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☆ US watchdog to review FAA efforts to prevent runway incursions
▼ + stars: | 2023-07-06 | by ( David Shepardson | ) www.reuters.com time to read: +2 min

WASHINGTON, July 6 (Reuters) - A U.S. government watchdog will review Federal Aviation Administration (FAA) efforts to prevent airport runway incursions after a series of incidents where airplanes came dangerously close to each other. The U.S. Transportation Department Office of Inspector General (OIG) said it was opening its audit to assess FAA processes for analyzing data, identifying risks and preventing and mitigating runway incursions. The National Transportation Safety Board (NTSB) is investigating six runway incursion events since January including some near catastrophes. In March, the FAA said it was taking steps to improve air traffic control, convening a safety summit and issuing a safety alert. In April, it named an independent safety review team and in June announced $100 million for 12 airports to make improvements to taxiways and lighting to reduce runway incursions.

Persons: Jennifer Homendy, OIG, David Shepardson, David Gregorio Our Organizations: U.S, Federal Aviation Administration, FAA, U.S . Transportation Department, National Transportation Safety Board, OIG, FedEx, Southwest Airlines, Boeing, FedEx plane's, Delta Air Lines, American Airlines, Thomson Locations: Austin , Texas, Boston , Florida, New, JFK

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

☆ Explainer: Why U.S. labor unions are gaining leverage in contract talks with big employers
▼ + stars: | 2023-07-05 | by ( Aishwarya Nair | ) www.reuters.com time to read: +3 min

July 5 (Reuters) - U.S. union workers are finding more solid footing during contract negotiations with employers as a tight labor market allows employees to flex more bargaining power. Airline pilots, railroad employees, dockworkers, and others have pushed for higher pay and better benefits, rebuffing offers from companies that in some contracts appeared significant. The two on Wednesday accused each other of walking away from negotiations over a new contract. WHAT ARE SOME NOTABLE UPCOMING CONTRACT NEGOTIATIONS? Among U.S. airlines, Southwest Airlines (LUV.N) is yet to reach an agreement with its pilots union.

Persons: Joe Biden, Aishwarya Nair, Sriraj Organizations: Airline, United Parcel Service, Teamsters Union, Congress, Unions, United Auto Workers ', UAW, Detroit, Stellantis, General Motors Co, Ford Motor, U.S, Southwest Airlines, Southwest Airlines Pilots Association, Thomson Locations: Washington, Bengaluru

☆ Virgin Galactic defies gravity
▼ + stars: | 2023-06-16 | by ( ) www.reuters.com time to read: +2 min

NEW YORK, June 16 (Reuters Breakingviews) - The Virgin Galactic (SPCE.N) countdown has begun. Richard Branson’s space tourism company said on Thursday it plans to launch its first commercial flight within days. Virgin Galactic also depends on there being enough people willing to pay $450,000 for a few minutes in weightlessness. If Virgin Galactic could carry six passengers a week, and earn a 20% EBITDA margin, it would someday generate about $30 million of such earnings. For a company that has so badly missed previous projections, it’s Virgin Galactic’s valuation that is out of this world.

Persons: Richard, Jeff Bezos, Elon Musk, Robert Cyran, Jeffrey Goldfarb, Streisand Neto Organizations: YORK, Reuters, Virgin, Galactic, Origin, SpaceX, Southwest Airlines, Twitter, Thomson Locations: Cava

☆ Delta Air Lines resumes dividend suspended in 2020 during pandemic
▼ + stars: | 2023-06-15 | by ( ) www.reuters.com time to read: +1 min

June 15 (Reuters) - Delta Air Lines (DAL.N) said on Thursday it would pay a quarterly dividend, resuming a payout that the carrier had suspended in March 2020 during the COVID-19 pandemic. In December, Southwest Airlines (LUV.N) became the first major U.S. airline to reinstate its quarterly dividend, more than two years after suspending it in the wake of the pandemic. The move comes as Delta forecast that strong summer travel demand will result in higher-than-expected profit for the quarter through June. Delta Air Lines received $11.9 billion in U.S. assistance. In March 2020, Delta paid a $0.4025 share dividend, which was its 27th consecutive dividend at the time.

Persons: Aishwarya Nair, David Shepardson, Savio D'Souza, Alexander Smith Organizations: Delta Air Lines, U.S, Southwest Airlines, Delta, Thomson Locations: Bengaluru, Washington

The growth in bookings is largely driven by pent-up demand from loyal customers returning to taking summer vacations and other leisure travel, said the analysts. JPMorgan upgraded Carnival shares to "overweight", while Bank of America raised its rating on the stock to "buy", and the analysts raised their price targets on all the three cruise companies. Carnival shares rose 14% to a more than 1-year high in early trading on Monday while Norwegian Cruise gained nearly 8%. The S&P 500 Hotels Resorts & Cruise Lines Sub-Industry Index was up 0.9% led by gains in cruise stocks. Commercial airline shares were also making gains on Monday amid falling crude oil prices and growth in demand for seats.

