daily menu » rate the banner | guess the city | one on oneforums map | privacy policy | DMCA | news magazine | posting guidelines

Go Back   SkyscraperCity > Infrastructure and Mobility Forums > Airports and Aviation

Airports and Aviation » Airports | Photos and Videos



Global Announcement

As a general reminder, please respect others and respect copyrights. Go here to familiarize yourself with our posting policy.


Reply

 
Thread Tools
Old March 9th, 2010, 02:33 PM   #121
hkskyline
Hong Kong
 
hkskyline's Avatar
 
Join Date: Sep 2002
Posts: 86,870
Likes (Received): 18142

Weak U.S. airline travel eases pressure on FAA

WASHINGTON, March 9 (Reuters) - Ongoing efforts by airlines to cut seats and flights will again ease pressure on the U.S. air traffic system in 2010, officials said on Tuesday.

The Federal Aviation Administration (FAA), which oversees the nation's air traffic network, forecast a 2.2 percent annual decline in takeoffs and landings by mainline, or major, and regional airlines this year. The projection follows a 6.9 percent drop in 2009.

Airlines continue to slash the number of available seats and are flying fuller and larger planes to control costs and improve pricing power on fares.

Mainline and regional airlines flew 631 million passengers on domestic flights in 2009.

The number of passengers expected to fly on those routes this year is expected to increase 0.4 percent, the FAA said. Regional airlines will account for the growth, while major carriers are expected to board nearly 1 percent fewer passengers domestically.

The total number of passengers for international travel on U.S. and overseas airlines is projected to grow 3.3 percent this year from 147 million in 2009, a lone bright spot for the industry. U.S. carriers handled about half the total last year.

Asia-Pacific is the fastest-growing region, the FAA said.

The mainline fleet of 3,666 planes is expected to shrink by 17 planes, or 0.5 percent, in 2010, with most of the decline due to the grounding of less fuel efficient models.

There are few new orders and most are going to replace planes, not expand operations, the FAA said.
__________________
Hong Kong Photo Gallery - Click Here for the Hong Kong Galleries

World Photo Gallery - | St. Petersburg, Russia | Pyongyang | Tokyo | Istanbul | Dubai | Shanghai | Mumbai | Bangkok | Sydney

New York, London, Prague, Iceland, Rocky Mountains, Angkor Wat, Sri Lanka, Poland, Myanmar, and much more!
hkskyline no está en línea   Reply With Quote

Sponsored Links
Old March 10th, 2010, 07:53 PM   #122
hkskyline
Hong Kong
 
hkskyline's Avatar
 
Join Date: Sep 2002
Posts: 86,870
Likes (Received): 18142

US Airlines Employ 3.2% Fewer People In January On Year- DOT
10 March 2010
DOW JONES NEWSWIRES

U.S. airlines' overall work force shrank 3.2% in January compared with a year earlier, according to the U.S. Department of Transportation.

Declines in travel during the economic downturn have been taking a heavy toll on U.S. airlines, offsetting the benefits of lower fuel prices in 2009 and forcing them to take new steps to control costs and boost revenue, such as layoffs.

Total full-time and part-time employment was 565,385 in January, up from December's revised figure of 564,514, according to the department's Bureau of Transportation Statistics.

Among carriers with at least $1 billion in annual revenue, Delta Air Lines Inc. (DAL) had a huge 69% jump in work force as January's data were the first that all of Northwest's workers were counted as part of Delta. Besides Delta, the passenger airline with the biggest year-on-year increase was Frontier Airlines Holdings Inc. (FRNTQ). Comair had the biggest decrease, at 54%.

JetBlue Airways Corp. (JBLU) and AirTran Holdings Inc. (AAI), the No. 2 and 3 discount carriers respectively after Southwest Airlines Co. (LUV), were two of only six big carriers to post work-force gains. JetBlue's worker count rose 4.7% and AirTran's rose 1.5%. Southwest's declined 2.2%.

