Tag: expects

Ford Expects $2.2 Billion Pre-Tax Hit Related to Pension Plans in fourth quarter

January 22, 2020 / WIL BALDWIN

FILE PHOTO: The corporate logo of Ford is seen at Brussels Motor Show

(Reuters) – Ford Motor Co <F> said on Wednesday its fourth quarter results will be hit by a pre-tax loss of about $2.2 billion (1.7 billion pounds) due to higher contributions to its employees pension plans.

The charge is largely related to a drop in discount rates, the company said, as that leads to an increase in the amount of money to be contributed for future pension benefits.

The U.S. automaker said it will record a $2 billion loss related to pension plans outside the United States and a $600 million loss associated with other post-retirement employee benefits plans globally.

However, the overall loss was offset by a $400 million gain associated with pension plans in the United States.

On an after-tax basis, the loss is expected to reduce Ford’s net income by about $1.7 billion in the fourth quarter. The loss will not impact the adjusted earnings per share as it is a special item, the company said.

(Reporting by Dominic Roshan K. L. in Bengaluru; Editing by Arun Koyyur)

United Airlines to Record $90 Million Charge Related to Hong Kong Routes

January 7, 2020 / WIL BALDWIN

(Reuters) – United Airlines Holdings Inc <UAL> said on Tuesday it expects a non-cash impairment charge of $90 million in the fourth quarter related to its Hong Kong routes, following anti-government protests in the city.

The Hong Kong protests escalated in June over a now-withdrawn extradition bill, but have since developed into a broader movement.

“Due to a decrease in demand for the Hong Kong market and the resulting decrease in unit revenue, the company determined that the value of its Hong Kong routes had been fully impaired,” the U.S. carrier said.

Several airlines including India’s SpiceJet Ltd <SPJT>, Malaysia’s AirAsia Group Bhd <AIABF>, South Korea’s JejuAir Co Ltd <089590> reduced the number of flights to the city in the fourth quarter as the protests grew increasingly violent, disrupting daily life.

(Reporting by Ankit Ajmera in Bengaluru; Editing by Shounak Dasgupta)

Russia’s St Petersburg Airport Expects to Host Ryanair, Others in 2020

December 26, 2019 / WIL BALDWIN

MOSCOW (Reuters) – Low-cost airline Ryanair and other budget carriers are expected to start flying from Russia’s St Petersburg airport in 2020, the Russian Transport Ministry said.

The move is part of Russia’s plan to boost tourist flows to St Petersburg and will mean more competition for Russian air carriers, including national flag carrier Aeroflot.

The ministry said on Tuesday that Ryanair, EasyJet, WizzAir, Volotea, Air Baltic and Fly One had expressed interest in flights from St Petersburg’s Pulkovo airport, Russia’s fourth largest after Moscow’s three major hubs.

It said the companies had applied for flights from Pulkovo, coded LED by the International Air Transport Association, to 22 countries, including Britain, Germany and France.

Russia will introduce a so-called “Open Skies” regime for the companies for five years, the ministry said, allowing airlines to fly to St Petersburg without requiring the traditional bilateral inter-governmental agreements.

The move follows the introduction of a special electronic visa system for tourists visiting St Petersburg which nationals from 53 countries can take advantage of.

(Reporting by Gleb Stolyarov; Writing by Andrey Ostroukh,; Editing by Andrew Osborn and Ed Osmond)

Spirit Airlines to Take $25 Million Hit from Hurricane Dorian

September 7, 2019 / WIL BALDWIN

FILE PHOTO: A logo of low cost carrier Spirit Airlines is pictured on an Airbus plane in Colomiers near Toulouse

(Reuters) – Spirit Airlines <SAVE> on Friday cut its third-quarter outlook for a key revenue measure as it estimates an about $25 million hit on its sales, hurt by hundreds of flights cancellations due to Hurricane Dorian.

The company now expects third quarter unit revenue to fall between 2.5% and 3.5% compared to its prior estimate of a decline of 1% to 2%.

The hurricane has led airline operators including American Airlines <AAL.O> and Delta Air Lines <DAL.N> to cancel thousands of flights across the United States this week.

Dorian, which briefly made a landfall on the Outer Banks of North Carolina on Friday, is expected to bring tropical storm winds to Nantucket Island and Martha’s Vineyard, Massachusetts early on Saturday

https://in.reuters.com/article/us-storm-dorian-usa/hurricane-dorian-hits-north-carolinas-outer-banks-idINKCN1VR0OK.

(Reporting by Arundhati Sarkar in Bengaluru; Editing by Shailesh Kuber)

Ford Expects $2.2 Billion Pre-Tax Hit Related to Pension Plans in fourth quarter

United Airlines to Record $90 Million Charge Related to Hong Kong Routes

Russia’s St Petersburg Airport Expects to Host Ryanair, Others in 2020

Spirit Airlines to Take $25 Million Hit from Hurricane Dorian

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