It turns out that Boeing’s huge layoff plans were not just a strike threat. Spirit Airlines can’t put out an earnings report that might show investors how close it is to bankruptcy. Rich people take private flights like the rest of us take taxis. Plus: The most chronically delayed airline routes in America.
Take a moment to catch up on what’s been happening in the world of airlines and aviation.
Rich people have places to be, like the rest of us, but they don’t get there like the rest of us. They increasingly depend on private jet travel to get around — even for short distances — and a recent article in the academic journal Communications Earth & Environment says this has negative implications for the rest of the population.
Flights from two U.S. carriers had a scary incident in Haiti. CNN (WBD) reports that planes operated by JetBlue Airways (JBLU) and Spirit Airlines (SAVE) were struck by bullets in the country on Monday.
Fuselage manufacturer Spirit AeroSystems (SPR) sounded the alarm last week that it might not be able to stay in business much longer. On Tuesday, it announced that former and future owner Boeing (BA) would be coming through with a $350 million bailout.
Boeing (BA) is going ahead with its plan to lay off 10% of its global workforce. Though the company’s machinist strike ended last week, it is moving ahead with its quest to cut costs amid massive financial losses.
When people purchase airline tickets, they’re expecting to go from one place to another at the time their ticket says they will. But sometimes that doesn’t happen, and a flight gets delayed. In fact, it happens to some flights a lot. The Department of Transportation, which keeps track of things like airline delays and aviation-related consumer complaints, says that some itineraries left later than expected, upwards of 75% of the time in August.
As reports suggest bankruptcy is on the horizon for Spirit Airlines (SAVE), the company isn’t saying much. In fact, the one thing Spirit Airlines is saying is that it can’t say what’s going on; the company told investors it won’t be able to put together a quarterly earnings filing.
Among the millions of passengers who head to their boarding gates every year, an unfortunate few are prevented from getting into the seats they paid for by airlines who “oversold” their flights.
As America’s aging Baby Boomers start to crack open their nest eggs in retirement, there’s speculation that they will use the contents to take flight. In a research note, TD Cowen (TD) analysts suggest that older travelers will present the airline industry with “golden opportunities.”