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☆ Boeing's 737 Max problem is the latest headache for airlines hungry for new planes
▼ + stars: | 2023-04-14 | by ( Leslie Josephs | ) www.cnbc.com time to read: +3 min

An aerial view of the engines and fuselage of an unpainted Boeing 737 MAX airplane parked in storage at King County International Airport-Boeing Field in Seattle, Washington, June 1, 2022. The problem is related to two of several brackets in the aft fuselage of some 737 Max planes, including the most popular model, the Max 8. Boeing has a backlog of 4,196 Max planes, according to a tally on its website. "Boeing contacted us regarding an issue with a supplier's manufacturing process that will affect the delivery of Boeing 737 MAX planes to Southwest," the company said in a statement Thursday. A worldwide grounding and production pause of the 737 Max followed two fatal crashes of the Max.

☆ Boeing warns of reduced 737 Max production and deliveries due to parts issue
▼ + stars: | 2023-04-13 | by ( Sara Salinas | ) www.cnbc.com time to read: +3 min

Boeing 737 Max airplanes sit parked at the company's production facility on November 18, 2020 in Renton, Washington. It said the issue affects certain 737 Max 8 planes, the company's most popular model, with customers including American Airlines and Southwest Airlines . It also affects certain 737 Max 7, the 737 8200 and P-8 planes. "We expect lower near-term 737 MAX deliveries while this required work is completed. "We're aware of the issue and working with Boeing to understand how it may impact our MAX deliveries," an American Airlines spokesman said in statement.

☆ Delta Air Lines posts quarterly loss but forecasts profit as peak travel season approaches
▼ + stars: | 2023-04-13 | by ( Leslie Josephs | ) www.cnbc.com time to read: +2 min

Analysts polled by Refinitiv had anticipated second-quarter revenue growth of 14.7% and earnings per share of $1.66. But for the first quarter, adjusted revenue and adjusted earnings came in below analyst estimates. Adjusted revenue: $11.84 billion vs. $11.99 billion expected. In the first quarter, Delta posted a net loss of $363 million, or 57 cents per share, citing, in part, a new, four-year pilot contract that includes 34% raises. That's still improvement from the year-ago period, when travel demand was still recovering and the company reported a net loss of $940 million, or $1.48 per share.

☆ Old planes get stripped for parts while airlines wait on new jets
▼ + stars: | 2023-04-13 | by ( Leslie Josephs | ) www.cnbc.com time to read: +3 min

COOLIDGE, Arizona – From engines to landing gear, the hunt is on for aircraft parts as airlines prepare their jets for swarms of summer travelers, with new planes from Boeing and Airbus still in short supply. The search for parts leads some aircraft owners here, where older, retired planes are stripped for parts that will be prepared to fly on other planes or repurposed altogether. The current demand for aircraft parts is the result of the industry's deep demand swings resulting from the Covid pandemic. With deliveries of new jets behind schedule, airlines are holding onto planes longer, repairing or overhauling them, adding to demand for parts and labor. Airbus A320 landing gear in a repair shop in Marana, Arizona.

Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailWhy airplanes are still worth millions after they stop flyingWhen airplanes are retired, many of them end up stripped for parts that are worth millions of dollars. Those parts are in high demand — Boeing and Airbus are behind on deliveries of new aircraft and sold out of planes through the latter part of the decade. The used-aircraft parts trade is a small but important part of global spending on airplane maintenance, repair and overhaul, which Oliver Wyman expects to reach $94 billion this year.

☆ Earnings playbook: Your guide to trading the start of a big reporting season this week
▼ + stars: | 2023-04-12 | by ( Fred Imbert | ) www.cnbc.com time to read: +6 min

Thursday Delta Air Lines is set to report earnings before the bell, followed by a conference call with management at 10 a.m. This quarter: Analysts polled by Refinitiv expect revenue to have jumped more than 45% from the year-earlier period, Refinitiv data shows. Friday JPMorgan Chase is set to report earnings before the bell, followed by a call with management at 8:30 a.m. What history shows: FactSet data shows JPMorgan Chase topped earnings estimates in eight of the last 10 quarters. What history shows: Bespoke data shows UnitedHealth beats earnings estimates 93% of the time.

☆ Boeing aircraft deliveries jump as airlines await new jets for travel rebound
▼ + stars: | 2023-04-11 | by ( Leslie Josephs | ) www.cnbc.com time to read: +1 min

An aerial view of the engines and fuselage of an unpainted Boeing 737 MAX airplane parked in storage at King County International Airport-Boeing Field in Seattle, Washington, June 1, 2022. Boeing delivered 64 planes last month, the most since December, while some customers continue to await new aircraft to capitalize on a boom in travel. Boeing also handed over 52 of its bestselling 737 Max jets, just as it gears up to increase production of the planes. The company has targeted deliveries of more than 400 Max planes this year. Boeing also reported net orders for 38 planes in March as demand picks up for new jets.

