Bernstein‘s Transport & Airline Hot Shots: BNSF‘s $4B Barstow rail hub; Spirit‘s LGA slots; JetBlue trims EWR / LGA; +

Research evidence excerpt

Bernstein‘s Transport & Airline Hot Shots: BNSF‘s $4B Barstow rail hub; Spirit‘s LGA slots; JetBlue trims EWR / LGA; +

want another low-cost carrier to take over the coveted but tightly controlled airport access.

Spirit’s 22 LaGuardia slots are being marketed in bankruptcy, with authorities favoring transfer to another budget airline.

US Airlines - JetBlue cuts Newark/LaGuardia bases to fuel Florida growth. JetBlue plans to close its flight-attendant base at Newark

and technical operations bases at Newark and LaGuardia this fall, end certain seasonal Newark–West Coast routes, and redirect resources

to expand service and capacity at Fort Lauderdale, where it becomes the leading carrier after Spirit’s shutdown, while avoiding layoffs by

offering staff transfers.

Good for United in Newark and Delta in LaGuardia.

US Airlines - Severe storms snarl the U.S. network. A widespread storm band disrupted over 8,000 flights on June 15th alone, leading

major carriers to issue waivers and re-accommodation due to delays.

Irregular operations adding cost pressure to 3Q.

US Airlines - US–Iran deal cuts jet fuel sharply. US jet fuel spot prices fell to $2.85/gal on June 17 from an early-April high of $4.88; a

sustained drop of that size would cut the US industry's annual fuel bill by more than $40 billion. United CEO Scott Kirby said the airline is "on

a path to recovering 100%" of the fuel-cost spike through pricing by year-end, and tight capacity should let carriers hold fares well above

pre-war levels.

Recent fuel price declines unlikely to impact the June quarter, but will show up in September quarter results.

RECENT NOTES, LAST PUBLISHED DECKS, AND OTHER DATA FILES

Industry Model | United Parcel Service, Inc. (UPS) Fuel Surcharge Recovery Model