They also have historically very high turnover rates. And so I think it’s reasonable to expect that, the longer this goes on, you might see even more turnover.
We have heard reports from the union that some of these people might be tempted to quit and get other jobs, so they can get pay. We haven’t seen evidence of widespread cases of people quitting. And, in fact, it’s a little counterproductive. They’re — both the House and Senate have passed measures to give them back pay. So, if they hang in there, they will get their money.
The Visa and United Airlines app, United MileagePlus X, is getting an upgrade, allowing members of the program the opportunity to earn awards miles on their everyday purchases, Visa announced on Thursday (Jan. 10).
The loyalty program inside the app, called United Visa Rewards, is powered by the Visa Commerce Network, Visa’s specific loyalty platform. It is available to United Chase Visa cardholders who live in the United States. Once they have enrolled their eligible card through the app, members can peruse all of the enhanced mileage-related offerings from different merchants in the program.
Everything happens in real time – once someone makes a qualifying purchase, they will get a notification inside the app. Members who enroll by March 31 can earn 1,000 miles by adding an eligible card.
The Visa Commerce Network, which was introduced in 2016, allows merchants to connect with customers online in in the app, increasing loyalty and pushing sales. Also, cardholders who use Uber can get rewards through Visa Local Offers with Uber, saving on upcoming rides when they dine or shop.
The Visa Commerce Network is available through commerce APIs developed on Visa’s network, the company said.
Honda also recently teamed up with Visa to offer a payment in the car program. Called the Honda Dream Drive prototype, it’s being billed as the “next generation of infotainment, commerce, services and rewards.”
In a press release on Tuesday (Jan. 8), Olabisi Boyle, vice president of IoT at Visa, said that “by continuing our partnership with Honda, a leader in automotive innovation, we are furthering the development of in-car commerce solutions that focus on security, safety and convenience for the driver. Combining Visa’s payment expertise and Honda’s expansive platform, we are one step closer to transforming the car into a new epicenter for commerce.”
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While it’s impacting our company to some degree, more importantly our customers, it’s also impacting others in the industry beyond TSA – you’ve got CBP, you’ve got FAA, you’ve got certification of aircraft across the industry. And then of course, there’s people beyond our industry that are also going to be affected.
The International Air Transport Association (IATA) announced healthy but moderating global passenger traffic results for November 2018. Total revenue passenger kilometers (RPKs) rose 6.2 percent compared to November 2017, a slight deceleration from 6.3 percent growth in October. Capacity (available seat kilometers or ASKs) increased by 6.8 percent over the year-ago period, and load factor dipped 0.4 percentage point to 80.0 percent. It was only the third time in two years that load factor fell on a year-to-year basis.
“Traffic is solid. But there are clear signs that growth is moderating in line with the slowing global economy. We still expect 6 percent demand growth this year. But trade tensions, protective tariffs and Brexit are all uncertainties that overhang the industry,” said Alexandre de Juniac, IATA’s director general and CEO.
International Passenger Markets
November international passenger demand rose 6.6 percent compared to the year earlier period, up from 6.2 percent in October. All regions showed growth, led by carriers in Europe. Total capacity climbed 6.7 percent, and load factor dipped 0.1 percentage point to 78.4 percent.
Luxury Travel Advisor’s ULTRA Summit
European carriers saw demand increase by 9.0 percent in November 2018, which was a nine-month high. Given the mixed signs on the economic backdrop in the region it is unclear whether this pace of growth can be sustained. Capacity climbed 9.1 percent and load factor slipped 0.1 percentage point to 82.1 percent, the highest load factor among the regions.
Asia-Pacific airlines’ November traffic climbed 6.0 percent compared to the year-ago period, up from 5.7 percent growth in October. Capacity also rose 6.0% and load factor was flat at 79.1 percent. Growth is underpinned by rising living standards and continuing expansion of options for travelers.
Middle East carriers had a 2.8 percent demand increase, which was the lowest among the regions for a third consecutive month. Capacity rose 5.6 percent and load factor slipped 1.9 percentage points to 69.0 percent.
