Latest news with #SouthwestAirlines
Yahoo
8 hours ago
- Business
- Yahoo
United Airlines (UAL) Unfazed by Fuel Shock as Natural Hedges Point to Bullish Skies
Amid rising geopolitical tensions, a recent 7% surge in West Texas Intermediate (WTI) crude has renewed focus on airline fuel hedging strategies. United Airlines (UAL), which has maintained a minimal hedging approach in recent years, is especially exposed. With fuel costs directly affecting profit margins, UAL's stock remains highly sensitive to swings in oil prices. Easily unpack a company's performance with TipRanks' new KPI Data for smart investment decisions Receive undervalued, market resilient stocks right to your inbox with TipRanks' Smart Value Newsletter Fortunately for United, encouraging trends in industry profitability and strong demand dynamics are a hedge in themselves, making me bullish on UAL in the second half of this year despite surging fuel prices. For those unfamiliar, airline fuel hedging is a risk management strategy using financial instruments—such as futures or swaps—to lock in fuel prices for future delivery. Essentially, it acts as an insurance policy, providing cost stability amid volatile energy markets. Each airline adopts its own approach, adjusting based on broader economic and geopolitical conditions. For example, Southwest Airlines (LUV) recently ended its once-active hedging program, reflecting a broader shift in the industry. United Airlines, meanwhile, has historically taken a minimal or opportunistic approach to hedging. This strategy is being tested as recent geopolitical tensions—particularly the missile exchanges between Iran and Israel—have pushed crude oil prices up by roughly 20% in the past month. While oil remains about 8% cheaper year-over-year and has stabilized from its pandemic-era highs, any sharp spike in prices immediately impacts United's bottom line. Fuel typically accounts for around 25% of an airline's total operating costs, meaning price increases can significantly compress margins for carriers without substantial hedging in place. It may come as a surprise to those who only interact with airlines as passengers, but the industry operates on razor-thin profit margins. In 2025, the average net profit margin across the sector was estimated at 3.7%, up slightly from 3.4% in 2024. United Airlines performed somewhat better than the industry average, posting a 5.5% profit margin in 2024—a relatively strong showing in such a margin-sensitive business. Improving profit margins have given airlines like United the confidence to lean more heavily on 'natural hedges' against fuel price volatility—strategies that focus on efficiency and sustainability rather than financial instruments. These include operational improvements such as operating newer, more fuel-efficient aircraft, eliminating physical magazines to reduce onboard weight, and utilizing single-engine taxiing to reduce fuel consumption on the ground. United has been especially proactive in this area, aggressively modernizing its fleet and taking a leadership role in the Sustainable Aviation Fuel (SAF) initiative to lower emissions and enhance long-term fuel efficiency. These efforts are beginning to pay off. In its Q1 2025 earnings report, United posted record revenue of $13.2 billion, a 5.4% year-over-year increase, and generated over $2 billion in free cash flow, a testament to the strength of its operational strategy. Reflecting stronger net profit margins across the airline industry in 2025, the International Air Transport Association (IATA) is also forecasting record-high industry revenues. This outlook is supported by projected declines in fuel prices and continued improvements in operational efficiency. In April, global revenue passenger kilometers (RPK)—a key measure of air travel demand—rose 8% year-over-year, signaling robust consumer interest. While fuel prices have spiked recently, IATA expects conditions to stabilize, projecting an