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☆ Alaska Airlines expects a $150 million hit due to the grounding of its Boeing planes
▼ + stars: | 2024-01-25 | by ( Associated Press | ) www.businessinsider.com time to read: +4 min

Read previewAlaska Airlines said Thursday that the grounding of its Boeing 737 Max 9 jetliners will reduce full-year profit by $150 million and slow down the airline's planned growth. Separately on Thursday, Southwest Airlines said that it will receive six fewer new planes than it expected this year because of ongoing production problems at Boeing. American Airlines CEO Robert Isom chimed in on Thursday, calling Boeing's safety issues "unacceptable." AdvertisementAnalysts expected American Airlines Group Inc. to earn 11 cents per share, according to a FactSet survey. Alaska's $2 million loss compared with a $22 million profit a year earlier.

Persons: —, Max, Robert Isom chimed Organizations: Service, Alaska Airlines, Boeing, Max, Business, United Airlines —, Southwest Airlines, Southwest, American, American Airlines Group Inc, Revenue, Southwest Airlines Co, Dallas, Alaska Air Group Inc Locations: Alaska, Oregon, Seattle, United, Fort Worth , Texas

Southwest also said Thursday that it expects to receive fewer new planes than it expected this year because of ongoing production problems at Boeing. American said Thursday that it earned $19 million in the fourth quarter, down from $803 million a year earlier. Analysts expected American Airlines Group Inc. to earn 11 cents per share, according to a FactSet survey. Wall Street expected Southwest Airlines Co. to earn 12 cents per share. Earlier this week, United said it expects to lose money in the first quarter because of the grounding.

Persons: Max, United Organizations: DALLAS, American Airlines, Southwest Airlines, Southwest, Boeing, American Airlines Group Inc, Revenue, Southwest Airlines Co, Dallas, Max, Federal Aviation Administration, United Locations: Fort Worth , Texas, Southwest, Alaska

DALLAS (AP) — American Airlines posted a $545 million loss for the third quarter as revenue was flat with last summer and costs rose, especially to cover a new contract with its pilots. American Airlines Group Inc., based in Fort Worth, said earnings excluding special items worked out to 38 cents per share. Labor costs at American jumped 17%, an increase of nearly $600 million, which was roughly offset by lower fuel prices than a year ago. There are already concerns over rising costs for airlines as fuel prices surge at the same time that travel has begun to slow. Fuel prices are still lower than they were last year, but the loss at American could add to anxiety over burdensome costs across the industry.

Persons: Robert Isom, “ We're, ”, Devon May, United Organizations: DALLAS, —, Airlines, United Airlines, Delta Air Lines, American Airlines Group Inc, Delta, United, Labor Locations: United States, Fort Worth, United, Tel Aviv, Israel

Two other defendants, American Airlines (AAL.O) and Southwest Airlines (LUV.N), previously settled for a respective $45 million and $15 million. Delta and United called their seating capacity reductions a legitimate response to reduced demand, rising fuel prices and the 2008 global financial crisis. Both carriers went through bankruptcy not long before the purported conspiracy began, with United emerging in 2006 and Delta emerging in 2007. United said it was disappointed with the judge's decision, and will seek to have it reconsidered or file an appeal. Payouts will not begin until claims against Delta and United are resolved.

Persons: Doug Parker, Gary Kelly, Scott Kirby, John Laughter, Sara Nelson, Colleen Kollar, Defendants, Kotelly, United, Jonathan Stempel, Grant McCool Organizations: American Airlines Group Inc, Southwest Airlines Co, United Airlines Holdings Inc, Delta Air Lines Inc, Delta Air Lines, United Airlines, Washington , D.C, American Airlines, Southwest Airlines, U.S . Department of Justice, Passengers, United, Delta, Antitrust Litigation, District of Columbia, Thomson Locations: U.S, Washington ,, New York

☆ American Airlines cuts adjusted profit forecast for third quarter
▼ + stars: | 2023-09-13 | by ( ) www.reuters.com time to read: 1 min

An American Airlines Airbus A321-200 plane takes off from Los Angeles International airport (LAX) in Los Angeles, California, U.S. March 28, 2018. REUTERS/Mike Blake/File Photo Acquire Licensing RightsCompanies American Airlines Group Inc FollowSept 13 (Reuters) - American Airlines Group (AAL.O) on Wednesday cut its third-quarter adjusted profit forecast, to account for higher fuel costs and expenses related to its new collective bargaining agreement with the ALPA union. The carrier now expects an adjusted profit of between about 20 cents to 30 cents per share in the third quarter, down from its prior range of about 85 cents to 95 cents per share. Reporting by Nathan Gomes in Bengaluru; Editing by Arun KoyyurOur Standards: The Thomson Reuters Trust Principles.

