Royal Caribbean Cruises Ltd. (RCCL) reported second quarter 2010 net income increased to $60.5 million, or $0.28 per share, compared to a net loss of $35.1 million, or ($0.16) per share, in second quarter of 2009. Revenues improved to $1.6 billion in the second quarter of 2010 compared to $1.3 billion in the second quarter of 2009, as a result of capacity increases and yield improvements. Net yields for the second quarter of 2010 increased 4.9 percent despite the impact of the stronger U.S. dollar.

Royal Caribbean Cruises Ltd. (RCCL) reported second quarter 2010 net income increased to $60.5 million, or $0.28 per share, compared to a net loss of $35.1 million, or ($0.16) per share, in second quarter of 2009. Revenues improved to $1.6 billion in the second quarter of 2010 compared to $1.3 billion in the second quarter of 2009, as a result of capacity increases and yield improvements. Net yields for the second quarter of 2010 increased 4.9 percent despite the impact of the stronger U.S. dollar.

The cruise company also said business conditions have remained on target in each of its main markets while improved cost control has enabled it to raise its earnings guidance for the year. Operating costs were lower than expected due mainly to strong cost control, energy conservation measures, expense timing and currency fluctuations;

RCCL said second quarter net yields increased 4.9 percent (5.4 percent on a Constant Currency basis). Second quarter net cruise costs per APCD (NCC) declined 2.8 percent (2 percent on a Constant Currency basis). The company said net yields are expected to increase approximately 4 percent in the third quarter and 3 to 4 percent for the year as a whole (7 percent and 4 to 5 percent, respectively, on a Constant Currency basis). NCC are expected to be down 1 percent for the third quarter and down approximately 1 to 2 percent for the full year. EPS expectation for the full year 2010 has been increased by $0.10 to $2.25 to $2.35. Third quarter 2010 EPS is expected to be in the range of $1.52 to $1.57.

“What a difference a year makes. It is gratifying to post another solid quarter with improvement in yields and strong cost control,” said Richard Fain, RCCL’s chairman and chief executive officer. “Despite ongoing uncertainty with the economy, our profitability continues to improve and our booking environment continues to be remarkably stable. We remain focused on strengthening our financial position and I am encouraged about the tremendous global response to our brands.”

Improved fuel consumption efforts resulted in significantly better fuel consumption of 318,000 metric tons during the second quarter. At-the-pump pricing (including the benefit of the company"s hedging) was virtually unchanged. Altogether, the quarter"s fuel expenditures were approximately $6 million better than previous calculations.

“Demand for our cruises remains on track with our earlier projections," said Brian Rice, executive vice president and chief financial officer. “The strengthening of the U.S. dollar will clearly result in a reduction of our reported yields, but also provides a corresponding reduction in expenses. Most importantly, our continued focus on cost controls and efficiency is driving improved earnings.”

Given the recent volatility in currency exchange rates, RCCL said it is expanding its disclosures regarding currency and has defined a non-GAAP measure of “Constant Currency.” Based on current estimates for 2010, the company anticipates that 30 percent of its net revenues, and 20 percent of its NCC excluding fuel will be denominated in currencies other than U.S. dollar, with the British pound and the euro being the most significant components.

The company does not forecast fuel prices and its cost calculations are based on current at-the-pump prices net of hedging impacts. Based on today"s fuel prices RCCL has included $170 million and $652 million of fuel expense in its third quarter 2010 and full year 2010 guidance, respectively. The company said it has made additional progress over the past quarter in optimizing the fuel consumption on many of its newer itineraries, as well as fine tuning the operations on its newest hardware. The ongoing focus on fuel consumption has allowed the company to further reduce its full year 2010 consumption estimate to 1,327,000 metric tons of fuel versus the estimates the company provided in April. The company"s fuel consumption is currently 47 percent hedged for the third quarter of 2010. In keeping with its previously disclosed hedging strategy, forecasted consumption is now 48 percent hedged for the remainder of 2010, 55 percent hedged in 2011, 50 percent hedged in 2012 and 20 percent hedged in 2013.

As of June 30, 2010, in addition to committed unsecured financing on its three remaining newbuild ships, liquidity was $1 billion, including cash and the undrawn portion of the company"s unsecured revolving credit facility. Based on current ship orders, projected capital expenditures for 2010, 2011 and 2012 are $2.2 billion, $1 billion, and $1 billion, respectively. Capacity increases for the same three years are 11.5 percent, 7.1 percent and 2 percent, respectively. These capacity estimates reflect the recently announced February 2011 sale of the Celebrity Mercury. For more information, visit www.rclinvestor.com.  
 

Continental Airlines, mirroring other major U.S. carriers’ positive financial results, reported second quarter 2010 net income of $233 million for the second quarter, compared with a net loss of $213 million a year ago. The airline said it had the highest second quarter pretax profit since 2000. Total revenue for the second quarter of 2010 was $3.7 billion, an increase of 18.6 percent compared to the same period in 2009. Passenger revenue for the second quarter rose 19.7 percent ($544 million) compared to the same period in 2009.

Royal Caribbean Cruises Ltd. (RCCL) reported second quarter 2010 net income increased to $60.5 million, or $0.28 per share, compared to a net loss of $35.1 million, or ($0.16) per share, in second quarter of 2009. Revenues improved to $1.6 billion in the second quarter of 2010 compared to $1.3 billion in the second quarter of 2009, as a result of capacity increases and yield improvements. Net yields for the second quarter of 2010 increased 4.9 percent despite the impact of the stronger U.S. dollar.