average of $86 per barrel in 2025, down from $99 per barrel last year. With rising demand, falling fuel costs, and ongoing efficiency gains, United Airlines (UAL) may be well-positioned for a strong performance in the second half of the year. On Wall Street, UAL earns a Strong Buy consensus rating based on 14 Buy, one Hold, and zero Sell ratings in the past three months. Its average price target of $100.14 implies 33% upside potential over the next twelve months. Thomas Wadewitz from UBS is particularly bullish on UAL, having upgraded the stock to Buy and raised its price target from $67 to $105. The analyst cited tariff relief following the 90-day agreement with China. Moreover, 'a more stable economic backdrop and the recent rebound in the U.S. equity market give it increased confidence in the resilience of international and premium revenue, which had been its primary cyclical concern for both Delta and United.' While United remains exposed to short-term oil price spikes due to its limited fuel hedging, it has several mitigating strategies in place. If fuel prices ease as expected, United stands to benefit meaningfully. With air travel demand on the rise and strong operational performance—reflected in above-average profit margins and record revenue—United appears well-positioned for further improvement. That said, investors should closely watch oil price trends, particularly amid ongoing geopolitical uncertainty. Short-term volatility is likely, and those with lower risk tolerance may prefer airlines with more extensive hedging programs. Still, over the long run, strong fundamentals tend to win out. That's why, despite potential turbulence ahead, I remain bullish on UAL. Disclaimer & DisclosureReport an Issue
Time of India
10 hours ago
- Entertainment
- Time of India
Southwest flight chaos: Drunk NYC woman dragged off plane after hair-pulling, spitting incident; worked with top brands
A drunken passenger arrested at New York's LaGuardia Airport for causing a late-night scene on a Southwest Airlines flight — including grabbing another woman's hair, spitting and refusing to calm down, has been identified as a New York City-based artist who has worked with major fashion brands. The passenger, 32-year-old illustrator Leanna Perry, has previously worked with major fashion and beauty brands like Maybelline, Adidas, Steve Madden, MAC, and Hot Topic, her online profile shows. The violent episode unfolded early Tuesday morning at LaGuardia Airport, where Perry was filmed yelling at fellow travelers and resisting efforts by airline staff to remove her from the plane. Witnesses described her as acting 'possessed' before she was eventually restrained and escorted off the aircraft. Perry's website reveals she started working as a lead designer at Maybelline last year and has also collaborated with designers Betsey Johnson and Nicole Miller, the New York Post reported. Perry, who police said was 'intoxicated' when she was removed from the flight before takeoff, was caught on camera shouting at a female passenger, calling her a "fat a** bitch," and pulling her hair. Video footage shows Perry shouting, "Shut the f**k up, don't f**king touch me!" at the startled passenger, before other travellers and airline personnel stepped in to intervene. Despite repeated requests from Southwest staff members, Perry refused to release her grip on the woman's hair, as evidenced in the recordings. Although staff eventually managed to separate them and restrain Perry's hands with zip ties, she remained uncontrollable. Perry persisted in directing verbal abuse towards the woman, whilst also targeting other passengers with her outburst. According to the criminal complaint, she proceeded to kick and spit at officers during their attempts to remove her from the plane and take her into custody. Following the incident, Perry received medical attention before being transferred to the New York City Department of Corrections, according to PAPD.
