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In its lawsuit filed in March aimed at stopping JetBlue's purchase of Spirit, the U.S. Justice Department (DOJ) cited as evidence JetBlue's alliance with American at airports in New York and Boston several times. Calling the partnership a "de facto merger," the DOJ argued that JetBlue's proposed purchase of Spirit, a Florida-based ultra-low cost carrier, would lead to further industry concentration. On Wednesday, JetBlue CEO Robin Hayes said ending the partnership with American has taken the DOJ's "misplaced" concerns off the table and would help when the Spirit case goes to trial in October. New York-based JetBlue, however, views the Spirit deal as a way to expand its domestic footprint amid persistent labor and aircraft shortages. American, Delta (DAL.N), United (UAL.O) and Southwest Airlines (LUV.N) control nearly 80% of the U.S. airline industry.

Persons: JetBlue's, Robin Hayes, Eleanor Fox, Fox, William Kovacic, James Speta, Speta, Rajesh Kumar Singh, Diane Bartz, David Shepardson, Richard Chang Organizations: JetBlue Airways, American Airlines, Spirit Airlines, U.S . Justice Department, DOJ, Wednesday, JetBlue, American, New York University School of Law, Spirit, Former Federal Trade, George Washington University, Virgin America, Alaska Air Group, LaGuardia, Frontier Group Holdings, Northwestern University, Northeast Alliance, Southwest Airlines, U.S, Thomson Locations: CHICAGO, WASHINGTON, American, New York, Boston, Florida, Boston . New York, New, U.S, Chicago, Washington

JetBlue said it had informed American last week of its decision to terminate the three-year-old alliance, which allowed the two carriers to coordinate flights and pool revenue. The "Northeast Alliance" with JetBlue helped American compete in the New York market, where it had been losing money. On May 19, U.S. District Judge Leo Sorokin in Boston ordered JetBlue and American to end the partnership, saying it "substantially" diminished competition in the domestic market. JetBlue said its decision to unwind the alliance would not result in any immediate changes for customers. But without the alliance, Hayes said JetBlue would likely need fewer employees in New York and Boston.

Persons: judge's, U.S . Justice Department's, Robin Hayes, Andre Barlow, Doyle, Barlow, Mazard PLLC, Leo Sorokin, Hayes, Rajesh Kumar Singh, David Shepardson Diane Bartz, Will Dunham, David Gregorio, Jamie Freed Organizations: JetBlue Airways, Spirit Airlines, American Airlines, The, JetBlue, American, U.S, U.S ., US Airways, DOJ, ALLIANCE, District, Northeast Alliance, furloughs, Thomson Locations: U.S, The New York, American, New York, Boston, Chicago, Washington

☆ JetBlue decides not to appeal American Airlines alliance court ruling
▼ + stars: | 2023-07-05 | by ( Rajesh Kumar Singh | ) www.reuters.com time to read: +1 min

CHICAGO, July 5 (Reuters) - JetBlue Airways Corp (JBLU.O) said on Wednesday it will not appeal a U.S. judge's decision in May requiring it to end an alliance with American Airlines Group (AAL.O). The New York-based carrier said it will start unwinding the alliance to focus on its merger with Spirit Airlines (SAVE.N). U.S. District Judge Leo Sorokin in Boston on May 19 ordered JetBlue and American to end their "Northeast Alliance," saying the partnership "substantially" diminished competition in the domestic market. It also was a big piece of American's strategy to compete in the New York market, where it was losing money. Since the partnership started, American has ceded domestic capacity out of New York to JetBlue.

Persons: Leo Sorokin, Sorokin's, Rajesh Kumar Singh, Will Dunham, Chris Reese Organizations: JetBlue Airways Corp, American Airlines Group, The, Spirit Airlines, U.S, District, JetBlue, U.S . Justice Department, Thomson Locations: U.S, The New York, Boston, New York, American

[1/8] Delayed travelers wait for air traffic to resume at Ronald Reagan Washington National Airport ahead of the July 4th holiday weekend in Arlington, Virginia, U.S., June 30, 2023. The AAA estimates do not include Thursday, June 29, which the Federal Aviation Administration expects to be the busiest day of air travel during the holiday weekend. United Airlines (UAL.O) bore the brunt of the disruptions, with about 19% of its scheduled flights canceled and about 47% delayed. In a staff memo, he said over 150,000 United customers were affected last weekend because of FAA staffing issues and its impact on managing traffic. Still, the airline has said it would be "on track" to restore operations for the holiday weekend when it expects 5 million people to fly with it.

