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United Continental reports quarterly loss of $448M | JetBlue Airways boosts capacity, profit for Q1 | Allegiant Travel reports Q1 net income of $21.7M
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April 26, 2012
Airlines for America SmartBrief
News for the airline industry
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Company Watch
United Continental reports quarterly loss of $448M
United Continental Holdings has reported a loss of $448 million for its first quarter. The loss stemmed partly from integration and merger costs, including a switch to a single reservations system. "This was a difficult quarter, but we made significant progress with our integration and we're now able to serve our customers as a single airline," said President and CEO Jeff Smisek.
The Washington Post (tiered subscription model)/The Associated Press (4/26),  Chicago Tribune (tiered subscription model) (4/26) 
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JetBlue Airways boosts capacity, profit for Q1
JetBlue Airways posted a profit of $30 million for its first quarter, compared with a profit of $3 million in the same quarter last year. First-quarter revenue increased 19% on a year-over-year basis on a capacity boost of 12%. "Despite an uncertain economic environment, we delivered record revenue performance and fully offset the increase in fuel costs with higher revenues," said CEO Dave Barger.
MSNBC/The Associated Press (4/26),  The Wall Street Journal (tiered subscription model)/Dow Jones Newswires (4/26) 
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US Airways predicts American merger would create $1.2B in value
US Airways says a merger with American Airlines would create $1.2 billion a year in new value and would reduce labor costs. "There is a tremendous amount of value created by merging US Airways and AMR, and we can and should use a portion of that to give employees more than AMR can on a stand-alone basis," said US Airways President Scott Kirby. An AMR representative didn't respond to Kirby's comment.
Reuters (4/25),  Bloomberg Businessweek (tiered subscription model) (4/25) 
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Allegiant Travel reports Q1 net income of $21.7M
Allegiant Travel, the parent company of Allegiant Air, reported net income of $21.7 million for the first quarter. The carrier, based in Las Vegas, reported $17.2 million in net income for the same quarter last year. The airline is adding flights to Hawaii and other markets.
Vegas Inc. (Las Vegas) (4/25) 
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Southwest, United hire lobbyists for Hobby airport issue
Southwest Airlines and United Airlines have hired lobbyists to press their case in Houston. Southwest is attempting to launch international flights from William P. Hobby Airport, but United wants to prevent the change. However, United has been more involved in local politics than Southwest and might have a political edge, experts say.
Houston Chronicle (tiered subscription model) (4/25) 
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Inside Aviation
Boeing backs American Airlines as a solo act
Boeing serves as a creditor to AMR Corp., the parent company of American Airlines. Boeing says it supports American's plan to emerge from bankruptcy as a stand-alone carrier, rather than merge with US Airways. "American is working through the process now and we support them emerging from this thing as a stronger airline," said Boeing CEO Jim McNerney.
TheStreet (4/25) 
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Industry experts question accuracy of FAA near-miss data
The Federal Aviation Administration's reporting of near misses has come under scrutiny by industry watchdogs. Jeffrey B. Guizetti, assistant inspector general for aviation, says error rates will likely increase once automatic tracking software is installed. "The chances of a collision on the ground or in the air is low, but if it does occur, there will be a catastrophic loss of life," he said.
The Washington Post (tiered subscription model) (4/25) 
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N.Y. lawmaker introduces legislation in effort to reduce bird strikes
Sen. Kirsten Gillibrand, D-N.Y., has proposed legislation that would allow the removal of Canada geese from a wildlife refuge near a New York airport in a bid to reduce the number of bird strikes on planes. The Federal Aviation Administration this year has received reports of 1,090 bird strikes through March 31.
USA Today/The Associated Press (4/26) 
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Flight deck printer saves space, weight and power.
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Energy Bulletin
EU would protect itself from retaliation for ETS, official says
The European Union would protect itself if countries retaliated against its emissions-trading scheme, an official said. "If this moment comes, we would not hesitate to protect our interest," said Mary Veronica Tovsak Pleterski, director of carbon markets at the European Commission.
Fox Business/Dow Jones Newswires (4/25) 
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Fee by Hawaii on air cargo operators is voided
A federal judge has issued a permanent injunction against Hawaii barring the state from charging air cargo operators a fee. Airlines for America filed a lawsuit to stop the fee in 2010. The pest inspection, quarantine and eradication fee was approved by state legislators in 2007.
The Business Journals (tiered subscription model)/Honolulu/Morning Call blog (4/25),  Honolulu Star-Advertiser (subscription required) (4/25) 
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Association News
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A4A calls for disciplined, data-driven approach to safety
Airlines for America urged the government to take a disciplined approach to future safety regulatory changes and build on the industry's solid foundation of increased accessibility to available operational data in order to further our extraordinary safety record. Read more here.
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Website | Publications | Blog | News | Media Center | The Airline Industry
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Industry Trends
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Airlines fight higher cost of fuel with additional fees
Airlines are turning to luggage fees and change fees to offset the high cost of fuel. "As with other corporations, airlines are like other companies: They have responsibilities to their shareholders to make a profit and some [companies] have had to make individual decisions how to reach that goal," said Steve Lott, vice president of communications for Airlines for America.
Green Bay Press-Gazette (Wis.) (tiered subscription model) (4/25) 
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Career Development
Invest in people or get ready for an exodus
Companies should invest heavily in developing their workers' talent -- or be prepared to see their workers jump ship, says former Deloitte CEO Jim Quigley. "We must invest in building the capability of our people. And if we don't invest in building their capability, they're going to go someplace else where they think someone will," he said.
SmartBrief/Leadership (4/24) 
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One person with a belief is equal to a force of 99 who have only interests.
John Stuart Mill,
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