The Independent
15 hours ago
- Automotive
- The Independent
NTSB issues urgent warning about engines on some Boeing and Airbus planes
The National Transportation Safety Board has issued an ' urgent safety recommendation ' regarding engines used in some Airbus and Boeing passenger jets. The recommendations concern the CFM International LEAP-1B engines used in Airbus A32neo and Boeing 737 Max narrow-body jets. In a statement on Wednesday, the transit regulator warned that the engine's load reduction device, a safety feature designed to reduce vibrations transmitted from a damaged engine to the main airframe, can impact the engine's oil system. 'Such a condition can allow smoke from hot oil to enter the ventilation system and ultimately the cockpit or passenger cabin,' the NTSB warned. 'We are aligned with the NTSB's recommendations and the work is already underway, in close partnership with our airframers, to enhance the capability of this important system,' a CFM spokesperson said in a statement to The Independent. The board's recommendation stemmed from a December 2023 incident, in which a Southwest flight on a Boeing 737-8 jet leaving New Orleans filled with smoke after its left engine ingested a bird. 'The flight deck filled with what the crew described as 'acrid white smoke' so thick that the captain had difficulty seeing the instrument panel,' the safety board wrote. 'The crew donned masks, were able to clear the smoke, and landed the airplane back in New Orleans. None of the crew or passengers were injured.' The Wednesday alert cited a similar incident featuring a Southwest flight departing Havana, Cuba, earlier that year. The safety board has requested that the Federal Aviation Administration ensure operators inform flight crews about jets equipped with the affected engines. Boeing has revised its flight manuals to prepare pilots to prevent smoke from entering the cockpit or cabin when the load reduction device is activated. The safety board has also asked flight regulators in Europe and China to determine if other variants of the CFM LEAP engine are susceptible to the same issues, and has asked the FAA and the European Aviation Safety Agency to incorporate software modifications developed by CFM and Boeing. One of the impacted jets is the Boeing 737 Max, the same plane that crashed twice between 2018 and 2019, killing 346 and causing a temporary grounding of the model until a flight sensor system could be redesigned. In May, the Justice Department reached a deal with the aerospace giant to avoid criminal prosecution for allegedly misleading regulators about the Max. The recommendations come at a time of heightened concern regarding the safety of the US air transit system, after a series of high-profile aviation disasters this year, including a mid-air collision above a Washington, D.C.-area airport, and a plane crash in Philadelphia, as well as air traffic control issues around major hubs like Newark.
Yahoo
16 hours ago
- Automotive
- Yahoo
NTSB issues urgent safety bulletin about engines found in some Boeing 737 Max jets
The National Transportation Safety Board (NTSB) issued an urgent safety recommendation Wednesday to modify jet engines on Boeing's 737 Max airplanes to prevent smoke from entering the cockpit or cabin in certain scenarios. The warning comes after two incidents involving Southwest Airlines planes equipped with CFM International LEAP-1B engines that experienced bird strikes in 2023. The NTSB said that these CFM engines have a safety feature, called a load reduction device, that can inadvertently damage the oil system of the engines once it activates after a bird strike. The damage can result in smoke forming from hot oil released into the engine and entering the ventilation system and ultimately the cockpit or passenger cabin. The NTSB investigated an incident in December 2023 involving a Southwest Airlines plane that struck a bird while taking off from New Orleans. The plane landed quickly after "acrid white smoke" filled the cockpit and was so thick that the captain said it was hard to see the instrument panel. Southwest Adds 'Powerful' Cockpit Alert System To Detect Runway Danger Another incident nine months earlier involving similar engine damage happened on another Southwest flight from Havana, Cuba, after birds were ingested into an engine shortly after takeoff, resulting in smoke filling the cabin. Read On The Fox Business App In both cases, the flights landed safely, and no one was injured. The NTSB also recommended evaluating the potential for the same issue with CFM's LEAP-1A and LEAP-1C engines, which are used on some Airbus A320neo planes and C919 jets made by the Commercial Aircraft Corporation of China. CFM is owned by GE Aerospace and Safran Aircraft Engines. Boeing Shares Slide After Air India Crash The Federal Aviation Administration and Boeing both said they agreed with the NTSB recommendations and have already warned airlines and pilots about the problem. "We advised operators to evaluate their procedures and crew training to ensure they address this potential issue," the FAA said. "When the engine manufacturer develops a permanent mitigation, we will require operators to implement it within an appropriate timeframe." Boeing said that CFM and Boeing "have been working on a software design update." Reuters contributed to this article source: NTSB issues urgent safety bulletin about engines found in some Boeing 737 Max jets