Persons: Ronald Reagan, Evelyn Hockstein NEW, Pete Buttigieg, Buttigieg, Scott Kirby, Doyinsola Oladipo, Rajesh Kumar Singh, Deepa Babington, Jonathan Oatis Organizations: Ronald Reagan Washington National Airport, REUTERS, AAA, Federal Aviation Administration, U.S . Transportation Security Administration, FAA, U.S ., United Airlines, Twitter, . Transportation, CNN, United, American Airlines, Thomson Locations: Ronald Reagan Washington, Arlington , Virginia, U.S, United States, Washington, U.S . East Coast, Chicago, FlightAware, New York

The AAA estimates do not include Thursday, June 29th, which the Federal Aviation Administration expects to be the busiest day of air travel during the holiday. United Airlines (UAL.O) bore the brunt of the disruptions, with about 19% of its scheduled flights canceled and about 47% delayed. The disruptions have left passengers fuming, with many United customers venting frustration on social media about long lines, delays in rebooking flights and misplaced luggage. In a staff memo, he said over 150,000 United customers were affected last weekend because of FAA staffing issues and its impact on managing traffic. American Airlines (AAL.O) expects nearly three million customers from Friday, June 30, through Tuesday, July 4, across more than 26,000 scheduled flights.

Persons: Pete Buttigieg, Buttigieg, Scott Kirby, Doyinsola Oladipo, Rajesh Kumar Singh, Deepa Babington Organizations: YORK, AAA, Federal Aviation Administration, FAA, Washington D.C, U.S ., United Airlines, Twitter, . Transportation, CNN, United, American Airlines, Thomson Locations: U.S, Washington, U.S . East Coast, Chicago, FlightAware, New York

☆ Delta lifts profit view on strong travel demand, lower fuel costs
▼ + stars: | 2023-06-27 | by ( Rajesh Kumar Singh | ) www.reuters.com time to read: +2 min

CHICAGO, June 27 (Reuters) - Delta Air Lines (DAL.N) said on Tuesday it expects full-year profit per share at the high-end of its prior forecast on sustained travel demand. Shares rose about 1% in premarket trading as the Atlanta-based carrier also lifted its expectation for annual free cash flow ahead of its investor day. But with no let-up in travel demand, mainly for overseas trips and a moderation in fuel costs, analysts have revised upwards Delta's profit estimates. In a sign of growing confidence in its ability to generate free cash flow, Delta this month reinstated its quarterly dividend, which it had suspended in March 2020 during the pandemic. The company raised its free cash flow outlook for 2023 to $3 billion compared to more than $2 billion that it had forecast earlier.

Persons: Daniel McKenzie, Stephen Trent, Rajesh Kumar Singh, Shivansh, Jamie Freed, Arun Koyyur Organizations: Delta Air Lines, Delta, Seaport Research Partners, Citi, Thomson Locations: Atlanta, U.S, North America

Union workers missed out on a frenzy of wage increases by employers desperate for workers during the height of the COVID-19 pandemic. Low unemployment makes it easier for union workers to stand firm during negotiations. Union workers also want more affordable healthcare, paid sick time and more-flexible scheduling for greater work-life balance. Some workers said the base wage increase was insufficient and balked at higher out-of-pocket medical costs. Late last year, U.S. freight railroad workers rejected a five-year contract that included a 24% wage increase, citing lack of paid sick leave.

Persons: Diane Swonk, Erin McLaughlin, Willie Adams, Sam Johnson, Johnson, Joe Biden, Todd Vachon, Garth Thompson, Lisa Baertlein, Bianca Flowers, Rajesh Kumar Singh, David Gregorio Our Organizations: Workers, Spirit, Deere & Co, Reuters, KPMG, Conference Board, Conference, . West, International Association of Machinists, Aerospace Workers, Caterpillar, Congress, Unions, Union, CNH, Deere, Midwest, Rutgers, United Parcel Service, International Brotherhood of Teamsters, United Auto Workers, Detroit automakers, General Motors, Ford, FedEx, American Airlines, Pilots, United, United Airlines, Thomson Locations: U.S, . West Coast, Wichita , Kansas, Decatur , Illinois, Wisconsin, Iowa, West, Los Angeles, Chicago

