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☆ Justice Department's fight with JetBlue and American Airlines heads to court
▼ + stars: | 2022-09-27 | by ( Leslie Josephs | ) www.cnbc.com time to read: +4 min

An American Airlines plane lands on a runway near a parked JetBlue plane at the Fort Lauderdale-Hollywood International Airport on July 16, 2020 in Fort Lauderdale, Florida. The Justice Department heads to court in Boston on Tuesday in hopes of undoing a year-and-a-half-old pact between American Airlines and JetBlue Airways in the Northeast U.S. Last September, the Justice Department along with the attorneys general of six states and the District of Columbia sued to block the partnership, which was approved in the final days of the Trump administration. The antitrust trial will be a test for President Joe Biden's Justice Department, which has been tasked with taking a hard stance against threats to competition. Earlier this month, a federal judge denied the Justice Department's bid to block UnitedHealth's acquisition of Change Healthcare.

☆ Biden administration to propose new rules for airline fees requiring more transparency
▼ + stars: | 2022-09-26 | by ( Leslie Josephs | ) www.nbcnews.com time to read: +1 min

President Joe Biden plans to announce new rules on Monday that would require airlines and online travel agencies to disclose fees for seat selection, checked baggage and other add-ons along with fares, the administration’s latest effort to bolster passenger protections after a rocky summer travel season. “Airline passengers deserve to know the full, true cost of their flights before they buy a ticket,” Transportation Secretary Pete Buttigieg said in a news release. Airline executives have said they want passengers to avoid those tickets in favor of more flexible standard economy tickets. Airlines for America, which represents most major U.S. airlines, didn’t immediately comment on the proposed changes. The Biden administration’s proposal comes less than two months after the Transportation Department sought stricter standards for when airlines have to refund travelers for delays.

☆ Southwest Airlines hired a record 3,000 flight attendants so far this year
▼ + stars: | 2022-09-26 | by ( Leslie Josephs | ) www.cnbc.com time to read: +2 min

Passengers deplane from a Southwest Airlines flight from Las Vegas at Hollywood Burbank Airport in Burbank, California, Oct. 10, 2021. Southwest Airlines has hired and trained 3,000 flight attendants so far this year, nearly triple its record cabin crew member hiring in all of 2018, the carrier told staff last week. The carrier told staff that it has 7,000 flight attendants in its hiring pipeline and that its attrition rate among new cabin crew members has dropped to 2.5% compared with 6.1% in 2019. The hiring spree comes as Southwest flight attendants' union and management have been locked in contract negotiations. Southwest and United Airlines flight attendants, which are represented by the Association of Flight Attendants-CWA, are set to picket at major airports on Tuesday to demand better working conditions.

☆ JetBlue ground operations workers seek union vote, major labor group says
▼ + stars: | 2022-09-23 | by ( Leslie Josephs | ) www.cnbc.com time to read: +1 min

A major airline union said Friday that it has enough support among JetBlue Airways' roughly 3,000 fleet service staff to seek a unionization vote, in the latest move to organize workers. The International Association of Machinists and Aerospace Workers said it will file an application for a union vote with the National Mediation Board. A vote could create the third major work group at the New York-based airline to unionize. "The IAM has sufficient interest among JetBlue Fleet Service workers to conduct a union representation election," the union said in a statement. Most major airline workers are already largely represented by unions, though some carriers like JetBlue are less so than some competitors.

☆ Boeing to pay $200 million to settle SEC charges on misleading investors after deadly 737 Max crashes
▼ + stars: | 2022-09-22 | by ( Leslie Josephs | ) www.cnbc.com time to read: 1 min

Boeing will pay $200 million and it then-CEO Dennis Muilenburg will pay $1 million to settle charges over misleading investors in the wake of two deadly crashes of 737 Max jetliners, the Securities and Exchange Commission said. "There are no words to describe the tragic loss of life brought about by these two airplane crashes," said SEC Chair Gary Gensler in a statement. The two crashes — one in October 2018 and another in March 2019 — killed all 346 people aboard the two flights and led to a worldwide grounding of the jetliners, which was first lifted in late 2020. Boeing fired Muilenberg in December 2019 in the midst of the planes' extended grounding and comments about when he expected regulators to clear the planes to fly again. The comments also strained the manufacturer's relationship with the Federal Aviation Administration, prompting public admonishment by the regulator.

☆ American Airlines will add new premium suites in 2024 in race for high-paying travelers
▼ + stars: | 2022-09-20 | by ( Leslie Josephs | ) www.cnbc.com time to read: +1 min

American Airlines on Tuesday unveiled new suites for some of its longest-range planes, a bid to chase high-paying customers as travel demand returns. It's too early to know what fares will be two years on, but the price difference between coach and premium classes is vast. The initiative is the latest effort by an airline to add more seats for travelers willing to pay a higher price for more comfort on board. Major U.S. airline executives have recently said that leisure travelers are shelling out more for more premium seats. Airlines have been shrinking or phasing out first-class cabins for years so they can fit in revamped business-class seats and premium economy sections.

