DA.C - View Single Post - Airlines To Cut Flights, Ground Planes, Raise Fares

Todd Michaels · 04-22-2008, 05:56 PM

As the price of a barrel of crude oil closed today above $119 for the first time ever, airlines are preparing to cut flights, ground planes and likely raise ticket prices.

At Delta…
Richard Anderson, the CEO of Delta Air Lines, said today that domestic airlines need to raise fares by 15 to 20 percent. Anderson said the hike is needed for airlines just to break even due to the rising price of fuel. Last week Delta announced it had agreed to merge with Northwest Airlines.

At United…
UAL Corp.'s United Airlines, the world's second-largest carrier, said it's increasing business- travel fares and ticket-change fees to offset fuel costs. United is requiring Saturday-night stays in about 65 percent of markets it serves, according to a company spokesperson.

Today United reported a $537 million first-quarter loss due to soaring fuel costs and saying it is cutting flights and 1,100 jobs, and pulling 30 jets from service. Shares of UAL stock today plummeted 35 percent to $13.88 in afternoon trading.

Meanwhile, there’s speculation that United would merge with Continental Airlines. However, JPMorgan analyst Jamie Baker reports there may be "considerable merit" to a deal between United and US Airways, which are also said to be exploring a merger.

At Continental…
The stock price dropped 11 percent today.

At JetBlue…
JetBlue Airways Corp. reported a loss today, and is freezing management hiring, studying the sale of its on-board TV unit and considering selling more planes to help blunt record fuel costs. The steps follow a 62 percent jump in fuel expense that eroded gains in first-quarter revenue and passenger traffic.

At American…
AMR, parent company of American Airlines, saw its stock price fall 11 percent today.

At AirTran…
AirTran Holdings Inc. swung to a first-quarter loss due to record fuel costs, it says. The Orlando, Fla.-based airline had a net loss of $34.8 million on $596.4 million in revenue.

At Midwest Airlines…
Midwest Air Group Inc. has to trim its payroll and cut its flight schedule to counteract the rising cost of fuel and ensure its survival, said CEO Tim Hoeksema yesterday.

The company, which operates Midwest Airlines and Midwest Connect, announced last week it will cut 109 jobs. The layoffs, equal to 3.5 percent of Midwest's work force, will come in the next few months and include 35 pilots.

04-22-2008, 05:56 PM	#1
Todd Michaels Senior Collector Join Date: Nov 2007 Location: Los Angeles Posts: 222	Airlines To Cut Flights, Ground Planes, Raise Fares As the price of a barrel of crude oil closed today above $119 for the first time ever, airlines are preparing to cut flights, ground planes and likely raise ticket prices. At Delta… Richard Anderson, the CEO of Delta Air Lines, said today that domestic airlines need to raise fares by 15 to 20 percent. Anderson said the hike is needed for airlines just to break even due to the rising price of fuel. Last week Delta announced it had agreed to merge with Northwest Airlines. At United… UAL Corp.'s United Airlines, the world's second-largest carrier, said it's increasing business- travel fares and ticket-change fees to offset fuel costs. United is requiring Saturday-night stays in about 65 percent of markets it serves, according to a company spokesperson. Today United reported a $537 million first-quarter loss due to soaring fuel costs and saying it is cutting flights and 1,100 jobs, and pulling 30 jets from service. Shares of UAL stock today plummeted 35 percent to $13.88 in afternoon trading. Meanwhile, there’s speculation that United would merge with Continental Airlines. However, JPMorgan analyst Jamie Baker reports there may be "considerable merit" to a deal between United and US Airways, which are also said to be exploring a merger. At Continental… The stock price dropped 11 percent today. At JetBlue… JetBlue Airways Corp. reported a loss today, and is freezing management hiring, studying the sale of its on-board TV unit and considering selling more planes to help blunt record fuel costs. The steps follow a 62 percent jump in fuel expense that eroded gains in first-quarter revenue and passenger traffic. At American… AMR, parent company of American Airlines, saw its stock price fall 11 percent today. At AirTran… AirTran Holdings Inc. swung to a first-quarter loss due to record fuel costs, it says. The Orlando, Fla.-based airline had a net loss of $34.8 million on $596.4 million in revenue. At Midwest Airlines… Midwest Air Group Inc. has to trim its payroll and cut its flight schedule to counteract the rising cost of fuel and ensure its survival, said CEO Tim Hoeksema yesterday. The company, which operates Midwest Airlines and Midwest Connect, announced last week it will cut 109 jobs. The layoffs, equal to 3.5 percent of Midwest's work force, will come in the next few months and include 35 pilots.