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.
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.”
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.
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.
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.
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
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.
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
, March 20 (Reuters) – Airlines that rely
on European banks to finance aircraft purchases will have to
find alternative backing for their deals as the debt crisis
intensifies this year, U.S. airline executives said on Tuesday.
“While it may take a little time, there will be some
institution somewhere in the world that will step in because
aircraft as collateral are among the most attractive type of
collateral you can lend against,” said Gerry Laderman, senior
vice president and treasurer of United Continental Holdings Inc
, the parent of United Airlines.
SCOTTSDALE, Arizona, March 19 (Reuters) – Boeing Co’s
upcoming 737 MAX is not a bridge to an all-new small airplane,
and the U.S. planemaker intends to make the updated version of
its best-selling 737 narrowbody for as long as customers buy it,
a top Boeing executive said on Monday.
Speaking at a conference hosted by the International Society
of Transport Aircraft Trading (ISTAT), Mike Bair, senior vice
president of marketing for Boeing Commercial Airplanes, shrugged
off speculation that the upcoming MAX is simply a place-holder
for an all-new plane.