☆ Airlines' answer for congested airports and rising costs: Bigger planes
▼ + stars: | 2023-04-06 | by ( Leslie Josephs | ) www.cnbc.com time to read: +2 min

NEWARK, New Jersey — Faced with congested airports, rising costs, a pilot shortage and a resurgence in travel demand, airlines are increasingly turning to the same remedy: bigger planes that fit more passengers. In April, U.S. carriers have 0.6% more seats in their domestic schedules compared with the same month of 2019, despite operating 10.6% fewer flights. For example, United Airlines said its flights have 20 more seats per departure in its full network than in 2019. Early in the Covid pandemic, U.S. airlines reassigned their largest jets for domestic routes when international travel was hobbled by the crisis and travel restrictions. And, Cox noted, there are limits to how many flights the airline can upgauge, especially with its largest planes.

☆ American Airlines scraps traditional frequent flyer award chart in dynamic pricing shift
▼ + stars: | 2023-04-05 | by ( Leslie Josephs | ) www.cnbc.com time to read: +1 min

American airlines planes are seen at San Francisco International Airport (SFO) in San Francisco, California, United States on September 15, 2022. American Airlines is getting rid of its traditional frequent flyer award chart as the carrier moves toward dynamic pricing for mileage redemptions, the latest shift in its lucrative AAdvantage loyalty program. American in December said it would get rid of different redemption categories, MileSAAver and AAnytime awards, which have set minimum rates. The new redemption level will be called "Flight Awards" and the chart will serve as a reference guide. American introduced dynamic pricing for award tickets in 2019, meaning the number of miles required to redeem for a ticket fluctuate based on supply and demand.

☆ JetBlue is preparing to trim New York flights in response to FAA staffing shortage, CEO says
▼ + stars: | 2023-03-29 | by ( Leslie Josephs | ) www.cnbc.com time to read: +1 min

The FAA cited its staffing shortfall. "We don't want to pull down flights. I'm sure no airline wants to pull down flights," Hayes said in an interview with CNBC ahead of an event at the Economic Club of New York. The staffing shortfall and potential schedule cuts in the region highlight the difficulty airlines have faced to ramp up capacity as travel demand returns in the wake of a pandemic lull. If weather is bad or there are other challenges, disruptions tend to cascade if airlines have packed their schedules with too many flights.

Illustration by Gene KimAs weed becomes legal in more states, how and if travelers can bring their stash on board remains up in the air. Traveling between states where marijuana is legal in both the origin and destination may sound straight-forward, but with overlapping jurisdictions and hard-to-enforce guidelines, it gets complicated. Under federal law, the possession and sale of marijuana is illegal. Despite President Joe Biden's recent pardons for anyone convicted of a federal crime for simple possession and his directive to review how marijuana is scheduled under federal law, marijuana is still classified as a Schedule I substance. And even though airports are locally owned and operated, air travel still falls under federal law.

☆ FAA launches new plan to avoid flight delays in NYC, DC this summer
▼ + stars: | 2023-03-22 | by ( Leslie Josephs | ) www.cnbc.com time to read: +2 min

The agency said it will reduce flight requirements for airlines' take off and landing rights to avoid congestion. Airline executives have repeatedly complained about air traffic control shortfalls contributing to flight disruptions as air travel sprang back from pandemic lows in the past few years. Airlines last summer also reduced their schedules to avoid delays as they dealt with their own staffing issues and other strains. The FAA said it expects increased delays in the New York City area this summer compared with last year, projecting a 45% rise in delays with operations growing 7%. Later this month, the FAA will hold a summit with airlines about other ways it can ease disruptions in the area.

☆ Airline stocks slide despite CEOs' upbeat demand outlook
▼ + stars: | 2023-03-15 | by ( Leslie Josephs | ) www.cnbc.com time to read: +2 min

Airline stocks slid Wednesday as the market fell broadly amid concerns over stability of some banks and new data that showed a slowdown in consumer spending. Airline executives during a JPMorgan industry conference on Tuesday said they expect strong demand — and profits — in 2023, despite higher costs, with leisure travel continuing to lead the way. Consumer appetite for air travel has surged over the past year and higher fares have boosted airlines' bottom lines. "As I tell many of my CEO friends across the industry and outside of the industry, I know where your employees are. "And that's because of the new way of work, the new hybrid, new mobility.