May 31 (Reuters) - American Airlines Group (AAL.O) will appeal a U.S. court decision requiring it to end an alliance with JetBlue Airways Corp (JBLU.O), American CEO Robert Isom said on Wednesday. "We've got a legal system that allows for appeal, and we're going to do that," Isom told the Bernstein Conference. American is the largest U.S. airline by fleet size and low-cost carrier JetBlue is the sixth largest. Even as the Texas-based carrier prepares to appeal the ruling, Isom said it will have to work with the Justice Department and JetBlue to figure out what it does in the interim. American, which reiterated its full-year profit forecast Wednesday, doesn't expect the court ruling to have a material impact on its earnings.

Persons: Robert Isom, Leo Sorokin, We've, Isom, Sorokin, Joe Biden's, doesn't, Rajesh Kumar Singh, David Shepardson, Diane Bartz, Deepa Babington, Lisa Shumaker Organizations: American Airlines Group, JetBlue Airways Corp, . U.S, District, Bernstein Conference, JetBlue, U.S . Justice Department, U.S, Justice Department, Thomson Locations: U.S, American, ., Boston, New York, Texas, Chicago, Washington

The White House, which said in January that it had received the application to jointly produce the engines in India, declined to comment. Washington maintains strict controls over what domestic military technology can be shared or sold to other countries. India is keen to get the know-how to make aircraft engines. Though it can manufacture fighter jets domestically, it lacks the ability to produce engines to power them. However, India intends to produce more than 350 fighter jets for its air force and navy over the next two decades, which could be powered by the GE 414.

Persons: Biden, Joe Biden, Narendra Modi, Trevor Hunnicutt, Krishn Kaushik, Rajesh Kumar Singh, Heather Timmons, Jamie Freed Organizations: WASHINGTON, General Electric Co, Indian, GE, Hindustan Aeronautics Ltd, HAL, U.S . Congress, Thomson Locations: DELHI, India, Washington, Russia, New Delhi, Ukraine, India's, United States, Chicago

The Allied Pilots Association (APA), which represents over 13,000 pilots at Texas-based American, said on Friday it will move forward with completing contractual language before presenting the contract to its board for an approval. The sources said the contract lasts four years with pay rates comparable to those secured by pilots at Delta Air Lines (DAL.N). Delta's pilots in March ratified their contract which includes over $7 billion in cumulative increases in pay and benefits over four years. It underscores pilots' bargaining power as airlines rush to boost staff numbers ahead of what is shaping up to be a busy summer travel season. American, Delta, United Airlines (UAL.O) and Southwest Airlines (LUV.N) are estimated to hire about 8,000 pilots this year.

☆ American Airlines pilots to get 21% pay raise this year in tentative contract -sources
▼ + stars: | 2023-05-19 | by ( ) www.reuters.com time to read: 1 min

CHICAGO, May 19 (Reuters) - Pilots at American Airlines (AAL.O) will get a 21% pay raise this year as part of a new four-year tentative contract, three sources with direct knowledge of the matter said on Friday. The Allied Pilots Association (APA), which represents American's pilots, on Thursday said it has agreed in principle on a new contract. Reporting by Rajesh Kumar Singh and Allison Lampert; Editing by Leslie AdlerOur Standards: The Thomson Reuters Trust Principles.

☆ American Airlines pilots to get 21% pay raise this year in tentative contract
▼ + stars: | 2023-05-19 | by ( ) www.reuters.com time to read: 1 min

CHICAGO, May 19 (Reuters) - Pilots at American Airlines (AAL.O) have reached an agreement in principle on a new contract, their union said on Friday. The Allied Pilots Association (APA), which represents over 13,000 pilots at the Texas-based carrier, said it will move forward with completing contractual language of the contract before presenting it to its board for an approval. The deal comes over two months after Delta's pilots ratified their contract that includes over $7 billion in cumulative increases in pay and benefits over four years. It underscores the bargaining power pilots are enjoying as airlines rush to boost staff numbers ahead of what is shaping up to be a busy summer travel season. American, Delta, United Airlines (UAL.O) and Southwest Airlines (LUV.N) are estimated to hire about 8,000 pilots this year.

