Janet Yellen's appearance before the Senate Banking Commitee, which was scheduled to take place today, has been postponed, due to a heavy snow storm that's hitting the south and the east. A new date for Yellen's testimony wasn't provided.
The airline will cut daily departures by 60% and eliminate most regional flights from the city.
"Our hub in Cleveland hasn't been profitable for over a decade, and has generated tens of millions of dollars of annual losses in recent years," United CEO Jeff Smisek said in a memo to staff. "The demand for hub-level connecting flying through Cleveland simply isn’t there."
United's plan comes after it said in November that it would reduce annual costs by $2B by 2017.
The Port Authority of New York and New Jersey sent a letter to American Airlines Group (AAL), JetBlue (JBLU), Delta (DAL), and United Continental (UAL) formally requesting that the carriers raise wages for some employees by $1 per hour.
The string of profitable quarters put in by airliners is starting to lead to increased pressure from labor unions as well.
Norwegian Air keeps adding orders for 787 Dreamliners as its stays on an aggressive of path of creating a low-cost carrier model for flights across the Atlantic Ocean.
The company's expansion could also include flights to Asia.
Regulators in the U.S. still need to approve the plan and will review filings from a group representing United Continental (UAL +0.2%), Delta Air Lines (DAL +2.9%), and American Air Group (AAL +1.1%) claiming Norwegian Air is trying to skirt DOT rules.
The average airfare climbed 2% last year to $363.42 to mark the 4th consecutive year the industry managed to raise prices.
The 2% increase is fares is only mild compared to the costs airliners have eliminated by paring back unprofitable routes and increasing their load factors. Another drop in the revenue bucket is the $3.4B U.S. airlines raked in last year in baggage fees.
Fares are expected to increase again in 2014 with four companies - American Airlines Group, Delta Air Lines, Southwest Airlines, and United Continental - dominating market share.
Imperial Capital isn't getting too carried too away with United Continental's (UAL +2.9%) strong report on per-seat revenue for December which lit up the whole sector yesterday.
The firm notes a late Thanksgiving and a mass cancellations during the month skewed traffic and revenue metrics for the entire industry.
Still, there's little question that capacity rationalization and stable fuel price trends point to a favorable environment for shares prices to run higher. Imperial favors Delta Air Lines (DAL +0.6%) and American Airlines Group (AAL -0.4%) as its top sector picks.
Airline stocks are off and flying in the opening hour of trading.
United Continental (UAL +11%) is leading the charge after reporting it saw per-seat revenue rise 12.5% in December.
An oddity of the airline industry is that mass cancellations sometimes improve performance metrics as the percentage of filled seats improves for flights flown.
The rest of the sector is buying into the theory as well: Alaska Air (ALK) +4.5%, American Airlines Group (AAL) +5.9%, Delta Air Lines (DAL) +4.8%, Southwest Airlines (LUV) +2.1%, Hawaiian Holdings (HA) +1.3%.