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United Airlines shares surge on higher profit and strong demand forecast

United Airlines forecast another profit for the end of the year and said consumer appetite for travel is showing no signs of slowing down despite high airfares. Shares jumped more than 7% in after-hours trading on Tuesday. “Looking forward through the end of the year, the airline expects the strong Covid recovery trends to continue to overcome the recessionary pressures in the macroeconomic environment,” United said in an earnings release. “The airline now expects fourth-quarter adjusted operating margin to be above 2019 for the first time.” The Chicago-based carrier posted a Q3 profit of $942m, down 8% from three years ago, and $12.88b in revenue, which was ahead of analysts’ estimates and up 13% from 2019. Adjusting for one-time items, United earned $2.81 per share, easily topping the $2.28 analysts polled by Refinitiv were expecting. The airline said it expects adjusted earnings per share of as much as $2.25 for Q4, far ahead of analysts’ estimates of 98 cents, according to Refinitiv. The strong summer travel season and sunny outlook for the rest of the year indicate consumers are willing to continue to spend on trips, a turnaround from early in the pandemic when Covid-19 restrictions devastated demand. Delta Air Lines last week said it brought in record revenue for the third quarter and forecast another profit for Q4. The upbeat outlooks from airline executives contrast with other sectors that have struggled this year, including parts of the retail industry and some streaming platforms that were beneficiaries of lockdowns early in the pandemic.<br/>

US approves Delta, United bids to delay restart of Havana flights

The US DOT on Tuesday said it would allow Delta and United Airlines to temporarily delay resuming flights to Cuba as they work to address logistical issues. United last month said it has been working for months to relaunch Havana service but faces hurdles, while Delta also said it was facing issues in reestablishing service. USDOT said it would require United to resume service no later than Dec. 1 and Delta no later than March 26. United previously flew seven flights weekly to Havana from its Houston and Newark hubs. It said in September it needs to "undertake significant work including re-negotiating multiple contracts with service providers that have lapsed, building out necessary infrastructure in Terminal 3 at Havana’s airport where United is being relocated." Delta has the right to fly 21 weekly flights between the United States and Cuba, made up of 14 for Miami and 7 Atlanta flights. Delta suspended the flights during the COVID-19 pandemic and initially plans to resume Miami flights. Delta said it is working to relaunch flights but "needs additional time to ensure reintroduction of safe, efficient, and sustainable service to Havana." Delta expects it could take up to six months to re-establish necessary IT infrastructure to handle passenger needs in Havana and faces "ongoing challenges in securing visas for personnel to travel to Cuba" for both pre and post launch staffing. Last month the Biden administration agreed to expand US flights to Havana, adding 13 weekly American Airlines departures from Miami and a weekly JetBlue Airways departure from Fort Lauderdale, on top of the typical six daily American Airlines flights and three JetBlue flights weekdays to Havana from the Florida airports.<br/>

Snake on a plane: reptile causes emotional turbulence on United Airlines jet

The unexpected appearance of a live snake on a plane caused some turbulence among business-class passengers aboard a United Airlines jet at the end of a flight from Florida to New Jersey. The reptile stowaway, identified as a harmless garter snake, turned up on United Airlines Flight 2038 from Tampa shortly after landing Monday afternoon at Newark Liberty international airport, according to the Port Authority of New York and New Jersey. As the plane taxied from the runway to the gate, passengers in the business-class cabin began shrieking and pulling their feet up off the floor, one passenger told regional cable outlet News 12 New Jersey. Airport animal-control officers and Port Authority police officers were at the gate when the plane arrived, and removed the snake, which was later released into the wild, Port Authority spokesperson Cheryl Ann Albiez said by email on Tuesday. There were no injuries, no impact to airport operations, and the plane later departed Newark, she said. A spokesperson for United, when asked about the incident, said only that crew members who were alerted by passengers “called the appropriate authorities to take care of the situation”.<br/>

China’s biggest airlines plan more international flights at last

China’s biggest airlines are planning more international flights, a sign the government is aware of the country’s growing isolation as it persists with lockdowns and mass testing internally -- hallmarks of its Covid Zero policy. China Eastern Airlines, which was severely impacted by virus lockdowns in Shanghai, will operate 108 international flights a week from Oct. 30 on 42 routes, including to Tokyo, Seoul and Dubai, according to an announcement on its Weibo social media account Weibo, up from 54 flights and 25 routes now. China Southern Airlines, the country’s biggest carrier by passenger volume, will resume services to Tokyo, Jakarta, Dubai, Manila and Bangkok among other destinations at the end of the month, the Paper reported. Air China resumed services in late September from various Chinese cities to Manila, Jakarta, Tokyo, Athens, Vancouver and Los Angeles. Hainan Airlines announced on Weibo on Oct. 15 that it would add a second weekly flight between Chongqing and Rome from Nov. 6.<br/>

Air India plans to triple its fleet of 113 jets in five years

Air India is planning to triple its fleet of 113 aircraft over five years as the money-losing carrier prepares to transform the business following its takeover by India’s largest conglomerate, the Tata Group. “The airline is in discussions with aircraft and engine manufacturers on procuring new aircraft,” Air India Chief Executive Campbell Wilson said in New Delhi Tuesday. “I wouldn’t put a number on it because negotiations are still ongoing. We also have a view on the proportion of wide and narrowbody and the increase is going to be a significant number of both.” Boeing is offering 737 Max jets once meant for Chinese customers to Air India as the planemaker tries to offload some of the roughly 140 aircraft it’s currently not allowed to deliver to the country, Bloomberg News reported today. Air India is considering ordering as many as 300 narrowbody aircraft to revamp its fleet, according to a June Bloomberg report. The airline is planning to induct 25 Airbus and five Boeing aircraft from lessors starting December, it said last month. Air India expects to increase its domestic and international market share to 30% in five years, said Wilson, who was previously with Singapore Airlines Ltd.’s budget unit. The first phase of the transformation will address issues such as on-time performance, food and refunds that are “tarnishing” Air India’s brand, he said. In the second phase, Air India will accelerate investment in people, systems and equipment. It will aspire to become a “world-class” airline toward the end of the five-year overhaul plan, Wilson said. The airline has restored 17 grounded aircraft and 12 are yet to return to service. It is in discussions with suppliers to refurbish existing widebody aircraft, which will require significant engineering work, he said. <br/>