North American airlines’ traffic climbed 6.1 percent, in November, up from 5.7 percent in October and well ahead of the five-year average rate of 4.0 percent. Capacity rose 3.8 percent and load factor edged up 1.7 percentage points to 80.6 percent. Demand is supported by comparatively strong momentum in the U.S. economy.
Latin American airlines’ November traffic climbed 5.8 percent compared to November 2017, which was an increase from 5.2 percent growth recorded in October. Despite the increase, growth has slowed on a seasonally-adjusted basis. Capacity rose 6.6 percent and load factor slipped 0.6 percentage point to 80.6 percent.
African airlines experienced a 5.7 percent rise in demand compared to November 2017, down from 6.4 percent in October but higher than the five-year average of 5.8 percent. Growth is occurring despite challenges in the continent’s largest economies, Nigeria and South Africa. Capacity rose 3.9 percent and load factor climbed 1.2 percentage points to 68.9 percent.
Domestic Passenger Markets
Domestic travel demand rose 5.6 percent in November 2018 compared to the same month in 2017, its slowest pace in 11 months and down from 6.5 percent in October. All markets except Australia showed growth. Domestic capacity climbed 6.9 percent, and load factor dropped 1.0 percentage point to 82.8 percent.
India’s domestic traffic rose 13.3 percent in November compared to November 2017, marking the 51st consecutive month of double-digit domestic growth. However, it was also the slowest increase in 16 months.
Brazil’s domestic traffic rose to a four-month high of 5.3 percent in November, against a fragile economic backdrop.
U.S. airport security workers and air traffic controllers working without pay warned that security and safety could be compromised if a government shutdown continues beyond Friday, when some workers will miss their first paychecks.
On the 19th day of a partial government shutdown caused by a dispute over funding President Donald Trump wants for a border wall, the president stormed out of talks with Democratic congressional leaders, complaining the meeting was “a total waste of time.”
As the effects of the shutdown began to ripple out, the Trump administration insisted that air travel staffing was adequate and travelers had not faced unusual delays.
TSA workers quitting
But union officials said some Transport Security Administration (TSA) officers, who carry out security screening in airports, had quit because of the shutdown and others were considering quitting.
“The loss of (TSA) officers, while we’re already shorthanded, will create a massive security risk for American travelers since we don’t have enough trainees in the pipeline or the ability to process new hires,” American Federation of Government Employees TSA Council President Hydrick Thomas said.
“If this keeps up there are problems that will arise — least of which would be increased wait times for travelers.”
Aviation unions, airport and airline officials and lawmakers will hold a rally Thursday outside Congress urging an end to the shutdown.
TSA says delays within reason
TSA spokesman Michael Bilello said the organization was hiring officers and working on contingency plans in case the shutdown lasted beyond Friday, when officers would miss their first paycheck since the shutdown began Dec. 22.
“There has been no degradation in security effectiveness and average wait times are well within TSA standards,” he said.
He added that there had been no spike in employees quitting and that Tuesday 5 percent of officers took unscheduled leave, up just slightly from 3.9 percent the same day last year.
It screened 1.73 million passengers and 99.9 percent of passengers waited less than 30 minutes, the TSA said.
But U.S. Representative Bennie Thompson, chairman of the House Homeland Security committee, questioned how long adequate staffing at airports could continue.
“TSA officers are among the lowest paid federal employees, with many living paycheck-to-paycheck,” Thompson wrote. “It is only reasonable to expect officer call outs and resignations to increase the longer the shutdown lasts, since no employee can be expected to work indefinitely without pay.”
Bill and Theresa Striffler talk to a reporter at their home in Brick, N.J., Jan. 9, 2019. Bill Striffler, an air traffic controller and the president of the Newark Airport National Air Traffic Controllers Association, is facing his first pay day without a pay check.
Airports urge end to shutdown
Airports Council International-North America, which represents U.S. airports, urged Trump and congressional leaders in a letter to quickly reopen the government.
“TSA staffing shortages brought on by this shutdown are likely to further increase checkpoint wait times and may even lead to the complete closure of some checkpoints,” the group said.
The National Air Traffic Controllers Association (NATCA) noted that the number of controllers was already at a 30-year low, with 18 percent of controllers eligible to retire.
