines looks for new ways to stand out

March 21 (Reuters) – Southwest Airlines Co is
banking on new planes to help it fight surging fuel costs and
bolster revenue as it looks to compete better against rivals
that have cut their costs.

The traditional discount airline on Wednesday held a “launch
party” at its Dallas headquarters, complete with confetti and
balloons, to mark the arrival of the first of 33 737-800 planes
it will take this year. Southwest primarily flies the Boeing
737; the newest model Southwest took can carry 175
passengers, 38 more than the version the carrier currently
flies.