☆ FAA rejects proposal to halve flight-time requirement for pilots as shortage prompts route cuts
▼ + stars: | 2022-09-19 | by ( Leslie Josephs | ) www.cnbc.com time to read: +1 min

The Federal Aviation Administration on Monday said it has rejected a proposal to halve the number of hours required to become a co-pilot, as a severe shortage of aviators prompts carriers to cut routes. Normally, 1,500 hours of flight time are required before a new pilot can fly commercially, though there is an exception for certain military experience that cuts the requirement in half. The so-called 1,500-hour rule was passed after the fatal Colgan Air crash in February 2009 near Buffalo, New York. The crash also led to new requirements for a minimum period of rest for pilots before a flight. The FAA's decision comes as airlines grapple with a severe shortfall of pilots, which executives have blamed on service cuts, particularly to small cities.

☆ London’s Heathrow alters 15% of Monday flights for Queen Elizabeth II’s funeral
▼ + stars: | 2022-09-16 | by ( Leslie Josephs | ) www.cnbc.com time to read: +1 min

London's Heathrow Airport will change about 15% of its Monday flights to avoid noise during Queen Elizabeth II's funeral. British Airways said it will cancel about 50 short-haul flights throughout the day. The airline said that the cancellations are on routes where it operates multiple flights a day and that it plans to utilize larger planes to accommodate passengers. Britain's busiest airport said flights would be diverted around Windsor Castle during a private family service. Departures will also be on hold from 3:05 p.m. to 4:45 p.m. during a ceremonial procession to Windsor Castle.

Railroads and workers' unions reached a tentative labor agreement early Thursday to avert a national rail strike that threatened to shut a major segment of the U.S. transportation network. "The tentative agreement reached tonight is an important win for our economy and the American people," President Joe Biden said in a statement announcing the deal. The White House had been in talks with railroad workers' unions and companies for several months, but negotiations were hung up over unpaid sick time. He thanked railroad unions and companies for negotiating "in good faith." Negotiators from railroad carriers and unions had met in Labor Secretary Marty Walsh's office Wednesday as the sides tried to negotiate a deal ahead of Friday's strike deadline.

Frontier Airlines "recently" held discussions with SpaceX about adding its Starlink satellite internet service to its planes and is more hopeful about adding such a product than in previous years, the carrier's CEO told CNBC on Thursday. Adding Starlink's Wi-Fi would be a departure for the budget carrier, which doesn't currently offer inflight internet service. Most major U.S. airlines offer Wi-Fi on board for a fee, though many are trying to improve the quality and lower the cost. In June, the FCC authorized SpaceX to provide mobile Starlink internet service to boats, planes and trucks. Denver-based Frontier has explored adding Wi-Fi on board before and frequently talks with other providers but, so far, hasn't been able to justify the cost.

☆ United Airlines partners with one-time foe Emirates, will launch Dubai flights
▼ + stars: | 2022-09-14 | by ( Leslie Josephs | ) www.cnbc.com time to read: +1 min

DULLES, Va. — United Airlines and Emirates will sell seats on each other's planes, marking a turnaround in the business models of the one-time foes. As part of the deal, United said it will start flights to Emirates' hub in Dubai from Newark Liberty International Airport next March. "I don't see why it shouldn't," Clark told reporters at an event unveiling the deal with United at a hangar at Dulles International Airport, near Washington, D.C. Emirates said last week it is ending its codeshare partnership with United rival JetBlue Airways on Oct. 30. Qatar Airways and American Airlines in June said they would expand their codeshare partnership.

☆ Boeing delivered 35 planes in August as new Dreamliners returned
▼ + stars: | 2022-09-13 | by ( Leslie Josephs | ) www.cnbc.com time to read: +1 min

The Lufthansa Boeing 787-9 aircraft stands on its parking position at Frankfurt Airport, with another Lufthansa aircraft in the background. Boeing's deliveries rose to 35 planes last month, helped in part by a resumption in handovers of new 787 Dreamliners to airlines. Those jets were flown to Victorville, California, for Boeing to install Wi-Fi equipment and other items in the planes' interiors. Boeing also logged 26 net orders for new planes last month, half of them for 737 Max aircraft. Its net orders for the year stand at 388 and deliveries at 277 planes.

