WASHINGTON (Reuters) – U.S. Transportation Secretary Elaine Chao on Thursday granted final approval for an expanded trans-Atlantic joint venture for Delta Air Lines Inc <DAL>, Air France KLM SA <AFLYY> and Virgin Atlantic.
Reuters first reported Chao’s planned tentative approval of the agreement in August. The expanded joint venture replaces two previously approved arrangements in the U.S.-United Kingdom and U.S.-Continental Europe markets and will allow for additional benefits such as more options on European flights, Chao said in a statement.
(Reporting by David Shepardson; editing by Jonathan Oatis)
A Delta Air Lines flight is pushed put of its gate at the airport in Salt Lake City
Alstom will deliver 19 Coradia Continental electric regional trains to the state of Baden-Württemberg. The contract, signed with DB Regio, is worth approximately €120 million. The trains will be built at Alstom’s site in Salzgitter.
Beginning in December 2022, the new trains will be gradually deployed on the routes from Karlsruhe to Heilbronn, Achern, as well as via Freudenstadt to Herrenberg.
The new trains have been designed to optimise passenger experience while meeting the region’s operational requirements. In addition to high-performance WiFi, they will include spacious multi-purpose areas in each car and a large capacity for bicycles. The trains are specifically designed to cope with the steep gradients that punctuate the tracks running through the Black Forest.
“Passengers in the Karlsruhe region can look forward to modern, proven and reliable trains. Our trains not only satisfy passengers, but are also known for outstanding reliability and availability, thus offering absolute planning security for operators,”says Jörg Nikutta, Managing Director of Alstom in Germany and Austria.
The Coradia Continental is part of Alstom’s Coradia range of modular trains that benefits from more than 30 years of know-how. To date, over 2,800 Coradia trains have been sold and 2,400 are currently in service in Denmark, France, Germany, Italy, Luxembourg, the Netherlands, Sweden and Canada.
The new vehicles will be procured by DB Regio AG on behalf of the Ministry of Transport of the state of Baden-Württemberg as the responsible public transport authority for this network. After delivery of the vehicles, they become the property of the Landesanstalt Schienenfahrzeuge Baden-Württemberg (SFBW) and are leased by DB Regio for the term of the 13-year transport contract.
FILE PHOTO: United Airlines Chief Executive Officer Oscar Munoz poses for pictures in his office at the company’s headquarters in Chicago, Illinois, U.S., November 14, 2018. Picture taken November 14, 2018. REUTERS/Tracy Rucinski
CHICAGO (Reuters) – United Airlines Chief Executive Oscar Munoz promised on Wednesday to accommodate any passengers concerned about flying Boeing Co’s 737 MAX jets once regulators deem the aircraft safe to fly again.
United is the only one of the three U.S. MAX operators to make such an announcement so far. Southwest Airlines Co, the world’s largest MAX operator, said on Wednesday discussions were still ongoing.
American Airlines Group Inc said on Wednesday “customers can be assured that our pilots would never operate an unsafe aircraft,” echoing other carriers’ insistence that safety is paramount to putting the globally grounded jets back in the air.
Still, following two fatal crashes of the MAX model within months, an Ethiopian Airlines jet in March after a Lion Air jet in October, Munoz said he wants customers to feel as comfortable as possible.
“If people need any kind of adjustments we will absolutely rebook them,” Munoz told reporters after the airline’s annual shareholders’ meeting.
Munoz said it was too soon to discuss whether Boeing would pick up the tab. None of the shareholders at the meeting questioned the company’s MAX plans. United is in the midst of a growth plan that has fuelled a 17% share rise over the past year.
Global regulators are meeting with the U.S. Federal Aviation Administration on Thursday to discuss Boeing’s proposed software fix and training updates for the MAX, which has been grounded since mid-March.
The timing of regulatory approval is still unclear, and Munoz said that is only the first step, with independent analysis and public and employee confidence critical in the Chicago-based airline’s strategy for eventually flying the jets again.
A Reuters/Ipsos poll released last week showed U.S. fliers still value ticket prices over aircraft models when choosing flights, suggesting the crashes have had little impact on consumer sentiment.
The No. 3 U.S. airline by passenger traffic, which trades under parent company United Continental Holdings Inc, operates 14 MAX jets and has dozens more on order.
United, American and Southwest together have cancelled thousands of flights during the busy U.S. summer travel season and warned of hits to profits from the grounded MAX, which many airlines had rushed to buy thanks to the narrowbody’s higher fuel-efficiency and longer range.