If a significant number of controllers missed work, the Federal Aviation Administration could be forced to extend the amount of time between takeoffs and landings, which could delay travel, it said.
NATCA President Paul Rinaldi said controllers often must work overtime and six-day weeks at short-staffed locations.
“If the staffing shortage gets worse, we will see reduced capacity in the National Airspace System, meaning more flight delays,” Rinaldi said.
May sets Brexit deal vote for week of January 14 AP
DUBAI, United Arab Emirates – Disruptions to air travel are possible if Britain leaves the European Union in March without a deal, the head of the leading association for airlines around the world warned Thursday.
Alexandre de Juniac, director general and CEO of International Air Transport Association, said the risk to traffic flow is partly under control after the announcement of contingency plans.
However, he voiced concerns about the possibility of some disruption that could involve flight adjustments and cancellations in the period after a so-called “no-deal” Brexit because current guidelines relating to air travel between Britain and the EU reflect 2018 traffic levels. Passenger traffic is projected to grow 5.5 percent in Europe this year.
“I am not concerned that there will be a major disruption, but I am concerned that there will be disruptions in the coming weeks, in the coming months because it has not been calibrated properly,” de Juniac told reporters in Dubai.
With less than three months to Brexit day on March 29, Britain has yet to agree on terms for its withdrawal from the EU, raising fears that the country could leave the bloc without a deal to ease the transition to a new future relationship – a scenario that could see serious dislocations to trade.
Even if a deal is secured, Brexit will involve the country leaving around 750 international treaties, among them arrangements governing the EU’s aviation market. The British government has said that following Brexit it wants arrangements with other countries to allow air travel to continue unimpeded.
U.K. Transport Secretary Chris Grayling told the House of Commons on Thursday that there would be no disruption to flights in the event of a no-deal Brexit. The Civil Aviation Authority was working on creating a “properly functional British alternative,” he said.
IATA, which represents some 290 airlines, relies on open borders, de Juniac said.
“When you close these borders, it’s not good news for us,” he said.
A study commissioned by IATA on the effects of Brexit stressed that Britain has the largest aviation industry in Europe with around 80 percent of all North Atlantic traffic passing through British or Irish airspace.
CHICAGO, Jan. 10, 2019 /PRNewswire/ — Today, United Airlines is introducing the relaunch of the United MileagePlus X app, which offers United MileagePlus® members a unique opportunity to earn award miles for everyday purchases. The app has been refreshed to integrate additional programs to make it even easier for members to accumulate miles. Additionally, the app features the launch of United Visa Rewards with offers from merchants like Sam’s Club®, Wayfair®, and StubHubTM, offering UnitedSM Chase Visa Cardmembers even more ways to earn miles.
App enhancements
MileagePlus DiningSM: The existing MileagePlus Dining program has been integrated into the MileagePlus X app. With seamless enrollment and showcasing nearby restaurants, members’ ability to choose where to dine and earn miles is now in the palm of their hand.
MileagePlus Shopping: The longstanding shopping program is now available through the MileagePlus X app, and offers members the ability to shop and earn miles on the go at more than 900 retailers.
United Visa Rewards: This new program is powered by Visa Commerce Network, which allows enrolled individuals to receive valuable offers within MileagePlus X thanks to the power of the Visa payments network. United Visa Rewards is available exclusively to United Chase Visa Cardmembers in the U.S. who are now able to enroll their eligible card into the program via the app. From there, they can view active enhanced mileage earning offers from participating merchants. Once program participants make a qualifying purchase with a participating merchant, they will receive a near real-time reward notification within the app. As a special launch offer, from now until March 31, 2019, United Chase Visa Cardmembers can earn 1,000 bonus award miles by simply enrolling their eligible credit card for the first time into the program.1
“We are excited to launch the new MileagePlus X app, which allows MileagePlus members to earn and redeem award miles in real time for their everyday purchases at hundreds of merchants across the U.S, matching the increased benefits our UnitedSM Explorer Cardmembers received with the new credit card last summer,” said Luc Bondar, president of MileagePlus Holdings and vice president of loyalty at United Airlines. “As mobile payments become more commonplace, it was a natural tie for United to update the features, enable members to make purchases and earn and use miles on the go.”