☆ US airlines thrown a curveball as consumer habits change post-pandemic
▼ + stars: | 2023-05-10 | by ( Rajesh Kumar Singh | ) www.reuters.com time to read: +5 min

Even as the thirst for travel remains strong, the changing trends are driving up airlines' operating costs and hurting revenue. Travel demand has also softened on days in the middle of the week, but has strengthened on peak days. Frontier Airlines (ULCC.O) decided to slash flights on Tuesdays and Wednesdays by about 20%, citing weak demand. Delta Airlines (DAL.N) reported that bookings for trips inside 30 days were declining, while those outside 30 days were stronger. Last year, it denied boarding to more customers than American Airlines (AAL.O) and United, U.S. Transportation Department data shows.

"That's what we are looking towards as we are working with our pilots union to get a deal done." American Airlines, United Airlines (UAL.O) and Southwest Airlines (LUV.N) are all in the middle of contract negotiations with their pilots. The carrier's pilot union said it made no concessions in the deal, which included dozens of work-rule improvements and quality-of-life related items. In an update to its members this week, United's pilot union said it is seeking similar improvements. Casey Murray, head of the Dallas-based airline's pilot union, said it has lost more pilots in the first four months of this year than it did in all of 2022.

The Dallas-based carrier has blamed the hour-long outage on a vendor-supplied network firewall failure, causing a temporary loss of connection to key systems. Southwest told Reuters on Wednesday it opted to halt flights out of caution, adding there were no indications of a cyber attack. It declined to identify the vendor and did not address why this failure was not part of the company's planning. While the exact cause is not clear, some industry experts questioned why Southwest systems did not include more redundancy. Southwest was able to manually launch flights while SWIFT was down but decided to suspend departures at 8:27 a.m. CST.

REUTERS/Jim VondruskaApril 18 (Reuters) - Southwest Airlines Co's (LUV.N) said a technology failure caused a one-hour nationwide stoppage of its flights on Tuesday, another snafu for the carrier after a software problem over the Christmas holiday stranded thousands. The Dallas-based carrier's flights resumed after a vendor-supplied computer network firewall went down Tuesday morning and connection to some operational data was "unexpectedly" lost. Data from flight tracker FlightAware showed 47% of Southwest's flights were delayed as of late afternoon on Tuesday. "This is another demonstration that Southwest Airlines needs to upgrade their systems and stop the negative impacts to individual travelers,” said Senator Maria Cantwell in a statement. The FAA had to halt flights nationwide in January due to a systems outage.

☆ United Airlines reports smaller-than-expected quarterly loss
▼ + stars: | 2023-04-18 | by ( ) www.reuters.com time to read: 1 min

CHICAGO, April 18 (Reuters) - United Airlines Holdings (UAL.O) on Tuesday reported a smaller-than-expected loss in the first quarter, helped by higher capacity and lower operating costs. Its adjusted loss for the quarter through January came in at 63 cents a share, compared with analysts' expectations for a loss of 73 cents, according to Refinitiv data. The Chicago-based carrier said it expects a profit of $3.50-$4 a share in the second quarter. That compares with analysts' estimates of $3.65 a share, according to a Refinitiv survey. Reporting by Rajesh Kumar Singh; Editing by David GregorioOur Standards: The Thomson Reuters Trust Principles.

The extrajudicial killing has sparked widespread concern about the state of law and order in Uttar Pradesh as well as fears of retaliation. A decade later, he was elected as a member of Uttar Pradesh’s legislative assembly where he served five times, from 1989 to 2004. Police in Uttar Pradesh have killed more than 180 suspected criminals during encounters over past six years, according to Reuters. “The shoot out that happened is unacceptable.”CNN reached out to Uttar Pradesh police for comment on the situation but did not receive a response prior to publication. A political flashpointFollowing the incident, the Uttar Pradesh state government announced it will form two three-member Special Task Forces (SIT) to investigate the killing of Atiq and his brother.

CHICAGO, April 13 (Reuters) - Delta Air Lines (DAL.N) on Thursday posted weaker-than-expected earnings in the first quarter, hit by a severe winter storm that drove up operational expenses for the carrier. CEO Bastian said on a post earnings call that Delta expects to bring down non-fuel costs in the second half of the year. For the June quarter, Delta expects its revenue to rise 15% to 17% from a year earlier on capacity growth of 17%. "We're growing supply at that level and not seeing a deterioration in the overall revenue," Bastian said. Delta expects an adjusted profit of $2.00 to $2.25 per share in the second quarter, with an operating margin of 14% to 16%.

