(Reuters) – Southwest Airlines and United Continental Holdings made more money in the third quarter as higher airfares bolstered revenue, capping a strong week of earnings for major U.S. airlines that bodes well for the current period.
United missed estimates on Thursday as it grappled with revenue management shortfalls and competitive pressure, while Southwest’s profit was as analysts expected.
CHICAGO, Oct 24 (Reuters) – United Continental Holdings Inc
, which owns United Airlines, missed quarterly profit
estimates on Thursday as the airline still struggled to
consolidate itself nearly three years after a merger that
created the world’s biggest airline.
Analysts said the carrier is lagging the industry on
important performance points. Despite a handful of airlines yet
to report, it appears that United’s margin gap to the industry
widened by 420 basis points from last year, J.P. Morgan analyst
Jamie Baker said in a note to clients.
CHICAGO (Reuters) – Flexjet, the corporate jet leasing company, plans to add up to 50 long-haul aircraft to its fleet in a potential $3.2 billion deal that could mark its first use of Gulfstream aircraft, as a change in Flexjet’s ownership may wean it from Bombardier jets.
Earlier this month, Bombardier Inc BBdb.TO agreed to sell its Flexjet unit, a move that will give Flexjet more flexibility in the types of aircraft it buys.
CHICAGO, Sept 17 (Reuters) – A company backed by Texas oil
man T. Boone Pickens that provides natural gas as transportation
fuel is partnering with Canada’s Ferus Natural Gas Fuels, GE
Ventures and GE Energy Financial Services to jointly deliver
liquefied natural gas in the United States.
The consortium, called Eagle LNG Partners, will develop
regional LNG projects to meet industry demand for long-haul
trucking, rail, mining, marine, and oil and gas services, a
spokeswoman for Ferus Natural Gas Fuels told Reuters.
WASHINGTON (Reuters) – United Airlines plans to return cash to shareholders after paying down debt next year, and the airline is on track to hit its target of 10 percent return on capital, the chief financial officer said on Thursday.
United Continental Holdings Inc (UAL.N: Quote, Profile, Research, Stock Buzz) plans to pay off $800 million in debt next year, which will strengthen the balance sheet enough to allow it to return cash to shareholders, CFO John Rainey said at the Reuters Aerospace and Defense Summit.
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.
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.
July 12 (Reuters) – United Parcel Service Inc, the
world’s No. 1 package delivery company, on Friday forecast
second-quarter profit below Wall Street expectations, signaling
that the global economic recovery still has a ways to go.
UPS, an economic bellwether along with rival FedEx Corp
because of the high volume of goods they move around the
world, blamed a weak U.S. industrial economy, customers’ trading
down to slower but cheaper shipping services, and overcapacity
in the global air freight market.
June 19 (Reuters) – FedEx Corp reported a
higher-than-expected quarterly profit on Wednesday, sending its
shares higher, but the world’s biggest air-freight company said
it was cutting more capacity between the United States and Asia.
The company, considered an economic bellwether because of
the massive volume of goods it moves around the world, is still
trying to adjust to increasing demand for cheaper ground
transport rather than pricier but faster air shipping.
May 15 (Reuters) – A trans-Atlantic divide between European
and U.S. retailers over how best to respond to fatal disasters
in Bangladesh textile factories split wide open on Wednesday,
with U.S. retailers claiming their European counterparts are
giving labor unions too much control over ensuring workplace
Some U.S. retailers, including Gap Inc, had said
they would not join the European pact without changes to the way
conflicts are resolved in the courts. The rhetoric sharpened
considerably when a U.S. trade group, the National Retail
Federation, after calls with member companies and other groups,
issued a stinging rebuke of the European-led safety accord.