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Delta Expects Shutdown to Hurt Revenue

Furlough of FAA inspectors also slows airline’s introduction of new Airbus planes

Delta Air Lines Inc. forecast sluggish revenue growth for early this year in part because of business lost to the federal government shutdown.

The Atlanta-based carrier said Tuesday that it expects first-quarter unit revenue—a key industry metric—to be flat or rise at most by 2% as federal workers travel less during the spending fight between the Trump administration and Congress.

Chief Executive Ed Bastian said the shutdown would cost Delta this month about $25 million in revenue from government travel. The airline also attributed its tempered outlook to a stronger U.S. dollar and to the timing of this year’s Easter holiday in April, which pushes a busy travel period beyond the first quarter.

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This is an excerpt from The Wall Street Journal.

Air Travel Remains Safe During Shutdown, Data Show

Rate of planes coming too close to each other hasn’t changed, but air-traffic controllers’ resources ‘are starting to run thin,’ union official says

U.S. aviation officials have compiled data that statistically support, for the first time, Trump administration statements that the partial government shutdown hasn’t jeopardized air-traffic-control safety.

The data, according to one person briefed on the details, indicate that serious traffic-control deviations—incidents of planes coming dangerously close to each other in the air or on the ground—have remained flat from levels a year ago. Such incidents are typically captured by computers and other automated means.

The statistical summary, covering the duration of the shutdown through the end of last week, also shows a 4% overall drop across a broader range of air-traffic-control deviations, this person said.

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This is an excerpt from The Wall Street Journal.

Amazon to Lease 10 More Freighters from Air Transport Services


Move aims to help reduce its shipping costs, reliance on carriers such as UPS and FedEx
An Amazon-branded Boeing 767 freighter flies over Lake Washington during the Seattle Seafair Air Show in August 2016.
Amazon.com Inc. AMZN -0.56% on Friday said it would lease another 10 freighter aircraft from Air Transport Services Group Inc., ATSG -1.42% as the online retail giant expands its air cargo operation.

The expanded deal also gives Amazon the ability to buy up to a 39.9% stake in the Wilmington, Ohio, air-cargo transportation company and includes multiyear extensions of the current aircraft leases between the companies.

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This is an excerpt from The Wall Street Journal.

The Last 747: Airlines Dump the Jumbo Jet, Transforming International Travel

Smaller, ultraefficient long-range airliners are overtaking the once celebrated giant of the sky; crammed seats and fewer perks<br>
About a year ago, a Boeing BA 0.41% 747 operated by Delta Air Lines took off from Atlanta for a three-hour flight to Pinal Airpark, a boneyard for unwanted aircraft in Arizona’s Sonoran Desert.<p>
The once celebrated giant of the sky, which had transformed international travel with its size and range, had flown its last flight for a U.S. airline.
Delta has replaced its fleet of jumbo jets with Airbus A350s, one of a new breed of smaller, ultraefficient long-range airliners. Nearly every other airline in the world is doing a version of the same thing, replacing huge jets with smaller ones.

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This is an excerpt from The Wall Street Journal.

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