Overall, carriers with at least $1 billion saw their work rolls grow 3% from a year earlier.
__________________
Hong Kong Photo Gallery - Click Here for the Hong Kong Galleries

World Photo Gallery - | St. Petersburg, Russia | Pyongyang | Tokyo | Istanbul | Dubai | Shanghai | Mumbai | Bangkok | Sydney

New York, London, Prague, Iceland, Rocky Mountains, Angkor Wat, Sri Lanka, Poland, Myanmar, and much more!
hkskyline no está en línea   Reply With Quote
Old January 28th, 2011, 07:46 AM   #123
hkskyline
Hong Kong
 
hkskyline's Avatar
 
Join Date: Sep 2002
Posts: 86,870
Likes (Received): 18142

Plane logic: Airlines make money again by flying less, charging travelers more in fares, fees
26 January 2011

DALLAS (AP) - After a decade of multibillion-dollar losses, U.S. airlines appear likely to profit for years for a simple reason: They are flying less.

By grounding planes and eliminating flights, airlines have cut costs and pushed fares higher. As the global economy rebounds, travel demand is rising and planes are as full as they've been in decades.

The government says profit margins at big airlines are the highest in at least a decade. The eight largest U.S. airlines are forecast to earn more than $5 billion this year and $5.6 billion in 2012.

U.S. airlines are in the midst of reporting fourth-quarter results that should cap the industry's first moneymaking year since 2007.

The Air Transport Association says U.S. airlines lost about $60 billion and eliminated 160,000 jobs from 2000 through 2009.
__________________
Hong Kong Photo Gallery - Click Here for the Hong Kong Galleries

World Photo Gallery - | St. Petersburg, Russia | Pyongyang | Tokyo | Istanbul | Dubai | Shanghai | Mumbai | Bangkok | Sydney

New York, London, Prague, Iceland, Rocky Mountains, Angkor Wat, Sri Lanka, Poland, Myanmar, and much more!
hkskyline no está en línea   Reply With Quote
Old February 8th, 2011, 06:33 PM   #124
hkskyline
Hong Kong
 
hkskyline's Avatar
 
Join Date: Sep 2002
Posts: 86,870
Likes (Received): 18142

Should carriers rethink fuel hedges?
6 February 2011
The Philadelphia Inquirer

Fuel prices are the No. 1 worry of airlines, with crude near $90 a barrel and unrest in Egypt heightening uncertainty over where oil prices may head.

Like other industries that depend on fuel, most airlines hedge a portion of their fuel needs to reduce the effect of volatile crude prices. But hedging - paying to cap or lock in prices - is risky, and it is expensive.

US Airways Group Inc. does not hedge, a strategy that recently paid off. Philadelphia's dominant airline - with no fuel hedges - had the lowest fuel cost last year of any major U.S. carrier.

Even though jet-fuel prices jumped 29 percent year over year, the most effective hedging strategy in 2010 was not to hedge at all, US Airways president Scott Kirby said in an interview.

"We don't hedge fuel," Kirby said, "because it's just too expensive." Hedging for a year's worth of jet fuel would have cost the Tempe, Ariz., carrier about $335 million.

Without fuel hedges, US Airways posted a $447 million profit, the second-highest annual profit in the company's history.

Hedges work as insurance against unexpected swings or large increases in commodity prices - oil, oranges, wheat, gold, steel - by capping a price, or locking in a range of prices, months in advance.

These futures contracts can take several forms - called options, swaps, and collars. Jet fuel is airlines' biggest cost after labor.

Most airline observers say they think hedging some fuel is a good idea. On the other hand, airlines can and do lose money on hedges.

"It's important to know that fuel hedges are very expensive," said analyst Helane Becker with Dahlman Rose & Co. L.L.C. "If you are going to hedge, you have to have a really strong balance sheet with a lot of cash and be prepared to be right and wrong. The reality is you wind up in some cases having higher fuel costs than you would otherwise have."

At an airline conference Thursday in New York, Delta Air Lines Inc. president Edward Bastion said that, even with 36 percent of its 2011 fuel hedged, Delta would have to raise fares and lower growth plans to offset higher fuel.

Airlines have increased fares four times in the last 45 days, as well as added fuel surcharges on international routes to offset higher oil.

"The cost of hedging is very damaging, not only for airlines, but for any large commodity user," Virgin America Inc. chief executive officer David Cush said in an interview last week.

"It's not a transparent market. It costs $6 to $8 per barrel to hedge a barrel of fuel, regardless of the price. It is an outrageous cost," Cush said. "You have a handful of players, primarily the big banks, and it's in their best interest to keep the cost of hedging very high."

Still, the San Francisco low-fare carrier partly owned by British billionaire Richard Branson has about 80 percent of this quarter's fuel use hedged and 60 percent in the second quarter.

