MORE ROOM. More transfers will bring the total number of foreign airlines operating from NAIA Terminal 3 to 6. File photo by Jay Directo/Agence France-Presse

MANILA, Philippines – Two foreign carriers are moving from the congested Ninoy Aquino International Aiport (NAIA) Terminal 1 to the roomier Terminal 3 by mid-August.

Emirates is scheduled to move its operations to Terminal 3 (T3) on August 15.

In a statement, Emirates said that flights EK 337 / 336 will be the first arrival and departure at T3 on the same day.

Its airport office will relocate to the newest NAIA terminal on the night of August 14, ready for operations the next day.

Meanwhile, starting July 31, Delta Air Lines will operate from T3.

“Delta Air Lines is scheduled to move from NAIA 1 to NAIA 3 with the first arrivals on July 31^st and the first departures on August 1^st,” said Delta Airlines director for Philippines, Australia, and Micronesia Steven Crowdey.

Aside from the two airlines, 3 more foreign carriers are set to make the move once the P1.9-billion (US$ 43.7-million) renovation of NAIA Terminal 3 is completed by Takenaka Corp. They are Singapore Airlines, Cathay Pacific and KLM Royal Dutch Airlines.

The transfers would increase the number of foreign airlines operating from Terminal 3 to 6. All Nippon Airways (ANA) is already using the terminal.

The government has long been asking foreign carriers to move out of Terminal 1 which is currently serving almost twice its capacity. Named one of the world’s worst airports, it handles over 8 million passengers when it is designed to handle only 4.5 million.

Terminal 3, on the other hand, operates at about half of its 13 million capacity.

The Terminal 3 retrofitting aims to upgrade flight information displays, gate coordination, baggage handling, fire protection systems and computer terminals. – Rappler.com

Photo: wikipedia

The Government of Liberia (GoL) is in high-level consultations with the management of Delta Airlines intended to explore options that will not disrupt the experience and convenience of traveling via Delta.

A government delegation comprising Counselor Seward Cooper, Minister of State for Legal and Economic Affairs and Mr. Gyude Moore, Deputy Chief of Office Staff in the Office of the President, is in Atlanta, Georgia, to meet with the management of Delta Airlines, after Delta informed the government of the suspension of its service to Monrovia, effective August 31, 2014, due to weak passenger demand.

It can be recalled that in 2010, Delta Airlines commenced direct flights to New York from Monrovia via Accra, Ghana. While Nigeria and Ghana, two other destinations of Delta Airlines, are netting 10,000,000 and over 2,000,000 passengers per year respectively, Liberia’s highest passenger level was only 205,000, recorded in 2013.

Delta has informed the Liberian Government that the last eastbound flight from New York will occur on August 30th, and the last westbound flight from Monrovia will be on August 31st.

Meanwhile, the management of Delta Airlines has thanked the Liberian Government for the support it continues to receive, and has reassured the government that it will continue to explore avenues that are economically feasible for the lifting of the suspension and a resumption of direct flights between Liberia and the United States.

For Immediate Release
 
Chicago, IL – July 10, 2014 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include the Delta Airlines Inc. (DAL–Free Report), United Continental Holdings Inc. (UAL–Free Report), SkyWest Inc. (SKYW–Free Report), Controladora Vuela Compa (VLRS–Free Report) and LATAM Airlines Group S.A. (LFL–Free Report).
 
Today, Zacks is promoting its ”Buy” stock recommendations. Get #1Stock of the Day pick for free.

Here are highlights from Wednesday’s Analyst Blog:

Airlines Losing Altitude: 3 Stocks to Avoid

Airline stocks continue to trade in the red owing to volatile crude oil prices and the recent profit warning from IATA (International Air Transport Association) and several big players within the industry. Franco-Dutch airline group Air France-KLM, followed close on the heels of its German counterpart Lufthansa, is issuing a profit warning for 2014, which dragged most of the stocks down on Tuesday trade.