The cruise company also said business conditions have remained on target in each of its main markets while improved cost control has enabled it to raise its earnings guidance for the year. Operating costs were lower than expected due mainly to strong cost control, energy conservation measures, expense timing and currency fluctuations;

RCCL said second quarter net yields increased 4.9 percent (5.4 percent on a Constant Currency basis). Second quarter net cruise costs per APCD (NCC) declined 2.8 percent (2 percent on a Constant Currency basis). The company said net yields are expected to increase approximately 4 percent in the third quarter and 3 to 4 percent for the year as a whole (7 percent and 4 to 5 percent, respectively, on a Constant Currency basis). NCC are expected to be down 1 percent for the third quarter and down approximately 1 to 2 percent for the full year. EPS expectation for the full year 2010 has been increased by $0.10 to $2.25 to $2.35. Third quarter 2010 EPS is expected to be in the range of $1.52 to $1.57.

“What a difference a year makes. It is gratifying to post another solid quarter with improvement in yields and strong cost control,” said Richard Fain, RCCL’s chairman and chief executive officer. “Despite ongoing uncertainty with the economy, our profitability continues to improve and our booking environment continues to be remarkably stable. We remain focused on strengthening our financial position and I am encouraged about the tremendous global response to our brands.”

Improved fuel consumption efforts resulted in significantly better fuel consumption of 318,000 metric tons during the second quarter. At-the-pump pricing (including the benefit of the company"s hedging) was virtually unchanged. Altogether, the quarter"s fuel expenditures were approximately $6 million better than previous calculations.

“Demand for our cruises remains on track with our earlier projections," said Brian Rice, executive vice president and chief financial officer. “The strengthening of the U.S. dollar will clearly result in a reduction of our reported yields, but also provides a corresponding reduction in expenses. Most importantly, our continued focus on cost controls and efficiency is driving improved earnings.”

Given the recent volatility in currency exchange rates, RCCL said it is expanding its disclosures regarding currency and has defined a non-GAAP measure of “Constant Currency.” Based on current estimates for 2010, the company anticipates that 30 percent of its net revenues, and 20 percent of its NCC excluding fuel will be denominated in currencies other than U.S. dollar, with the British pound and the euro being the most significant components.

The company does not forecast fuel prices and its cost calculations are based on current at-the-pump prices net of hedging impacts. Based on today"s fuel prices RCCL has included $170 million and $652 million of fuel expense in its third quarter 2010 and full year 2010 guidance, respectively. The company said it has made additional progress over the past quarter in optimizing the fuel consumption on many of its newer itineraries, as well as fine tuning the operations on its newest hardware. The ongoing focus on fuel consumption has allowed the company to further reduce its full year 2010 consumption estimate to 1,327,000 metric tons of fuel versus the estimates the company provided in April. The company"s fuel consumption is currently 47 percent hedged for the third quarter of 2010. In keeping with its previously disclosed hedging strategy, forecasted consumption is now 48 percent hedged for the remainder of 2010, 55 percent hedged in 2011, 50 percent hedged in 2012 and 20 percent hedged in 2013.

As of June 30, 2010, in addition to committed unsecured financing on its three remaining newbuild ships, liquidity was $1 billion, including cash and the undrawn portion of the company"s unsecured revolving credit facility. Based on current ship orders, projected capital expenditures for 2010, 2011 and 2012 are $2.2 billion, $1 billion, and $1 billion, respectively. Capacity increases for the same three years are 11.5 percent, 7.1 percent and 2 percent, respectively. These capacity estimates reflect the recently announced February 2011 sale of the Celebrity Mercury. For more information, visit www.rclinvestor.com.  
 

Continental Airlines, mirroring other major U.S. carriers’ positive financial results, reported second quarter 2010 net income of $233 million for the second quarter, compared with a net loss of $213 million a year ago. The airline said it had the highest second quarter pretax profit since 2000. Total revenue for the second quarter of 2010 was $3.7 billion, an increase of 18.6 percent compared to the same period in 2009. Passenger revenue for the second quarter rose 19.7 percent ($544 million) compared to the same period in 2009.

Consolidated revenue passenger miles (RPMs) for the second quarter of 2010 increased 2.0 percent while capacity (available seat miles, ASMs) remained flat year-over-year, resulting in a record second quarter consolidated load factor of 84.6 percent.

Continental"s mainline cost per available seat mile (CASM) increased 3.9 percent in the second quarter 2010 compared to the same period last year. Mainline fuel prices for the second quarter increased 8.7 percent compared to the second quarter of 2009, while mainline fuel consumption declined 1.1 percent year-over-year on 0.7 percent less mainline capacity.

Continental, which is in the process of merging with United Airlines, recorded $18 million of merger-related costs, largely due to financial advisor, legal, accounting and consultant fees and communication costs. The merger is expected to deliver $1 billion to $1.2 billion in net annual synergies by 2013, including between $800 million and $900 million of incremental annual revenues, in large part from expanded customer options resulting from the greater scope and scale of the network, and additional international service enabled by the broader network of the combined carrier. For more information, visit www.continental.com.
 

Pleasant Holidays is adding new programs to the continental United States to its destination portfolio, offering a much larger product line to travel agents and their clients. The expansion includes destinations throughout Arizona, California, Nevada and Florida, with accommodations in every category and price range. Hertz is the preferred car rental partner for the USA program.

Royal Caribbean Cruises Ltd. (RCCL) reported second quarter 2010 net income increased to $60.5 million, or $0.28 per share, compared to a net loss of $35.1 million, or ($0.16) per share, in second quarter of 2009. Revenues improved to $1.6 billion in the second quarter of 2010 compared to $1.3 billion in the second quarter of 2009, as a result of capacity increases and yield improvements. Net yields for the second quarter of 2010 increased 4.9 percent despite the impact of the stronger U.S. dollar.

