Delta Air Lines Inc. Chief Executive Ed Bastian on Thursday sounded an optimistic note for 2017 earnings and said he expects to meet soon with the company’s newest and biggest investor, billionaire Warren Buffett. Two months ago Delta announced last year’s record-breaking performance, but noted that higher fuel prices and wage costs could weigh on margins during the March quarter before they expand again in the second half of the year.
Category: Airlines
Analysts’ Actions — Dr. Pepper, Expedia, GoPro, Nutanix and More
Here are Friday’s top research calls, including upgrades for Dr. Pepper Snapple and Expedia, a downgrade for Nutanix and new coverage of GoPro. Broadcom was upgraded to buy at TheStreet Ratings.
United-Avianca Deal Becomes Target of Lawsuit by Kingsland
Avianca Holdings SA’s chairman and controlling shareholder, German Efromovich, is forcing the Colombian airline into a potential deal with United Continental Holdings Inc. that will hurt minority investors, according to a lawsuit filed Tuesday in New York State Supreme Court. Kingsland Holdings, the second-biggest shareholder in Avianca, is suing the Bogota-based air carrier, Efromovich and Chicago-based United, saying they secretly negotiated an $800 million loan and strategic partnership.
British Airways Parent IAG Shares Rise After Solid Full Year Profit, Buyback Plan
IAG shares traded firmly higher Friday after the British Airways parent posted stronger-than-expected full year profits and launched a a 500 million share buyback program. IAG plc shares traded firmly higher Friday after the British Airways parent posted stronger-than-expected full year profits and launched a a 500 million share buyback program.
Spirit Air CEO Sees No-Frills Seats Backfiring on Largest Rivals
A surge of no-frills seats at the biggest U.S. carriers potentially will backfire as passengers discover all the perks they’re giving up, said the chief executive officer of discounter Spirit Airlines Inc. Prohibitions on changing a reservation or bringing a roll-on bag may disappoint some customers of the new fares at American Airlines Group Inc. and United Continental Holdings Inc., Spirit CEO Bob Fornaro said Wednesday. While Spirit charges for carry-ons and even soft drinks, at least customers know what they’re getting, he said.
SpiceJet Says India’s $85 Billion Plane Orders Still Not Enough
India’s airlines have ordered about 850 planes valued at about $85 billion in recent years. SpiceJet Ltd., a budget carrier, says that’s still not enough to meet demand.
New Crop of Activist Investors is on the Hunt
A Lazard review of activist campaigns for 2016 show that first time insurgent campaigns represented about a quarter of all activism for the year – a new record. Last month startup fund Gilead Capital settled a brewing director-election proxy fight with Landauer to add one dissident director to the therapeutics and analytical services company’s board.
Meet the New Wave of Insurgents
A Lazard review of activist campaigns for 2016 show that first-time insurgent campaigns represented about a quarter of all activism for the year – a record. Last month, startup fund Gilead Capital settled a brewing director-election proxy fight with Landauer to add one dissident director to the therapeutics and analytical services company’s board.
Ryanair Seeks European Domination — With the Help of Its Rivals
Ryanair Holdings Plc is closing in on a series of agreements that could see the discount giant take control of an even bigger swathe of European short-haul travel. The Dublin-based company is seeking deals with carriers including Norwegian Air Shuttle ASA, Aer Lingus, Alitalia SpA and Deutsche Lufthansa AG under which its flights would help feed passengers onto their long-haul services.
Boeing Wins $13.8B Singapore Airlines Order
Singapore Airlines announced a $13.8 billion order to buy 39 Boeing wide-body aircraft as it pursues expansion opportunities, a setback for the U.S. planemaker’s rival Airbus Group in the fight for long-term orders. Airbus Group has flagged its intention to build a bigger version of its A350, although these plans have been placed on hold amid uncertainty over demand for wide-body jets.
Singapore Air Extends Jet Fuel Hedging as OPEC Cuts Sway Oil
Singapore Airlines Ltd., Southeast Asia’s biggest carrier, extended some of its fuel-hedging contracts to as long as five years, betting on an upswing in crude oil prices amid OPEC production cuts and renewed tensions between the U.S. and Iran. The marquee airline, which reported a 36 percent drop in profit for the three months through December, said Tuesday that it has entered into longer-dated Brent hedges with maturity extending to 2022.
Brazil Airline Azul Files for U.S. Initial Public Offering
Azul SA, the Brazilian airline led by JetBlue Airways Corp. founder David Neeleman, filed for an initial public offering in the U.S., following at least two previous delays because of slumping Brazilian stocks. The Sao Paulo-based airline filed Monday for a $100 million IPO, a placeholder amount used to calculate fees that may change.