☆ Two top House Democrats seek review of whether airlines used Covid bailout funds for staff buyouts
▼ + stars: | 2022-09-09 | by ( Leslie Josephs | ) www.cnbc.com time to read: +3 min

Two House Democrats have asked a Treasury Department watchdog to investigate whether airlines used a portion of a federal coronavirus relief package to pay for staff buyouts during the pandemic. Airlines were prohibited from laying off staff as a condition of accepting $54 billion in taxpayer aid to weather the Covid-19 pandemic. As a result, some airlines, including American and United, cut flights or grounded dozens of planes, particularly to small cities. Shorter routes are flown generally by regional airlines, and airlines have hired hundreds of new pilots from those smaller carriers to fill their own ranks. The Treasury Department declined to comment.

It was a pricey and chaotic summer for air travel. A bigger share of flights were delayed or canceled during the main late spring and summer travel season, which runs from Memorial Day weekend through Labor Day, compared with the same period of pre-pandemic 2019. And on Sept. 1, the Department of Transportation published a dashboard that spells out what customers are owed when airlines delay or cancel their flights. "We're seeing a really strong September," Patrick Quayle, United Airlines' senior vice president of global network planning and alliances, said at a Cowen industry conference this week. As airlines prepare for the fall — and busy year-end holidays — here's how they handled the heat this summer:

☆ United Airlines raises bet on electric air taxis with 200 aircraft from upstart Eve
▼ + stars: | 2022-09-08 | by ( Leslie Josephs | ) www.cnbc.com time to read: +1 min

United Airlines is pouring more money into the future of electric air taxis, which the carrier says could help reduce carbon emissions once the aircraft come to market and replace car trips. The carrier said Thursday that it agreed to buy 200 electric air taxis from Eve Air Mobility, an Embraer-backed startup, and that it has options to purchase 200 more. Chicago-based United is also investing $15 million in Eve, which listed on the New York Stock Exchange in May. The announcement follows an agreement to purchase 100 electric aircraft from Archer Aviation along with a $10 million deposit. Michael Leskinen, president of United Airlines Ventures, projected the one-way cost to the airport would be about $100 to $150.

☆ Labor Day weekend air travel surpasses 2019 levels as airlines cap a rocky summer
▼ + stars: | 2022-09-06 | by ( Leslie Josephs | ) www.cnbc.com time to read: +1 min

The rocky summer travel season ended on a high note during Labor Day weekend with a surge in air travelers and relatively smooth operations across the U.S., according to data released on Tuesday. The Transportation Security Administration screened nearly 8.76 million people from Friday through Monday, surpassing pre-pandemic levels of the same weekend in 2019, when it screened 8.6 million people. Airlines had reduced their schedules this summer to help stop spiraling flight delays as they grappled with labor shortages. Flight disruptions over the popular travel weekend were also below recent trends, helped by decent weather. That compares with 2.1% of U.S. carriers' flights canceled between May 27, the Friday before Memorial Day, through Labor Day.

☆ From vegan meatballs to ice cream sundaes, airlines are revamping in-flight menus
▼ + stars: | 2022-09-04 | by ( Leslie Josephs | ) www.cnbc.com time to read: +7 min

From vegan meatballs to ice cream sundaes, airlines are offering new options and old favorites to woo returning travelers. The pandemic drove airlines to record losses and had them looking to cut costs wherever possible, such as in-flight food. Chasing high-paying travelersBetter in-flight menus can boost a carrier's image and help it bring more high-paying travelers on board. A plethora of videos have been posted online by airline passengers reviewing meals, plating and service in detail. Veggie and veganEven before the pandemic, airlines were expanding options for travelers who prefer vegetarian and vegan meals.

☆ Sky-high rents hit the aircraft market as Boeing jets top $300,000 a month
▼ + stars: | 2022-08-25 | by ( Leslie Josephs | ) www.cnbc.com time to read: +4 min

The world's largest aircraft leasing firms, like Air Lease , Avolon and AerCap , which acquired GE 's airplane leasing business last year, are reaping the benefits. A tight supply of aircraft is driving up the price airlines pay to rent planes, just as travel demand returns. This year's surge in oil prices make newer, fuel-efficient planes more attractive than older ones, and higher interest rates could also drive up lease rates. "That will push lease rates higher through the rest of the year." Cronin said lease rates for Boeing Maxes and Airbus A320neos have risen by 10%-15% so far this year.

☆ Airline unions urge carriers not to resume buybacks when bailout ban ends this fall
▼ + stars: | 2022-08-18 | by ( Leslie Josephs | ) www.cnbc.com time to read: +4 min

A United Airlines flight crew walks through the terminal at San Francisco International Airport on April 12, 2020 in San Francisco, California. Labor unions don't want them to spend it on stock buybacks. A condition of the $54 billion in federal aid that airlines received to pay workers during the Covid pandemic prohibited carriers from share buybacks. Many of the workers represented by the unions advocating against a resumption of buybacks are in contract negotiations with their carriers. She estimated that the earliest that airlines would resume would be mid-2023, with Alaska Airlines and Southwest the most likely candidates among U.S. carriers.

