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Delta, United Airlines could emerge as big winners on revenues in Q4

Full flights and busy airports are likely to continue in the US through the end of the year, Wall Street analysts warn. Demand is forecast to remain robust as corporate travel continues to recover, and consumers shift spending back to services — like air travel — after a pandemic switch to goods. Delta and United could benefit the most from these trends in the fourth quarter, according to a recent report from Raymond James. This is not to say that revenues will weaken at other US airlines, including American Airlines and Southwest Airlines, but more because Delta and United are more exposed to markets where the recovery has been slow but accelerated in recent months as more people return to offices and international markets reopen. “It appears there is greater demand recovery among large corporates and in the northeast in particular, which along with gradual reopening of long-haul international markets likely places [United] and [Delta] in a relatively stronger position in terms of revenue recovery,” Raymond James analyst Savanthi Syth wrote. New booking data from J.P. Morgan appears to confirm this view. In September, booked revenue for Q4 was “comfortably ahead of 2019” at American and United, analyst Jamie Baker wrote Thursday. He added that Delta is expected to see similar trends. A third point, and one beneficial to airlines, is consumers’ continued shift back to spending more on services. Melius Research analyst Conor Cunningham wrote Thursday that roughly 66% of consumer spending was on services in August compared to roughly 69 percent before Covid. He expects the percentage to revert to the pre-crisis norm in the months ahead. “This is an important theme as it speaks on steadily improving demand for travel given a shift in spending habits,” wrote Cunningham.<br/>

Man allegedly assaulted flight crew after taking hallucinogen, affidavit says

A passenger who allegedly took psilocybin -- the hallucinogenic chemical found in certain mushrooms -- before boarding a United Airlines flight in Miami last week was arrested after allegedly assaulting two members of the flight crew. Cherruy Loghan Sevilla is charged with interfering with a flight crew and assaulting two flight attendants, according to court documents. The October 4 incident occurred on United Airlines flight 2116 from Miami International Airport to Washington Dulles International Airport.<br/>Sevilla's public defender, Shannon Quill, said "our office policy is not to comment on cases." "Sevilla was wandering around the plane, running up and down the aisle, clapping loudly near the cockpit and yelling obscenities," according to an FBI agent's affidavit filed in US District Court for the Eastern District of Virginia. Sevilla was arrested when the plane landed and taken to the Federal Bureau of Investigations' office at Dulles. During an interview several hours after his arrest, Sevilla told investigators he had taken psilocybin prior to boarding the flight, the affidavit says.<br/>Sevilla allegedly said it was not the first time he had taken the drug.<br/>

SIA to retain cabin crew after they give birth, in change to longstanding practice

Singapore Airlines air stewardesses are now able to apply for temporary ground positions when they get pregnant and return to flying after giving birth. The move stops its longstanding practice of effectively ending cabin crew’s contracts when they are with child. An SIA circular seen by The Straits Times showed that the new policy has been in place since July 15, which it said is meant “to further support our cabin crew during and after their pregnancy”. It spells the end of a practice that has been criticised by women’s groups as unjustifiable even a decade ago. Observers said a global manpower shortage in the sector is likely the rationale for the change, as companies are forced to retain existing staff to reduce the load on training new recruits. Before the change, SIA air stewardesses were placed on no-pay leave upon declaring that they are pregnant, and forced to leave the company the day after they submit their child’s birth certificate. No temporary ground job placements were made available while the crew was pregnant. To fly again later, she had to reapply to SIA under a returning crew scheme, which does not guarantee her re-employment. Now, crew will still be placed on no-pay leave, but will be able to apply for ground positions in the company, in areas such as administrative work, handling of passenger feedback and requests via e-mail, content creation and event management.<br/>