Air France-KLM now expects a full year profit between €2.2 and €2.3 billion, down from the previous expectation of €2.5 billion. The airline behemoth blamed overcapacity on transatlantic routes, weak cargo demand and a currency dispute in Venezuela for the cautious outlook.

Some of the big European and U.S. carriers have been suffering from overcapacity issues, particularly in the transatlantic route. Added to that is the emergence of big Gulf carriers like Emirates, who are here to stay and are providing stiff competition in some of the lucrative intercontinental routes.

Delta Airlines Inc. (DAL–Free Report) recently reported weaker-than-expected traffic figures for Jun 2014 due to a drop in demand among corporate travelers in Brazil and cut in fares by the Gulf carriers. The premier passenger carrier further warned that a slowdown in certain international markets due to excess passenger seats could push fares lower than expected. Further, Air France-KLM and Delta are among those carriers who are struggling to repatriate revenues from Venezuela due to strict foreign currency controls.

Last month, the airline industry suffered a major setback when IATA trimmed down its earlier provided 2014 profit outlook by $700 million to $18 billion. According to the international governing body, rising infrastructure cost, poor air traffic management, heavy tax burden and rising fuel cost will weigh on the industry’s bottom line, thus pushing 2014 expected margins down by 10 basis points to 2.4%.

To add to the woes, the current scenario in Iraq is also not helping the airline industry’s cause. The political crisis in Iraq continued to raise supply concerns in the Middle East, thus pushing crude oil prices higher. With jet fuel being a major constituent for the carrier, crude’s volatile nature continues to affect jet fuel price, thus impacting profitability.

Since the beginning of June, many of the airline stocks have gone downhill. However, among them, United Continental Holdings Inc. (UAL–Free Report) and Delta Airlines Inc. have plunged the most with price declines of 15.33% and 10.62%, respectively.

A sharp drop in the U.S. unemployment rate and the improving pace of job creation bodes well for the U.S. economy in the second half of the year. This, in turn, could prove beneficial for the airline industry. However, high jet fuel prices coupled with constant rise in international capacity as against demand could weigh on the performance of the industry players going forward.

3 Airline Stocks to Avoid

SkyWest Inc. (SKYW–Free Report) is one of the largest regional carriers in the U.S. and operates through its wholly owned subsidiaries SkyWest Airlines and ExpressJet. The airline provides passenger and air freight service for Delta Connection, United Express, US Airways Express, American Eagle and Alaska Airlines under code share agreements.

This St George, UT-based company currently has a P/E ratio of 29.43 and is trading at a significant premium to the industry average of 3.70. This Zacks Rank #4 (Sell) stock also has a negative earnings growth estimate of 62.05% for full year 2014.

Controladora Vuela Compa (VLRS–Free Report) provides air transportation services for passengers, cargo, and mail in Mexico and the international markets under the brand Volaris. The carrier is a leading player in the Mexican domestic market and has a total fleet size of 48 Airbus aircraft.

This low-cost carrier has reported a negative average earnings surprise of 87.50% in the past four quarters and also holds a negative earnings growth estimate of 110.29% for 2014. The Mexico City-based carrier currently carries a Zacks Rank #4.

LATAM Airlines Group S.A. (LFL–Free Report) along with its subsidiaries provides passenger and cargo air transportation services in South America. The carrier resulted from the merger of LAN Airlines and TAM Airlines in Jun 2012 and is currently based in Santiago, Chile.

This Zacks Rank #4 company currently has a P/E ratio of 34.97 and is trading at a significant premium to the industry average of 3.70. The stock has also has reported a negative average earnings surprise of 20.85% in the past four quarters.

Today, Zacks is promoting its ”Buy” stock recommendations. Get #1Stock of the Day pick for free.

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Monrovia — Delta Airlines Corporate office has finally responded to a FrontPageAfrica inquiry regarding its reported decision to suspend service to Liberia.

In an email response sent to FrontPageAfrica on Thursday, July 10, 2014, the company said a statement explaining its decision had previously been sent to its Country Director, Boo Brewer.

