Airline Finance News - North America

AirGuide Business, April 21, 2008

Apr 21, 2008

Airlines are permitted to self-report compliance through an US Federal Aviation Administration system, the reliability of which has been questioned in the past. It crunches data, tracks trends, and helps to identify risks and safety priorities. Airline self-reporting underpins much of FAA oversight, and the agency says it is realistic and valuable, despite the problems of the past month. Transportation Department Inspector General Calvin said voluntary self-reporting ensures a stream of important data and prevents "driving safety issues underground." He said he did not want to return to a time when signs in aircraft hangers warned workers not to speak to FAA staff. Silence, Sturgell said, can be catastrophic. He denied assertions of agency complacency and disputed Scovel's claims of chronic safety problems resulting from noncompliance with safety regulations. He said agency inspectors were stretched, but the airlines should continue to review their own performance and report results. Apr 18, 2008

Soaring fuel prices took a toll on first-quarter results of two of the financially strongest U.S. airlines Thursday and that, along with a weakening U.S. economy, is expected to weigh on future results. Continental Airlines swung to a loss in the quarter, following the lead of American Airlines parent AMR Corp. on Wednesday, while Southwest Airlines eked out a small profit. Southwest's recent quest to get more business-traveler revenue also paid off in the quarter as some road warriors paid more for new "business select" fares that offer priority seating and bonus frequent-flier credits. Apr 17, 2008

Travelers who are involuntarily bumped from their flights could receive up to $800 from their airline under changes announced by the US DoT on Wednesday. "It's hard to compensate for a missed family occasion or business opportunity, but this rule will ensure fliers are more fairly reimbursed for their inconvenience," said DoT Secretary Mary Peters. This policy change is scheduled to go into effect in May. Apr 17, 2008

Stocks gained on Tuesday as record oil prices lifted energy shares and stronger-than-expected quarterly results at several regional banks helped shares of financial companies. The regional banks, including U.S. Bancorp and Regions Financial, expressed confidence they could weather credit losses from the housing slump. The S.& P. financial index ended up 1.1 percent. The May contract for crude oil jumped to $113.79 a barrel on supply issues, rising demand in China and the persistent weakness of the dollar. Exxon Mobil gained 1.2 percent, to $90.80. The market might have rung up bigger gains if not for a warning from the State Street Corporation that it faced billions of dollars of unrealized losses on some investments. Its shares fell 9.9 percent, to $69.23. Apr 16, 2008

The Labor Department's overall Producer Price Index jumped 1.1 percent in March, or nearly twice the gain of 0.6 percent that economists had expected. But the core index, which excludes volatile food and energy prices, rose 0.2 percent last month, in line with the expectations of economists. Interest rates were higher, with the 10-year Treasury note at 3.60 percent, up from 3.51 percent late Monday. The price, which moves in the opposite direction from the yield, fell 24/32, to 99 5/32. Following are the results of yesterday[sup.1]s auction of four-week and six-day cash Apr 16, 2008

Air passengers in America will soon be eligible for double the current compensation rate from airlines if they are bumped off overbooked flights. From next month, customers involuntarily switched to a later service will receive up to $400 ([pounds sterling]200) if they consequently reach their destination within 2hrs of the original arrival time or 4hrs on international routes) and up to $800 if it is any later than that. This rule also encompasses smaller aircraft and business jets seating just 30 people or more currently only 60-seaters and up are covered. Exact reimbursement figures will be determined by the price of a passenger[sup.1]s ticket as well as the length of the delay, and are in addition to the value of the ticket which can be refunded if not used. Apr 14, 2008

Passengers who get bumped off overbooked flights will soon be eligible to receive twice as much compensation from U.S. airlines. Travelers forced onto another flight that takes them to their domestic destination more than two hours after their original arrival time will be paid the full price of their fare up to $800, under a new Transportation Department rule that goes into effect next month. Apr 14, 2008

The turbulent economy isn[sup.1]t keeping Americans from flying. According to travel expert Terry Trippler, president of TripplerTravel.com, bookings for summer travel are strong. Some people may have to switch vacation destinations o going to Orlando instead of Paris o but he says they still plan to fly there. Earlier this week, I flew from Seattle to Minneapolis. I felt like a sardine packed into that 737-300. There was just one empty seat on the plane. Welcome to the crowded skies. Many fights are already full. Some are oversold. And the start of the busy summer travel season is still more than a month away. Apr 14, 2008