NEWSSouthwest CFO says first-quarter loss likely, cites fuel costs
Southwest Airlines anticipates it will incur a rare net loss in the 2012 first quarter due to higher-than-expected fuel costs.
The revelation came Tuesday in New York from SWA senior VP-finance and CFO Laura Wright at a JP Morgan investors' conference. "Fuel unfortunately is the story of the quarter," Wright said, according to a transcript of her comments. "We were planning for stable, albeit high, fuel prices [in the March quarter]. To date that has not held true" as fuel prices have escalated.
LinkChina ambassador calls it ‘reasonable’ to avoid Airbus aircraft orders to protest EU ETSThe Chinese government is serious about taking retaliatory measures against EU ETS by avoiding Airbus aircraft orders, the country’s European Union ambassador has warned.
Ambassador Wu Hailong said it is “reasonable for Chinese carriers to go for Boeing aircraft instead so as to avoid Airbus aircraft orders in response to EU ETS,” according to widespread news reports.
LinkUS uptick lends hope for cargo The air cargo market could improve in the course of this year, according to an IATA economist.
"There is light at the end of the tunnel because of the increasing confidence of American consumers," IATA chief economist Brian Pearce told ATW at the IATA World Cargo Symposium in Kuala Lumpur.
LinkNegotiations are under way, says official at Continental pilots union
Capt. Jay Pierce, chairman of the pilot leadership council at the union representing Continental pilots, says negotiations are proceeding smoothly on a single agreement for United and Continental pilots. "Negotiations are going very well," Pierce said. "We've made more progress so far in 2012 than we did in the last six months of 2011."
LinkUnited addresses issues after switch to Continental system
United Airlines is fixing problems related to its recent switch to Continental's reservations system. The carrier has resolved issues related to online payments and erroneous e-mails, but is still transitioning frequent-flier accounts.
LinkHawaiian reaches tentative contract with flight attendants
Hawaiian Airlines and the union representing its flight attendants have reached a tentative agreement on a contract. The contract would cover the carrier's 1,280 flight attendants through 2016. "This agreement, which spans nearly five years, recognizes the contributions of our flight attendants and provides cost stability as we add flights between our islands and outside of our state," said Hawaiian President and CEO Mark Dunkerley said in a statement.
LinkBlog: An American Airlines merger makes sense
American Airlines would be better off with a merger, writes this blogger. "The idea is that with consolidation, Delta and United can now service non-hubs much better than American simply because of all the possible connecting choices going every direction," the Cranky Flier writes. A merger with US Airways would give American extra cities besides its five hubs for better connections.
LinkHow the Airbus A380 Squeezes into the U.S. Airline ModelThe Airbus A380 is a very big airplane, and the U.S. aviation system is very slowly growing into it -- even though not a single U.S. carrier has ordered one. That growth was evident last week, when Atlanta Hartsfield-Jackson International Airport said it will start work on gate and runway improvements to accommodate Korean Air service to Seoul on an A380, seating 407 passengers. The airport says flights could begin as soon as January.
LinkUnited Details Schedule For Six 787s in 2012
United Airlines says it will take delivery of six Boeing 787-8s in the last four months of the year, reverting back to a total that recently had slipped to five deliveries. The first 787-8 is scheduled for delivery in September, with another following in October and three more in November, says United in a regulatory filing detailing financing plans for 14 Boeing 737-900ERs and four of the six 787s.
LinkArgentina mandates oil companies put a cap on jet fuel pricesArgentina has ordered oil companies to place a cap on the price of jet fuel for the country's airlines. The rule affects oil companies such as YPF, Royal Dutch Shell and Esso. "Nearly all the JP1 [jet fuel] is produced here, with the exception of a very small amount that is imported, which I think they do to justify charging us the international price," said Argentine President Cristina Fernandez de Kirchner.
LinkColumn: Clear proposes expansion plan to TSAClear, the company that provided faster screening for travelers who agreed to background checks, has emerged from bankruptcy and is aggressively expanding, writes Joe Sharkey. Its new owners, along with the American Association of Airport Executives and the U.S. Travel Association, have sent a proposal to the Transportation Security Administration under which Clear's existing members would be eligible for screening under programs such as the federal PreCheck program. Caryn Seidman Becker, the company's chief executive, says airports have an incentive to work with Clear because it shares its membership fees with the airports.
LinkFrontier looks to raise revenue with new services, more online bookings
Frontier Airlines believes it can raise up to $20 million simply by boosting the percentage of customers who book their trips on the carrier's website. The Denver-based airline is also looking at new seating options as ways to bring in more revenue. Frontier has added "stretch seating" with its 5 extra inches of legroom to the front of its planes.
LinkFuel costs dampen airline profits in Q3 of 2011Soaring fuel costs continued to dampen airline profits in the third quarter of 2011, according to the U.S. Bureau of Transportation Statistics. Profit margins slid to 6.8% at the largest U.S. carriers during the quarter as fuel costs soared to 31% of operating costs.
LinkTravel to Europe holds steady despite higher airfaresDespite rising airfares, travel bookings to Europe have remained steady, according to travel agents. "We have not had any slowdown. We're already struggling getting the right space for people at certain hotels," said Rudi Steele, president of Rudi Steele Travel in Dallas
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