Toronto Sun
16 hours ago
- Toronto Sun
Drunk woman dragged off flight after violent meltdown over ‘fat' seatmate
Leanna Perry was arrested and charged with aggravated assault Leanna Perry, arrested and charged with aggravated assault after grabbing womans hair on flight in violent meltdown. Photo by @CollinRugg / X An inebriated woman was dragged off a Southwest Airlines flight by police after grabbing another female passenger's hair and throwing a tantrum at New York's LaGuardia Airport. This advertisement has not loaded yet, but your article continues below. THIS CONTENT IS RESERVED FOR SUBSCRIBERS ONLY Subscribe now to read the latest news in your city and across Canada. Unlimited online access to articles from across Canada with one account. Get exclusive access to the Toronto Sun ePaper, an electronic replica of the print edition that you can share, download and comment on. Enjoy insights and behind-the-scenes analysis from our award-winning journalists. Support local journalists and the next generation of journalists. Daily puzzles including the New York Times Crossword. SUBSCRIBE TO UNLOCK MORE ARTICLES Subscribe now to read the latest news in your city and across Canada. Unlimited online access to articles from across Canada with one account. Get exclusive access to the Toronto Sun ePaper, an electronic replica of the print edition that you can share, download and comment on. Enjoy insights and behind-the-scenes analysis from our award-winning journalists. Support local journalists and the next generation of journalists. Daily puzzles including the New York Times Crossword. REGISTER / SIGN IN TO UNLOCK MORE ARTICLES Create an account or sign in to continue with your reading experience. Access articles from across Canada with one account. Share your thoughts and join the conversation in the comments. Enjoy additional articles per month. Get email updates from your favourite authors. THIS ARTICLE IS FREE TO READ REGISTER TO UNLOCK. Create an account or sign in to continue with your reading experience. Access articles from across Canada with one account Share your thoughts and join the conversation in the comments Enjoy additional articles per month Get email updates from your favourite authors Don't have an account? Create Account Video from the cabin prior to takeoff early Tuesday shows passengers filming as several travellers and flight crew try to take down the woman as she holds onto another woman's hair and calls her a 'fat-a** b****.' One person tries to calmly tell her to 'let go of her hair,' which the woman responds to by grinning and denying doing — despite clearly holding a fistful of the other passenger's locks. Another passenger attempting to free the woman's hair adds, 'You can't do that. You need to let go right now.' While still holding tight onto the woman's hair, the drunk passenger can be heard telling someone snippily, 'I'm sorry, I didn't want to sit next to a f***ing fat lady.' Leanna Perry, front, being restrained with zip ties after grabbing woman's hair on flight. (X/CollinRugg) Photo by @CollinRugg / X Leanna Perry, 32 — an artist and designer who works for Maybelline New York, according to the New York Post — eventually lets go of the woman's hair but wasn't finished attacking her and launches a tirade at her and other passengers as airline employees and others restrain her. 'Ugly a** bitch,' Perry rants before trying to spit on the woman while others work on zip-tying her wrists behind her back. This advertisement has not loaded yet, but your article continues below. NEW: Drunk Southwest Airlines passenger arrested after having a meltdown on a plane before takeoff at LaGuardia Airport. 32-year-old passenger Leanna Perry was seen kicking and screaming on the ground after assaulting a woman on the plane. "Your boyfriend's d**k is like… — Collin Rugg (@CollinRugg) June 18, 2025 Perry then says that she 'can't breathe' and falls to the floor between seats, the clip shows. She then begins violently kicking and screaming expletives, according to another video posted on Reddit. One flyer can be heard asking, 'Can anybody do something, please?' as Perry continues to flail about. RECOMMENDED VIDEO She then becomes emotional and tells everyone to leave her alone before going into another expletive-ridden tantrum before the video ends. Port Authority Police said they responded to a 'report of an intoxicated passenger on a Southwest Airlines flight at Terminal B of LaGuardia Airport.' Perry was taken to a local hospital before she was handed over to the New York City Department of Corrections, authorities said. Read More She was arrested and charged with aggravated assault. 'The Customer involved in the incident was removed from the flight and denied boarding,' a Southwest Airlines spokesperson said in a statement to the Post . 'We commend our team for their professionalism during the incident.' NHL Toronto & GTA Canada Basketball Editorial Cartoons