The cruise company also said business conditions have remained on target in each of its main markets while improved cost control has enabled it to raise its earnings guidance for the year. Operating costs were lower than expected due mainly to strong cost control, energy conservation measures, expense timing and currency fluctuations;

RCCL said second quarter net yields increased 4.9 percent (5.4 percent on a Constant Currency basis). Second quarter net cruise costs per APCD (NCC) declined 2.8 percent (2 percent on a Constant Currency basis). The company said net yields are expected to increase approximately 4 percent in the third quarter and 3 to 4 percent for the year as a whole (7 percent and 4 to 5 percent, respectively, on a Constant Currency basis). NCC are expected to be down 1 percent for the third quarter and down approximately 1 to 2 percent for the full year. EPS expectation for the full year 2010 has been increased by $0.10 to $2.25 to $2.35. Third quarter 2010 EPS is expected to be in the range of $1.52 to $1.57.

“What a difference a year makes. It is gratifying to post another solid quarter with improvement in yields and strong cost control,” said Richard Fain, RCCL’s chairman and chief executive officer. “Despite ongoing uncertainty with the economy, our profitability continues to improve and our booking environment continues to be remarkably stable. We remain focused on strengthening our financial position and I am encouraged about the tremendous global response to our brands.”

Improved fuel consumption efforts resulted in significantly better fuel consumption of 318,000 metric tons during the second quarter. At-the-pump pricing (including the benefit of the company"s hedging) was virtually unchanged. Altogether, the quarter"s fuel expenditures were approximately $6 million better than previous calculations.

“Demand for our cruises remains on track with our earlier projections," said Brian Rice, executive vice president and chief financial officer. “The strengthening of the U.S. dollar will clearly result in a reduction of our reported yields, but also provides a corresponding reduction in expenses. Most importantly, our continued focus on cost controls and efficiency is driving improved earnings.”

Given the recent volatility in currency exchange rates, RCCL said it is expanding its disclosures regarding currency and has defined a non-GAAP measure of “Constant Currency.” Based on current estimates for 2010, the company anticipates that 30 percent of its net revenues, and 20 percent of its NCC excluding fuel will be denominated in currencies other than U.S. dollar, with the British pound and the euro being the most significant components.

The company does not forecast fuel prices and its cost calculations are based on current at-the-pump prices net of hedging impacts. Based on today"s fuel prices RCCL has included $170 million and $652 million of fuel expense in its third quarter 2010 and full year 2010 guidance, respectively. The company said it has made additional progress over the past quarter in optimizing the fuel consumption on many of its newer itineraries, as well as fine tuning the operations on its newest hardware. The ongoing focus on fuel consumption has allowed the company to further reduce its full year 2010 consumption estimate to 1,327,000 metric tons of fuel versus the estimates the company provided in April. The company"s fuel consumption is currently 47 percent hedged for the third quarter of 2010. In keeping with its previously disclosed hedging strategy, forecasted consumption is now 48 percent hedged for the remainder of 2010, 55 percent hedged in 2011, 50 percent hedged in 2012 and 20 percent hedged in 2013.

As of June 30, 2010, in addition to committed unsecured financing on its three remaining newbuild ships, liquidity was $1 billion, including cash and the undrawn portion of the company"s unsecured revolving credit facility. Based on current ship orders, projected capital expenditures for 2010, 2011 and 2012 are $2.2 billion, $1 billion, and $1 billion, respectively. Capacity increases for the same three years are 11.5 percent, 7.1 percent and 2 percent, respectively. These capacity estimates reflect the recently announced February 2011 sale of the Celebrity Mercury. For more information, visit www.rclinvestor.com.  
 

Continental Airlines, mirroring other major U.S. carriers’ positive financial results, reported second quarter 2010 net income of $233 million for the second quarter, compared with a net loss of $213 million a year ago. The airline said it had the highest second quarter pretax profit since 2000. Total revenue for the second quarter of 2010 was $3.7 billion, an increase of 18.6 percent compared to the same period in 2009. Passenger revenue for the second quarter rose 19.7 percent ($544 million) compared to the same period in 2009.

Consolidated revenue passenger miles (RPMs) for the second quarter of 2010 increased 2.0 percent while capacity (available seat miles, ASMs) remained flat year-over-year, resulting in a record second quarter consolidated load factor of 84.6 percent.

Continental"s mainline cost per available seat mile (CASM) increased 3.9 percent in the second quarter 2010 compared to the same period last year. Mainline fuel prices for the second quarter increased 8.7 percent compared to the second quarter of 2009, while mainline fuel consumption declined 1.1 percent year-over-year on 0.7 percent less mainline capacity.

Continental, which is in the process of merging with United Airlines, recorded $18 million of merger-related costs, largely due to financial advisor, legal, accounting and consultant fees and communication costs. The merger is expected to deliver $1 billion to $1.2 billion in net annual synergies by 2013, including between $800 million and $900 million of incremental annual revenues, in large part from expanded customer options resulting from the greater scope and scale of the network, and additional international service enabled by the broader network of the combined carrier. For more information, visit www.continental.com.
 

JetBlue Airways reported record revenues and its highest-ever quarterly operating income for the second quarter and was optimistic about the future, forecasting higher revenues and more flights to the destinations it serves. Dave Barger, JetBlue’s CEO, credited improved demand and the exceptional customer service JetBlue provides for its return to profitability and its highest-ever operating income. The airline reported net income of $30 million, compared to $20 million a year ago.

