United Tuesday reported a bigger-than-expected increase in Q2 profit, driven by strong air travel demand and the ability to charge more for seats after the grounding of Boeing’s 737 MAX reduced capacity. The three US airlines that operate the MAX - United, American Airlines and Southwest - are cancelling thousands of flights each month since a worldwide grounding in March following crashes in Ethiopia and Indonesia that killed a total of 346 people. United said net income rose 54% to $1.05b, or $4.02 per share, in the quarter ended June 30 from $683m or $2.48 per share a year earlier. On an adjusted basis, the airline earned $4.21 per share for the quarter. Analysts on average expected a profit of $4.08 per share. The air carrier is in the midst of a three-year plan to claw back domestic market share from rivals by building up connections through its main US hubs, including Chicago, New York and San Francisco, cities that attract lots of travellers willing to fly first-class and business-class. Citing continued strong demand, United lifted its 2019 adjusted diluted earnings per share guidance to $10.5-$12.0 versus $10.0-$12.0 previously. Still, the earnings per share growth for the year is expected to be slower than in 2018 due to the MAX grounding and closed Pakistani air space, which forced United to cut its 2019 capacity growth target for a second time this year. It now expects capacity to increase between 3% and 4%, versus an original forecast of 4%-6% growth.<br/>
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A Canadian man who lost five family members, including three children, in the Ethiopian Airlines crash last March is accusing planemaker Boeing Co. of a “shameful pattern of behavior” for how it designed the 737 Max and how it has acted since the accident. Paul Njoroge calls for a full recertification of Boeing’s best-selling model grounded since March 13 and accused the US FAA of “recklessly” approving the plane in testimony prepared for delivery Wednesday before the House Transportation and Infrastructure Committee’s Aviation Subcommittee. “Boeing should not be allowed to act like a mere investment company extracting wealth to super-charge shareholder returns at the expense of safety and quality,” Njoroge said in the prepared remarks, provided by his attorney, Robert A. Clifford of Chicago. The House committee is investigating how the 737 Max was approved with a safety system that drove down the plane’s nose repeatedly in two accidents since October after sensors malfunctioned. In addition to Njoroge, Michael Stumo, whose daughter died in the Ethiopia crash, will testify. Both men are represented by attorneys who have filed dozens of lawsuits against Boeing.<br/>
India is considering inviting expressions of interest to sell Air India by the end of next month as the government aims to complete the transaction this year, people with knowledge of the matter said. The government will conduct roadshows as well as be open to meet prospective buyers even before the expressions of interest are sought, the people said, declining to be identified as the discussions are private. The process will likely allow the bidders to look at the accounts of the airline except for some portions that are confidential and also see the share purchase agreement, they said without providing details. The potential bidders will have the option to make suggestions for changes in the sale terms during the process of expressing their interest in the deal, the people said. The government is looking to sell all its stake in the carrier, they said. The plan is being prepared after the government’s attempt to partially exit the carrier failed to attract any bidder last year. <br/>