Still, Munoz said he was not concerned about the timetable for a return to service.
“We have to fly this aircraft for a long period of time, so a week, a month, whatever is not that important,” Munoz said.
(Reporting by Tracy Rucinski in Chicago; Editing by Matthew Lewis and Phil Berlowitz)
FILE PHOTO: A United Express Embraer ERJ-175LR airplane is pictured at Vancouver’s international airport in Richmond, British Columbia, Canada, February 5, 2019. REUTERS/Ben Nelms
(Reuters) – United Airlines on Tuesday reported a better-than-expected jump in first-quarter profit as it sold more tickets and cut costs, standing by its 2019 profit target even as its Boeing Co 737 MAX jets remain grounded.
Chicago-based United has removed its 14 MAX aircraft, which were suspended worldwide in March following two fatal crashes, from its flying schedule through early July, eating into U.S. airlines’ peak summer travel season.
Still, the airline’s parent United Continental Holdings Inc reiterated its estimate for adjusted earnings of $10 to $12 per share in 2019, and said its strategy for scheduling more flights out of its hubs was continuing to win customers.
Adjusted earnings per share rose to $1.15 in the first quarter, ending March 31, from 49 cents a year earlier, overcoming a U.S. government shutdown and severe winter weather earlier this year that curtailed flights.
Wall Street analysts on average had forecast 95 cents per share, according to IBES data from Refinitiv.
Its shares rose 2.8 percent in after-hours trading.
United has largely avoided cancelling MAX flights by servicing those routes with larger aircraft, but President Scott Kirby warned last week that the strategy could not last indefinitely.
The airline, which has been adding seats at a faster pace than rivals, trimmed its 2019 capacity growth target to between 4 percent and 5 percent from 4 percent to 6 percent previously, but did not say whether the decision reflected the effect of the grounded MAX.
Total operating revenue rose 7.1 percent to $8.73 billion in the quarter, while closely watched revenue per available seat mile rose 1.1 percent.
In the second quarter, United said it expects unit revenue to rise between 0.5 percent and 2.5 percent while unit costs, which fell 1.8 percent in the first quarter, were expected to be flat to 1 percent higher.
The No. 3 U.S. carrier is the first of three U.S. 737 MAX operators to report first-quarter results. Southwest Airlines Co and American Airlines Group Inc, which have removed their MAX jets from schedules into August, report on April 25 and April 26 respectively.
A Federal Aviation Administration review board said on Tuesday that it found a Boeing software update for the MAX to be “operationally suitable,” suggesting the lengthy regulatory process to get the planes back in the air was underway.
Rival Delta Air Lines Inc, which does not operate the 737 MAX, lifted its 2019 revenue forecast last week after reporting better-than-expected quarterly profit.
(Reporting by Tracy Rucinski in Chicago; Additional reporting by Sanjana Shivdas in Bengaluru; Editing by Bill Rigby)
As part of the 2018-2026 mid-life programme, Eurotunnel signed a contract with Bombardier Transportation to renovate nine “PAX” Shuttles. Composed in total of 254 wagons, each 800-meter long shuttle is made up for passengers’ vehicles with passengers remaining in their vehicles during for the 35-minute Channel crossing. In the 25-year period since the opening of the Channel Tunnel, these Shuttles have each travelled an average of 300 round trips per month and have enabled over 236 million passengers to travel very comfortably between France and Great-Britain.
The contract is valued at €150 million ($171 million) over a period of seven years. Deliveries of the newly refurbished Shuttles will start in mid-2022 and continue until mid-2026.
Teams from Bombardier France and Belgium originally designed and built these unique vehicles in the 90’s and launched Bombardier’s activities in France. This year, the company celebrates 30 years since its establishment at the Crespin facility in the Hauts-de-France Region.
“Mobility technology leader Bombardier brings its expertise and experience to Eurotunnel to renovate the shuttles it uses in the Channel Tunnel. This project, the largest in Europe in terms of scope and ambition, marks a milestone in the development of our refurbishment activities and places Bombardier as the leader of this market in France. As well as their own know-how, our French teams will be able to tap into the overall engineering expertise and processes across the Bombardier group to make a success of this unique project” said Laurent Bouyer, President of Bombardier Transportation France.