JetBlue said it will increase capacity between 6 and 8 percent in the third quarter and for the full year. "With some of our biggest challenges behind us -- including the closure of JFK Airport"s principal runway and the implementation of Saber -- we are optimistic about the rest of the year,” said Ed Barnes, JetBlue"s CFO.

Operating income for the quarter was $94 million, resulting in a 10.1 percent operating margin, compared to operating income of $76 million and 9.4 percent operating margin in the second quarter of 2009. JetBlue reported record second quarter revenues of $939 million. Revenue passenger miles for the second quarter increased 8.9 percent to 7.1 billion on a 5.5 percent increase in capacity, resulting in a second quarter load factor of 82.0 percent, an increase of 2.5 points year over year. Yield per passenger mile in the second quarter was 11.93 cents, up 8.2 percent compared to the second quarter of 2009. Passenger revenue per available seat mile (PRASM) for the second quarter 2010 increased 11.7 percent year over year to 9.78 cents and operating revenue per available seat mile (RASM) increased 10.4 percent year-over-year to 10.81 cents.

Operating expenses for the quarter increased 15.5 percent, or $114 million, over the prior year period. JetBlue"s operating expense per available seat mile (CASM) for the second quarter increased 9.5 percent year-over-year to 9.72 cents. Excluding fuel, CASM increased 8.2 percent to 6.51 cents. JetBlue continued to hedge fuel to help manage price volatility. Specifically, JetBlue hedged approximately 45 percent of its fuel consumption during the second quarter, resulting in a realized fuel price of $2.30 per gallon, a 12.3 percent increase over second quarter 2009 realized fuel price of $2.05. The airline recorded $2 million in losses on fuel hedges that settled during the second quarter. For more information, visit www.jetblue.com.
 

Starwood Hotels & Resorts Worldwide, Inc reported EPS from continuing operations for the second quarter of 2010 of $0.42 per share compared to $0.78 in the second quarter of 2009. Excluding special items, EPS from continuing operations was $0.35 for the second quarter of 2010 compared to $0.22 in the second quarter of 2009. Excluding special items, the effective income tax rate in the second quarter of 2010 was 16.1 percent compared to 23.5 percent in the same period of 2009.

Income from continuing operations was $79 million in the second quarter of 2010 compared to $140 million in 2009. Excluding special items, income from continuing operations was $67 million in the second quarter of 2010 compared to $40 million in 2009. Net income, which includes a $36 million after-tax gain in discontinued operations from the sale of two hotels, was $114 million and EPS was $0.61 in the second quarter of 2010, compared to net income of $134 million and EPS of $0.74 in the second quarter of 2009. Net income in 2009 includes a $120 million income tax benefit associated with an Italian tax incentive program.

Starwood’s worldwide system-wide revPAR (revenue per available room) for Same-Store Hotels increased 13.1 percent (11.9 percent in constant dollars) compared to the second quarter of 2009. System-wide revPAR for Same-Store Hotels in North America increased 12 percent (10.6 percent in constant dollars). Management and franchise revenues increased 14 percent compared to 2009. Worldwide Same-Store company-operated gross operating profit margins increased approximately 150 basis points. Worldwide revPAR for Starwood branded Same-Store Owned Hotels increased 18.4 percent (16.4 percent in constant dollars) compared to the second quarter of 2009. RevPAR for Starwood branded Same-Store Owned Hotels in North America increased 21.1 percent (17.6 percent in constant dollars). Margins at Starwood branded Same-Store Owned Hotels Worldwide increased 400 basis points. Operating income from vacation ownership and residential increased $6 million compared to 2009.

During the second quarter of 2010, Starwood signed 25 hotel management and franchise contracts, representing approximately 6,400 rooms, of which 18 are new builds and seven are conversions from other brands. At June 30, 2010, the company had approximately 350 hotels in the active pipeline representing approximately 85,000 rooms. During the second quarter of 2010, 18 new hotels and resorts (representing approximately 4,100 rooms) entered the system, including the Le Méridien Philadelphia (Pennsylvania, 192 rooms), Sheraton Brooklyn New York Hotel (New York, 321 rooms), Sheraton Hsinchu (Taiwan, 359 rooms), and The Romanos, a Luxury Collection Resort, Costa Navarino (Greece, 321 rooms). Six properties (representing approximately 1,600 rooms) were removed from the system during the quarter. On April 15, 2010, the company completed the sale of the former W Court and Tuscany in New York for gross proceeds of $78 million. These hotels were sold unencumbered by management contracts and are no longer part of the Starwood system.

“Starwood’s global footprint and strong brands drove the company’s second quarter revenues and earnings above expectations,” said Frits van Paasschen, Starwood’s CEO. “Average daily rates are back into positive territory as occupancy levels continue their steady ascent towards pre-crisis levels. The relaunch of Sheraton is enjoying a terrific response with strong increases in North American market share during the first six months of 2010. While global lodging demand is solid, the economic outlook around the world remains unpredictable. We will continue to plan for a range of potential scenarios, but each entails a focus on driving top-line growth with strong discipline in our cost base. We remain cautiously confident in our near-term outlook and are bullish over the long-term given our growth prospects.” For more information, visit www.starwoodhotels.com.
 

The Harris Poll has found that for Americans, if they could vacation in any country in the world, outside the U.S. without any worry about the cost, Italy would be the number one country, up from number two on the list last year. Australia drops from number one to number two this year; only the second time since 1997 it has left the top spot. These are some of the results of poll of 2,227 adults surveyed online between June 14 and 21, 2010 by Harris Interactive.