☆ Boeing sells 78 Dreamliner planes to Saudi airlines
▼ + stars: | 2023-03-14 | by ( Leslie Josephs | ) www.cnbc.com time to read: +1 min

Boeing said Tuesday that it has reached a deal to sell 78 of its 787 Dreamliner planes to two Saudi Arabian airlines, the latest large order for the wide-body jets in the past few months. The jetliners will go to Saudi Arabian Airlines, or Saudia, and a new airline, called Riyadh Air, which Crown Prince Mohammad bin Salman announced over the weekend. "This will support the country's goal of serving 330 million passengers and attracting 100 million visits by 2030," Riyadh Air said in a news release. In December, United Airlines agreed to buy at least 100 Dreamliners from Boeing and last month, Air India placed an order for 460 Boeing and Airbus planes. Boeing is set to resume deliveries of the Dreamliner planes this week after a weekslong pause resulting from a data analysis issue it disclosed last month.

☆ Southwest Airlines vows to increase winter staffing and improve tech after holiday mess
▼ + stars: | 2023-03-14 | by ( Leslie Josephs | ) www.cnbc.com time to read: +1 min

Travelers check in at a Southwest Airlines ticket counter during the busy Christmas holiday season at Orlando International Airport on December 28, 2022 in Orlando, Florida. Southwest Airlines ' CEO said the company will increase winter staffing and equipment to help avoid a repeat of mass cancelations over the year-end holidays that cost the company millions of dollars and stranded tens of thousands of travelers. Bitter temperatures during Winter Storm Elliott limited how much time crews were able to spend outside, Southwest said. "We understand the root causes that led to the holiday disruption, and we're validating our internal review with the third-party assessment. "Work is well underway implementing action items to prepare for next winter—with some items already completed."

☆ United shares tumble after airline forecasts first-quarter loss
▼ + stars: | 2023-03-13 | by ( Leslie Josephs | ) www.cnbc.com time to read: +1 min

A grounds crew member directs an United Airlines airplane to a gate at Terminal A at Newark Liberty International Airport (EWR) in Newark, New Jersey, US, on Thursday, Jan. 12, 2023. United Airlines shares fell about 6% in afterhours trading on Monday after the carrier forecast a first-quarter loss, citing weaker demand growth compared with other months and higher fuel costs. The carrier said as a result it trimmed its estimate for unit revenues to between 22% and 23% over a year earlier, down from previous guidance of a 25% increase. The airline said it still expects to earn between $10 and $12 a share this year, on an adjusted basis. The Chicago-based carrier is scheduled to present at a JP Morgan industry conference on Tuesday along with other airlines including Delta , American and JetBlue .

☆ Biden administration urges Congress to ban airlines from charging families to sit together
▼ + stars: | 2023-03-13 | by ( Leslie Josephs | ) www.cnbc.com time to read: +1 min

The Biden administration is asking Congress to pass legislation that would ban airlines from charging fees for families who are traveling with children under the age of 14 to sit together, its latest attempt to crack down on add-on charges for consumers, the Transportation Department said Monday. President Joe Biden has vowed to stamp out so-called "junk fees" across industries including hotels, airlines and banks. Earlier this month, Alaska Airlines , American Airlines and Frontier Airlines said they would include family-seating guarantees in customer service plans, violations of which could result in DOT fines. United Airlines last month said it would give families traveling with children access to seats that normally cost extra at the time of booking. The Biden administration's draft legislation calls for refunds to passengers who cannot get adjacent seats for children in their party.

☆ FAA clears Boeing to resume deliveries of 787 Dreamliners after weekslong pause
▼ + stars: | 2023-03-10 | by ( Leslie Josephs | ) www.cnbc.com time to read: +1 min

An American Airlines Boeing 787-9 Dreamliner approaches for a landing at the Miami International Airport on December 10, 2021 in Miami, Florida. Boeing can resume deliveries of its 787 Dreamliners as early as next week, the Federal Aviation Administration said Friday, after a data-analysis issue halted deliveries of the wide-body jetliners. Boeing earlier Friday said it completed the work needed to resume deliveries of planes to airlines and other customers. "The FAA will determine when 787 ticketing and deliveries resume, and we are working with our customers on delivery timing." On Feb. 23, Boeing paused deliveries of the planes, after a data-analysis error was detected related to the aircraft's forward pressure bulkhead.

The Biden administration is seeking additional funding for the Federal Aviation Administration, funds that aim to boost hiring of air traffic controllers and facilitate other improvements to manage increasingly congested airspace. The White House on Thursday proposed $16.5 billion for the agency, up from the $15.2 billion the FAA received in fiscal 2023. Airlines and the Transportation Department have sparred over causes of flight disruptions, with some company executives blaming a shortfall of air traffic controllers. Last year, the FAA managed airspace for a record 92 space missions – a total that includes rocket launches and spacecraft reentries, which it expects to top in 2023. Many of those missions launched from Florida, a state which has seen more and more commercial air traffic as well.

