New York La Guardia Airport

Delta launches attack on JetBlue through new leisure push from New York

Delta Air Lines is targeting JetBlue Airways through new and bolstered flights being introduced to Florida and the Caribbean from New York’s LaGuardia and JFK airports in late 2012 and early 2013. Delta’s move is a departure from its recent New York strategy of using slots obtained at LaGuardia to capture business travellers from smaller markets that prefer the convenience of getting in and out of the airport closest to downtown Manhattan. But in its latest offensive Delta is targeting leisure markets where JetBlue is deeply entrenched, and in some cases breaking JetBlue’s monopoly on those routes.

Delta in Mar-2012 introduced new flights from LaGuardia to 15 markets as it began developing the airport into a hub after gaining 132 slot pairs at the facility from US Airways. Delta is scheduled to complete the new market phase-in during Jul-2012 when it launches 26 additional markets from LaGuardia.

Steady demand fuels strong revenue performance for Canadian carriers in first quarter

Favourable demand trends helped Canada’s two main carriers record strong unit revenue performance year-over-year during 1Q2012. But the similarities end there as WestJet recorded a profit of CAD68.3 million (USD68.6 million) while Air Canada widened its loss from CAD19 million (USD19.1 million) to CAD210 million (USD210 million) year-over-year as its fuel expense grew by CAD147 million (USD147.7 million). Both carriers face challenges heading into the rest of year as WestJet has revised its cost guidance upwards and Air Canada continues to manage the fallout from its prolonged labour strife.

WestJet’s 6% growth in passenger unit revenues beat the carrier’s own forecast as CEO Gregg Saretsky explained the revenue growth allowed WestJet to fully recover the 19.6% rise in fuel costs the airline recorded year-over-year.

Total revenue at WestJet increased 15.3% during 1Q to CAD891 million (USD895.2 million) as yields increased 4.8% on a 8.8% rise in supply.

Despite 1Q loss, Delta is bullish on profitability as it strengthens hubs and cuts Atlantic capacity

Delta Air Lines intends to improve this year on the USD1.2 billion profit it posted in 2011 despite recording a pre-tax USD36 million loss 1Q2012. The carrier believes strong demand and revenue trends will continue throughout 2012, allowing it to recoup increases in fuel expenditure that rose USD250 million during the first three months of 2012.

The pre-tax loss was a USD355 million year-on-year improvement of Delta’s 1Q2011 results, driven by a strong revenue performance despite headlines of a spreading recession in Europe and the uncertain ripple effects of the continent’s economic woes. Factoring in USD136 million in special items, including the favourable settlement of fuel hedges and a USD39 million gain from the settlement of its airport slot swap with US Airways, Delta recorded a USD163 million profit. Its net loss excluding those items was USD39 million.

Delta primes to attack New York as first flights start from its new LaGuardia hub

Delta’s aim to create a dual-hub structure in the New York market gets under way in earnest on 25-Mar-2012 when it launches the first crop of new flights from LaGuardia Airport, which it views as key to capturing business passengers who yearn for direct flights for easier access to Manhattan. Delta is betting it can reverse fortunes in some markets being abandoned by US Airways at LaGuardia to create a revenue premium.

After two years of refining their original slot swap proposal, Delta and US Airways finally received the US Government’s blessing in late 2011 to trade slots at LaGuardia and Washington National airports. Delta secured 132 slot pairs from US Airways at LaGuardia and ceded 42 slot pairs to US Airways at Washington National Airport.

Once the second tranche of flights is introduced by Delta from LaGuardia in Jul-2012, the carrier will operate roughly 100 new daily flights from the airport to 29 destinations, many that were served by US Airways with smaller-gauge aircraft.

Slots continue to make news in the US, first at New York and change comes to SFO

The US aviation landscape is again being affected by the scarcity of capacity in two of the nation’s important metro areas. Last week the FAA gave its blessing to the slot swap between Delta and US Airways at New York’s LaGuardia and Washington’s Reagan.

A brake on competition: The ongoing conundrum of airport slots

The effect of slot allocations on airlines, airports and travelers is a constant across the globe, but only surfaces from time to time when a high profile request draws public attention and comment. The recent announcement that the US Department of Transportation (DoT) was willing to approve a slot swap between Delta and US Airways involving New York’s LaGuardia and Washington’s Reagan National has once again brought the issue to the fore. The case has been in dispute for a very long time and has drawn attention from competing airlines as well as consumer groups and the global airports group, Airports Council International (ACI). All have given this decision a thumbs down.