Brewer had referred FrontPageAfrica to Delta Corporate when FPA contacted her Monday after receiving reports that Delta had decided to suspend its service.

The statement reads:

“Due to weak passenger demand, Delta confirms that effective this fall it will suspend its service between Monrovia to New York-JFK via Accra, Ghana. The last eastbound service from New York will be on August 30, 2014 and the last westbound service will depart Monrovia on August 31, 2014. Delta is working to re-accommodate passengers impacted by this decision. Delta is grateful to the Liberian Government for its support since Delta began service in 2010. Delta continues to operate daily nonstop service between Accra, Ghana and New York-JFK.”

The government of Liberia issued a statement late Wednesday confirming the report and suggested that it was in the process of engaging Authorities of Delta on the Suspension of Flight to Liberia

The statement from the Ministry of Information reads:

“The Government of Liberia is in high-level consultations with the management of Delta Airlines intended to explore options that will not disrupt the experience and convenience of traveling via Delta. A government delegation comprising Counselor Seward Cooper, Minister of State for Legal and Economic Affairs and Mr. Gyude Moore, Deputy Chief of Office Staff in the Office of the President, is in Atlanta, Georgia, to meet with the management of Delta Airlines, after Delta informed the government of the suspension of its service to Monrovia, effective August 31, 2014, due to weak passenger demand.

It can be recalled that in 2010, Delta Airlines commenced direct flights to New York from Monrovia via Accra, Ghana. While Nigeria and Ghana, two other destinations of Delta Airlines, are netting 10,000,000 and over 2,000,000 passengers per year, respectively, Liberia’s highest passenger level was only 205,000, recorded in 2013. Delta has informed the Liberian Government that the last eastbound flight from New York will occur on August 30th, and the last westbound flight from Monrovia will be on August 31st.

Meanwhile, the management of Delta Airlines has thanked the Liberian Government for the support it continues to receive, and has reassured the government that it will continue to explore avenues that are economically feasible for the lifting of the suspension and a resumption of direct flights between Liberia and the United States.”

Aviation sources told FrontPageAfrica this week that Delta has been enjoying relatively encouraging load factor on its New York ROB axis. Flight records obtained by FrontPageAfrica shows that from December 2013 to June 2014, Delta recorded a total of 11, 464 arriving passengers to Liberia and 11,082 passengers departing.

Traditionally, aviation sources say airlines are required to serve the Civil Aviation Authority a 90-day notice. Unlike Air France, Delta has not officially communicated with the CAA, sources tell FPA. However, Delta is a member of the Sky team as is Air France. In the case of the French, load factor, and low profit margins were cited. Delta, according to aviation sources, has not had any major problem with the runway.

A highly-placed government source suggested that the pullout could be driven by “political” consideration amid the Ebola epidemic, fear-gripped by the increase in the death toll in Washington.” Delta made its first landing on Liberian soil on Sunday, September 5, 2010, after the airline received approval for local boarding and traffic rights for its service between Accra’s Kotoko International Airport and Roberts International Airport in Monrovia.

Prior to Delta’s arrival, the Federal Aviation Authority of the United States provided through USAID, $3.4 million to upgrade facilities at the Roberts International Airport to internationally acceptable standards, a key condition for the resumption of direct flights from the United States to Liberian. Delta’s arrival was instrumented by U.S. billionaire and founder of Black Entertainment Television (BET), Robert Johnson, who exerted his influence to facilitate the resumption of direct flights from the United States to Liberia.

Delta Airlines has announced the suspension of all its flights to Liberia due to weak passenger demand, according THE NEWS, a newspaper based in the capital city of Monrovia. It is unclear how the suspension by this major U.S. air carrier will affect traffic overall to the West African nation. There are thousands of Liberian nationals living in the U.S. who may now be forced to seek alternative methods, and other airlines to return home. 

However, the Government of Liberia said it is in high-level consultations with the management of Delta Airlines intended to explore options that will not disrupt the experience and convenience of traveling via Delta.