"We just want to know what our fuel prices are going to be six to eight months out," Cush said. Hedging is standard practice in industries that use a lot of raw materials. "It's the best way to plan a business going forward," he said.

"I see fuel hedges as a form of insurance," said airline analyst James Higgins with Soleil Securities. "Insurance costs money, but it also helps to overcome catastrophic situations."

US Airways' decision not to hedge lowered its fuel expense the last several quarters. But if oil stays where it is, or goes higher, the airline will "see a significantly larger year-over-year increase" in 2011 fuel costs compared with competitors, Higgins said.

US Airways' Kirby said the industry would be more profitable if it did not hedge. "Even if oil goes up another 29 percent again, not hedging will be the best policy in 2011," he said. "We are an industry that has fuel-price risk, and we cannot solve it through fuel hedging."

If all airlines stopped hedging, "they all would have the same problem, and be equally incentivized to pass through fuel surcharges," said airline analyst Hunter Keay with Stifel, Nicolaus & Co. Inc.

"Right now, their hedge books are not providing much of a benefit," he said.

Freight carriers UPS Inc. and FedEx Corp. do not hedge, but instead pass on fuel increases in surcharges to customers. However, it is easier to pass through a fuel surcharge on freight than on passengers who are sensitive about ticket increases.

Southwest Airlines Co. traditionally hedged much of its fuel needs, but incurred losses when crude spiked at $147 a barrel in July 2008 and then plunged to $33.87 a barrel by year's end.

Southwest had to account on its books for millions in fuel contracts that were priced higher than the market. Jet fuel generally follows crude prices.

On Southwest's earnings call last month, airline analyst Glenn Engel of Bank of AmericaMerrill Lynch remarked about the trade-off benefit of hedges, which had a "big impact" on Southwest earnings, causing a 24-cent-per-share hit to 2010 profit, and which will result in a 15-cent-per-share impact on 2011 earnings.

"It's costing your market cap $1.5 billion, and it doesn't seem like your hedges really give you that much benefit until oil is well over $110 a barrel," Engel said.

Southwest chief financial officer Laura Wright replied that 2010 began with "locked-in losses" from hedges in late 2008, which continue to have a "net negative" hangover effect into 2011.

"We decided a long time ago as a company that we're willing to incur a certain amount of expenses premium for insurance to protect against the volatility that we have with energy prices," Wright said. "I think certainly over our history that has played out well."

It's a gamble either way. Airlines were profitable in 2010, but lost money on their hedges.

"What needs to be considered here is the cost of hedging," Keay said. "It costs Southwest $150 million a year to hedge. It costs Delta about $200 million a year to hedge. Their hedges need to save them $200 million for that entire transaction to start saving them money.

"Don't get me wrong, I understand why airlines hedge," he said. "2008 is still burned in their memories. If crude goes to $147 a barrel again, they are going to look very smart. I just think it would be a much more rational pricing environment if every airline got rid of their entire hedge book tomorrow."
__________________
Hong Kong Photo Gallery - Click Here for the Hong Kong Galleries

World Photo Gallery - | St. Petersburg, Russia | Pyongyang | Tokyo | Istanbul | Dubai | Shanghai | Mumbai | Bangkok | Sydney

New York, London, Prague, Iceland, Rocky Mountains, Angkor Wat, Sri Lanka, Poland, Myanmar, and much more!
hkskyline no está en línea   Reply With Quote
Old February 19th, 2011, 07:54 AM   #125
hkskyline
Hong Kong
 
hkskyline's Avatar
 
Join Date: Sep 2002
Posts: 86,870
Likes (Received): 18142

US passenger airlines finally add jobs
19 February 2011

WASHINGTON (AP) - The government says employment rose in December at U.S. passenger airlines for the first time in more than two years, led by gains at low-cost carriers.

However, the overall increase was tiny -- just 0.2 percent, compared with December 2009. And several of the biggest airlines continued to cut jobs.

The U.S. Transportation Department said Friday that airlines employed the equivalent of 379,651 full-time workers in December -- part-timers count half. That was 698 more jobs than in December 2009.

The increase followed a break-even month in November and 28 straight months of decline when compared with year-earlier numbers.

Most major U.S. airlines made money in 2010 after losing billions in the previous two years. Some, such as Southwest Airlines, are adding back flights after cutting them during the airline industry slump, and the extra flying means more jobs.

