General Lee
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UPDATE 1-Delta Air says error caused flight cutback reports
Tue Feb 28, 2006 1:37 PM ET
(Adds JetBlue comment, share reaction)
NEW YORK, Feb 28 (Reuters) - Delta Air Lines Inc. (DALRQ.PK: Quote, Profile, Research) said "a schedule distribution error" led to reports Friday by a Wall Street analyst and others that it was sharply reducing flights where it competes with JetBlue Airways Corp. JP Morgan on Friday cited planned capacity cuts by bankrupt Delta, the No. 3 U.S. airline, of about 13 flights a day, or 25 percent. The point was made in a research note upgrading JetBlue (JBLU.O: Quote, Profile, Research) to "neutral" from "underweight."
"Due to a schedule distribution error last week in which (regional airline unit) Comair data were omitted, various sources received incorrect data about Delta's plans to continue competing vigorously in the New York market," Delta said in a statement issued on Monday.
JP Morgan on Tuesday declined to comment on Delta's statement about the schedule distribution error.
David Ulmer, JetBlue's vice president of route and schedule planning, told Reuters the disclosure of the error did not change his view that Delta is reducing flights on competitive routes between New York and Florida.
"We think we've seen their real schedule," he said.
Delta said that available seats on New York-Florida routes served by its low cost Song unit, slated to be folded into Delta in May, would fall about 10 percent from a year ago.
Delta's capacity at New York's JFK International Airport will fall by more than 10 percent as it stops flying to Charlotte, North Carolina and Jacksonville, Mississippi from that airport and makes other changes.
But it will not cancel any flights from the city's LaGuardia Airport, where regional carrier Comair's flights were left out of the schedules distributed last week, the airline said.
JetBlue shares edged down 3 cents, or 0.3 percent, to $11.38 in early afternoon trading on Nasdaq.
Bye Bye--General Lee
Tue Feb 28, 2006 1:37 PM ET
(Adds JetBlue comment, share reaction)
NEW YORK, Feb 28 (Reuters) - Delta Air Lines Inc. (DALRQ.PK: Quote, Profile, Research) said "a schedule distribution error" led to reports Friday by a Wall Street analyst and others that it was sharply reducing flights where it competes with JetBlue Airways Corp. JP Morgan on Friday cited planned capacity cuts by bankrupt Delta, the No. 3 U.S. airline, of about 13 flights a day, or 25 percent. The point was made in a research note upgrading JetBlue (JBLU.O: Quote, Profile, Research) to "neutral" from "underweight."
"Due to a schedule distribution error last week in which (regional airline unit) Comair data were omitted, various sources received incorrect data about Delta's plans to continue competing vigorously in the New York market," Delta said in a statement issued on Monday.
JP Morgan on Tuesday declined to comment on Delta's statement about the schedule distribution error.
David Ulmer, JetBlue's vice president of route and schedule planning, told Reuters the disclosure of the error did not change his view that Delta is reducing flights on competitive routes between New York and Florida.
"We think we've seen their real schedule," he said.
Delta said that available seats on New York-Florida routes served by its low cost Song unit, slated to be folded into Delta in May, would fall about 10 percent from a year ago.
Delta's capacity at New York's JFK International Airport will fall by more than 10 percent as it stops flying to Charlotte, North Carolina and Jacksonville, Mississippi from that airport and makes other changes.
But it will not cancel any flights from the city's LaGuardia Airport, where regional carrier Comair's flights were left out of the schedules distributed last week, the airline said.
JetBlue shares edged down 3 cents, or 0.3 percent, to $11.38 in early afternoon trading on Nasdaq.
Bye Bye--General Lee
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