Latest news with #airlineindustry
Forbes
2 days ago
- Business
- Forbes
Spirit Airlines Will Furlough 270 Pilots And Cut Flights This Fall
Spirit announced the third round of pilot furloughs since last September, as the ultra-low-cost-carrier struggles after six years of unprofitability. Spirit Airlines, which hasn't turned a profit since 2019, emerged from bankruptcy protection in ... More March and is trying to regain its financial footing. getty Beginning Nov. 1, budget carrier Spirit Airlines will furlough about 270 pilots and demote 140 more, Bloomberg first reported Monday. It is the third round of pilot furloughs and downgrades since last September, the Air Line Pilots Association (ALPA), the union representing Spirit's pilots, said in a statement. The airline emerged from bankruptcy protection in March after a four-month restructuring and years of losses, several failed mergers and other challenges. Last week, Spirit Airlines reported an adjusted net loss of $158 million for the second quarter. The company's second-quarter revenue was roughly $1.3 billion—an 11% decrease year-over-year. Spirit Aviation stock is down 50% since the start of the year. Spirit Airlines hasn't turned a profit since 2019. Last November, the budget carrier became the first major U.S. airline to file for Chapter 11 since American Airlines 13 years ago. The carrier's bankruptcy allowed for a period of financial restructuring and cost-reduction measures. 'We are taking necessary steps to ensure we operate as efficiently as possible as part of our efforts to return to profitability,' Spirit said in a statement provided to Forbes, adding that the furloughs will 'better align staffing with our flight schedule.' Spirit has drastically cut capacity, trimming flights by approximately 1 million seats in May and June of this year–a decrease of roughly 24% since last year. Frontier proposed a deal in 2022 but was outbid by JetBlue, whose hostile takeover attempt was blocked by a judge. Frontier made another offer in 2024, but Spirit rejected it this past February, saying it was less beneficial to shareholders than its own restructuring plan. Tangent Lagging consumer confidence is hitting airlines' bottom lines, especially when it comes to basic economy tickets—an indication that budget travelers have pulled back on air travel spending. On second-quarter earnings calls, executives of all the major U.S. airlines noted softer demand for domestic main cabin bookings. Delta Air Lines CEO Ed Bastian said demand softness was 'largely contained to main cabin.' United Airlines chief commercial officer Andrew Nocella noted premium cabin revenues were up 6% year-over-year in Q2, 'while the economy cabin was negative.' And American Airlines CEO Robert Isom reported a 6% drop in domestic unit revenue year over year, noting 'the softness in the main cabin persisted throughout the second quarter.' For its part, Spirit Airlines has taken pains to win over customers with more premium options, like extra legroom, which have performed better than the no-frills coach tickets Spirit has always been famous for. Spirit Airlines Files For Bankruptcy, Aims To Exit Chapter 11 In Early 2025 (Forbes)
Bloomberg
2 days ago
- Business
- Bloomberg
Spirit Airlines to Furlough 270 Pilots as It Reduces Flight Schedule
Spirit Airlines will furlough roughly 270 pilots and demote 140 more as the financially struggling carrier trims its workforce to match a reduced flying schedule. The furloughs will take effect on Nov. 1, with the downgrades from captain to first officer happening on Oct. 1, the airline said on Monday in an emailed statement.
Khaleej Times
3 days ago
- Business
- Khaleej Times
Etihad Airways sees 2025 profits surpassing Dh1.7 billion, to announce H1 results soon
Etihad Airways is expected to surpass its record Dh1.7 billion 2024 profit this year, the airline's CEO Antonoaldo Neves told Khaleej Times in an interview. The company maintained its record profit growth this year, reaching Dh685 million in the first quarter of 2025, an increase of 30 per cent year-on-year. 'We already revealed second-quarter results to our board. So the first half numbers are good. We keep generating cash. The airline is doing well, and forward bookings are looking good. We're confident as a lot of new aircraft will arrive by the end of the year,' Neves said. 'In terms of profitability, we don't give guidance, but we expect it to be better than last year,' he said in reply to expectations about this year's profits. 'We're excited and confident. But this is an industry that is very volatile. So we need to be really paying attention to everything. It's only over when it's over.' In terms of passengers, Neves said Etihad Airways is expected to reach 20 million passengers this year. Last year, it carried 17.5 million. 'We're probably going to end up at 21.5 million,' he said. The UAE national airline carried 5 million passengers during the first quarter, with load factor improving to 87 per cent. Record profits Many UAE airlines have been reporting record profits on the back of strong growth in the travel and tourism sector. In May, the UAE flag carrier Emirates hit a new record profit after tax of Dh19.1 billion, outstripping last year's Dh17.2 billion. This was the best performance in the airline's history and the airline industry for the reporting year 2024-25. Similarly, flydubai announced record-breaking annual results for its financial year ending December 21, 2024. The Dubai-based carrier marks its strongest-ever financial performance in its 15-year history, reporting a pre-tax profit of Dh2.5 billion, a 16 per cent growth compared to the previous financial year with a total revenue of Dh12.8 billion ($3.5 billion), marking an increase of 15% compared to Dh11.2 billion ($3 billion) in 2023. The new milestone was driven by the strength of flydubai's diverse network as well as its strong and agile business model.
