Karen's Feed
Sep 5, 2013

Travel to suffer as defense industry cuts budgets

WASHINGTON (Reuters) – Having enjoyed a relatively strong summer travel season, U.S. hotels and airlines face a potential hit this autumn as the nation’s defense industry and government departments rein in travel spending.

Officials at the Pentagon and top U.S. defense companies told the Reuters Aerospace and Defense Summit this week that they are cutting travel by double-digit percentages to deal with the latest round of automatic spending cuts caused by sequestration. The reductions could create a replay of cuts in the spring that reduced airline revenue when sequestration first hit U.S. government spending.

Sep 4, 2013

Delta chooses Airbus over Boeing for 40-plane order

WASHINGTON (Reuters) – Delta Air Lines Inc (DAL.N: Quote, Profile, Research, Stock Buzz) placed an order for Airbus jets on Wednesday worth almost $6 billion at list prices, softening its reliance on Boeing for the first time in two decades as it looks for plane bargains.

The order, crowning a months-long competition between the transatlantic plane making rivals, includes 30 A321 narrowbody planes as well as 10 A330-300 widebody aircraft that will be delivered between 2015 and 2017.

Sep 3, 2013

JetBlue not interested in merger, acquisition: CEO

Washington (Reuters) – JetBlue Airways Corp (JBLU.O: Quote, Profile, Research, Stock Buzz), mentioned as a possible takeover candidate if the merger of US Airways Group Inc (LCC.N: Quote, Profile, Research, Stock Buzz) and American Airlines (AAMRQ.PK: Quote, Profile, Research, Stock Buzz) fails to be completed, is not interested in a merger or acquisition, its chief executive said on Tuesday.

Speaking at the Reuters Aerospace and Defense Summit, CEO Dave Barger said JetBlue had an interest in assets such as airport gates that become available as a result of mergers. “But mergers and acquisitions, just not of interest to JetBlue. Independence into the future is our plan,” Barger said.

Aug 21, 2013

Officials in three states fight suit against American Airlines-US Airways merger

MIAMI/ATLANTA (Reuters) – Officials in three states are pushing back against the U.S. government’s attempt to block the proposed merger of American Airlines (AAMRQ.PK: Quote, Profile, Research, Stock Buzz) and US Airways (LCC.N: Quote, Profile, Research, Stock Buzz) to create the world’s biggest airline, saying the combined company would benefit their local economies.

Last week, the U.S. Justice Department filed a lawsuit challenging the merger, saying it would reduce competition among air carriers and ultimately lead to higher fares for passengers.

Aug 21, 2013

Officials in 3 states fight suit against American-US Air merger

MIAMI/ATLANTA, Aug 21 (Reuters) – Officials in three states
are pushing back against the U.S. government’s attempt to block
the proposed merger of American Airlines and US
Airways to create the world’s biggest airline, saying
the combined company would benefit their local economies.

Last week, the U.S. Justice Department filed a lawsuit
challenging the merger, saying it would reduce competition among
air carriers and ultimately lead to higher fares for passengers.

Aug 16, 2013

Analysis: Merged American Airlines-US Airways would offer more, could charge more

By Karen Jacobs

(Reuters) – For travelers, the question of whether to let American Airlines and US Airways merge into the world’s largest carrier may boil down to this: pay more and get more, or pay less and get less.

A new mega-airline, with the American brand name, would have more flights on more routes and could charge higher ticket prices on at least some. This would appeal to business travelers who generally favor convenience and comfort over price.

Aug 13, 2013

U.S. sues to block AMR-US Airways merger; stocks fall

WASHINGTON (Reuters) – The U.S. government on Tuesday sued to block American Airlines and US Airways’ proposed merger to create the world’s biggest airline, saying consumers would end up paying higher fares and fees.

The surprising move, which could also hinder American parent AMR Corp’s efforts to emerge from bankruptcy, triggered a 5.4 percent decline in U.S. airline shares.

Aug 8, 2013

Priceline, Orbitz profits top estimates on travel demand

By Karen Jacobs

(Reuters) – Online travel agencies Priceline.com (PCLN.O: Quote, Profile, Research, Stock Buzz) and Orbitz Worldwide Inc (OWW.N: Quote, Profile, Research, Stock Buzz) posted higher-than-expected quarterly profits on Thursday, pointing to solid demand for travel.

Rising reservations for rental cars and hotels bolstered Priceline, which has the highest market capitalization among online travel agencies, while Orbitz benefited from an increase in bookings of higher-margin hotel and vacation packages.

Aug 8, 2013

Orbitz profit tops forecasts, hotel booking revenues up

By Karen Jacobs

(Reuters) – Online travel agency Orbitz Worldwide Inc posted quarterly earnings that beat forecasts on Thursday and raised its 2013 revenue view, and its shares jumped 35 percent, surpassing their high for the year.

In the second quarter, hotel and vacations accounted for 48 percent of total Orbitz revenue in the year ended in June, up from 44 percent in the year earlier, the company said.

Jul 25, 2013

United, Southwest results mixed, but revenue improving

July 25 (Reuters) – Lower costs helped United Continental
report higher-than-expected second-quarter profit on
Thursday, but Southwest Airlines said its earnings fell
on rising expenses and lower demand for travel.

Both carriers, echoing Delta Air Lines and US
Airways Group on Wednesday, said revenue trends were
improving, suggesting airlines could post profits in the summer,
seasonally a strong period.