Persons: Mike Blake, Nathan Gomes, Arun Koyyur Organizations: American Airlines Airbus, Los Angeles International, REUTERS, Companies American Airlines Group, American Airlines Group, Thomson Locations: Los Angeles , California, U.S, Bengaluru

☆ American Airlines increases offer to pilots by $1 billion, matching United
▼ + stars: | 2023-07-21 | by ( ) www.reuters.com time to read: +1 min

July 21 (Reuters) - American Airlines Group Inc (AAL.O) on Friday said it raised the value of its contract offer to pilots by more than $1 billion to match a more generous deal at United Airlines (UAL.O) after American's union warned that ratification was in jeopardy. United's pilots will get cumulative 34.5% to 40.2% pay raises in that four-year agreement. The Allied Pilots Association (APA), which represents American's pilots, warned on Sunday that ratification was in jeopardy. Dennis Tajer, a spokesman for the union, said earlier this week that United's pilots would earn at least 2% more than their 15,000 counterparts at American. The union also said United's back pay, days off for junior pilots and sick time were superior.

Persons: Dennis Tajer, Priyamvada, Cynthia Osterman Organizations: American Airlines Group Inc, United Airlines, Allied Pilots Association, Thomson Locations: The Texas, Bengaluru

☆ These are the 3 key things that will impact the stock market in the week ahead
▼ + stars: | 2023-07-15 | by ( Zev Fima | ) www.cnbc.com time to read: +10 min

A lot was riding on these important measures of inflation after the scorching-hot ADP jobs report last week. Here are 3 things you need to know for the week ahead: 1. Industrial production and capacity utilization, also out Tuesday, shines a light on manufacturing, which attributes about 12% to U.S. GDP. Six months is generally considered to represent a balance between supply and demand in the housing market. Jim waits 45 minutes after sending a trade alert before buying or selling a stock in his charitable trust's portfolio.

Persons: Stocks, Morgan Stanley, Johnson, Jeff Miller, Lockheed Martin, Charles Schwab, JB Hunt, Goldman, Baker Hughes, Ally, Kinder Morgan, Zions, Philip Morris, Abbott, ABT, Jim Cramer's, Jim Cramer, Jim, Scott Olson Organizations: Nasdaq, Dow Jones Industrial, Housing, CPI, Halliburton, HAL, Johnson, of America Corp, Lockheed, Lockheed Martin Corp, Novartis International AG, PNC Financial Services Group, Inc, PNC, Charles Schwab Corp, Bank of New York Mellon Corporation, BK, Synchrony, Interactive, Goldman Sachs Group, U.S . Bancorp, ASML, Citizens Financial, T Bank Corp, Northern Trust Corporation, Horizon National Corp, Business Machines Corp, IBM, United Airlines, Netflix, Steel Dynamics, Alcoa, Discover Financial Services, Crown, International Corp, Equifax Inc, Las Vegas Sands Corp, Liberty Energy Inc, Philip Morris International Inc, Taiwan Semiconductor Manufacturing Company, American Airlines Group Inc, Travelers Companies, SAP, Nokia Corp, Truist Financial Corporation, Company, McLennan Companies, Infosys Technologies Ltd, Newmont Mining Corp, Fifth Third Bancorp, Pool Corporation, Alfa Laval, Webster Financial Corp, Blackstone, Financial Corp, PPG Industries, CSX Corp, CSX, Berkley Corp, Swift Transportation Holdings Inc, American Express Co, AutoNation Inc, Interpublic, of Companies, Autoliv Inc, Huntington Bancshares, Financial Corporation, Roper Technologies, Comerica, Jim Cramer's Charitable, CNBC, Getty Locations: U.S, Las, ZION, Horton, Freeport, Marsh, ALFVY, W.R, Lemont , Illinois

☆ American Airlines raises second-quarter profit outlook on lower fuel costs
▼ + stars: | 2023-05-31 | by ( ) www.reuters.com time to read: +1 min

May 31 (Reuters) - American Airlines Group Inc (AAL.O) on Wednesday raised its forecast for second-quarter profit on lower jet fuel costs and high travel demand. Travel demand has stayed strong even amid worries of a looming recession, with travel during the Memorial Day weekend topping 2019 pre-COVID levels for the first time. American Airlines Group forecast second-quarter adjusted profit in the range of about $1.45 to $1.65 per share, compared with its previous outlook of about $1.20 to $1.40 per share. The company expects average fuel price per gallon, including taxes, to be about $2.55 to $2.65 in the second quarter, down from its previous estimate of about $2.65 to $2.75. Reporting by Shivansh Tiwary in Bengaluru; Editing by Savio D'Souza and Shounak DasguptaOur Standards: The Thomson Reuters Trust Principles.

