EARNINGS REPORT
Rising fuel costs bring airline to massive downturn despite sales increase
Wall Street Journal Apr 23, 08 7:46 AM CDT
(Newser)
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Staggering fuel prices overwhelmed a 12% sales increase and pushed Delta Air Lines to a $274-million loss in the first quarter, which ballooned to $6.39 billion on a $6.1-billion non-cash charge reflecting a decline in its market value. Excluding special items—including the bankruptcy-related charge—the airline lost 69 cents a share; analysts had expected 49 cents a share, the Wall Street Journal reports.
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Berlusconi scrambles as bankruptcy looms for Italian carrier
Wall Street Journal Apr 22, 08 6:37 AM CDT
(Newser)
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Air France-KLM has withdrawn its offer to buy Alitalia, leaving the cash-poor Italian carrier with few options. In a tersely worded statement, the world's largest airline said its Alitalia overture—which had been opposed by Alitalia's unions—was "no longer valid." With no suitors forthcoming and cash reserves dwindling—the airline loses $1.6 million a day—Alitalia may be forced to declare bankruptcy, writes the Wall Street Journal .
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Safety guidelines unclear and unfair, company says
New York Times Apr 19, 08 3:03 PM CDT
(Newser)
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American Airlines is tired of taking the heat for 2,000 flight cancellations that travelers endured last week, the New York Times reports. The once-contrite company is now criticizing the FAA, saying its new safety guidelines are unclear and unfair. “We don’t know what the rules are,” said an American technical crew chief. The company says its safety issues were minor deviations from technical standards that had been considered acceptable for years, and could have been fixed gradually.
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Carriers add up to 50% to flight times as congestion adds to ground, air delays
USA Today Apr 18, 08 11:33 AM CDT
(Newser)
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Air travel is the slowest it's been in the past 20 years, thanks to increased congestion both on the runway and in the air. A flight from Las Vegas to New York took 4 hours, 37 minutes in 1988, but that same route now requires over 6 hours, reports USA Today. And don't expect things to improve any time soon.
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Feds double amount passengers can receive over overbooked planes
Los Angeles Times Apr 16, 08 6:09 PM CDT
(Newser)
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Passengers who get bumped off overbooked flights will be eligible for up to $800 for their inconvenience, the Los Angeles Times reports. The US Department of Transportation today doubled the amount passengers can receive, with the exact figure depending upon the ticket price and how long it takes passengers to reach their intended destination. The rule goes into effect next month.
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Delta-Northwest deal likely to spark more consolidation
Houston Chronicle Apr 15, 08 4:11 AM CDT
(Newser)
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The Delta-Northwest merger will create the world's biggest airline—but that title could fall before the ink is even dry on the deal as industry pressures force other carriers into shotgun weddings, the Houston Chronicle reports. Analysts believe United and Continental would be a good match and a deal between the two is widely expected, possibly in a matter of weeks.
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But pilot dispute could put deal on the skids
Wall Street Journal Apr 13, 08 3:40 PM CDT
(Newser)
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Delta and Northwest Airlines are readying a merger that could be announced as soon as Tuesday, reports the Wall Street Journal . But disputes over the deal’s financial terms and handling of pilot seniority threaten to scuttle the union. Negotiations between the two carriers broke down last week but were revived this weekend with the hope of reaching an agreement by tomorrow.
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There are some things passengers can do to take control of their airport fates
CNN Apr 11, 08 12:06 PM CDT
(Newser)
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With customer complaints up 60% and operational performance at an all-time low, it's not a good time for the airline industry—or its passengers. CNN offers these tips to fractious fliers: Research, research, research: Check out airline performance at FlightStats.com or FlightAware.com before buying your ticket, book a flight during an airport’s least congested times (midday or late night).
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Company says it expects to be back in full operation by Saturday
New York Times Apr 10, 08 6:55 PM CDT
(Newser)
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American Airlines plans to cancel another 570 flights tomorrow, providing little relief for passengers in a jam after three consecutive days of massive snarls, the AP reports. The airline, however, said it was making progress getting wiring up to snuff on its MD-80s and planned to have the entire fleet of 300 planes back in the sky by Saturday, the New York Times notes.
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Agency's renewed inspection efforts long overdue, sweeping changes needed
Wall Street Journal Apr 10, 08 2:26 PM CDT
(Newser)
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The Federal Aviation Administration is too lax, and its recent toughening-up long overdue, the Transportation Department’s inspector general Calvin Scovel told senators today. The agency should not rely, as it has until recently, on airlines to voluntarily disclose safety oversights, and shouldn’t provide loopholes for the appropriate penalties when they do, according to the Wall Street Journal .
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Crackdown will continue through June 30
Wall Street Journal Apr 10, 08 9:54 AM CDT
(Newser)
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Air travelers should brace themselves for several more months of chaos: the wave of FAA audits that began March 30, producing more than 2,000 canceled flights this week, will continue through June 30. In an effort to toughen enforcement of safety standards, the agency has moved to relying less on data provided by the airline themselves and more on on-site inspections, the Wall Street Journal reports.
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Continued passenger
misery ahead as
safety work continues
New York Times Apr 9, 08 11:45 PM CDT
(Newser)
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American Airlines expects to cancel 900 more flights today as the airline works to bring its MD-80 aircraft up to FAA standards, the New York Times reports. Thousands more travelers will be stranded at airport hubs, and the problem could spill into tomorrow. American is just the latest airline to be hit with groundings under the more aggressive FAA audits, and more are expected industry-wide in the weeks ahead.
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UPDATED
FAA concerns over wiring issues prompt second voluntary round of cancellations
Wall Street Journal Apr 9, 08 12:34 PM CDT
(Newser)
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American Airlines has now canceled more than 1,000 flights as it inspects wires in its 300 MD-80 aircraft, the Wall Street Journal reports. The Federal Aviation Administration raised concerns about recent inspections of the wiring, the same issue that grounded more than 400 flights last month. The process, which began yesterday, could stretch past tomorrow and affect half of American's schedule.
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