“Eurotunnel has chosen to put its trust in Bombardier Transportation for the renovation of its Passenger Shuttles. We are celebrating 25 years of operation of these unique Shuttles that were built 30 years ago. This strategic investment, our most important in 25 years, allows Eurotunnel to maintain the highest level of quality service and to affirm trust in its long-term perspectives”, said François Gauthey, Deputy Chief Executive Officer of the Group.
Bombardier will be responsible for the renovation of 26 wagons on each of the nine Shuttles, including 12 single-deck carriages for coaches, minibuses, caravans and vehicles over 1.85 meters high, 12 double-deck carriages for cars and motorcycles, and 2 double-deck loader wagons, in addition to two spare loader wagons. As project technical advisor, Bombardier will lead the integration and renovation operations except for the single-deck loaders and will lead on engineering design and procurement for onboard equipment.
Eurotunnel will undertake design and procurement of key equipment such as brakes, doors, fire doors, fire detection, HVAC and the double-deck loaders. Eurotunnel will manage the homologation process of the renovated Shuttles with the appropriate authorities. Bombardier will provide the technical support to prepare the required documentation.
About Eurotunnel
Eurotunnel, a subsidiary of Getlink SE, manages the Channel Tunnel infrastructure and operations Truck and Passenger Le Shuttle services (cars and coaches) between Folkestone, UK and Calais, France. Eurotunnel holds the Channel Tunnel concession until 2086 and remains the fastest, most reliable, easiest and most environmentally friendly way to cross the Channel. In 25 years, more than 430 million people and 86 million vehicles have travelled through the Tunnel. This unique land link has become a vital link between the United-Kingdom and continental Europe.
About Bombardier Transportation
Bombardier Transportation is a global mobility solution provider leading the way with the rail industry’s broadest portfolio. It covers the full spectrum of solutions, ranging from trains to sub-systems and signalling to complete turnkey transport systems, e-mobility technology and data-driven maintenance services. Combining technology and performance with empathy, Bombardier Transportation continuously breaks new ground in sustainable mobility by providing integrated solutions that create substantial benefits for operators, passengers and the environment. Headquartered in Berlin, Germany, Bombardier Transportation employs around 40,650 people and its products and services operate in over 60 countries.
CHICAGO
(Reuters) – United Continental Holdings is applying for six of 12 new
slots open to U.S. carriers at Tokyo’s Haneda International Airport in a
push to increase daily nonstop flights to the Japanese capital ahead of
the 2020 Olympic Games and beyond.
Haneda
is located closer to downtown Tokyo than the capital’s other
international airport Narita, and flies to more destinations throughout
Japan, making it attractive for both business travelers and tourists.
Thursday
is the deadline for applications to the U.S. Department of
Transportation for the 12 extra Haneda slots that Japan has agreed to
allot to U.S. airlines.
The
extra slots for U.S. airlines were unlocked after Japan reached an
agreement with the U.S. Air Force to open up new flight paths around a
nearby U.S. air base, a move needed to boost Haneda movements in the
run-up to the 2020 Olympics in Tokyo.
Completion
of an aviation agreement between the U.S. and Japanese governments is
expected later this year, United said. Flights are expected to begin
service by the summer of 2020, once the U.S. Department of
Transportation awards the slots.
U.S. carriers American Airlines Group, Delta Air Lines and Hawaiian Airlines are also expected to bid.
United
wants to fly to Haneda from its hubs at Newark Liberty, Chicago O’Hare,
Washington Dulles, Los Angeles International, Houston George Bush and
Guam. The flights from Newark, Los Angeles and Guam would be new routes
operated by Boeing 777 and 787 aircraft, while the flights from the
other three hubs would be shifted from Narita.
Under
the proposal, United said it would connect to 37 destinations in Japan
from Haneda with its joint venture partner All Nippon Airways (ANA).
Industry
analysts say a recent sale of Boeing 737 MAX aircraft to ANA may have
weighed in the decision to grant more flying rights for U.S. airlines
into Haneda, which airlines compete for aggressively due to the
airport’s proximity to the Japanese capital, a major center for global
commerce.
(Reporting by Tracy Rucinski; Editing by Chizu Nomiyama)
A United Airlines plane with the Continental Airlines logo on its tail, sits at a gate at O’Hare International airport in Chicago October 1, 2010. REUTERS/Frank Polich/File Photo
SEATTLE, WA Jan 16, 2019 – Boeing [NYSE:BA] and United Airlines [NASDAQ:UAL] announced the carrier ordered 24 additional 737 MAX jets and four more 777-300ER (Extended Range) airplanes last year. The $4.5 billion order, according to list prices, was booked as unidentified on Boeing’s Orders & Deliveries website.