Moving up to number three from fifth last year is Ireland, while Great Britain drops one spot to fourth and France drops one spot to fifth on the list this year. Rounding out the top ten, in a tie for sixth is Greece (up from eighth last year) and Germany (sixth last year); Japan is number eight (down from number seven); Spain moves up one spot to number nine; and New Zealand moves down one spot to number 10. Looking a little further into the list, Israel returns to the list for the first time since 2001 at number 11, followed by Canada at number 12 (down from number 11) and Mexico at number 13 again this year. The Netherlands debuts on the vacation destination list at number 14 and Switzerland is at number 15, down from 12th on the list last year. Two countries drop off the list this year -- Brazil, which was number 14 last year and Jamaica, which was number 15.

The Harris poll found that men and women have different favorites. For men, Australia is number one, while for women, Italy takes the top spot. There are also differences by generation. Echo Boomers (those 18-33) and Baby Boomers (those 46-64) selected Italy as their top vacation destination. However, for Gen Xers (those 34-45) and Matures (those 65 and older), Australia is number one.

By region, almost half of Americans (49 percent) choose a country in Europe, while one-quarter (24 percent) choose a destination in Asia or the Pacific region. Just over one in ten U.S. adults (11 percent) pick a country in the Americas or the Caribbean, while 4 percent choose a country in Africa and 3 percent choose one in the Middle East. There is also a small percentage of people (7 percent) who wouldn"t go anywhere outside the U.S., more than last year (4 percent).
The Harris Poll was conducted online within the United States between June 14 and 21, 2010 among 2,227 adults (aged 18 and over). Figures for age, sex, race/ethnicity, education, region and household income were weighted where necessary to bring them into line with their actual proportions in the population. Propensity score weighting was also used to adjust for respondents" propensity to be online. For more information, visit www.harrisinteractive.com.
 

British Airways and Unite, the union representing BA cabin crew, are disputing the outcome of cabin crew’s vote on BA’s last offer. Unite, the union representing BA cabin crew, says that only 15 percent of the crew accepted the deal, but BA says that only 25 percent of the crew voted against the deal and that the “vast majority” either supported the deal or did not vote.

“With only around a quarter of our cabin crew voting against the deal, support for Unite is ebbing away. The union has lost the moral authority to represent the views of our cabin crew,” BA said. “Such a low turnout raises serious questions for Unite and shows it does not have a clear mandate to reject our offer.”

BA denied claims that employees were suspended for striking or talking to the media. It said that recent suspensions were related to allegations from other employees of bullying and intimidation. It said that of 55 disciplinary cases, eight had no action taken and employees went back to work, seven were asked to have conversations with their line managers after returning to work, and 28 received written warnings and went back to work. Twelve have been dismissed, subject to appeal, for serious cases of misconduct.

BA said that it has made a “fair and reasonable offer, which is intended to address concerns existing crew may have about the impact of new crew, who we are now recruiting to begin flying in November.” The offer includes a rise in base pay of up to 5.9 per cent over the two years starting next February – on top of annual incremental salary rises. BA said it will provide a new top-up payment for route allowances, which means all Heathrow crew will receive a guaranteed minimum amount irrespective of the routes they fly.

BA said that its proposal also includes a firm commitment that crew can keep their current pay and conditions, an assurance that promotions and part-time contracts within its current fleet will be on existing terms and conditions, an assurance that Heathrow crew can transfer between short-haul and long-haul fleet on current terms and conditions, a fair share of routes and access to new aircraft across all fleets, and a commitment to look for opportunities for growth at Gatwick. For more information, visit www.ba.com or www.unitetheunion.org.
 

Pleasant Holidays is adding new programs to the continental United States to its destination portfolio, offering a much larger product line to travel agents and their clients. The expansion includes destinations throughout Arizona, California, Nevada and Florida, with accommodations in every category and price range. Hertz is the preferred car rental partner for the USA program.

“Pleasant Holidays now offers the largest and most popular vacation destinations in the United States including Las Vegas, Orlando, Miami Beach, Los Angeles, San Diego and San Francisco,” said Jack Richards. Pleasant’s president and CEO. “This is phase one of our domestic program with other destinations to be added throughout 2011. The United States has a rich and varied landscape that offers vacation opportunities year-round for travelers of all ages.”

Pleasant, one of the leading travel companies for more than 50 years, has served more than 10 million travelers to Hawaii, Mexico, Caribbean, Costa Rica and the South Pacific. This latest expansion features 116 hotels and resorts in four U.S. states. In Arizona, destinations include Phoenix, Scottsdale and Sedona. The California portfolio includes Los Angeles, Anaheim/Orange County Beaches, Palm Springs, San Diego, San Francisco, Monterey, and Napa Valley and Sonoma in the Wine Country. In Nevada, Pleasant Holidays offers Las Vegas, Reno and Lake Tahoe. Destinations in Florida include Miami, South Beach and Orlando.

To complement its vacations, Pleasant Holidays offers competitive airfares nationwide on all airlines and features car rentals from Hertz throughout its U.S. destinations. For more information or reservations, call 800-448-3333 or 800-542-9244 (groups) or 800-818-9080 (wedding travel). For information or online reservations, visit www.PleasantAgent.com.  
 

The Harris Poll has found that for Americans, if they could vacation in any country in the world, outside the U.S. without any worry about the cost, Italy would be the number one country, up from number two on the list last year. Australia drops from number one to number two this year; only the second time since 1997 it has left the top spot. These are some of the results of poll of 2,227 adults surveyed online between June 14 and 21, 2010 by Harris Interactive.

