U.S. National Carriers Operating Revenues and Expenses (2Q96/95) Operating Operating Revenues Expenses (000) (000) Six Months 1996 American Trans Air $ 393,032 $ 391,958 Carnival 142,140 139,702 Hawaiian 190,071 186,558 Kiwi n/a n/a
World Airways' board authorized the buyback of up to one million shares of common stock via open market repurchases. World stock traded at $8.50 per share yesterday, so the company will spend about $8.5 million on the buyback. Last week, World said it anticipated third quarter earnings of $2.8-$3 million, higher than analysts' expectations.
United urged DOT yesterday to launch a formal investigation of the proposed British Airways-American alliance. In its filing to the department, United charged that U.S. interests are being shortchanged in reviews being carried out in the U.K. and the European Union. There is no forum for different views of the arrangement in the U.S., noted Cyril Murphy, United VP-international affairs. "A formal investigation would allow the U.S. to develop an informed policy on the alliance rather than reacting to conclusions made by regulators investigating it for the U.K.
America West posted a 17.5% surge in September revenue passenger miles on 12.2% greater capacity. The airline's load factor rose three percentage points to a September record of 67.6%. For the third quarter, traffic increased 11.5% and capacity 10.9%, pushing the load factor up 0.4 points to 71.8%. Sept 1996 Sept. 1995 9 Months 1996 9 Months 1995 RPMs 1,237,433,000 1,053,480,000 11,339,851,000 10,035,497,000 ASMs 1,829,982,000 1,630,649,000 15,862,839,000 14,502,686,000
U.S. National Carriers Operating/Net Profit/Loss (2Q96) Operating Net Profit/Loss Profit/Loss (000) (000) Second Quarter 1996 American Trans Air $ (4,143) $ (4,546) Carnival (713) (826) Hawaiian 3,140 1,537 Kiwi n/a n/a
Overseas travel was up across the board this year compared with 1995, according to 67.7% of travel agents polled in the American Society of Travel Agents annual Hot Spots Forecast. The agents also said they believe Americans will spend more on travel in 1997 than in 1996. Survey results were issued this week at ASTA's 66th annual World Travel Congress in Bangkok, which reported 4,100 participants. Travel agents again picked London as the international destination expected to be the most popular and Orlando as the most favored domestic destination.
Southwest boosted its September load factor and managed its capacity growth better than in past months, realizing a 29.4% increase in revenue passenger miles (DAILY, Oct. 8). With the large boost in travelers and capacity gains of only 11.9%, Southwest's load factor vaulted up 9.5 percentage points in September to 70.6%. The carrier's average length of haul climbed 9.1% to 565 miles from 518 miles in September 1995. Sept 1996 Sept. 1995 9 Months 1996 9 Months 1995
U.S. National Carriers Operating Revenues and Expenses (2Q96) Operating Operating Revenues Expenses (000) (000) Second Quarter 1996 American Trans Air $ 185,897 $ 190,040 Carnival 63,834 64,547 Hawaiian 96,009 92,869 Kiwi n/a n/a
Continental has the greatest opportunity to increase traffic at its three hubs and Northwest is controlling hubs the best, according to a major-carrier hub analysis from Lehman Brothers. The investment house found, however, that United leads the top eight U.S. airlines in gate utilization, the best efficiency method for analyzing a hub. "Continental has the greatest potential to grow local and connecting traffic," said Brian Harris, study leader and VP of Lehman Brothers.
Rosenbluth International will unveil "The Continuum" - the future of travel through partnerships with companies from diverse industries - today in Philadelphia. Senior executives from Rosenbluth, Visa, Lucent Technologies and AT&T will highlight emerging technologies that help cut costs in the travel industry and other businesses.
More businesses are putting the clamp on travel spending, according to an American Express survey of travel managers. The cost controls come at a time when more employees are traveling and travel and entertainment (T&E) costs are hitting record levels, American Express found that more companies are controlling employee travel purchases - only 4% of the companies surveyed did not have an air travel policy, down from 19% two years ago.
Various fare specials surfaced this week, including an increase by Hawaiian Airlines, which said it cannot continue to cover a 43% rise in fuel costs with its current fare structure. The increase is from five cities in the western U.S. to Hawaii. United has matched in those markets. Hawaiian said its lowest interisland fare has risen from $35 to $39 and its lowest roundtrip to the mainland U.S. from $249 to $279.