☆ Delta Air Lines' profit miss on higher fuel costs clouds strong forecast
▼ + stars: | 2023-04-13 | by ( Rajesh Kumar Singh | ) www.reuters.com time to read: +3 min

CHICAGO, April 13 (Reuters) - Delta Air Lines (DAL.N) on Thursday forecast higher-than-expected profit for the current quarter, citing "record" bookings for summer travel, even as the carrier missed first-quarter profit estimates due to higher fuel and labor costs. Rivals American Airlines and United Airlines were down about 1%. American Airlines (AAL.O) on Wednesday forecast first-quarter profit below market expectations, joining rival United Airlines (UAL.O) in signaling a hit from higher costs. U.S. carriers have tried to leverage travel demand with higher ticket prices to offset rising labor and fuel bills. For the June quarter, Delta expects its revenue to rise 15% to 17% from a year earlier on capacity growth of 17%.

☆ Delta Air offers bullish outlook on international travel demand
▼ + stars: | 2023-04-13 | by ( Rajesh Kumar Singh | ) www.reuters.com time to read: +3 min

CHICAGO, April 13 (Reuters) - Delta Air Lines (DAL.N) on Thursday forecast higher-than-expected profit for the second quarter, citing "record" bookings for summer travel, including strong demand for international trips. "Consumers are anxious to travel," he said, adding that demand for international travel was especially strong this summer and travelers were booking trips well in advance. Travel demand in the United States is currently strong but rising interest rates, persistently high inflation, mounting job losses and a turmoil in the banking industry have cast a shadow over consumer spending. Delta expects an adjusted profit of $2.00 to $2.25 per share in the second quarter, with an operating margin of 14% to 16%. Delta retained its full-year earnings forecast after reporting adjusted profit for the first quarter of 25 cents a share, below 30 cents a share expected by analysts.

☆ Delta bets on premium travel as 'shock absorber' for economic downturn
▼ + stars: | 2023-04-12 | by ( Rajesh Kumar Singh | ) www.reuters.com time to read: +6 min

[1/5] Delta Airlines passenger jets are pictured outside the newly completed 1.3 million-square foot $4 billion Delta Airlines Terminal C at LaGuardia Airport in the Queens borough of New York City, New York, U.S., June 1, 2022. REUTERS/Mike SegarCHICAGO, April 12 (Reuters) - Delta Air Lines (DAL.N) is doubling down on more profitable premium travel as it looks to shore up its defenses against an economic downturn. Chief Executive Ed Bastian told Reuters the U.S. carrier will have premium seats on every plane it flies starting this summer. Rivals United Airlines (UAL.O) and American Airlines (AAL.O) are also chasing premium revenue. CHANGING TRAVEL PATTERNSThe quest for premium revenue has its underpinnings in the post-pandemic travel patterns.

☆ Elasticity of travel demand in focus as U.S. carriers report earnings
▼ + stars: | 2023-04-11 | by ( Rajesh Kumar Singh | ) www.reuters.com time to read: +2 min

CHICAGO, April 11 (Reuters) - Major U.S. airlines are expected to reiterate the strength of travel demand when earnings season gets underway later this week. Pent-up travel demand as well as constrained airline capacity due to shortages of aircraft, spare parts, and labor have, thus far, allowed the industry to avoid the fallout from a slowdown in the broader economy. Chief executives of major carriers last month rushed to reassure jittery investors after a profit warning from United Airlines (UAL.O) stoked worries about the industry's pricing power. The industry has been leaning on soaring consumer demand to mitigate higher labor and fuel costs with higher fares. "The price elasticity of demand over economic cycles will be the ultimate arbiter of the industry's ability to cover increasing costs," Moody's said.

☆ Southwest Airlines CEO receives higher bonus despite holiday meltdown
▼ + stars: | 2023-04-06 | by ( Rajesh Kumar Singh | ) www.reuters.com time to read: +1 min

In February, the company said executive bonuses would be cut as a result of the meltdown. Jordan received $195,720 in bonus payout, up 89% from a year ago, according to a regulatory filing. The Dallas-based carrier also paid a higher bonus to Chief Operating Officer Andrew Watterson. Jordan served as executive vice president until Feb 1, 2022, when he became the company's CEO. Watterson served as chief commercial officer through last September.

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