Royal Caribbean Cruises Ltd. (RCCL) reported second quarter 2010 net income increased to $60.5 million, or $0.28 per share, compared to a net loss of $35.1 million, or ($0.16) per share, in second quarter of 2009. Revenues improved to $1.6 billion in the second quarter of 2010 compared to $1.3 billion in the second quarter of 2009, as a result of capacity increases and yield improvements. Net yields for the second quarter of 2010 increased 4.9 percent despite the impact of the stronger U.S. dollar.

The cruise company also said business conditions have remained on target in each of its main markets while improved cost control has enabled it to raise its earnings guidance for the year. Operating costs were lower than expected due mainly to strong cost control, energy conservation measures, expense timing and currency fluctuations;

RCCL said second quarter net yields increased 4.9 percent (5.4 percent on a Constant Currency basis). Second quarter net cruise costs per APCD (NCC) declined 2.8 percent (2 percent on a Constant Currency basis). The company said net yields are expected to increase approximately 4 percent in the third quarter and 3 to 4 percent for the year as a whole (7 percent and 4 to 5 percent, respectively, on a Constant Currency basis). NCC are expected to be down 1 percent for the third quarter and down approximately 1 to 2 percent for the full year. EPS expectation for the full year 2010 has been increased by $0.10 to $2.25 to $2.35. Third quarter 2010 EPS is expected to be in the range of $1.52 to $1.57.

“What a difference a year makes. It is gratifying to post another solid quarter with improvement in yields and strong cost control,” said Richard Fain, RCCL’s chairman and chief executive officer. “Despite ongoing uncertainty with the economy, our profitability continues to improve and our booking environment continues to be remarkably stable. We remain focused on strengthening our financial position and I am encouraged about the tremendous global response to our brands.”

Improved fuel consumption efforts resulted in significantly better fuel consumption of 318,000 metric tons during the second quarter. At-the-pump pricing (including the benefit of the company"s hedging) was virtually unchanged. Altogether, the quarter"s fuel expenditures were approximately $6 million better than previous calculations.

“Demand for our cruises remains on track with our earlier projections," said Brian Rice, executive vice president and chief financial officer. “The strengthening of the U.S. dollar will clearly result in a reduction of our reported yields, but also provides a corresponding reduction in expenses. Most importantly, our continued focus on cost controls and efficiency is driving improved earnings.”

Given the recent volatility in currency exchange rates, RCCL said it is expanding its disclosures regarding currency and has defined a non-GAAP measure of “Constant Currency.” Based on current estimates for 2010, the company anticipates that 30 percent of its net revenues, and 20 percent of its NCC excluding fuel will be denominated in currencies other than U.S. dollar, with the British pound and the euro being the most significant components.

The company does not forecast fuel prices and its cost calculations are based on current at-the-pump prices net of hedging impacts. Based on today"s fuel prices RCCL has included $170 million and $652 million of fuel expense in its third quarter 2010 and full year 2010 guidance, respectively. The company said it has made additional progress over the past quarter in optimizing the fuel consumption on many of its newer itineraries, as well as fine tuning the operations on its newest hardware. The ongoing focus on fuel consumption has allowed the company to further reduce its full year 2010 consumption estimate to 1,327,000 metric tons of fuel versus the estimates the company provided in April. The company"s fuel consumption is currently 47 percent hedged for the third quarter of 2010. In keeping with its previously disclosed hedging strategy, forecasted consumption is now 48 percent hedged for the remainder of 2010, 55 percent hedged in 2011, 50 percent hedged in 2012 and 20 percent hedged in 2013.

As of June 30, 2010, in addition to committed unsecured financing on its three remaining newbuild ships, liquidity was $1 billion, including cash and the undrawn portion of the company"s unsecured revolving credit facility. Based on current ship orders, projected capital expenditures for 2010, 2011 and 2012 are $2.2 billion, $1 billion, and $1 billion, respectively. Capacity increases for the same three years are 11.5 percent, 7.1 percent and 2 percent, respectively. These capacity estimates reflect the recently announced February 2011 sale of the Celebrity Mercury. For more information, visit www.rclinvestor.com.  
 

Continental Airlines, mirroring other major U.S. carriers’ positive financial results, reported second quarter 2010 net income of $233 million for the second quarter, compared with a net loss of $213 million a year ago. The airline said it had the highest second quarter pretax profit since 2000. Total revenue for the second quarter of 2010 was $3.7 billion, an increase of 18.6 percent compared to the same period in 2009. Passenger revenue for the second quarter rose 19.7 percent ($544 million) compared to the same period in 2009.

Consolidated revenue passenger miles (RPMs) for the second quarter of 2010 increased 2.0 percent while capacity (available seat miles, ASMs) remained flat year-over-year, resulting in a record second quarter consolidated load factor of 84.6 percent.

Continental"s mainline cost per available seat mile (CASM) increased 3.9 percent in the second quarter 2010 compared to the same period last year. Mainline fuel prices for the second quarter increased 8.7 percent compared to the second quarter of 2009, while mainline fuel consumption declined 1.1 percent year-over-year on 0.7 percent less mainline capacity.

Continental, which is in the process of merging with United Airlines, recorded $18 million of merger-related costs, largely due to financial advisor, legal, accounting and consultant fees and communication costs. The merger is expected to deliver $1 billion to $1.2 billion in net annual synergies by 2013, including between $800 million and $900 million of incremental annual revenues, in large part from expanded customer options resulting from the greater scope and scale of the network, and additional international service enabled by the broader network of the combined carrier. For more information, visit www.continental.com.
 

JetBlue Airways reported record revenues and its highest-ever quarterly operating income for the second quarter and was optimistic about the future, forecasting higher revenues and more flights to the destinations it serves. Dave Barger, JetBlue’s CEO, credited improved demand and the exceptional customer service JetBlue provides for its return to profitability and its highest-ever operating income. The airline reported net income of $30 million, compared to $20 million a year ago.

