Alaska Airlines has announced a number of route changes. It’s expanding service to Minneapolis and Hawaii. It will end nonstop service between Portland, Ore., and Orlando and between San Francisco and Vancouver, B.C. Alaska Airlines will not return this winter to three destinations in Mexico from San Francisco. And pending U.S. and Mexican government approval, Alaska’s regional partner Horizon Air will take over some Alaska Airlines flights between Mexico and California. Horizon Air will discontinue nonstop service between Spokane and Sacramento.
Flyers abandon first-class seats
The number of international air travelers flying in business or first-class fell in March by the largest amount in five years, the latest bad news for an industry buckling under record fuel prices and slowing global economies. The International Air Transport Association on Tuesday said premium air traffic shrank 3.9 percent in March compared with the same month last year, after growing by 5.1 percent in February. Although the drop was exaggerated both by the leap year adding an extra day to February and because March business travel fell because of an early Easter, it was the largest “absolute decline” in business and first-class passengers since 2003.
Ford cuts back on pickups and SUVs
Ford Motor Co. is further cutting production of big pickup trucks and sport utility vehicles as demand drops in the face of record high gas prices. Ford spokeswoman Angie Kozleski said Tuesday that Ford will shutter its Michigan truck plant in suburban Detroit for five weeks in June and July. Auto companies normally shut down their U.S. plants for two weeks in July to retool, but these closures will extend those shutdowns.
Retailers facing tough times
For U.S. retailers, the phrase “challenging environment” has become a shared refrain for one of the toughest quarters in decades. And merchants expect the climate to remain rough for the rest of the year as higher gas and food costs as well as slumping home prices weigh on shoppers. Discount retailer Target Corp. reported Tuesday that first-quarter earnings fell 8 percent on weaker-than-expected sales. Meanwhile, Saks Inc. posted a 66 percent profit in comparison to a year ago, but said that heavy discounting hurt store profit margins. Shares of Target slipped 63 cents, or 1.2 percent, to $54.29, though results beat Wall Street estimates.
Tax season boosts Intuit
Financial software company Intuit Inc. said Tuesday that its third-quarter profits jumped 21 percent on strong sales of its tax-preparation programs and accounting software. The company reported net income of $444.2 million, or $1.33 a share for the quarter ended April 30, compared with $367.2 million, or $1.04 a share, for the same period a year ago. Chief Executive Brad Smith said “an outstanding tax season” boosted sales of products such as QuickBooks, TurboTax, and Payroll and Payments, prompting the company to raise its fiscal-year guidance.
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