☆ American Airlines pilots' union calls strike authorization vote as contract talks continue
▼ + stars: | 2023-03-09 | by ( Leslie Josephs | ) www.cnbc.com time to read: +1 min

Pilots talk as they look at the tail of an American Airlines aircraft. American Airlines pilots' union plans to hold a vote next month on whether to allow members to call a strike as talks for a new labor contract continue. "While our Negotiating Committee reports good progress, we remain steadfast and focused that now is the time to reach an agreement with American Airlines," the American Airlines pilots' union said Thursday. They had approved a strike authorization vote in the fall, about a month before reaching a preliminary deal with the company. Even if American pilots' union called a strike it would not be immediate; airline strikes are extremely rare in the U.S. and would follow a lengthy process involving federal mediators.

☆ American Airlines CEO tells pilots the carrier will match Delta's pay
▼ + stars: | 2023-03-08 | by ( Leslie Josephs | ) www.cnbc.com time to read: +2 min

FILE - American Airlines President Robert Isom speaks at a news conference about the company's new partnership with Alaska Airlines, Thursday, Feb. 13, 2020, in Seattle. American Airlines CEO Doug Parker will retire next March and be replaced by the airline's current president, Robert Isom. American Airlines is prepared to raise pilots' wages to match that of Delta Air Lines ' pilots in a new contract, including 40% cumulative pay increases in a four-year deal, CEO Robert Isom said in a message to pilots. "Let me be clear, American is prepared to match Delta's pay rates and provide American's pilots with the same profit-sharing formula as Delta's pilots," Isom said in the message to pilots, sent on Tuesday and seen by CNBC. The Allied Pilots Association, American Airlines pilots' union, didn't immediately comment on Isom's statement.

☆ Justice Department sues to block JetBlue’s acquisition of Spirit Airlines
▼ + stars: | 2023-03-07 | by ( Leslie Josephs | ) www.cnbc.com time to read: +3 min

The Justice Department on Tuesday sued to block JetBlue Airways ' $3.8 billion proposed takeover of budget carrier Spirit Airlines , the Biden administration's latest attempt to prevent industry consolidation. Spirit Airlines agreed to sell itself to JetBlue last summer after a long battle for the carrier between JetBlue and Frontier Airlines . A JetBlue-Spirit combination would be the first major U.S. airline merger since Alaska Airlines' takeover of Virgin America in 2016. The Justice Department at the time required Alaska to scale back its code share with American Airlines to clear the deal. Separately, JetBlue is awaiting a ruling on its Northeast partnership with American Airlines, which the Justice Department sued to undo in 2021.

☆ Delta pilots wrap voting on new contract with big raises
▼ + stars: | 2023-03-01 | by ( Leslie Josephs | ) www.cnbc.com time to read: +2 min

Delta and the pilots' union had reached a preliminary agreement in December. The Delta pilots are expected to approve the deal Wednesday. United , American and Southwest pilots' unions are still in negotiations. Contract talks between airlines and labor unions have been fraught at times, as aviators seek higher pay and better schedules. Alaska Airlines pilots won raises in their latest labor deal last year.

☆ FedEx pilot union inches closer to strike with unanimous approval for authorization vote
▼ + stars: | 2023-02-22 | by ( Noah Sheidlower | ) www.cnbc.com time to read: +3 min

The union representing FedEx pilots unanimously approved a strike authorization vote last week, according to a Wednesday press release. According to a statement on the FedEx pilots' website, pilot leaders allege the company has failed to "acknowledge pilot contributions." After 30 days, pilots and management could exercise self-help, which could include a union strike or a company lockout. A statement by pilot leaders says FedEx customers should plan alternative means in the event of a pilot strike. The update comes a month after the Southwest Airlines pilots' union called a vote to authorize a potential strike after souring contract negotiations.

☆ Spring break gets pricey as travelers return to old booking habits
▼ + stars: | 2023-02-21 | by ( Leslie Josephs | ) www.cnbc.com time to read: +3 min

Spring break travel demand is picking up, driving up airfare and hotel rates. Airlines, grappling with pilot shortages and aircraft delivery delays, have already limited capacity growth, which is keeping airfare up from last year. Now travelers are going back to booking patterns common before the pandemic, flying on peak days to traditional destinations, airline executives say. That makes it even more important for travelers to stay flexible if they're trying to save money to avoid spikes in fares. Spring break demand is "probably the best we've ever seen," Frontier Airlines CEO Barry Biffle said in an interview.

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