JetBlue said it will increase capacity between 6 and 8 percent in the third quarter and for the full year. "With some of our biggest challenges behind us -- including the closure of JFK Airport"s principal runway and the implementation of Saber -- we are optimistic about the rest of the year,” said Ed Barnes, JetBlue"s CFO.

Operating income for the quarter was $94 million, resulting in a 10.1 percent operating margin, compared to operating income of $76 million and 9.4 percent operating margin in the second quarter of 2009. JetBlue reported record second quarter revenues of $939 million. Revenue passenger miles for the second quarter increased 8.9 percent to 7.1 billion on a 5.5 percent increase in capacity, resulting in a second quarter load factor of 82.0 percent, an increase of 2.5 points year over year. Yield per passenger mile in the second quarter was 11.93 cents, up 8.2 percent compared to the second quarter of 2009. Passenger revenue per available seat mile (PRASM) for the second quarter 2010 increased 11.7 percent year over year to 9.78 cents and operating revenue per available seat mile (RASM) increased 10.4 percent year-over-year to 10.81 cents.

Operating expenses for the quarter increased 15.5 percent, or $114 million, over the prior year period. JetBlue"s operating expense per available seat mile (CASM) for the second quarter increased 9.5 percent year-over-year to 9.72 cents. Excluding fuel, CASM increased 8.2 percent to 6.51 cents. JetBlue continued to hedge fuel to help manage price volatility. Specifically, JetBlue hedged approximately 45 percent of its fuel consumption during the second quarter, resulting in a realized fuel price of $2.30 per gallon, a 12.3 percent increase over second quarter 2009 realized fuel price of $2.05. The airline recorded $2 million in losses on fuel hedges that settled during the second quarter. For more information, visit www.jetblue.com.
 

Starwood Hotels & Resorts Worldwide, Inc reported EPS from continuing operations for the second quarter of 2010 of $0.42 per share compared to $0.78 in the second quarter of 2009. Excluding special items, EPS from continuing operations was $0.35 for the second quarter of 2010 compared to $0.22 in the second quarter of 2009. Excluding special items, the effective income tax rate in the second quarter of 2010 was 16.1 percent compared to 23.5 percent in the same period of 2009.

Income from continuing operations was $79 million in the second quarter of 2010 compared to $140 million in 2009. Excluding special items, income from continuing operations was $67 million in the second quarter of 2010 compared to $40 million in 2009. Net income, which includes a $36 million after-tax gain in discontinued operations from the sale of two hotels, was $114 million and EPS was $0.61 in the second quarter of 2010, compared to net income of $134 million and EPS of $0.74 in the second quarter of 2009. Net income in 2009 includes a $120 million income tax benefit associated with an Italian tax incentive program.

Starwood’s worldwide system-wide revPAR (revenue per available room) for Same-Store Hotels increased 13.1 percent (11.9 percent in constant dollars) compared to the second quarter of 2009. System-wide revPAR for Same-Store Hotels in North America increased 12 percent (10.6 percent in constant dollars). Management and franchise revenues increased 14 percent compared to 2009. Worldwide Same-Store company-operated gross operating profit margins increased approximately 150 basis points. Worldwide revPAR for Starwood branded Same-Store Owned Hotels increased 18.4 percent (16.4 percent in constant dollars) compared to the second quarter of 2009. RevPAR for Starwood branded Same-Store Owned Hotels in North America increased 21.1 percent (17.6 percent in constant dollars). Margins at Starwood branded Same-Store Owned Hotels Worldwide increased 400 basis points. Operating income from vacation ownership and residential increased $6 million compared to 2009.

During the second quarter of 2010, Starwood signed 25 hotel management and franchise contracts, representing approximately 6,400 rooms, of which 18 are new builds and seven are conversions from other brands. At June 30, 2010, the company had approximately 350 hotels in the active pipeline representing approximately 85,000 rooms. During the second quarter of 2010, 18 new hotels and resorts (representing approximately 4,100 rooms) entered the system, including the Le Méridien Philadelphia (Pennsylvania, 192 rooms), Sheraton Brooklyn New York Hotel (New York, 321 rooms), Sheraton Hsinchu (Taiwan, 359 rooms), and The Romanos, a Luxury Collection Resort, Costa Navarino (Greece, 321 rooms). Six properties (representing approximately 1,600 rooms) were removed from the system during the quarter. On April 15, 2010, the company completed the sale of the former W Court and Tuscany in New York for gross proceeds of $78 million. These hotels were sold unencumbered by management contracts and are no longer part of the Starwood system.

“Starwood’s global footprint and strong brands drove the company’s second quarter revenues and earnings above expectations,” said Frits van Paasschen, Starwood’s CEO. “Average daily rates are back into positive territory as occupancy levels continue their steady ascent towards pre-crisis levels. The relaunch of Sheraton is enjoying a terrific response with strong increases in North American market share during the first six months of 2010. While global lodging demand is solid, the economic outlook around the world remains unpredictable. We will continue to plan for a range of potential scenarios, but each entails a focus on driving top-line growth with strong discipline in our cost base. We remain cautiously confident in our near-term outlook and are bullish over the long-term given our growth prospects.” For more information, visit www.starwoodhotels.com.
 

The Harris Poll has found that for Americans, if they could vacation in any country in the world, outside the U.S. without any worry about the cost, Italy would be the number one country, up from number two on the list last year. Australia drops from number one to number two this year; only the second time since 1997 it has left the top spot. These are some of the results of poll of 2,227 adults surveyed online between June 14 and 21, 2010 by Harris Interactive.

