Boeing's cash crunch, Delta's makeover, and United's strong quarter: Airlines news roundup
Boeing is looking to raise billions of dollars to help it ride out a month-long machinist strike. Airbus is cutting jobs from its struggling space-and-defense division. United had a great quarter after outsmarting the rest of the industry. Plus: Data shows which carriers are most likely to mishandle your luggage.
Take a moment to catch up on what’s been happening in the world of airlines and aviation.
Boeing and Airbus have a major headache in common
What should be a clear runway to world domination remains pock-marked with difficulties for Airbus (AIR) — one of them an especially ironic one. Reuters reports that the French planemaker is disappointed in the production it’s getting out of Spirit Aerosystems (SPR), the fuselage supplier at the heart of rival Boeing’s (BA) door plug blowout scandal.
Boeing is laying off 10% of the company — and blaming the machinists’ strike
Boeing (BA) announced layoffs Friday, blaming the cuts on an ongoing strike by its union-represented machinists. The company is letting go of 10% of its workforce, which according to its most recent annual report, would be about 17,000 people out of a job.
The airlines most likely to mishandle your bags, ranked
When you fly, the most important thing is getting to your destination safe and sound. But perhaps the second-most important thing is making sure your stuff gets there safe and sound as well. The Department of Transportation Office of Aviation Consumer Protection’s Air Travel Consumer Reports track which U.S. airlines fail to properly handle checked bags, whether that means luggage is getting “lost, damaged, delayed,” or “pilfered.” This Quartz analysis of those reports shows how often that happened in the first half of the year.
The airlines most likely to mishandle your wheelchair, ranked
We analyzed government data to determine which U.S. airlines fail to properly handle checked wheelchairs and motorized scooters.
Even the hedge fund taking on Southwest is launching a podcast
The hedge fund that’s seeking big changes at Southwest Airlines (LUV) wants to give its fellow shareholders an earful. Elliott Investment Management is launching a podcast to familiarize people with the board of directors nominees the fund wants to install at the carrier ahead of a special meeting Elliott has called for later this year.
Boeing is about to send thousands of pink slips
Boeing (BA) is about to start the countdown clock on 10% of its workforce losing their jobs. Reuters reports that the company will begin sending 60-day notices to affected employees next month.
Delta planes are about to get a huge makeover
Delta Air Lines (DAL) just unveiled a cozy update for its passengers. The company says that it will soon begin rolling out new cabin designs to upgrade its jets’ interiors.
United had a great quarter by outsmarting the industry’s ‘capacity’ crisis
United Airlines (UAL) presented its third-quarter earnings earlier this week, and it beat expectations for both revenue ($14.8 billion) and profits ($1.3 billion). Despite having its busiest September ever, the carrier attributed its blockbuster quarter to efforts to sell fewer seats.
Boeing’s big borrowing might back it into a corner
Boeing’s (BA) plan to outlast its strike is taking shape, with Reuters reporting on plans to raise $15 billion through stock and convertible bond sales. This financial maneuver comes as the aerospace giant grapples with a month-long labor dispute and its investment-grade credit rating hangs in the balance.
Ryanair thinks Boeing might wreck another summer
Ryanair (RYAAY) CEO Michael O’Leary is back to bashing Boeing (BA) once again. The outspoken airline executive said that delivery delays from America’s largest planemaker are threatening to wreck a second summer in a row for the carrier.
Airbus’s space program is falling back to Earth - laying off 2,500 people
Airbus (AIR) is trying to take on another of its many headaches, this time in space. The Wall Street Journal (NWS) reports that the French planemaker might cut as many as 2,500 jobs in its space-and-defense division.