Airlines Turn a Profit, but a Bumpy Ride Ahead
While the world's airlines now expect a $2.5 billion profit in 2010, reversing earlier forecasts for yet another losing year, investors should take the news with a grain of salt.
continental airlines
Do Airline Mergers Make Service Worse?
Competition is supposed to create superior value and better service for customers, but the airline industry is so unprofitable that competitors try to outdo each other in giving passengers less while charging more. And the major carriers' strategy of mergers is only creating bigger, less service-oriented airlines.
UAL-Continental Merger Means Higher Fares and Fewer Flights...
The megamerger raises many serious questions, not the least of which is how air passengers will fare. The answer is simple: For the average flier, the combination will create nothing but more pain in terms of both costs and inconvenience.
Continental-United: CEO Says No Fare Hike Planned
Worried that the megamerger will mean higher airfares? That's not part of the plan, says Continental CEO Jeff Smisek. The post-merger airline is expected to add $1 billion or so to the bottom line over three years, but mostly because of cost-cutting.
Airlines Prep for Turbulent Second Quarter
Mergers, near-mergers, paralyzing winter storms, volcanic ash and new rules about the treatment of passengers could all add up to a difficult second quarter for the U.S. aviation industry. With Continental and United Airlines next to merge, insiders wonder what's next.
US Airways-United Airlines Merger Talks Go Nowhere
Since merger talks between United Airlines and US Airways have stopped, will United turn to Continental instead?
Volcanic Ash Ripples Through the Aviation Industry
The massive cloud of volcanic ash from Iceland is doing more than creating dangerous flying conditions and stranding thousands of passengers on several continents. It's casting a pall over the economically stressed aviation industry.
Travel Maze: The Airline Extra-Fee Game
Continental is joining most other airlines in eliminating its free meals on shorter flights. Now, along with your turkey sandwich, you could be paying extra for baggage, early boarding, more legroom, and even a pillow and blanket.
Earnings Preview: United, AirTran Set to Improve
United Airlines parent UAL Corp. and AirTran Airways will release their fourth-quarter earnings Wednesday, and both are expected to post improved results, helped by lower jet fuel costs and slower declines in demand.
Delta Narrows Loss, but Misses Estimates
Delta Air Lines reported a smaller fourth-quarter loss Tuesday, helped by lower fuel costs and declining restructuring charges, but results failed to meet Wall Street's earnings expectations by a few cents per share.
Continental and Southwest Back to Profitability
Continental Airlines and Southwest Airlines, the nation's largest discount carrier, posted fourth-quarter profits Thursday, helped by lower fuel costs and improved demand, but both cautioned that the sector faces more turbulence in 2010.
Earnings Preview: Southwest and Continental
Southwest and Continental report quarterly earnings Thursday with investors keen to hear if the outfits will be adding back some capacity in 2010, an indication that the worst of the industry's downturn may be behind it.
JAL Declares Bankruptcy as Airline Industry Woes Continue
Japan Airlines Corp. today became the millionth or so carrier to seek protection from its creditors in the last few years in Japan's fourth biggest bankruptcy. The filing came after a 900 billion yen ($10 billion) turnaround plan after four government bailouts to revive Asia's most indebted carrier failed.