Persons: Chibuike Oguh, Granth Vanaik, Stephen Culp, Lance Tupper, David Gregorio Our Organizations: YORK, Carnival Corp, Cruise Line Holdings, JPMorgan, Bank of America Global Research, Carnival, Royal Caribbean Cruises, Bank of America, Norwegian Cruise, Royal, Hotels Resorts, Cruise, Southwest Airlines, Hawaiian Holdings, American Airlines, Thomson Locations: Royal Caribbean, New York

☆ A former Southwest employee was charged with selling $1.9 million in fake travel vouchers
▼ + stars: | 2023-06-08 | by ( Bianca Giacobone | ) www.businessinsider.com time to read: +2 min

A former Southwest employee created and sold fake travel vouchers, according to a June 5 indictment. The airline usually issues Southwest Luv Vouchers to customers affected by delays and other circumstances. Between February and June 2022, the former employee allegedly created vouchers for a value of nearly $2 million. A customer service representative for Southwest Airlines at Midway Airport in Chicago when he allegedly created and sold fraudulent travel vouchers for a value of nearly $2 million. Federal prosecutors allege that Martin, who worked at Southwest from November 2018 to June 2022, used his employee credentials to create fake customer names and generate fake travel vouchers of the kind Southwest issues to customers who have experienced delays, cancellations, and other unfortunate circumstances.

Persons: DaJuan Martin, Ned Brooks, Martin, Brooks, Mr, Jonathan Bedi, Martin's, John Legutki Organizations: Southwest, Morning, Southwest Airlines, Midway Airport Locations: Chicago

Canada's largest carrier had said earlier that an issue with its communicator system had resulted in flight delays across its system. "Air Canada’s operations are stabilizing and flights are departing," the airline said Thursday afternoon. Air Canada did not describe the specific issue but said Thursday's glitch was unrelated to the one last week. "Air Canada will continue to work with the manufacturer to ensure stability in the system in the future." "We’re now working our way back to normal operations," Spirit said in an emailed statement.

Persons: We’re, Allison Lampert, Ismail Shakil, David Shepardson, David Gregorio, Mark Porter Organizations: Air Canada, Canada, Southwest Airlines Co, Spirit Airlines, Thomson Locations: MONTREAL, Montreal, Ottawa, Washington

☆ Boeing says certification of 737 MAX 7 is taking 'considerable amount of time'
▼ + stars: | 2023-05-31 | by ( ) www.reuters.com time to read: +1 min

[1/2] Employees are pictured as the first Boeing 737 MAX 7 is unveiled in Renton, Washington, U.S. February 5, 2018. REUTERS/Jason Redmond/File PhotoCHARLESTON, South Carolina, May 31 (Reuters) - The certification of the Boeing 737 MAX 7 is taking a "considerable amount of time" due to new documentation requirements, but the company still believes it can be certified by the end of the year, a Boeing Co (BA.N) official said on Wednesday. Both the MAX 7 and MAX 10 are seen as critical for Boeing to compete against Airbus SE (AIR.PA) for orders at the top and bottom of the narrowbody markets. The planemaker is also "close" to receiving FAA approval to begin certification flights of its new 737 MAX 10, Fleming told reporters. Certification of that aircraft is still projected to occur in 2024, but will depend on when Boeing is approved to begin those flights, he said.

Persons: Jason Redmond, Mike Fleming, Boeing's, Fleming, Valerie Insinna, Richard Chang, Matthew Lewis Organizations: Boeing, REUTERS, Boeing Co, Airbus, Southwest Airlines Co, Federal Aviation Administration, Thomson Locations: Renton , Washington , U.S, CHARLESTON, South Carolina, Charleston , South Carolina

[1/2] An American Airlines Airbus A321-200 plane takes off from Los Angeles International airport (LAX) in Los Angeles, California, U.S. March 28, 2018. In his ruling, U.S. District Judge Leo Sorokin said the partnership "substantially diminishes competition in the domestic market for air travel." Garland said the Justice Department will continue to protect competition and enforce U.S. antitrust laws across industries, including the airline industry. The judge gave the airlines 30 days to end the alliance. TD Cowen analyst Helane Becker said she believes the American JetBlue ruling "has negative implications for the JetBlue/Spirit merger."

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.

In his ruling, U.S. District Judge Leo Sorokin said the partnership "substantially diminishes competition in the domestic market for air travel." American is the largest U.S. airline by fleet size and low-cost carrier JetBlue is the sixth-largest. The Justice Department did not immediately respond to a request for comment. The judge gave the airlines 30 days to end the alliance. TD Cowen analyst Helane Becker said she believes the American JetBlue ruling "has negative implications for the JetBlue/Spirit merger."