Berkshire’s Airline Bet Said to Stem From Faith in Parker’s Call
Warren Buffett once quipped that a “farsighted capitalist” should have shot down Orville Wright at Kitty Hawk to spare investors all the losses they would suffer on airlines in the decades after the birth of flight. That’s why it was a surprise when, in November, the billionaire’s Berkshire Hathaway Inc. disclosed investments in the four largest U.S. carriers: American Airlines Group Inc., Delta Air Lines Inc., Southwest Airlines Co.
Your In-Flight Movie Screen Is Going Extinct
Book a domestic flight on any of the Big Three U.S. airlines, and you won’t be sure whether the seat in front of you has a screen. Some do, while most don’t.
Airline CEOs Seek Tillerson Meeting on Feud With Gulf Carriers
The three biggest U.S. airlines asked for a meeting with new Secretary of State Rex Tillerson to discuss their long-held contention that billions of government subsidies enable the Persian Gulf carriers to compete unfairly for passengers.
As Delta Gets Called Out by Politicians, Analyst Senses an Airline Industry Correction
A top airline industry analyst senses a share price correction after various carriers suffer problems, including a decline for Delta after it gets drawn into politics. Monday was a bad day for the big three airlines, bad enough that by midday JPMorgan analyst Jamie Baker had raised the question: “Could this be the start of a correction?” During the day Delta , which suffered an IT systems outage Sunday night, got drawn into politics.
Are Americas Airlines Under Cyber Attack?
For the second time in a week, a major U.S. airline grounded its fleet after its computer systems stopped working.The latest incident involved Delta Air Lines , which canceled 170 flights on Sunday and another 110 on Monday because its “essential IT systems went down” over the weekend. The issue at Delta Air Lines alone doesn’t seem suspicious — computers fail all the time.
Delta’s U.S. Grounding Is Lifted After Latest Computer Glitch
Delta Air Lines Inc. started resuming U.S. domestic flights after a 2 1/2-hour computer breakdown grounded about 150 flights and left passengers stranded across the country. “I want to apologize to all of our customers who have been impacted by this frustrating situation,” Delta Chief Executive Officer Ed Bastian said in the statement.
5 Airlines Are Competing to Grow in Mexico City
Late last year, Delta Air Lines and Aeromexico agreed to divest up to 24 slot pairs at Mexico City’s highly congested airport as a condition of forming a joint venture in the U.S.-Mexico market. The U.S. Department of Transportation will allocate 14 of these Mexico City slot pairs to low-fare airlines this year.
5 Airlines Are Competing to Grow in Mexico City
Late last year, Delta Air Lines and Aeromexico agreed to divest up to 24 slot pairs at Mexico City’s highly congested airport as a condition of forming a joint venture in the U.S.-Mexico market. The U.S. Department of Transportation will allocate 14 of these Mexico City slot pairs to low-fare airlines this year.
Southwest Airlines Soars Past High Expectations — Hawaiian Airlines, Not So Much
Between late June 2016 and mid-January, shares of Hawaiian Holdings climbed 50%. Southwest Airlines stock was close behind, with a gain of more than 35% over that period.
United Airlines Said to Plan Los Angeles Push in Comeback Effort
United Continental Holdings Inc. is targeting a major expansion at Los Angeles International Airport in an effort to reverse a slide that’s left the airline languishing behind its biggest rivals at the busiest West Coast hub, said people familiar with the plans. President Scott Kirby told United pilots this month that the company needs more space and is studying plans to claim most or all of a future terminal, said the people, who asked not to be identified because the information is private.
American Express: Signs of Life Amidst the Costco Rubble
In January 2015, the stock traded as high as $94. Two years later and the stock price cannot sniff $80, much less its former highs.True, it is well off its lows from last year, but it might be quite a while before it regains its former heights.
United Airlines Software Glitch, London Fog Ground Flights in U.S., Europe
Travellers faced a series of disruptions after a software glitch halted United Airlines traffic and London’s Heathrow Airport cancelled more than 100 flights amid intense fog. Travellers in the U.S. and Europe faced a series of disruptions late Sunday and into the start of the week after a software glitch halted United Airlines traffic and London’s Heathrow Airport cancelled more than 100 flights amid intense fog in the British capital.
United Airlines Software Glitch, London Fog Ground Flights in U.S., Europe
Travellers faced a series of disruptions after a software glitch halted United Airlines traffic and London’s Heathrow Airport cancelled more than 100 flights amid intense fog. Travellers in the U.S. and Europe faced a series of disruptions late Sunday and into the start of the week after a software glitch halted United Airlines traffic and London’s Heathrow Airport cancelled more than 100 flights amid intense fog in the British capital.