The Chicago-based airline has steadily placed new orders for the two Boeing jets to serve its large domestic and international network. United Airlines is among the more than 100 customers who have made the 737 MAX the fastest-selling airplane in Boeing history, receiving more than 5,000 orders since the program’s launch.
“United Airlines has been instrumental to the phenomenal success of the Boeing 737 and 777 programs over the years. We are honored by United’s continued confidence in our people and our airplanes and services,” said Ihssane Mounir, senior vice president of Commercial Sales & Marketing for The Boeing Company. “We are proud to again extend our long-standing partnership with United Airlines with these latest orders.”
The MAX builds on the 737’s industry-leading performance and reliability by offering operators more range and 14-percent better fuel efficiency compared to today’s airplanes and 20 percent more than the airplanes it replaces. The MAX achieves the improved performance thanks to the CFM International LEAP-1B engines, Advanced Technology winglets, and other airframe enhancements.
The 777 has become the best-selling twin-aisle jet family in history, earning more than 2,000 orders. In fact, United’s order pushed the program over the 2,000 threshold in December. It is also the most reliable twin-aisle jet flying today with the highest schedule reliability in the industry at 99.5 percent. The 777-300ER can seat up to 386 passengers in a three-class configuration and has a maximum range of 7,930 nautical miles (14,685 km).
United also utilizes Boeing Global Services to enhance its operations of their large fleet of Boeing aircraft. Multiple digital Boeing solutions, including those powered by Boeing AnalytX, optimize its operations. Recently, United signed for crew management and electronic flight bag (EFB) tools to enhance operational efficiency across all phases of flight.
Q4 unit revenue up 5.0% year-over-year; full-year diluted 2018 EPS of $7.70; adjusted diluted EPS of $9.13
CHICAGO, Jan. 15, 2019 /PRNewswire/ — In a departure from industry trends, United (UAL) announced today that its fourth-quarter unit revenue came in at the high end of its guidance range and also exceeded its full-year adjusted diluted earnings per share target laid out last January. UAL reported full-year net income of $2.1 billion, diluted earnings per share of $7.70 (a 9.1 percent increase year-over-year), pre-tax earnings of $2.7 billion and pre-tax margin of 6.4 percent. UAL reported adjusted full-year net income of $2.5 billion, adjusted pre-tax earnings of $3.2 billion and adjusted pre-tax margin of 7.7 percent.1 UAL increased its full-year 2018 adjusted diluted earnings per share outlook three times during the year despite a $2.4 billion year-over-year headwind from fuel. Full-year adjusted diluted earnings per share increased 33.5 percent year-over-year to $9.13, above the high end of the company’s most recent guidance range.
“United’s financial performance is a testament to the successful implementation of the first year of our strategic plan and to the record-setting operational performance powered by the more than 90,000 airline professionals who work at United,” said Oscar Munoz, chief executive officer of United Airlines. “United delivered proof, not just promises in 2018 – even in the face of significant headwinds from higher than expected fuel costs. It’s why I couldn’t be more proud of our winning culture and customer-focused team and continue to be enthusiastic about United’s bright future.”
For 2019, UAL expects adjusted diluted earnings per share to again grow year-over-year to between $10.00 to $12.00.2
UAL reported fourth-quarter net income of $462 million, diluted earnings per share of $1.70, pre-tax earnings of $556 million and pre-tax margin of 5.3 percent.
UAL reported fourth-quarter adjusted net income of $657 million, adjusted diluted earnings per share of $2.41 and adjusted pre-tax earnings of $814 million.
UAL reported fourth-quarter adjusted pre-tax margin of 7.8 percent,1 expanding margin on an adjusted basis of 0.9 points versus the fourth-quarter of 2017.
UAL recovered 98% percent of the year-over-year increase in fuel prices in 2018.
Consolidated fourth-quarter passenger revenue per available seat mile (PRASM) increased 5 percent year-over-year, at the high end of the company’s fourth-quarter 2018 guidance range.
Consolidated fourth-quarter unit cost per available seat mile (CASM) increased 7.0 percent year-over-year.
Consolidated fourth-quarter CASM, excluding special charges, third-party business expenses, fuel and profit sharing, decreased 0.7 percent year-over-year.
Employees earned $334 million in profit sharing for 2018.