“Visa and United have been working together for over 20 years,” said Terry Angelos, SVP, loyalty offers, Visa. “As digitally-savvy individuals continue to help shape the future of digital commerce, Visa continues to work with United and Chase to bring new ways to reward consumers for their loyalty. At the same time, participating merchants will benefit from Visa Commerce Network’s ability to deliver custom solutions that will help increase their customer base and loyalty, ultimately helping them continue to grow their business.”
Through the MileagePlus X app, members can purchase eGift Cards from hundreds of restaurants and retailers. One of the savviest ways to take advantage of this feature is to buy an eGift Card in the amount of the purchase price while at checkout at a participating merchant. In addition, primary United Chase Cardmembers earn a 25% bonus on miles earned from MileagePlus on eGift Card purchases made through the app. Customers can find eGift Cards from a variety of categories such as shopping, dining, transportation, lodging, music, and more.
About MileagePlus®
MileagePlus® is United’s industry-leading loyalty program. With a wide network of partners through which members may earn and redeem miles. MileagePlus members earn award miles by flying United, United Express, Star Alliance airlines or other airline partners, and by purchasing products or services from partners around the globe. Members enjoy a host of options for using those award miles, including award travel, hotel stays, car rentals and merchandise. For the 15th consecutive year, Global Traveler voted United’s MileagePlus® loyalty program the best overall frequent-flyer program in the world.
About United
United Airlines and United Express operate approximately 4,800 flights a day to 353 airports across five continents. In 2018, United and United Express operated more than 1.7 million flights carrying more than 158 million customers. United is proud to have the world’s most comprehensive route network, including U.S. mainland hubs in Chicago, Denver, Houston, Los Angeles, Newark/New York, San Francisco and Washington, D.C. United operates 770 mainline aircraft and the airline’s United Express carriers operate 559 regional aircraft. The airline is a founding member of Star Alliance, which provides service to 193 countries via 28 member airlines. For more information, visit united.com, follow @United on Twitter or connect on Facebook. The common stock of United’s parent, United Continental Holdings, Inc., is traded on the Nasdaq under the symbol “UAL”.
Schilhabel, a football coach, is paraplegic. As he told ABC7 in Chicago, he had already encountered problems when he and his wife were trying to make a connection at Chicago’s O’Hare airport, on their way to the Dominican Republic from Los Angeles.
United Continental Holdings’ (UAL – Free Report) wholly owned subsidiary, United Airlines, has yet again reported strong traffic figures. For December 2018, consolidated traffic — measured in revenue passenger miles (RPMs) — was 19.33 billion, up 6.9% from the year-ago figure.
Consolidated capacity (or available seat miles/ASMs) rose 6.4% on a year-over-year basis to 23.37 billion. Also, load factor (percentage of seats occupied by passengers) expanded 40 basis points (bps) to 82.7% as traffic growth outpaced capacity expansion. Notably, this is the carrier’s eighth consecutive month of load factor increase. The successive rise in load factor indicates the carrier’s efficiency and is a key catalyst for its profitability position.
Moreover, load factor climbed 120 bps at the end of 2018 with the carrier registering a 6.4% and 4.9% expansion in RPMS and ASMs, respectively.
Apart from solid traffic figures, the carrier’s expansion initiatives are encouraging. Last month, this Chicago, IL-based airline announced 11 new services from its hubs in Chicago, Houston, Los Angeles and Washington, DC. The carrier will begin weekend operations to Colorado, Florida and Oregon. Additionally, it will introduce daily flights to Nova Scotia effective Jun 6. (Read more: United Airlines to Offer Extra Services From Key Hubs)
United Continental holds a Zacks Rank #2 (Buy). Some other top-ranked stocks in the same space are Azul SA (AZUL – Free Report) , Allegiant Travel Company (ALGT – Free Report) and Spirit Airlines, Inc. (SAVE – Free Report) , each flaunting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Shares of Azul and Spirit Airlines have rallied more than 13% and 32%, respectively, in a year’s time. Meanwhile, Allegiant boasts an impressive earnings surprise history, having trumped the Zacks Consensus Estimate in three of the last four quarters, the average beat being 18.7%.
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