Karen's Feed
Jul 24, 2013

Delta, US Airways post profits, cite improving demand

July 24 (Reuters) – Delta Air Lines and US Airways
Group reported higher-than-expected quarterly profits as
fuel costs decreased, and both airlines said demand was
improving after weakness earlier this year.

Both airlines said unit revenue, a measure of how full
planes are and pricing power, would rise in July. Shares of
Delta and US Airways were higher in afternoon trading.

Jul 18, 2013

Airlines keep 787 flying as probe seeks cause of fire

July 18 (Reuters) – Airlines are keeping Boeing’s 787
Dreamliner flying, and are sticking with their orders for the
new jet as safety investigators look for what sparked a fire in
one of the planes while it was parked at London’s Heathrow
Airport.

The fire caused extensive heat damage to the rear fuselage,
sent smoke throughout the cabin and scorched the outer hull,
according to Britain’s Air Accidents Investigation Branch, which
is leading the probe.

Jul 1, 2013

Exclusive: State attorneys general probing American, U.S. Airways merger

WASHINGTON (Reuters) – A group of 19 attorneys general, led by Texas, has joined a U.S. Justice Department probe of a planned merger of American Airlines Inc (AAMRQ.PK: Quote, Profile, Research, Stock Buzz) and US Airways Group Inc (LCC.N: Quote, Profile, Research, Stock Buzz), three sources close to the discussions told Reuters.

Some of the states involved worry that they will lose a hub because of the planned transaction, which would create the world’s largest airline, while others are concerned about service cutbacks to smaller cities because of the transaction, two sources said.

Jul 1, 2013

State attorneys general probing American, US Airways merger

WASHINGTON, July 1 (Reuters) – A group of 19 attorneys
general, led by Texas, has joined a U.S. Justice Department
probe of a planned merger of American Airlines Inc
and US Airways Group Inc, three sources close to the
discussions told Reuters.

Some of the states involved worry that they will lose a hub
because of the planned transaction, which would create the
world’s largest airline, while others are concerned about
service cutbacks to smaller cities because of the transaction,
two sources said.

Jun 27, 2013

Exclusive: Justice Department probing American, US Airways merger

WASHINGTON (Reuters) – The U.S. Justice Department is taking depositions as part of a probe into a planned merger of American Airlines Inc (AAMRQ.PK: Quote, Profile, Research, Stock Buzz) and US Airways Group Inc (LCC.N: Quote, Profile, Research, Stock Buzz) that would create the world’s largest airline, three sources close to the discussions told Reuters.

The sticking point in talks between the Justice Department and the companies is whether the airlines will agree to sell slots, take off and landing rights, to reduce their dominance at Reagan National Airport outside Washington, D.C., according to one source.

Jun 27, 2013

Justice Department probing American, US Airways merger

WASHINGTON, June 27 (Reuters) – The U.S. Justice Department
is taking depositions as part of a probe into a planned merger
of American Airlines Inc and US Airways Group Inc
that would create the world’s largest airline, three
sources close to the discussions told Reuters.

The sticking point in talks between the Justice Department
and the companies is whether the airlines will agree to sell
slots, take off and landing rights, to reduce their dominance at
Reagan National Airport outside Washington, D.C., according to
one source.

May 25, 2013

Lobbying in American-US Airways deal focuses on small cities

By Karen Jacobs

(Reuters) – US Airways Group (LCC.N: Quote, Profile, Research, Stock Buzz) and American Airlines (AAMRQ.PK: Quote, Profile, Research, Stock Buzz), seeking approval for a merger that would create the world’s largest airline, are warning lawmakers that a requirement to divest certain airport slots would lead to less service for small and medium-sized cities, sources close to the effort told Reuters.

The airlines may be required to shed slots Washington’s Reagan National Airport to prevent market domination. There is concern that those slots could go to rivals, such as JetBlue Airways (JBLU.O: Quote, Profile, Research, Stock Buzz), which would likely use them for flights to major cities.

May 23, 2013

Delta will wait for new planes to mature: CEO

By Karen Jacobs

(Reuters) – Delta Air Lines (DAL.N: Quote, Profile, Research, Stock Buzz) is letting a wave of orders for the newest planes on the market roll by, giving the jets time to prove themselves before buying, its chief executive told Reuters on Wednesday.

While other airlines have ordered more than 3,000 of the next generation narrow-body models, the Boeing 737 MAX and the Airbus A320neo, Delta says it is playing it safe.

May 22, 2013

Delta will wait for new planes to prove themselves: CEO

By Karen Jacobs

(Reuters) – U.S. carrier Delta Air Lines will watch the wave of orders for the latest Airbus and Boeing planes roll on by and wait for the jets to prove themselves before ordering any, its chief executive told Reuters on Wednesday.

The two airplane makers have orders for more than 3,000 of their narrow-bodied models, the Boeing 737 MAX and the Airbus A320neo, which boast fuel savings of about 15 percent. The new models are to be in service from the second half of the decade.

May 9, 2013

Priceline sees second-quarter profit below estimates, shares fall

By Karen Jacobs

(Reuters) – Online travel agency Priceline.com on Thursday gave a forecast for second-quarter profit that was below analysts’ estimates, as it cited the effects of global expansion costs, and its shares slid 3 percent in after-hours trading.

Priceline made the comments as it reported a first-quarter profit that topped estimates on improved hotel and car-rental reservations.