Airline Finance News - North America

AirGuide Business, March 10, 2008

Mar 10, 2008

Democrats could take tougher stand on consolidation. Some attorneys and investment bankers are urging their clients to carry out acquisitions before the November elections, writes George Anders in the Wall Street Journal. Mergers among large airlines would help carriers lower costs, build market share and streamline routes, but the deals might face tough scrutiny if a Democratic administration takes office. Mar 5, 2008

AirTran Airways

AirTran Airways said February traffic rose 28% from year-ago levels. AirTran's capacity rose 14% to 1.82 billion available seat miles, up from 1.6 billion in the same period a year ago. Mar 7, 2008

Alaska Air Group

Alaska Air Group announced completion of a $100 million stock repurchase program authorized last September. It repurchased approximately 4.1 million shares of outstanding common stock, or 10%, at an average price of $24.31. The company now has around 36.5 million shares of common stock outstanding. Mar 5, 2008

Alaska Airlines

Alaska Airlines said February passenger traffic rose from 1.2 million in February 2007 to 1.29 million in February 2008. The airline said its February load factor increased from 70.7% in 2007 to 73.3% in 2008. Mar 6, 2008

American Airlines

American Airlines flew 9.97 billion system RPMs in February, up 2.5% from the year-ago month. Capacity rose 2% to 12.98 billion ASMs and load factor was up 0.3 point to 76.9%. American Eagle flew 607.7 million RPMs, down 2.4%, against a 1.9% decline in capacity to 880.6 million ASMs. Load factor slipped 0.4 point to 69%. Mar 5, 2008

American Airlines

American posts stronger February traffic. February traffic increased 2.5% at American Airlines compared with the same month a year ago. The airline also said capacity increased 2% in February, and its load factor was 76.9%. Mar 5, 2008

Continental Airlines

Continental Airlines paid $209 million for four pairs of slots at London Heathrow, according to a US Securities and Exchange filing cited by several press reports. Continental did not identify the seller of the slots. It plans to serve the airport from both Newark and Houston Intercontinental. The Financial Times said GB Airways (two), Air France and Alitalia sold the slots and that CO will pay $116 million for the summer season and an additional $93 million for the next witner schedule. Mar 5, 2008

Continental Airlines

Continental Airlines said February consolidated and mainline RASM rose 5%-6% over the year-ago month. It flew 6.77 consolidated RPMs last month, up 4.5% from the year-ago month. Capacity rose 5.8% to 8.91 billion ASMs, dropping load factor 1 point to 76%. Mar 5, 2008

Delta Air Lines

Delta Air Lines flew 8.47 billion system RPMs in February, a 6.7% increase over the year-ago month. Capacity rose 5.6% to 11.31 billion ASMs and load factor was up 0.8 point to 74.9%. Mar 7, 2008

Delta Air Lines

Delta's international capacity increased from 20% in 2005 to 40% this summer and has a growth target of 50% or more. Delta has also grown revenue per seat mile from 86% in 2005 and 95% in 2007 and expects that to rise to 98% this year. Mar 7, 2008

Delta Air Lines

Strong hubs, international growth keys to Delta's success. International growth and a strong hub structure have transformed Delta Air Lines into the pre-eminent U.S. carrier after decades in the No. 3 position. The airline has kept its customer service consistent by maintaining good relations with its employees. President Ed Bastian has noted that if the airline does not merge with Northwest, it has a strong stand-alone plan in place. Mar 7, 2008

Delta Air Lines

US Pension Benefit Guaranty Corp. sold 12% of its stake in Delta Air Lines for $106.2 million, the Associated Press reported, citing regulatory filings. PBGC reduced its Delta Air stake to 43.6 million shares from 49.5 million shares through 14 separate sales. Mar 5, 2008

Delta Air Lines, Northwest Airlines

Delta Air Lines and Northwest Airlines pilots have resumed negotiations over how to merge contracts and seniority during a potential merger, according to media reports. It is unclear if pilot leaders have made any progress during the informal meetings. Previous talks ended about two weeks ago. Mar 6, 2008

Delta Air Lines, Northwest Airlines

Delta Air Lines has a strong stand-alone plan and is not rushing to merge with Northwest Airlines, Delta Chief Financial Officer Ed Bastian said. "We don't feel pushed or hurried into any decision," Bastian said. "If we find the right deal, we'll pursue it." Pilot seniority issues have stalled merger talks between Delta and Northwest, and some industry analysts have said consolidation is on hold for now. Meanwhile, the airline has disbanded a group of outside advisers hired to guide a merger, according to media reports. Reuters (2/29) , Bloomberg (3/1) Mar 3, 2008

Northwest Airlines

Northwest Airlines flew 5.92 billion consolidated RPMs in February, up 5% on the year-ago month. Capacity climbed 4.5% to 7.38 billion ASMs, lifting load factor 0.3 point to 80.2%. Mar 7, 2008