United Continental: Solid Earnings but Dreadful Guidance
The company’s pre-tax margin slipped modestly relative to Q4 2015, but this was better than what the company had originally expected, thanks to an improvement in last-minute bookings that began in November. However, there was no reason for investors to cheer, as United projected that its adjusted pre-tax margin would sink to a meager 0.5% to 2.5% in the coming quarter.
Etihad CEO Says Gulf Carrier Has No Plans to Invest in Lufthansa
Etihad Airways PJSC has no plans to take a stake in Deutsche Lufthansa AG, though the carriers are exploring the possibility of expanding their recent cooperation agreement, according to James Hogan, the Persian Gulf company’s chief executive officer. Asked Wednesday if Abu-Dhabi-based Etihad would be buying Lufthansa, for which it has been touted as a possible investor, Hogan replied “no.”
United Airlines Has Tough Act to Follow After Delta’s Unit Revenue Guidance
Earnings from United Airlines, scheduled to be released after the market closes Tuesday, will have to match up with Delta’s results. United Airlines will report earnings Tuesday afternoon amid high expectations for the airline industry but not-quite-so-high expectations for itself.
Cathay Pacific to Revamp Fuel Hedging, Workforce; Shares Climb
Cathay Pacific Airways Ltd., Asia’s biggest international airline, plans to shorten its fuel-hedging program and revamp its workforce as part of a new business strategy to halt a slide in earnings. The shares jumped the most in nine months.
United Airlines Can’t Get Rid of the Boeing 747 Fast Enough
United Airlines has been flying one version or another of Boeing’s iconic jumbo jet since 1970. However, United’s management recently decided to accelerate the retirement of the carrier’s remaining 747s for the second time in less than a year.
This Airline Stock Surged 61% in 2016: Is There Room to Run in 2017?
Shares of Hawaiian Airlines’ parent company rose 61% during 2016, according to data from S&P Global Market Intelligence . Hawaiian’s massive gains were well deserved, as it posted the best unit revenue results in the U.S. airline industry for most of the year.
Delta Sees Unit Revenue Gains but Higher Fuel and Labor Costs Will Cut Margins
Delta says first-quarter unit revenue will be flat to up 2% but margins will fall due to higher costs for fuel and labor. Delta Air Lines said fourth-quarter net income fell due to a new pilot contract but current quarter unit revenue will be flat to up 2%, reversing a long negative trend.
Why Jim Cramer Remains Cautious on Delta
While the airline sector may look attractive, not all the stocks are the same. That’s one reason Cramer remains cautious on Delta.
EasyJet Slips Off Pace Set by Ryanair on Terror, Brexit Squeeze
EasyJet Plc’s passenger count increased at less than half the pace of its low-cost rivals last year as Europe’s second-biggest discount carrier struggled with its exposure to the British and French travel markets. Customer numbers increased 6.6 percent to 74.4 million in 2016, Luton, England-based EasyJet said Friday.
Rpt: Frontier Airlines Hires Banks to Plan IPO
Low-cost carrier Frontier Airlines is preparing for an initial public offering and has hired banks to plan the debut, The New York Times reported, citing people familiar with the matter. The Denver-based airline is aiming to raise about $500 million, valuing the company at about $2 billion, NYT said, citing sources.
Delta to Cancel Order for 18 Boeing 787 Dreamliners
Delta Air Lines said on Tuesday that in agreement with Boeing it would cancel an order for 18 787 Dreamliner aircraft, which it assumed as a part of its merger with Northwest Airlines. The order is valued at more than $4 billion at current list prices.
Delta Air Lines, Inc. and Aeromexico Join Forces
This will enable them to coordinate their efforts in the transborder market. Delta and Aeromexico are going ahead with the joint venture even though U.S. regulators are forcing them to divest up to 28 airport slot pairs in New York and Mexico City.
Southwest Airlines Website Fails During Holiday Travel Week
Southwest Airlines Co.’ s website failed Tuesday, blocking access to booking and flight check-in tools toward the start of a busy holiday travel week.
Delta and Alaska Air Terminate Their “Frenemy” Relationship
While the two carriers have a codeshare and frequent flier partnership, they have aggressively entered each other’s markets and tried to steal customers from one another. This week, Delta and Alaska Air abandoned the pretense of being partners.
Bombardier CEO Seeks to Close Window on C Series Jet Discounts
Bombardier Inc. gained sales momentum for its flagship C Series jetliner this year with major orders from Air Canada and Delta Air Lines Inc. Now it’s looking to get away from the pricing discounts that fueled the aircraft’s rebound. The planemaker expects to book new sales in the coming months after racking up 360 firm orders and more than 400 commitments for the C Series, its biggest-ever plane, Chief Executive Officer Alain Bellemare said.