☆ 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.

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.

☆ FedEx pilots vote in favor of strike in push for pay rise
▼ + stars: | 2023-05-17 | by ( Nathan Gomes | ) www.reuters.com time to read: +2 min

May 17 (Reuters) - Pilots of FedEx Corp's (FDX.N) air delivery unit on Wednesday voted "overwhelmingly" in favor of a strike if needed, the Air Line Pilots Association said as it enters the final stages of a contract negotiation with the company. With aviators in short supply and air travel demand booming, pilots are enjoying enhanced bargaining power, encouraging them to push for better contracts with airlines and parcel firms. 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, by the pilots of FedEx Express. "We are still in productive negotiations with our pilots under the supervision of a government-appointed mediator and will return to the bargaining table next week," FedEx said in a statement. Pilots' union at Southwest Airlines Co (LUV.N) too had recently backed a strike mandate ahead of the busy summer travel season.

☆ FedEx Express pilots vote in support of strike, union says
▼ + stars: | 2023-05-17 | by ( ) www.reuters.com time to read: +2 min

May 17 (Reuters) - Pilots of FedEx Express, a unit of FedEx Corp (FDX.N), have voted "overwhelmingly" in support of a strike, the Air Line Pilots Association (ALPA) said on Wednesday. From over 97% of members who participated in the vote, 99% authorized union leaders to call a strike, if needed, to achieve a new contractual agreement with the delivery firm. FedEx pilots are currently working under contractual provisions and benefits arrived at in 2015, after negotiations for a new agreement began in 2021. Earlier this month, Southwest Airlines Co's (LUV.N) pilots union said its members had approved a strike mandate by an overwhelming majority ahead of the busy summer travel season. If either side declines, both parties enter a 30-day "cooling off" period, after which pilots and management can engage in self-help - a strike by the union or a lockout by management.

[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.

☆ 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.

The U.S. Department of Transportation did not specify how much cash it aims to require airlines to pay passengers for significant delays. But it asked carriers last year whether they would agree to pay at least $100 for delays of at least three hours caused by airlines. A July 2021 proposal to require airlines to refund consumers fees for baggage that is delayed, or onboard service like Wi-Fi that do not work, are still not finalized. The Transportation Department said it plans to write regulations that will require airlines to cover expenses such as meals and hotels if carriers are responsible for stranding passengers. In October, Reuters first reported major U.S. airlines opposed Transportation Department plans to update its dashboard to show whether carriers would voluntarily compensate passengers for lengthy delays within airlines' control.

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.

It is the latest in a series of moves by the Biden administration to crack down on airlines and bolster passenger consumer protections. "When an airline causes a flight cancellation or delay, passengers should not foot the bill,” U.S. Transportation Secretary (USDOT) Pete Buttigieg said in a statement. Most carriers voluntarily committed in August 2022 to providing hotels or meals but resisted providing cash compensation for delays. The Biden administration has sparred with U.S. airlines over who was to blame for hundreds of thousands of flight disruptions last year. In October, Reuters first reported major U.S. airlines opposed USDOT plans to update its dashboard to show whether carriers would voluntarily compensate passengers for lengthy delays within airlines' control.

"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.

☆ Southwest sees 'solid' Q2 profit, flags 20 fewer jet deliveries from Boeing
▼ + stars: | 2023-04-27 | by ( ) www.reuters.com time to read: +2 min

April 27 (Reuters) - Southwest Airlines Co (LUV.N) said on Thursday it expects "solid profits" in the current quarter on strong summer bookings, and flagged 20 fewer deliveries of the MAX jets this year from Boeing Co (BA.N). Delay in MAX deliveries is expected to increase operating costs for airlines and limit their ability to meet travel demand, hitting revenue. The company expects "solid profits" in the second quarter as well as the full year, but did not provide specific numbers. Analysts polled by Refinitiv expect an adjusted profit per share of $1.05 for the second quarter and $2.73 for 2023. "Travel demand and revenue trends in March were strong and resulted in solid profitability for the month," Jordan added.

☆ Big Tech earnings, crucial inflation call — here comes the biggest week of earnings season
▼ + stars: | 2023-04-22 | by ( Zev Fima | ) www.cnbc.com time to read: +9 min

Stocks stuck to a holding pattern this week as investors brace for an incoming wave of Big Tech earnings and the Fed's favorite inflation reading. Earnings reports have generally been better than expected so far this first quarter. Humana (HUM) reports before the bell Wednesday; Meta Platforms and Pioneer Natural Resources (PXD) report after the bell Wednesday. ET: Personal Spending & Income (includes PCE Price Index) Club trades this week Just one trade: We added 150 shares of Coterra Energy (CTRA) on Wednesday. As a subscriber to the CNBC Investing Club with Jim Cramer, you will receive a trade alert before Jim makes a trade.

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.

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