The chairman of the Senate Commerce aviation subcommittee has told Los Angeles Mayor Richard Riordan he will work for a commensurate reduction in federal airport funding for Los Angeles Airport if the city does not reverse a transfer of $31.1 million last week from the airport to the city's general fund. The transfer, which represents a repayment for past contributions to the department, was completed before enactment of the FAA reauthorization bill (H.R.3539), which imposes a six-year statute of limitations on unreimbursed capital and operating expenses.
TWA's September traffic increased 3.2% on 7.7% greater capacity, which caused the load factor to drop 2.6 percentage points to 60.6%. International RPMs grew 2.9% during the month on 10.7% greater capacity, pushing the international load factor down 5.1 points to 67.2%. International cargo increased 6.2%, while domestic cargo declined 0.2%. Sept 1996 Sept. 1995 9 Months 1996 9 Months 1995 RPMs 2,162,200,000 2,095,400,000 20,906,400,000 18,952,200,000
Deutsche BA intends to sell its turboprop operations to Nantes, France-based Regional Airlines in a move that will allow the German carrier to focus on longer-range routes operated with jets that can carry more than 100 passengers. Regional Airlines is expected to complete the deal with British Airways' money-losing subsidiary in November, and the new company, Deutsche Regional Airlines, would begin at the start of 1997.
Internet Travel Network (ITN) says it is the first Internet travel service to provide reservations services on all four major computer reservations systems - Apollo, Sabre, System One and Worldspan. Users can make reservations 24 hours a day for airline flights, car rentals and hotel rooms.
American and AT&T's Aviation Communications Division are offering AAdvantage miles to passengers who use inflight telephones for calls and faxes or who receive ground-to-air calls on an airplane. Passengers who are AAdvantage members can earn five miles for every dollar spent on phone service. Members receive 500 bonus miles for receiving the incoming calls by Feb. 28.
TAP Air Portugal, financially troubled for many years, may have restructured to the point that it can renew its fleet. The carrier is nearly ready to place what could be a billion-dollar order, sources said. TAP leases 15 737s and owns two L-1011s, and all could be returned to the lessor or phased out in the next few years.
The Colombian company that created coffee symbol Juan Valdez yesterday hired Canadian bank CIBC Woody Gundy to assist its airline in a refleeting decision that could become the bellwether for other Latin American carriers. ACES, the second largest Colombian airline, is owned privately by the Colombian Coffee Federation. The company plans to take the airline international in the same way it has marketed Juan Valdez and his mule to dozens of countries.
Like its major competitors, United is considering whether its regional partners should be able to operate jets in the 50- to 100-seat range, but it also could become the first major domestic carrier to operate them itself. United has conducted a study of a conceptual regional jet operation owned and operated by itself that it believes would cost $648 million to establish, not counting training, station support and other related items, according to United's Air Line Pilots Association unit.
Vanguard plans to announce new nonstop destinations this morning in Minneapolis/St. Paul and reveal its strategy to "liberate" the twin cities from high air fares.
Hong Kong, Las Vegas, Sydney and Cabo San Lucas were picked most often by travel agents as the most likely sleeping dog tourist destinations in 1997. Members of the American Society of Travel Agents have chosen Costa Rica as the most popular destination for ecotourism in 1997. Costa Rica tied with Colorado for second place, behind Alaska, for the most popular adventure travel spot.
Congress has ordered the Transportation and Commerce departments to submit within six months a plan for future use and funding of Loran-C. In a sharp rebuke - particularly of DOT, which ignored protests of Loran-C users by scheduling an early phaseout of the navigation aid - the Coast Guard authorization for fiscal 1996 and 1997 contains Loran-C language that received unanimous bipartisan approval.
The Securities and Exchange Commission has told Denver attorneys that it has terminated an SEC staff inquiry into the adequacy of the city's disclosure to bondholders of problems with Denver Airport's baggage system. Daniel Shea, the SEC's regional director, told Denver the inquiry was called off and no enforcement action was recommended to the Commission.
Tower Air has been cited as having the best domestic business class by Entrepreneur Magazine for the second year in a row. Tower, which recently reduced the price of its business class, gives passengers priority boarding and check-in, wide leather seats, more legroom, free headsets, cocktails and upgraded meal service, the airline said. It operates an all-747 fleet from its New York Kennedy base.
