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United Airlines Cuts U.S., International Flights in Response to Coronavirus

United Airlines Holdings Inc. said it would cut domestic flights, as the spreading coronavirus depresses bookings.

Airlines world-wide have parked more than 1,000 planes as bookings have fizzled and concerns have risen that depressed demand could extend into the busy peak summer season.

The carrier said Wednesday it plans to store some wide-body jets and is offering staff unpaid leaves of absence in April. The effort is the latest by airlines to mitigate the shock to the industry caused by cascading travel restrictions and passenger concerns over flying. Companies including Boeing Co. BA -6.20% are instructing their employees to cut out unnecessary travel.

Other U.S. carriers have sought to stimulate demand by offering passengers the option to change flights without penalties.

Excerpt from WSJ
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Southwest Flew Millions on Jets With Unconfirmed Maintenance Records, Government Report Says

A government report to be released in coming days says Southwest Airlines Co. LUV failed to prioritize safety and the airline’s regulator, the Federal Aviation Administration, hasn’t done enough about it.

Southwest pilots flew more than 17 million passengers on planes with unconfirmed maintenance records over roughly two years, and in 2019 smashed both wingtips of a jet on a runway while repeatedly trying to land amid gale-force winds, according to the Transportation Department report, reviewed by The Wall Street Journal.

The lapses are highlighted in a draft audit by the agency’s inspector general that also criticizes the FAA’s oversight of the carrier as lax, ineffective and inconsistent. The document indicates no agency enforcement action resulted from those safety slip-ups or certain other alleged hazards. In some cases, the report alleges, the FAA’s overall approach served to “justify continued noncompliance with safety regulations.”

Excerpt from WSJ
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Today’s Logistics Report: Parceling Out Profits; Amazon’s Shipping Prime; Flipping Reverse Logistics

United Parcel Service Inc.’s close work with Amazon.com Inc. is paying off for the package carrier. The package carrier’s shipping volume and operating profit jumped sharply in the fourth quarter, the WSJ’s Paul Ziobro reports, as UPS gets cozier than ever with the largest online retailer in the U.S. while rival FedEx Corp. focuses on retailers competing with the e-commerce behemoth. UPS Chief Executive David Abney says Amazon now makes up 11.6% of the company’s annual revenue, but that other major retailers all are shipping more with the carrier. The company’s pricier air express services grew at a double-digit pace during 2019, including a 25.9% year-over-year gain in next-day air shipments in the fourth quarter. FedEx’s overnight air shipments have declined in three of the past four quarters and SJ Consulting says UPS now holds a bigger share of the next-day market than its Memphis-based rival.

Excerpt from WSJ
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Airlines Shouldn’t Always Listen to Their Customers

The financial results of European budget leader Ryanair suggest there is more bark than bite in complaints about unbundled air fares.  “Just raise my ticket price instead of loading me up with extra charges, and I’ll pay.” Evidence from the airline industry suggests this is something people say but don’t do.

The trend of “unbundling”—dividing a product up into different payable segments—has picked up pace again among carriers. It was pioneered by the likes of Southwest and European budget leader Ryanair, RYAAY +5.93% but full-service brands like Delta Air Lines, United Airlines and British Airways eventually followed suit with “basic economy” fares. Now, Lufthansa and Emirates—which focuses more than most on the luxury market—are testing the waters of unbundling in business class.

Excerpt from WSJ
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Breaking News - From Avmark Newsletter

  • United Airlines Cuts U.S., International Flights in Response to Coronavirus

    Read More ...

  • Southwest Flew Millions on Jets With Unconfirmed Maintenance Records, Government Report Says

    Read More ...

  • Today’s Logistics Report: Parceling Out Profits; Amazon’s Shipping Prime; Flipping Reverse Logistics

    Read More ...

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