Travel
Delta Airlines beats on earnings, passengers increase
United Airlines beat estimates on earnings per share last quarter, as its passenger numbers rose. Earnings per share were US$2.78, down from $3.33 year-over-year but above LSEG estimates of $2.62. Revenue was $15.23 billion, up 2.6% but below estimates of $15.33 billion. “We’ve invested in customers at every price point: Seatback screens, an industry-leading mobile app, extra legroom, a lie-flat United Polaris seat, and fast, free, reliable Starlink on every plane by 2027. Our customers value the United experience, making them increasingly loyal to United,” United Airlines CEO Scott Kirby said. “Those investments over almost a decade, combined with great service from our people, have allowed United to win and retain brand-loyal customers, leading to economic resilience even with macro economic volatility through the first three quarters of the year and significant upside as the economy and demand are improving in the fourth quarter.” Passenger revenue was up 1.9% to $13.82 billion, while cargo revenue grew 3.2% to $431 million. Other revenue increased by 13.2% to $979 million. The company recorded 48.38 million passengers last quarter, a 6.2% increase. It flew around 427,000 passengers each day. United is set to
Lufthansa cuts 4,000 jobs, leans on AI for profit push
In an attempt to increase efficiency across business areas and activities, German airline Lufthansa has unveiled plans to increase profitability by slashing its payroll and leaning heavily on artificial intelligence, digitalisation and consolidating work among member airlines. It’s understood that the airline group plans to eliminate a total of 4,000 full-time equivalent roles worldwide by 2030. While Lufthansa missed profitability targets in 2024, amid a difficult year of staff strikes, increased global price competition and aircraft delays, the airline now expects adjusted operating margin to reach 8%-10% from 2028. Adjusted free cash flow is expected to exceed 2.5 billion euros (US$2.9 billion, A$4.46 billion) annually. Annual earnings dropped 39% to 1.65 billion euros last year, and its annual operating margin was 4.4%, below Lufthansa’s strategic target of 8%. While most of the job losses will be from Germany, the focus - as part of a broader restructuring strategy - is expected to be on administrative rather than operational roles. Lufthansa told the market it was moving to deepen the integration among member airlines Lufthansa, SWISS, Austrian Airlines, Brussels Airlines and ITA Airways, and is "reviewing
Qantas to pay A$90 million for illegally outsourcing jobs
Qantas CEO, Venessa Hudson, has apologised for illegally outsourcing ground handling jobs during COVID and confirmed that the airline will be paying the A$90 million. The penalty was handed down by Federal Court Justice Michael Lee, who said the penalty must “bear some resemblance” to the maximum A$121 million and should be no less than A$90 million. Lee also said A$50 million should be paid to the Transport Workers Union (TWU). How the remaining A$40 million will be paid will be declared at a later hearing. The TWU called for the airline to be fined the maximum A$121 million; however, Qantas argued that the court instead imposed a penalty between A$40 million and A$80 million. Hudson, who became CEO in September 2023 after former CEO Alan Joyce stepped down, apologised to the 1,820 employees who lost their jobs following the decision to illegally outsource them. She said the impact was felt not only by those who lost their jobs also by the company’s entire workforce. “The decision to outsource five years ago, particularly during such an uncertain time, caused genuine hardship for many of our former team and their families,” she said. “Over the past 18 months, we’ve worked hard to change the way we operate as
Boeing sheds 4.4% post-earnings; CEO eyes recovery
Boeing reported a significantly smaller quarterly loss as aircraft deliveries surged to their highest levels since 2018, marking a notable step forward in the aerospace giant’s ongoing recovery. The company posted a net loss of $176 million for the three months ended 30 June, a sharp improvement from the $1.09 billion loss a year earlier. Adjusted losses per share came in at $1.24, better than the $1.48 forecast, while revenue rose 35% to US$22.75 billion, beating market expectations of $21.84 billion. "Our fundamental changes to strengthen safety and quality are producing improved results as we stabilise our operations and deliver higher quality airplanes, products and services to our customers," said Kelly Ortberg, Boeing president and chief executive officer. "As we look to the second half of the year, we remain focused on restoring trust and making continued progress in our recovery while operating in a dynamic global environment." Ortberg, who assumed leadership in August last year, has been credited with bringing greater operational stability. Aircraft deliveries rose significantly during the quarter, with Boeing handing over 150 jets, the highest second-quarter total since 2018, which was also the last year t