Persons: Shivansh, Savio D'Souza, Shounak Organizations: American Airlines Group Inc, American Airlines Group, Thomson Locations: Bengaluru

☆ Factbox: Pilots, airlines seek to strike new contracts ahead of peak travel season
▼ + stars: | 2023-05-19 | by ( ) www.reuters.com time to read: +3 min

SOUTHWEST AIRLINES CO (LUV.N):The Southwest Airlines Pilots Association (SWAPA) in May said its members at the company approved a strike mandate. It added that 98% of its members participated in the vote and 99% voted in favor of authorizing a strike. UNITED AIRLINES HOLDINGS INC (UAL.O):Last year, ALPA said 94% of the nearly 10,000 United Airlines pilots voted to reject a contract offer. SPIRIT AIRLINES INC (SAVE.N):In January, ALPA said pilots at Spirit Airlines voted to ratify a new contract. More than 97% of the union members took part in the vote and 99% of them authorized union leaders to call a strike, if needed.

[1/2] A woman checks the arrivals and departures board at Chicago Midway International Airport in Chicago, Illinois, U.S. April 18, 2023. REUTERS/Jim Vondruska/File PhotoNEW YORK, May 10 (Reuters) - A gloomy forecast from vacation rental firm Airbnb (ABNB.O) weighed on travel-related stocks on Wednesday as an expected slowdown in bookings signaled an impending slump in travel demand with consumers seeking cheaper accommodation amid inflation and recession fears. Airbnb's forecast will heighten caution in the travel sector, which encompasses hotels, airlines, and vacation rental firms, according to an investor note by JPMorgan analysts, led by Doug Anmuth. "We also believe Airbnb's commentary will result in increased caution in the travel space, but more specifically around vacation and the U.S.," the analysts said. Reporting by Chibuike Oguh in New York; Editing by Lance Tupper and Aurora EllisOur Standards: The Thomson Reuters Trust Principles.

The struggle for a clearer direction comes after a rally on Friday, when U.S. jobs data pointed to a resilient labor market. Producer prices, weekly jobless claims and consumer sentiment data are all lined up for the week. A rally in regional banks' shares proved short-lived, with PacWest Bancorp (PACW.O) rising 5.6% after gaining as much as about 30% earlier in the session after the lender sharply cut its quarterly dividend to boost capital. Shares of regional banks tumbled for much of last week on worries tied to the collapse of First Republic Bank. Warren Buffett's Berkshire Hathaway Inc's Class B shares rose 0.9% after posting a $35.5 billion first-quarter profit, boosted by gains from stocks such as Apple.

Producer prices, weekly jobless claims and consumer sentiment data are all lined up through the week. "The bigger picture is inflation will remain higher for longer and that we are heading into a recession. The KBW Regional Banking index (.KRX) fell 2.2% after posting its best single-day performance in seven weeks on Friday. Shares of regional banks tumbled for much of last week on worries tied to the collapse of First Republic Bank. The S&P index recorded 10 new 52-week highs and four new lows, while the Nasdaq recorded 47 new highs and 53 new lows.

Regional bank shares stretched gains from a rebound on Friday, with PacWest Bancorp (PACW.O) jumping 33% premarket after the company announced quarterly dividend. Shares of such banks tumbled for much of last week on worries tied to the collapse of First Republic Bank. ET, Dow e-minis were up 67 points, or 0.2%, S&P 500 e-minis were up 6 points, or 0.14%, and Nasdaq 100 e-minis were down 4.25 points, or 0.03%. Data on producer prices, weekly jobless claims and on consumer sentiment are all lined up through the week. On earnings, Warren Buffett's Berkshire Hathaway Inc's Class B shares rose 1.5% after the company posting a $35.5 billion first-quarter profit, reflecting gains from stocks such as Apple.

On the other end, regional banks' shares stretched gains from a rebound on Friday, with PacWest Bancorp (PACW.O) jumping 19.9% after the lender sharply cut its quarterly dividend to boost capital. Shares of such banks tumbled for much of last week on worries tied to the collapse of First Republic Bank. "We're in an information vacuum right now, waiting for the next inflation data. Warren Buffett's Berkshire Hathaway Inc's Class B shares rose 1.2% after posting a $35.5 billion first-quarter profit, reflecting gains from stocks such as Apple. The S&P index recorded seven new 52-week highs and two new lows, while the Nasdaq recorded 31 new highs and 23 new lows.

