Airline Stock Roundup: A4A's Labor Day Forecast, Delta's Route Changes And More

In the past week, Airlines for America (A4A), an American industry group, issued a bright forecast for U.S. carriers. It is expected that airlines will make hay in the Labor Day holiday period owing to increased travel demand and affordable air fares.

Delta Air Lines, Inc. DAL also grabbed headlines by virtue of its decision to broaden the trans-Atlantic network for next summer. Meanwhile, Ryanair Holdings plc RYAAY took a giant stride toward ending its labor unrest when the company inked deals with the Italian and Irish pilots.

United Continental Holdings Inc UAL also featured in the headlines, when it announced the decision that its shares would be traded in the Nasdaq Global Select Market from Sep 7.

5 Of The Past Week's Most Important Stories

As part of its decision to launch additional routes next year, Delta increased the frequency of its service connecting Los Angeles to Amsterdam and Paris. Notably, Delta is the second major U.S. carrier to announce changes in its international routes over the last few days. In a bid to boost its profitability in the current scenario of rising oil prices, American Airlines Group Inc AAL also announced certain route changes.

Per Reuters, Ryanair has finally given in to the Irish pilots' demand, reaching an agreement with the pilots' union (Fórsa) on August 23, following a 22-hour discussion. In another development toward ending its labor unrest, Ryanair has inked a deal with its Italian pilots.

According to the forecast put forward by A4A, approximately 16.5 million passengers will travel on U.S. airlines during the Labor Day holiday period this year compared with 16 million people who chose to travel by air in the same period last year. The forecast translates into 2.36 million fliers per day during the abovementioned period.

Moreover, August 31 is likely to be the busiest day for carriers in the seven-day period, with 2.76 million people expected to take to the skies. To meet the surge in travel demand, U.S. carriers are increasing the number of available seats by 92,000 per day.

In a bid to combat rising fuel costs, JetBlue Airways Corporation JBLU increased fees for checked bags and ticket changes. The low-cost carrier has reportedly decided to charge $30 for the first checked bag from $25. Fees for the second and third checked bags have also been increased. Other low-cost airlines are expected to follow suite.

United Continental has decided to transfer its stock exchange listing to the Nasdaq Global Select Market from The New York Stock Exchange. The move, which will be effective September 7, is in line with the company's efforts to check costs.

Related Links:

Will Berkshire Hathaway Buy Southwest Airlines? Morgan Stanley Analysts Weigh In

It's More Work To Fill The Gas Tank This Labor Day