For more information on UAL’s first-quarter and full-year 2019 guidance, please visit ir.united.com for the company’s investor update.
2018 Highlights
Record-Setting Operational Performance3
Set new UAL records by flying the most revenue passengers ever, operating the most mainline departures and achieving the fewest cancellations ever in a year, resulting in more UAL customers departing on-time in 2018 than ever before.
For the year, achieved the best completion rate in company history with more than 1.7 million flights.
In 2018, achieved the best ever company STAR performance (first departures of the day), with nearly 250,000 flights leaving on time.
In the fourth quarter, the company achieved top-tier performance in on-time departures among its largest competitors. For the December holiday season, UAL had its best-ever on-time departure performance while flying the most revenue customers it had ever flown during the holiday period.
Customer Experience
Opened three new United Polaris lounges located in San Francisco International Airport, Newark Liberty International Airport and Houston’s George Bush Intercontinental Airport.
Announced UAL’s newest premium seating, United® Premium Plus, which will provide more space, comfort and amenities on select international flights starting later this year.
Introduced a new boarding process designed to reduce customers’ stress by reducing time spent waiting in line and providing them with improved boarding information.
Expanded personal device entertainment option to all aircraft, providing at least one free entertainment option on all Wi-Fi equipped aircraft.
MileagePlus loyalty program voted Best Overall Frequent-Flyer Program in the world for the 15th consecutive year by readers of Global Traveler, and voted Favorite Frequent-Flyer Program in the Trazee Awards.
Employees
Employees earned incentive payments totaling approximately $14 million for achieving operational performance goals in the quarter, marking a full year of earned incentive payments totaling $55 million.
Introduced and trained over 90,000 team members on UAL’s new customer service decision framework, the core4, which focuses on the principles of safe, caring, dependable and efficient.
Deployed 6,000 iPads to maintenance employees, improving reliability and efficiency.
Unveiled a state-of-the-art flight training center in Denver, Colorado – the largest in the world and home to the company’s more than 30 full flight simulators representing all of UAL’s fleet types.
Successfully completed the full implementation of the flight attendant joint collective bargaining agreement, allowing the company to operate more efficiently and reliably.
Achieved the top score of 100 percent on the 2018 Disability Equality Index (DEI), a prominent benchmarking metric that rates U.S. companies on their disability inclusion policies and practices, also earning UAL a place on DEI’s 2018 “Best Places to Work” list.
Received “Best-of-the-Best” Award from the National LGBT Chamber of Commerce and National Business Inclusion Consortium for commitment to diversity and inclusion across all communities.
Network
Introduced 93 new routes, adding more flights in 2018 than any other U.S. airline.
Announced new international service including Washington-Dulles to Tel Aviv, Israel; San Francisco to Amsterdam, Netherlands; Newark/New York to Naples, Italy; as well as Newark/New York to Prague, Czech Republic and Denver to Frankfurt, Germany, all subject to government approval.
Launched several exciting new international routes including Houston to Sydney, San Francisco to Tahiti and Denver to London.
Announced schedule expansion at East Coast hubs in Newark/New York and Washington-Dulles to offer more nonstop flights to destinations popular with New York-area customers while reallocating largely connecting passenger flights to Washington-Dulles.
Announced a joint business agreement with Compañía Panameña de Aviación S.A. (Copa), Aerovías del Continente Americano S.A. (Avianca) and many of Avianca’s affiliates, pending government approval.
Fleet
Took delivery of 21 new Boeing aircraft, including four 777-300ER, four 787-9, three 787-10 and ten 737 MAX 9 aircraft.
In December 2018, ordered an additional four Boeing 777-300ER aircraft and 24 737 MAX aircraft.
Community and Environment
Pledged to reduce the company’s greenhouse gas emissions by 50 percent by 2050, the only U.S. airline to commit to emissions reductions, further strengthening UAL’s ambition to be the world’s most environmentally conscious airline.
Announced a total of $8 million in grants to benefit organizations in each of UAL’s domestic hub communities.
Announced new global partnership with the Special Olympics and flew hundreds of Team USA Olympic and Paralympic Winter Games 2018 athletes, coaches and family members to PyeongChang, South Korea, continuing the 38-year relationship between UAL and the United States Olympic Committee.
Ranked No. 1 among global carriers in Newsweek’s 2017 Global 500 Green Rankings, one of the most recognized environmental performance assessments of the world’s largest publicly traded companies.