DELTA Airlines

A government delegation comprising Counselor Seward Cooper, Minister of State for Legal and Economic Affairs and Mr. Gyude Moore, Deputy Chief of Office Staff in the Office of the President, is in Atlanta, Georgia, to meet with the management of Delta Airlines, after Delta informed the government of the suspension of its service to Monrovia, effective August 31, 2014, due to weak passenger demand.

Delta Airlines commenced direct flights to New York from Monrovia via Accra, Ghana in 2010. While Nigeria and Ghana, two other destinations of Delta Airlines, are netting 10,000,000 and over 2,000,000 passengers per year respectively, Liberia’s highest passenger level was only 205,000, recorded in 2013.

Delta has informed the Liberian Government that the last eastbound flight from New York will occur on August 30th, and the last westbound flight from Monrovia will be on August 31st.

Meanwhile, the management of Delta Airlines has thanked the Liberian Government for the support it continues to receive, and has reassured the government that it will continue to explore avenues that are economically feasible for the lifting of the suspension and a resumption of direct flights between Liberia and the United States.

Liberia is not the only country where the airline has cut, or plans to suspend service. Delta also announced that it is drastically reducing service to the South American nation of Venezuela on Monday. It is over a dispute with the government over what airline officials call, revenue getting “trapped” in the South American country.

Delta Airlines has announced the suspension of all its flights to Liberia due to weak passenger demand.

However, the Government of Liberia said it is in high-level consultations with the management of Delta Airlines intended to explore options that will not disrupt the experience and convenience of traveling via Delta.

A government delegation comprising Counselor Seward Cooper, Minister of State for Legal and Economic Affairs and Mr. Gyude Moore, Deputy Chief of Office Staff in the Office of the President, is in Atlanta, Georgia, to meet with the management of Delta Airlines, after Delta informed the government of the suspension of its service to Monrovia, effective August 31, 2014, due to weak passenger demand.

Delta Airlines commenced direct flights to New York from Monrovia via Accra, Ghana in 2010. While Nigeria and Ghana, two other destinations of Delta Airlines, are netting 10,000,000 and over 2,000,000 passengers per year respectively, Liberia’s highest passenger level was only 205,000, recorded in 2013.

Delta has informed the Liberian Government that the last eastbound flight from New York will occur on August 30th, and the last westbound flight from Monrovia will be on August 31st.

Meanwhile, the management of Delta Airlines has thanked the Liberian Government for the support it continues to receive, and has reassured the government that it will continue to explore avenues that are economically feasible for the lifting of the suspension and a resumption of direct flights between Liberia and the United States.

Delta Airlines (DAL): The country’s second largest airline is down more than five percent today on news that it will follow in American Airlines (AAL) footsteps and curtail flights between the United States and Venezuela. Delta, like American, is locked in a dispute with the Venezuelan government over revenue trapped in the South American country. Delta will cut flights by 85% effective August 1st.

Twitter (TWTR): We warned you about the link between the fortunes of Twitter’s stock and the U.S. Men’s soccer team but that doesn’t make the drop any less painful. Twitter shares getting whacked by as much as 8% today as social media and momentum names get taken to the woodshed. After ramping 30% during the first three weeks of the Cup, Twitter topped out at $42.95 last Tuesday with millions of Americans live-Tweeting their hearts out as the U.S. lost to Belgium. It’s been downhill ever since for both soccer driven traffic and Twitter shares. Investors know Twitter does big events like the World Cup well, but the jury is still out on how the company can get users engaged day to day.

Tesla Motors (TSLA): Elon Musk’s electric car company down close to three percent today after a similar decline yesterday. First there was a firey crash of a stolen Tesla over the weekend raising safety concerns. This morning comes word that company is being sued in China for, of all things, trademark infringement. Chinese businessman Zhan Baosheng claims he registered the Tesla name before Musk and company came to China. Despite reports earlier this year that the issue had been resolved today, Baosheng was back in court trying to stop all Tesla Motors sales and marketing in the country.

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• Delta Airlines
• Twitter
• American Airlines
• Tesla Motors