Airline Finance News - North America

AirGuide Business, July 7, 2008

American Airlines, British Airways

American Airlines, British Airways and Spain's Iberia are close to applying for antitrust immunity to form a joint venture, a newspaper reported on Thursday. The airlines aim to reach an accord on profit and revenue sharing this month, the Financial Times said, citing the executives of the three airlines. American and British Air are likely to argue a case with US regulators that the competitive landscape has been changed by the "open skies" accord. The open skies agreement between the United States and the European Union entered into force in March, allowing airlines to access any US city from any point in the EU and vice versa. The agreement promises to increase competition between carriers, cut ticket prices and to eventually pave the way for transatlantic mergers to create the first global airlines. 7/3/2008

American Airlines, British Airways

American Airlines, British Airways are expected to argue that the recent wave of mergers and new alliances has strengthened many of their biggest transatlantic rivals, which already have antitrust immunity with their partners across the North Atlantic, the paper said. 7/3/2008

Continental Airlines

Continental Airlines flew 8.63 billion consolidated RPMs in June, a 0.1% slip from the year-ago month. Capacity rose 2.5% to 10.32 billion ASMs, dropping load factor 2.1 points to 83.6%. June consolidated RASM rose an estimated 4%-5% year-over-year. 7/3/2008

Continental Airlines

Continental Airlines said it expects to make a July 11 announcement regarding special charges recorded for the recently completed quarter related to the capacity reductions planned for the second half of this year, plus "other special items" recorded during the second quarter related to gains on the sale of its stake in Copa Holdings and other moves. It is scheduled to release second-quarter earnings on July 17. 7/3/2008

Continental Airlines

Continental Airlines pilots represented by the Air Line Pilots Assn. announced an agreement with CO management that will reduce the number of layoffs due to recently announced capacity cuts. The union said the parties resolved the need for staffing reductions by using a combination of voluntary programs comprising an enhanced retirement window, company-offered leaves of absence and voluntary reduced flying. In addition, a systemwide change in schedule rules will reduce flight time and save 100-150 jobs. Pilots have until early August to decide whether to participate in the voluntary programs. 6/30/2008

Delta Air Lines

Delta Air Lines flew 11.69 billion system RPMs in June, up 0.2% year-over-year, against a 0.7% rise in ASMs to 13.68 billion. Load factor dropped 0.5 point to 85.4%. 7/4/2008

Delta Air Lines, ExpressJet

Delta Air Lines and ExpressJet said on Thursday they had ended the agreement under which ExpressJet provided Delta with some regional flights. ExpressJet Delta Connection, chiefly operating out of Los Angeles and Salt Lake City, will cease by September 1, the airlines said. ExpressJet operates 23 Embraer ERJ-145 aircraft for Delta, and will keep those aircraft after September 1. Delta said it plans to award a portion of the routes ExpressJet flies to another, unnamed carrier. Delta, which is pruning its network as fuel hits record highs, is also planning to terminate similar regional flying contracts with Pinnacle Airlines and a unit of Mesa Air. Both Pinnacle and Mesa are protesting Delta's decision. 7/3/2008