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Carriers have been affected by unit revenue issues for quite some time and despite efforts to bring about some improvement on that front, these woes are expected to hurt carriers going ahead. Lower fuel surcharges on international flights due to weak oil prices have hurt the top line of carriers. This is exhibited by the declining key revenue metric passenger revenue per available seat mile (PRASM: a measure of sales relative to capacity for a carrier). The PRASM-related issues persist and are evident from the 9.5% drop in the metric at Delta Air Lines in August. The metric was mainly hurt by the power outage, which crippled operations and resulted in 2,300 flights being cancelled over three days. Additionally, United Continental Holdings anticipates its consolidated passenger unit revenue to decline in the third quarter by 5.57.5%. Alaska Air Group, which is expected to acquire Virgin America VA by year-end, witnessed a 7.7% decline in PRASM in the second quarter. Read More The above mentioned factors clearly indicate that unit revenue issues are far from over for carriers and such headwinds will continue to hurt the top line of carriers going ahead. With airline stocks already stressed, the August reading on airfares imply further woes for the carriers on the top line front.
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In Charlotte, North Carolina, crowds of protesters briefly blocked an interstate highway, set fires, scuffled with police and briefly tried to break into a Walmart store after a black police officer shot Keith Lamont Scott, 43, who police say had a gun when he approached them in a parking lot. The city's mayor, Jennifer Roberts, promised a swift investigation into the actions of officer Brentley Vinson, who joined the police department in 2014. "The community deserves answers and (a) full investigation will ensue," she said on Twitter, adding in a subsequent post, "I want answers too." About a dozen police officers and several protesters suffered non-life threatening injuries in the melee. Those protests erupted hours after the family of Terence Crutcher, 40, condemned his fatal shooting by a white Tulsa, Oklahoma, police officer. The family disputed a statement by police that Crutcher, who was unarmed, was reaching into his vehicle when he was shot by white police officer Betty Shelby. Two police videos of the Tulsa shooting that have been broadcast widely since their release on Monday have stoked the debate, with U.S. Democratic presidential nominee Hillary Clinton calling the contents "unbearable." The U.S. Department of Justice has opened an investigation into Crutcher's slaying. Police book cheap flights shootings in cities including New York, Baltimore, Chicago and Ferguson, Missouri, have sparked more than two years of largely peaceful street protests that have been punctuated by days of rioting and arson.
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