American Airlines and three major rivals added a $10 charge on U.S. round-trip fares, matching United Airlines, to help offset surging jet-fuel prices.
The moves put the fee in place at the five largest U.S. carriers: American, United, Delta Air Lines Inc., Continental Airlines Inc. and Northwest Airlines Corp. The charge, begun Thursday by United, covers leisure fares and business tickets purchased less than 14 days before travel.
“Since fuel prices affect airlines across the board, consumers should expect prices to continue to increase,” Rick Seaney, chief executive officer of Dallas-based , said in an e-mailed statement. Fares now are 5 percent to 7 percent more than summer 2006 highs, Seaney said.
Jet fuel has jumped 55 percent in 2007, topping labor as some U.S. airlines’ largest expense and spurring at least seven broad fare increases since Sept. 1.
EchoStar profit up 43 percent
EchoStar Communications Corp., the second-largest U.S. satellite television service, said third-quarter profit gained 43 percent on more subscribers.
Net income rose to $199.7 million, or 44 cents a share, from $139.6 million, or 31 cents, a year earlier, the Douglas County-based company said Friday in a regulatory filing. Sales increased 13 percent to $2.79 billion, missing the $2.81 billion average of eight analysts’ estimates compiled by Bloomberg.
Profits drop for Liberty Media retail units
Liberty Media Corp., controlled by billionaire John Malone, said third-quarter profit at its QVC home-shopping unit and retail websites fell 10 percent as the company struggled to maintain sales growth.
Operating income at Liberty Interactive, the unit that includes the shopping businesses, dropped to $231 million from $257 million a year earlier, Douglas County Liberty Media said Friday in a statement. Sales rose 2 percent to $1.69 billion, below the $1.79 billion average of three analysts’ estimates compiled by Bloomberg.
QVC International, which accounts for about a third of QVC sales, has trailed last year’s growth pace all year, and third-quarter revenue rose 2 percent, missing Natixis Bleichroeder analyst Jeff Shelton’s 4.9 percent estimate. Sales from QVC’s U.S. division also rose 2 percent.
Net income at Liberty Media, which is traded through the Interactive tracking stock and one for the Liberty Capital division, jumped to $319 million from $63 million a year earlier, the company said in a separate regulatory filing. Sales rose 12 percent to $2.25 billion.
Visa sets sights on $10 billion IPO
Visa, the biggest U.S. credit card network, said in a regulatory filing Friday that it hopes to raise $10 billion in an initial public offering.
Visa said it plans to deposit a portion of the proceeds into an escrow account to pay settlements or judgments related to litigation. Wednesday, Visa disclosed that it will pay American Express Co. up to $2.07 billion to settle a lawsuit alleging the company illegally stifled competition. Under the plan, Visa said its member banks will absorb the settlement costs.
Visa is following in the footsteps of rival MasterCard, which has more than quadrupled since the company went public in May at $39 a share.
