Airline Finance News - North America.


Dec 10, 2007

Analysts say traffic trends suggest slowdown. Recent forecasts from major carriers suggest that airlines' domestic revenue growth will slow next year. Dec 6, 2007

Pressure on US airlines to merge is mounting as high fuel costs and weakening domestic travel demand threaten to destabilize freshly restructured carriers, senior airline executives said this week. Airlines will have a hard time passing fuel expenses to customers through higher fares in a softening economy, senior executives of American Airlines parent AMR, parent of United Airlines UAL, Delta Air Lines and US Airways said at the Reuters Aerospace and Defense Summit. Delta's Chief Financial Officer Edward Bastian said Delta remains confident in its future as a stand-alone company, but the current economic environment poses unforeseen threats that make the airline consider alternatives. Dec 6, 2007

Lawmaker hopes to get pilot-retirement bill passed before year's end. The FAA reauthorization bill includes a provision that would raise the retirement age for commercial airline pilots to 65. That bill is unlikely to pass before Congress adjourns, so one lawmaker is taking steps to get the retirement provision passed before the end of the year. Dec 5, 2007

Carriers scale back January capacity. Despite strong demand for travel, U.S. airlines continue to scale back their capacity. An analysis by USA TODAY found that the six largest airlines have scheduled 4.4% fewer seats in January than they did last year. Some carriers are moving more capacity to international routes, while others are scaling back as a reaction to higher fuel prices. Dec 4, 2007

Airline executives may comment on consolidation. Airline executives are expected to address merger and acquisition activity today at a securities conference in New York City. Executives from major carriers, including Delta Air Lines, United Airlines, Northwest Airlines and US Airways are among those scheduled to speak. Dec 4, 2007

A slowing US economy and high oil prices could cripple the US airline industry's fledgling recovery and push carriers into seeking merger partners. For the last year and a half, major carriers such as American Airlines and Continental Airlines have been clawing back some of the USD$35 billion in losses racked up during the industry's long slump following the September 11, 2001, attacks. Despite the recent turnaround, the industry remains fragile, and losses could return if the airlines are unable to pass on higher oil prices to their customers. Dec 3, 2007

ACE Aviation, Air Canada

Shares of ACE Aviation, parent of Air Canada, jumped 2.5 percent on Tuesday as the holding company moved closer to its impending windup with a bid for about half its own stock. ACE said it plans to spend CAD$1.5 billion (USD$1.5 billion) buying back up to 54.2 million shares in a "modified Dutch auction" that expires in January. The move advances plans by the holding company's executives to return cash to shareholders and jettison ACE's remaining stakes in its operating units within about five months. ACE's A-series shares rose 67 Canadian cents to CAD$28.35 and the B shares rose 69 Canadian cents to CAD$28.34 on the Toronto Stock Exchange. Dec 4, 2007

Air Canada

Air Canada said on Dec. 5 its planes were less crowded in November as it added more capacity than passengers, while its largest rival said more of its seats were filled last month. Air Canada said the load factor on its mainline system dropped 1.1 percentage points in November from a year earlier to 76.1 percent. The drop came as capacity, measured in available seat miles, rose 3.6 percent to 4.03 billion. Air Canada sold 3.07 billion seat miles to passengers in November, 2.1...

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