Ailing airlines still need aircraft
Despite the fact that airlines are losing money, they still need planes to ferry passengers from point A to point B.
Continental says it remains enthusiastic about the pending delivery of 787s it has ordered, whenever they come, while United is contemplating an aircraft order that would be placed by the end of the year. United has said it is talking with both Boeing and Airbus.
Are airline bankruptcies going to land this fall?
Usually airlines make money in the summer to carry them through the harsh winter months. However, it seems that they are not making as much this summer as usual.
J.P. Morgan analyst Jamie Baker handicapped prospects for the most precariously positioned airlines in a report Monday. The availability of capital will likely determine what the airline industry looks like next year, he says.
787 delay masks strong Boeing earnings
Even though Boeing had good earnings in the second quarter, investors aren’t cheering.
In the midst of the worst financial crisis since the Great Depression, second quarter net income was up 17% from the same period a year earlier and the company eked out a 1% sales gain. But while those results bested Wall Street’s consensus estimate, most investors are fixated on something that Boeing couldn’t deliver – an update on how long the first flight of its troubled 787 jet will be delayed and how much of an impact that will have on future earnings.