Launched a Crowdrise fundraising campaign to support those affected by Hurricane Florence, Typhoon Mangkhut, flooding in Western Japan, wildfires in California and other disasters.
Earnings Call
UAL will hold a conference call to discuss its fourth-quarter and full-year 2018 financial results and its financial and operational outlook for the first quarter and full year of 2019 on Wednesday, January 16, at 9:30 a.m. Central time /10:30 a.m. Eastern time. A live, listen-only webcast of the conference call will be available at ir.united.com. The webcast will be available for replay within 24 hours of the conference call and then archived on the website for three months.
SAO PAULO, Jan 11 (Reuters) – Lessor Aircastle is set to repossess 10 jets from Avianca Brasil, the country’s No. 4 airline, after a bankruptcy hearing on Monday, a source familiar with the matter said, potentially disrupting flights for thousands of passengers.
The 10 Airbus A320 planes represent more than 20 percent of Avianca Brasil’s current fleet, according to data provided by Brazil’s aviation regulator, raising doubts about the carrier’s ability to fly its full flight schedule if the aircraft are seized.
And it could lose more planes in the future. Lessor GE Capital Aviation Services and an affiliate are seeking to repossess 12 Airbus A320s from Avianca Brasil, according to James Luton, a GE spokesman.
When the airline filed for bankruptcy protections last month, the airline discussed the possible loss of 14 planes, which it said would affect 77,000 passengers over a three-week period.
A representative for Avianca Brasil declined to comment. The bankruptcy filing came after years of mounting losses and late aircraft payments.
Bankruptcy filings, while providing protection from creditors, do not cover leases, the source of the carrier’s entire 46-aircraft fleet.
Between the end of 2016 and September 2018, Avianca Brasil’s liabilities to aircraft lessors quintupled to 415 million reais ($112 million), according to the carrier’s financial statements.
Still, a Brazilian bankruptcy judge stayed a decision that would have allowed Aircastle to repossess the planes last month. That stay, however, expires on Monday.
Since the stay was issued, the source said, Avianca Brasil has not made any proposal to Aircastle that would have allowed the carrier to keep the planes. Avianca Brasil owes Aircastle more than $30 million, the source added.
The stakes are also high for Aircastle, as Avianca Brasil is its largest single customer, representing some 7 percent of its net book value, according to the lessor’s financial disclosures.
Avianca Brasil is separate from the better-known Avianca Holdings SA, which is based in Colombia. But they share the same owner, a family company owned in part by Bolivian-born airline entrepreneur German Efromovich.
United Continental Holdings gave the family company a $500 million loan last November.
Neither party has revealed why the loan was needed, but Efromovich has been sued for failure to repay his debts in the United States and Brazil in recent years.
(Reuters) – American Airlines Group Inc (AAL.O) shares fell as much as 11 percent on Thursday after the biggest U.S. carrier cut its estimate for a closely watched measure of performance, raising concerns that slowing global growth may be weakening travel demand.
The losses in American’s shares also weighed on the broader airline sector. Delta Air Lines Inc (DAL.N) fell 3.4 percent, United Continental Holdings Inc (UAL.N) 2.1 percent and Southwest Airlines Co (LUV.N) 2.6 percent.
American’s announcement comes a week after rival Delta Air Lines Inc (DAL.N) cut its quarterly unit revenue estimate due to lower-than-expected improvement in fares booked last minute.
“The U.S. airlines are set to contend with easing unit revenue trends due to decelerating economic growth, lower fuel, and foreign exchange pressures,” Morgan Stanley analyst Rajeev Lalwani wrote in a note earlier this week.
The company said it now expects unit revenue, which compares sales to flight capacity, to increase about 1.5 percent in the quarter, compared with its earlier estimate of 1.5 percent to 3.5 percent rise. (http://bit.ly/2D1GRZi)
American also lowered full-year earnings per share expectation to a range of $4.40 to $4.60, from $4.50 to $5 earlier.
The airline said it expects its fuel expense to reduce in the fourth quarter to between $2.22 and $2.27 per gallon, compared with $2.30 to $2.35 per gallon earlier.
Investors have been fretting over lower fuel costs and the airlines’ ability to increase ticket prices, as a decline in fuel prices in 2016 and 2017 led U.S. airlines to competitively discount fares, hurting revenue.
Analysts were expecting earnings of $4.62 per share, according to IBES data from Refinitiv.
(Reporting by Ankit Ajmera in Bengaluru; Editing by Shinjini Ganguli)