☆ London's Heathrow airport extends passenger limits until late October as travel strains continue into the fall
▼ + stars: | 2022-08-15 | by ( Leslie Josephs | ) www.cnbc.com time to read: +1 min

Passengers wearing face masks as a preventive measure against the spread of coronavirus arrive at Heathrow Airport Terminal 2 in London, August 3,, 2021. London Heathrow Airport has extended limits on departing passengers through late October to avoid travel chaos as Britain's busiest hub grapples with staffing shortages and a surge in travelers. No more than 100,000 passengers a day can depart Heathrow through Oct. 29, the airport said Monday. The airport said, since it first established the capacity limits, punctuality and wait times for bags have improved and there have been fewer last-minute cancellations. Some airlines, including American, are barring the use of some employee flight perks out of London Heathrow and warning staff about difficulties finding seats using their travel benefits from some European airports, CNBC reported last week.

☆ Business travel spending might not return to pre-pandemic levels until 2026
▼ + stars: | 2022-08-15 | by ( Leslie Josephs | ) www.cnbc.com time to read: +1 min

Business travel spending might not recover to pre-pandemic levels until sometime in 2026 — two years later than previously expected — as inflation, labor shortages and geopolitical issues slow the sector's rebound, according to a new industry forecast. Spending worldwide is set to rise nearly 34% in 2022 to $933 billion, according to the Global Business Travel Association's annual report and forecast, published Monday. That's still far short of the more than $1.4 trillion in business travel generated in 2019, before the Covid pandemic. The report forecast a 42% increase in business travel spending in the U.S. this year from 2021, to nearly $213.4 billion. U.S. airline and hotel executives have touted a return of business travelers this year after many companies put trips on hold during the pandemic.

☆ Even airline employees are having trouble finding a seat home from Europe this summer
▼ + stars: | 2022-08-12 | by ( Leslie Josephs | ) www.cnbc.com time to read: +3 min

International passengers walk through the arrivals area at Terminal 5 at Heathrow Airport on November 26, 2021 in London, England. Airlines want people to take a European vacation this summer — as long as it's not their employees. United is also telling staff about the challenges with overseas travel this summer and to prioritize customers, a spokesman said. Strains at some European airports could persist after the peak summer travel season. Correction: American Airlines has barred staff from only using their flight benefits for personal travel from London Heathrow Airport through "at least" Sept. 11.

☆ Business travel costs are expected to rise through 2023, industry report says
▼ + stars: | 2022-08-10 | by ( Leslie Josephs | ) www.cnbc.com time to read: +2 min

The cost of business travel, from hotels to airfare, is set to rise through 2023 as demand returns more than two years after the Covid pandemic began, according to an industry report published Wednesday. Business travel airfare is on track to rise nearly 50% this year over 2021, following two years of steep declines, according to a report from travel management company CWT and the Global Business Travel Association. Airline and hotel executives have been upbeat about a return to business travel after Covid-19 and measures to curb its spread, like travel restrictions, forced companies to put many work trips on hold. While leisure travel has roared back from 2020 pandemic lows, business travel has lagged, depriving hotels and airlines of an important source of revenue. That's despite concerns about a slowing economy, travel industry labor shortages and other headaches, as some large corporations seek ways to cut back on spending.

☆ Boeing delivers first 787 Dreamliner since 2021 ending pause over manufacturing flaws
▼ + stars: | 2022-08-10 | by ( Leslie Josephs | ) www.cnbc.com time to read: +1 min

An employee works on the tail of a Boeing Co. Dreamliner 787 plane on the production line at the company's final assembly facility in North Charleston, South Carolina. Boeing delivered its first 787 Dreamliner in more than a year on Wednesday, ending a pause on handovers of the jetliners that was sparked by a series of manufacturing flaws. American Airlines took the first new delivery from Boeing's 787 factory in South Carolina, the carrier's CEO, Robert Isom, said in an Instagram post. The delivery is a milestone for Boeing. Boeing said earlier this year that the production defects and a drop in output during the delivery hold will cost it $5.5 billion.

☆ Spirit Airlines posts loss on surge in costs, expects Florida challenges to continue
▼ + stars: | 2022-08-09 | by ( Leslie Josephs | ) www.cnbc.com time to read: +2 min

Spirit Airlines reported a second-quarter loss as strong travel demand and higher fares weren't enough to overcome a surge in costs. Spirit reported results less than two weeks after it announced it agreed to sell itself to JetBlue Airways for $3.8 billion, ending a monthslong bidding war for Spirit between JetBlue and Frontier Airlines. Miramar, Florida-based Spirit posted a net loss of $52.4 million for the three months ended June 30. In the current quarter, Spirit expects pretax margins between negative 1% and positive 1%, citing capacity constraints in Florida. Still, Spirit said it expanded flying almost 10% in the second quarter compared with the same period of 2019.

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