☆ American Airlines Pilots Vote to Authorize Potential Strike
▼ + stars: | 2023-05-01 | by ( Alison Sider | ) www.wsj.com time to read: 1 min

American Airlines said it believes an agreement with the union could come together quickly. Photo: daniel slim/Agence France-Presse/Getty ImagesPilots at American Airlines Group Inc. voted overwhelmingly in favor of a measure authorizing union leaders to call for a strike, though the airline said negotiations are still progressing. The vote results announced Monday don’t mean a walk off is imminent or inevitable. Federal law makes it difficult for airline unions to go on strike.

☆ American Airlines pilots vote to authorize strike
▼ + stars: | 2023-05-01 | by ( ) www.reuters.com time to read: +2 min

May 1 (Reuters) - A union representing American Airlines Group Inc (AAL.O) pilots said on Monday its members had approved a strike mandate ahead of the busy summer travel season, although the chances of an actual labor disruption remain slim. The Allied Pilots Association (APA), which represents 15,000 American Airlines pilots, held a strike authorization vote in April to put pressure on the Texas-based carrier for higher salary and better working conditions, even as the two sides closed in on an agreement in principle. More than 96% of the APA membership participated in the vote and over 99% voted in favor of authorizing a strike, the union said in a statement. The finish line is in sight," American Airlines said in a statement. The airline's pilots received their last pay increase in 2019.

☆ Drop in Transportation Stocks Foreshadows Weakening Economy
▼ + stars: | 2023-04-20 | by ( Vicky Ge Huang | ) www.wsj.com time to read: 1 min

Delta posted a quarterly loss and said consumers’ behavior is shifting in ways that can be hard to predict. Photo: ed jones/Agence France-Presse/Getty ImagesEconomically sensitive stocks, like those of transportation and small-cap companies, are trailing the broader market, reflecting growing investor concern about a potential recession. The Dow Jones Transportation Average, which tracks 20 large U.S. companies ranging from airlines to railroads to truckers, has underperformed the Dow Jones Industrial Average by about 8.3 percentage points since early February. Shares of Norfolk Southern Corp., American Airlines Group Inc. and J.B. Hunt Transport Services Inc. have dropped at least 10% over the same period.

☆ Alaska Air posts bigger-than-expected loss as costs mount
▼ + stars: | 2023-04-20 | by ( ) www.reuters.com time to read: +1 min

April 20 (Reuters) - Alaska Air Group (ALK.N) on Thursday reported a bigger-than-expected quarterly loss as higher expenses related to labor and fuel dented the carrier's margins. Earlier this month, American Airlines Group Inc (AAL.O) forecast first-quarter profit below market expectations, joining rival United Airlines Holdings Inc (UAL.O) in signaling a hit from increasing costs. In January, Alaska Air warned that it would face pressures from higher labor costs and expenses related to pilot training as it phases out Airbus SE (AIR.PA) jets in favor of Boeing Co (BA.N) planes. Shares of Alaska Air fell 1.49% in premarket trading on Thursday after the company forecast second-quarter cost per available seat mile (CASM), excluding fuel, to rise between 1% and 3%. Reporting by Aishwarya Nair in Bengaluru; Editing by Shinjini GanguliOur Standards: The Thomson Reuters Trust Principles.

☆ Wall Street closes lower after Fed minutes, inflation data
▼ + stars: | 2023-04-12 | by ( Stephen Culp | ) www.reuters.com time to read: +4 min

The minutes followed a cooler-than-expected inflation report which belied stickier underlying data and cemented the likelihood of another policy rate hike when the Fed convenes next month. REUTERS/Brendan McDermid"(Economic) data has been very mixed so investors are overacting to any positive or negative hint of Fed rate hike policy. Analysts now expect aggregate first-quarter S&P 500 earnings down 5.2% year-on-year, a stark reversal from the 1.4% annual growth seen at the beginning of the quarter. Among the 11 major sectors of the S&P 500, seven ended in negative territory, with consumer discretionary (.SPLRCD) suffering the largest percentage loss. The S&P 500 posted 12 new 52-week highs and two new lows; the Nasdaq Composite recorded 64 new highs and 187 new lows.

