Aviation Industry Updates: Oct 24, 2023

United Airlines Forecasts Sustained International Travel Demand

KEY POINTS:

• It’s the yin and the yang of the travel industry these days.
• United Airlines says it expects continued strong demand for international routes, but as a result, the company believes costs will rise in the coming quarter.
• Those costs include everything from the airline fares themselves to fuel to labor to the war in the Middle East, which could impact United’s extensive international network.
• "Even in a tough industry environment, we're producing strong absolute results while producing the best relative results in our history," CEO Scott Kirby said last week on a third-quarter earnings call.
• "From basic economy, which allows us to compete profitably on price on the low end and all the way up to Polaris on long-haul international, United is able to give our customers the real choice they want,” Kirby continued.
• Despite the apparent dichotomy of the situation, United has added more routes to Asia and placed an order for more than 100 long-haul jets.

We Just Got A Pilot With FOUR 121 Checkride Failures Hired At A Legacy

I don’t know why you haven’t gotten an interview yet… But, if you book a call, we’ve got the resources to figure it out and help you get one ASAP.

Off-Duty Pilot Accused Of Trying To Shut Down The Engines Of A Horizon Air Jet In Midflight

KEY POINTS:

• An off-duty pilot riding in the extra seat in the cockpit of a Horizon Air passenger jet tried to shut down the engines in midflight and had to be subdued by the crew, according to a pilot flying the plane.
• He was being held Monday on 83 counts each of attempted murder and reckless endangerment and one count of endangering an aircraft, according to the Multnomah County Sheriff’s Office.
• The San Francisco-bound flight on Sunday diverted to Portland, Oregon, where it was met by officers from the Port of Portland, who took Emerson into custody

AP News

We Just Got A Pilot With A Gear Up Landing Hired At A Major

I don’t know why you haven’t gotten an interview yet… But, if you book a call, we’ve got the resources to figure it out and help you get one ASAP.

Airline Stocks Lose Year-to-Date Gains As Industry 'Divergence' Emerges

KEY POINTS:

• Airline stocks are going through some turbulent times.
• US carriers like American Airlines (AAL), United (UAL), and JetBlue (JBLU) are sputtering into the fourth quarter after losing their gains from the first half of the year — when shares were flying high on "revenge travel." Even Delta (DAL), the only major airline in the green for the year, has come down from its summer peak.
• And among those names, US airlines that offer international routes are faring better than their domestic counterparts.
• "The tide has shifted," Chris Raite, sector analyst at Third Bridge, told Yahoo Finance. "We are seeing a divergence. International travel is a lot more profitable, so it gives them a bit more leeway to be competitive."
• The US Global Jets ETF (JETS), which tracks a range of airline operators and manufacturers, is down 30% over the last three months. The index's almost 30% rally in the first half of the year has been wiped out.

Yahoo Finance

US Airline Investors Worry The Travel Boom May Be Ending

KEY POINTS:

• It should be the best of times for U.S. airlines with a travel boom still going strong, but investors are nervous demand may soften as the economy falters, making it harder to protect profits from soaring costs.
• Those concerns have battered airline stocks even as earnings reports point to a continuing consumer appetite for travel. Shares of United Airlines (UAL.O) fell about 10% on Wednesday, dragging down the broader the NYSE Arca Airline index (.XAL), after the Chicago-based carrier forecast lower-than-expected fourth-quarter profit on rising expenses.
• The shares, however, recovered on Thursday following American Airlines' (AAL.O) comments that domestic travel demand remains "steady," and the bookings for holidays are stronger than last year.
• "It's really a demand-driven business" said Brian Mulberry, client portfolio manager at Zacks Investment Management. "If there's less demand, then obviously less sales means less profitability."
• A struggle to get control of operating costs has also called into question rival Delta Air Lines' (DAL.N) goal of generating profit of over $7 per share next year, with some analysts now calling the target aspirational. That is a reason why the airline's shares are down 10% this month even after it posted stronger-than-expected quarterly earnings.

Reuters

We Just Got A Pilot With 1526 Hours Hired At A Legacy

I don’t know why you haven’t gotten an interview yet… But, if you book a call, we’ve got the resources to figure it out and help you get one ASAP.