American Airlines said Friday it would recall 200 furloughed flight attendants on top of 368 recalls announced last week, with many of the jobs related to a pickup in international flying. Southwest Airlines posted openings for flight attendants this week for the first time in more than two years, and the crush of applicants overloaded part of the company's website. A spokesman said Southwest expects to hire "hundreds" of flight attendants this year.

The government job figures For December cover airlines that operate scheduled passenger flights. Charter carriers are not included.

American Airlines, US Airways, Alaska Airlines, Continental and United all cut jobs between December 2009 and December 2010, according to the government. The other so-called network carrier, Delta Air Lines, increased jobs by 1.7 percent.

Network airlines operate flights that fan out from a few hub airports. They account for two-thirds of airline jobs. Combined, the network airlines reduced employment 0.5 percent compared with December 2009.

But low-cost airlines increased employment by 3.3 percent. The government said all seven added jobs -- Southwest Airlines, JetBlue Airways, AirTran, Frontier, Virgin America, Spirit and Allegiant Air.

Regional carriers, which often operate short-haul flights for the biggest airlines, cut jobs by 0.3 percent. They included Comair, Republic Airlines and Mesa Airlines.
__________________
Hong Kong Photo Gallery - Click Here for the Hong Kong Galleries

World Photo Gallery - | St. Petersburg, Russia | Pyongyang | Tokyo | Istanbul | Dubai | Shanghai | Mumbai | Bangkok | Sydney

New York, London, Prague, Iceland, Rocky Mountains, Angkor Wat, Sri Lanka, Poland, Myanmar, and much more!
hkskyline no está en línea   Reply With Quote
Old December 24th, 2014, 04:31 AM   #126
hkskyline
Hong Kong
 
hkskyline's Avatar
 
Join Date: Sep 2002
Posts: 86,870
Likes (Received): 18142

US airlines confront cheap oil's flip side: costly hedges
Excerpt

NEW YORK, Dec 23 (Reuters) - Some major U.S. airlines including Delta and Southwest are rushing to finance losing bets on oil and revamp fuel hedges as tumbling crude prices leave them with billions of dollars in losses, according to people familiar with the hedging schemes.

In theory, airlines are among the top beneficiaries of a six-month slump that halved crude prices to five-year lows. Oil is the biggest variable cost for airlines, often representing a third or more of their total operating expenses.

But now, carriers such as Delta Air Lines and even Southwest Airlines, known for a successful hedging program that locked in cheap fuel prices before they rose a decade ago, see some of the benefits of cheap fuel eaten away by hedging costs.

That is largely because they have used common but risky hedging strategies, among them a "costless collar": selling financial options that pay off when oil prices fall and using the proceeds to buy protection against soaring costs when prices climb, according to three people familiar with the programs.

The two carriers have been moving quickly to strategize how to meet demands from brokers and banks for additional collateral to cover potential losses from a strategy that made perfect sense just six months ago, those people said. The airlines have also held a series of meetings that included airline executives, brokers and consultants, according to the people, who declined to be named because of the sensitive nature of the discussions.

With oil prices tumbling faster and further than anyone had anticipated, the collar hedges left the airlines with insurance against high costs they no longer need and on the hook for protection they sold against a further slide, with potential liabilities on the rise.
__________________
Hong Kong Photo Gallery - Click Here for the Hong Kong Galleries

World Photo Gallery - | St. Petersburg, Russia | Pyongyang | Tokyo | Istanbul | Dubai | Shanghai | Mumbai | Bangkok | Sydney

New York, London, Prague, Iceland, Rocky Mountains, Angkor Wat, Sri Lanka, Poland, Myanmar, and much more!
hkskyline no está en línea   Reply With Quote


Reply

Thread Tools

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off

Related topics on SkyscraperCity


All times are GMT +2. The time now is 04:28 AM.


Powered by vBulletin® Version 3.8.11 Beta 4
Copyright ©2000 - 2018, vBulletin Solutions Inc.
Feedback Buttons provided by Advanced Post Thanks / Like (Pro) - vBulletin Mods & Addons Copyright © 2018 DragonByte Technologies Ltd.

vBulletin Optimisation provided by vB Optimise (Pro) - vBulletin Mods & Addons Copyright © 2018 DragonByte Technologies Ltd.

SkyscraperCity ☆ In Urbanity We trust ☆ about us | privacy policy | DMCA policy

tech management by Sysprosium