☆ American Airlines profit forecast disappoints; shares tumble
▼ + stars: | 2023-04-12 | by ( Aishwarya Nair | ) www.reuters.com time to read: +2 min

April 12 (Reuters) - American Airlines Group Inc (AAL.O) on Wednesday forecast first-quarter profit below market expectations, joining rival United Airlines (UAL.O) in signaling a hit from persistently high labor and fuel costs. "We had expected American to come in towards the better end in a similar manner as JetBlue's guidance update provided in mid-March," Syth added. Airlines' shares in 2023The airline industry has been able to survive the broader economic slowdown in the United States, thanks also to tight airline capacity due to shortages of aircraft and spare parts. On an adjusted basis, it forecast a quarterly per-share profit of between 1 cent and 5 cents, compared with its previous forecast of a near break-even. Southwest Airlines Co (LUV.N) closed down 1.4%, United was down 6.5% and Delta was down 2.4%.

However, the major benchmarks shed gains quickly, briefly turning lower, as investors focused on underlying inflation pressures which rose in line with economists' estimates. US inflation, Fed rates and MarketsRichmond Fed President Thomas Barkin also poured cold water on market optimism after flagging that there was still time before inflation falls back to the Fed's 2% goal. San Francisco Fed President Mary Daly said there was "more work to do" on Fed rate hikes. Among the 11 major S&P sectors, consumer discretionary (.SPLRCD) was the worst hit, while materials (.SPLRC) and healthcare (.SPXHC) were the top gainers. Reporting by Sruthi Shankar and Ankika Biswas in Bengaluru; Editing by Shounak DasguptaOur Standards: The Thomson Reuters Trust Principles.

☆ American Airlines signals profit hit from rising labor, fuel costs
▼ + stars: | 2023-04-12 | by ( ) www.reuters.com time to read: +2 min

April 12 (Reuters) - American Airlines Group Inc (AAL.O) on Wednesday forecast first-quarter profit below market expectations, joining bigger rival United Airlines (UAL.O) to signal a hit from persistently high labor and fuel costs. The dull outlook pushed its shares more than 8% lower and weighed on other major U.S. airlines. Higher fares amid rising global travel have so far helped the airlines industry mitigate rising costs, but concerns over the sustainability of consumer demand have gained ground against the backdrop of high borrowing costs, inflation and job losses. American had in January said that its fuel price has increased by nearly 70%. However, on an adjusted basis, it forecast quarterly profit per share between 1 and 5 cents compared to analysts' expectation of 6 cents, according to Refinitiv data.

The Labor Department data showed headline and core CPI in March rose 0.1% and 0.4%, respectively, on a month-on-month basis. "We are finally starting to see the cumulative effects of the relentless rate hikes," said Peter Andersen, founder at Andersen Capital Management. US inflation, Fed rates and marketsMinutes from the U.S. central bank's policy meeting in March will also be watched closely by investors later in the day for further clues on the trajectory of interest rates. The Fed raised rates by 25 bps last month and signaled it was on the verge of pausing further rate hikes. ET, Dow e-minis were up 220 points, or 0.65%, S&P 500 e-minis were up 33 points, or 0.80%, and Nasdaq 100 e-minis were up 130 points, or 0.99%.

The Labor Department data showed headline and core CPI in March rose 0.1% and 0.4%, respectively, on a month-on-month basis. Stubbornly high rents kept underlying inflation pressures simmering, likely ensuring that the U.S. central bank will raise interest rates again next month. US inflation, Fed rates and MarketsMajor technology and other growth stocks such as Microsoft Corp (MSFT.O), Tesla Inc (TSLA.O) and Apple Inc (AAPL.O) edged higher as Treasury yields slipped. Minutes from the U.S. central bank's policy meeting in March will also be watched closely by investors later in the day for further clues on the trajectory of interest rates. The Fed raised rates by 25 bps last month and signaled it was on the verge of pausing further rate hikes.

This comes just days after cooling inflation raised hopes that the Fed could soon end its aggressive monetary tightening. Shares of other energy firms such as Exxon Mobil Corp (XOM.N) and Occidental Petroleum Corp (OXY.N) were also up 4.9% and 6.0%, respectively, helping drive a 5.2% jump in the energy sector. The tech-heavy Nasdaq recorded its strongest first-quarter jump of 17% since mid-2020. Among other stocks, shares of American Airlines Group Inc (AAL.O) and Delta Air Lines Inc (DAL.N) edged 0.6% and 1.3% lower on rising crude prices. The S&P index recorded seven new 52-week highs and no new low, while the Nasdaq recorded 40 new highs and 28 new lows.

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