airline industry

Financial Landscape: Banks Get No Love; OPEC Vs. OPEC

As a new week begins on Wall Street, nobody wants bank stocks, J.P. Morgan Chase hints at changes at the top, OPEC ministers tussle over crude, and airlines are in for some financial turbulence. In fact, the only good news is for France, which apparently won't lose the IMF over the DSK scandal.

Airline Profits Forecast to Fall as Fares Keep Rising

The International Air Transport Association has cut its 2011 profit forecast for the industry in half, and fares are on the rise. The IATA downgraded its 2011 airline industry profit forecast to $4 billion -- 54% less than its March forecast and 78% less than the industry netted in 2010.

Former Northwest Employees Sue Delta Over Pay Discrepancy

A half-dozen Delta Air Lines flight attendants sued the carriers for what they say is discrimination in the form of smaller profit-sharing paychecks for former Northwest Airlines employees, the Associated Press reported Wednesday.

Will Higher Airfares Ground More Flyers?

Cathay's Tony Tyler explains that when airlines last raised fares in 2008, most travelers kept right on flying. But as Mideast upheavals send oil prices skyward and airlines hike fares again to compensate, the impact on the industry's bottom line could be quite different.

Boeing's Dreamliner Delays: Outsourcing Goes Too Far

After Boeing announced yet another -- the seventh -- delay in the first delivery of the innovative 787 passenger jet, it's now clear that Boeing's decision to outsource both the design and manufacturing of the plane was more than it could manage.

Delta Lowers Profit Guidance on Winter Storms

The storms last month not only inconvenienced travelers; they also cut into Delta Air Lines's profit, the company warned Wednesday. Delta has lowered its profit guidance by $45 million as a result.

At Last, New Protections for Air Travelers Will Land in 2011

Transportation Secretary Ray LaHood is raising the bar for the treatment of airline passengers this spring. Don't expect more legroom in coach -- he's not a miracle worker -- but you will see more transparency in ticket pricing, better deals for bumped passengers, and reimbursement of luggage fees when checked bags are lost or delayed, among other changes.

Airline Passengers Now Get Stranded -- Even Before It Snows

Thousands of stuck holiday travelers are just the beginning: Airlines' new policy of pre-emptively canceling flights to avoid snowstorms is lowering their losses, but will likely leave many more passengers without a flight home in the future.

Qantas Grounds Airbus A380 Fleet After Emergency Landing

Qantas Airways (QUBSF) suspended all flights of Airbus A380s after one of its fleet was forced to make an emergency landing following engine failure. The A380 fleet will remain grounded "until we are confident that Qantas safety requirements have been met," CEO Alan Joyce said in a statement.

IATA Calls For Shared Responsibility on New Security Measures

Airlines should not be forced to take full responsibility for extra security measures as governments try to respond to the discovery of bombs in air-cargo shipments last week, the International Air Transport Association said. Responsibility for new security measures should be spread through the supply chain, beginning with the manufacturer, IATA's CEO Giovanni Bisignani said.

Ryanair Earnings Rise on Higher Fares

Ryanair (RYAAY), Europe%u2019s largest low-cost airline, posted a 32% jump in earnings on higher traffic and prices. The Dublin-based carrier had profit of 330.3 million euros ($461 million) in the quarter ended Sept. 30, up from 250.5 million euros a year earlier, Bloomberg News reported.

United-Continental Merger Lands Execs a Big Pay Raise

Considering how often airline industry executives complain about how hard it is to run a profitable carrier, one might expect their efforts could go unrewarded -- at least monetarily. Not so at the new United Continental Holdings, where big post-merger raises are coming for top management.

British Airways to Begin Joint Venture with American Next Month

British Airways (BAIRY) will begin a joint venture next month on flights across the Atlantic with American Airlines (AMR), after nearly 13 years of planning. The carriers will align their frequent-flier programs, allowing travelers to earn and use miles on the two airlines, Bloomberg News said. They will coordinate their schedule in 2011, then add new destinations in the U.S. and Europe.

Celebrated JetBlue Flight Attendant to Undergo Mental Evaluation

Steven Slater's daring departure from a JetBlue airplane last month made him the darling of disgruntled airline employees everywhere. But the former flight attendant is showing less braggadocio these days, having agreed to a mental evaluation as he attempts to avoid jail time.

Brazilian and Chinese Tourists Rediscover America

Brazilian and Chinese visitors led a resurgence in foreign tourism spending within the U.S. in the first half of 2010, giving hope to domestic hoteliers, airline companies and others that the travel-spending slump of 2008 and 2009 is over, according to a report released Wednesday.