Forbes
5 days ago
- Business
- Forbes
American Airlines CEO Jabs Back After Attack By United CEO
Airline execs Scott Kirby, Robert Isom, Ed Bastian, Joanna Geraghty and Robert Jordan attended ... More unveiling of a new ATC system in May. (Photo by Win McNamee) American Airlines CEO Robert Isom on Thursday countered recent negative comments by United's CEO, saying, 'We don't run our airline based on other airlines' perception of our business' Speaking on American's second quarter earnings call, Isom also noted that the carrier is growing at Chicago O'Hare. While United regularly touts its market dominance at ORD, Isom called the airport 'a tremendous opportunity for American,' which had cut back on regional subsidiary flying due to the pilot shortage. 'You'll see Chicago hit 485 peak departures, over 500 as we take a look into next year.' Isom said. At ORD, United currently has about 500 daily departures to 200 destinations, while American has about 480 daily departures to 160 destinations. Isom spoke on American's second quarter earnings call, the last of the earnings calls by the big three carriers. A week earlier, on the United earnings call, CEO Scott Kirby said that the U.S. airline sector has 'two brand loyal airlines really winning and everybody else losing.' He identified United and Delta as the two winners. Kirby added that 'If I dig deeper into it and I look at every airline that's not named United or Delta, I can find at every single one of them, a double-digit percentage of their route network that loses money.' Later on the United call, Andrew Nocella, chief operating officer, noted 'documented share gains in each of our hubs:' O'Hare is arguably the airport where American is best poised to fight back. Isom responded to a question from JP Morgan analyst Jamie Baker, who referred to Kirby's statement and asked, 'Give us an approximation – What overall percentage of American flying loses money?' Isom did not directly respond to that question. However, he noted two 'primary differentiators between us and some of our competitors.' One is that American is 70% domestic, the largest share among the three global carriers. 'We do have a network that we're proud to say is more oriented towards the domestic network' Isom said. American repeatedly explained its second quarter underperformance by citing domestic concentration at a time when international flying is more profitable. Isom cited, 'The reluctance of domestic passengers to get in the game' and said 'We think that's going to change.' The second differentiator Isom cited is that 'We are paying our team members at market wages. Others are benefitting from not doing that.' Isom seemed to refer to United's flight attendant contract, which is currently out for ratification by members. American Airlines did not respond to a request for clarification. While American flight attendants currently have a better contract, United's second quarter results included $561 million to pay flight attendants signing bonuses. Moreover, United CFO Mike Leskinen noted that his cost estimate for the third and fourth quarters includes the cost of a flight attendant contract. The total cost of the contract is about $6 billion over five years, so United's second quarter spending on signing bonuses is arguably more than the quarterly cost of the contract. Possibly Isom was referring to the wages that Delta pays its mechanics and fleet service workers. They are non-union: The International Association of Machinists and the International Brotherhood of Teamsters are seeking to organize the two groups, respectively, while the Association of Flight Attendants is seeking to organize Delta flight attendants. Isom and Kirby, who once worked together at US Airways, have traded barbs over the past year. 'It's like parents yelling at a little league game,' said Dennis Tajer, spokesman for Allied Pilots Association, which represents American pilots. ted
Yahoo
6 days ago
- Business
- Yahoo
American Airlines forecasts bigger Q3 loss as sluggish demand hits fares
(Reuters) -American Airlines forecast a bigger-than-expected third-quarter loss on Thursday, as sluggish domestic travel demand result in more unsold seats and an erosion in fares. Shares of the carrier fell nearly 3% in premarket trading. Most U.S. airlines withdrew their financial forecasts in April due to uncertainty caused by President Donald Trump's sweeping tariffs and budget cuts. Demand in the domestic travel market has remained subdued with budget travelers approaching their plans with caution. American, which had enhanced its focus on the U.S. domestic market, sees itself more exposed to the trend. Summer, typically the peak money-making season for airlines, is falling short this year as sluggish demand for standard economy seats forces carriers to cut fares, undermining their pricing power. Industry executives and analysts have guided toward a stability in demand and the overall travel environment. American expects adjusted loss per share in the third quarter in the range of 10 cents to 60 cents, compared with analysts' estimates of 7 cents, according to data compiled by LSEG. The U.S. carrier reported a net income of $599 million, or 91 cents per share for quarter ended June 30, compared with $717 million, or $1.01 per share, a year earlier. Its total operating revenue marginally rose to about $14.4 billion.
