Airline Finance News - North America.

 
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Feb 4, 2008

Air Transport Assn. said the US airline cost index in the third quarter of 2007 was up 0.2% from the year-ago period. The consumer price index rose 2.4% over the same period, ATA said. Fuel, which accounted for 25.9% of expenses, rose 1.6% to $2.11 per gal. Unit operating cost per ASM was unchanged at 12.49 cents. "The slowing economy and sky-high fuel prices are putting tremendous pressure on US airlines to reduce nonfuel costs. Fortunately, in the third quarter, a record load factor of 83% helped US airlines offset the 91% increase in costs they have seen since 2000," ATA Chief Economist John Heimlich said. Jan 30, 2008

Mergers meet countless challenges. Airlines that hope to benefit from mergers must pass antitrust scrutiny, integrate systems effectively and blend their workforces. Pilots at US Airways are still arguing over the seniority list two years after it combined with America West. Jan 29, 2008

Mergers would allow airlines to trim capacity, raise fares and slash expenses, providing a boost to shares. The Bloomberg U.S. Airlines Index fell 36 percent in 2007 as jet fuel for immediate delivery in New York Harbor jumped 53 percent. Jan 29, 2008

AirTran Airways

AirTran more than triples full-year profit on strong revenue performance. AirTran Airways reported net income of $52.7 million for 2007, more than triple a $14.7 million profit earned in the prior year, on a 22.1% boost in revenue to $2.31 billion. Jan 30, 2008

AirTran Holdings

AirTran could profit from a Northwest-Delta merger. The low-cost carrier could grab new slots and expand domestic capacity. AirTran Holdings Inc. would likely benefit from a Northwest-Delta merger, which would trim excess domestic capacity, reduce competition and open up time slots to some of the nation's busiest airports, the low-cost carrier's chief financial officer said on Tuesday. In an interview with MarketWatch, AirTran CFO Stanley Gadek said Northwest and Delta are currently the No.1 and No. 3 airlines for route coverage between the markets the Orlando, Fla.-based carrier serves. Jan 29, 2008

Alaska Air Group

Alaska Air Group is not interested in participating in the consolidation rumored to be facing the US commercial aviation industry. "For us, the best future appears to be to remain independent," AAG Chairman Bill Ayer told The News Tribune. Jan 31, 2008

Alaska Airlines

Alaska Airlines flew 1.56 billion RPMs in December, up 6.3% from the year-ago month, against a 5.2% increase in capacity to 2.06 billion ASMs. Load factor rose 0.7 point to 75.8%. Jan 30, 2008

Allegiant Air

Allegiant finds recipe for success, more than triples full-year profit. Allegiant Air parent Allegiant Travel Co. appears to have found the right formula in the congested US market as efforts to develop ancillary revenue streams and expansion into high-demand leisure markets helped produce a $31.5 million full-year profit, more than triple the $8.7 million earned in 2006. Full-year operating revenue soared 48.2% to $360.6 million as Allegiant added service to Phoenix, Mesa and Fort Lauderdale and increased its MD-80 fleet to 32 aircraft from 24. Ancillary revenue per passenger rose 33.6% year-over-year to $21.53. Expenses climbed 43.4% to $316.5 million and operating profit nearly doubled to $44.1 million from $22.6 million. Jan 31, 2008

Allegiant Air

Allegiant Air flew 321.1 million RPMs in December, a 55% increase from the year-ago month. Capacity climbed 51.6% to 413 million ASMs and load factor rose 1.7 points to 77.7%. Jan 30, 2008

American Airlines

American Airlines Pilots Rebuffed. Federal mediators have rejected a union request to referee the labor contract talks between American Airlines and its pilots. The union said late Wednesday that it got written notice of the decision from the National Mediation Board. Lloyd Hill, president of the Allied Pilots Association, said he was disappointed by the decision. He said despite the union's best efforts, it had been unable to settle any contract issues with management in more than a year and a half of talks. The union represents 12,000 pilots at American, the nation's largest airline...

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