Moving up to number three from fifth last year is Ireland, while Great Britain drops one spot to fourth and France drops one spot to fifth on the list this year. Rounding out the top ten, in a tie for sixth is Greece (up from eighth last year) and Germany (sixth last year); Japan is number eight (down from number seven); Spain moves up one spot to number nine; and New Zealand moves down one spot to number 10. Looking a little further into the list, Israel returns to the list for the first time since 2001 at number 11, followed by Canada at number 12 (down from number 11) and Mexico at number 13 again this year. The Netherlands debuts on the vacation destination list at number 14 and Switzerland is at number 15, down from 12th on the list last year. Two countries drop off the list this year -- Brazil, which was number 14 last year and Jamaica, which was number 15.

The Harris poll found that men and women have different favorites. For men, Australia is number one, while for women, Italy takes the top spot. There are also differences by generation. Echo Boomers (those 18-33) and Baby Boomers (those 46-64) selected Italy as their top vacation destination. However, for Gen Xers (those 34-45) and Matures (those 65 and older), Australia is number one.

By region, almost half of Americans (49 percent) choose a country in Europe, while one-quarter (24 percent) choose a destination in Asia or the Pacific region. Just over one in ten U.S. adults (11 percent) pick a country in the Americas or the Caribbean, while 4 percent choose a country in Africa and 3 percent choose one in the Middle East. There is also a small percentage of people (7 percent) who wouldn"t go anywhere outside the U.S., more than last year (4 percent).
The Harris Poll was conducted online within the United States between June 14 and 21, 2010 among 2,227 adults (aged 18 and over). Figures for age, sex, race/ethnicity, education, region and household income were weighted where necessary to bring them into line with their actual proportions in the population. Propensity score weighting was also used to adjust for respondents" propensity to be online. For more information, visit www.harrisinteractive.com.
 

JetBlue Airways reported record revenues and its highest-ever quarterly operating income for the second quarter and was optimistic about the future, forecasting higher revenues and more flights to the destinations it serves. Dave Barger, JetBlue’s CEO, credited improved demand and the exceptional customer service JetBlue provides for its return to profitability and its highest-ever operating income. The airline reported net income of $30 million, compared to $20 million a year ago.

Royal Caribbean Cruises Ltd. (RCCL) reported second quarter 2010 net income increased to $60.5 million, or $0.28 per share, compared to a net loss of $35.1 million, or ($0.16) per share, in second quarter of 2009. Revenues improved to $1.6 billion in the second quarter of 2010 compared to $1.3 billion in the second quarter of 2009, as a result of capacity increases and yield improvements. Net yields for the second quarter of 2010 increased 4.9 percent despite the impact of the stronger U.S. dollar.

The cruise company also said business conditions have remained on target in each of its main markets while improved cost control has enabled it to raise its earnings guidance for the year. Operating costs were lower than expected due mainly to strong cost control, energy conservation measures, expense timing and currency fluctuations;

RCCL said second quarter net yields increased 4.9 percent (5.4 percent on a Constant Currency basis). Second quarter net cruise costs per APCD (NCC) declined 2.8 percent (2 percent on a Constant Currency basis). The company said net yields are expected to increase approximately 4 percent in the third quarter and 3 to 4 percent for the year as a whole (7 percent and 4 to 5 percent, respectively, on a Constant Currency basis). NCC are expected to be down 1 percent for the third quarter and down approximately 1 to 2 percent for the full year. EPS expectation for the full year 2010 has been increased by $0.10 to $2.25 to $2.35. Third quarter 2010 EPS is expected to be in the range of $1.52 to $1.57.

“What a difference a year makes. It is gratifying to post another solid quarter with improvement in yields and strong cost control,” said Richard Fain, RCCL’s chairman and chief executive officer. “Despite ongoing uncertainty with the economy, our profitability continues to improve and our booking environment continues to be remarkably stable. We remain focused on strengthening our financial position and I am encouraged about the tremendous global response to our brands.”

Improved fuel consumption efforts resulted in significantly better fuel consumption of 318,000 metric tons during the second quarter. At-the-pump pricing (including the benefit of the company"s hedging) was virtually unchanged. Altogether, the quarter"s fuel expenditures were approximately $6 million better than previous calculations.

“Demand for our cruises remains on track with our earlier projections," said Brian Rice, executive vice president and chief financial officer. “The strengthening of the U.S. dollar will clearly result in a reduction of our reported yields, but also provides a corresponding reduction in expenses. Most importantly, our continued focus on cost controls and efficiency is driving improved earnings.”

Given the recent volatility in currency exchange rates, RCCL said it is expanding its disclosures regarding currency and has defined a non-GAAP measure of “Constant Currency.” Based on current estimates for 2010, the company anticipates that 30 percent of its net revenues, and 20 percent of its NCC excluding fuel will be denominated in currencies other than U.S. dollar, with the British pound and the euro being the most significant components.

The company does not forecast fuel prices and its cost calculations are based on current at-the-pump prices net of hedging impacts. Based on today"s fuel prices RCCL has included $170 million and $652 million of fuel expense in its third quarter 2010 and full year 2010 guidance, respectively. The company said it has made additional progress over the past quarter in optimizing the fuel consumption on many of its newer itineraries, as well as fine tuning the operations on its newest hardware. The ongoing focus on fuel consumption has allowed the company to further reduce its full year 2010 consumption estimate to 1,327,000 metric tons of fuel versus the estimates the company provided in April. The company"s fuel consumption is currently 47 percent hedged for the third quarter of 2010. In keeping with its previously disclosed hedging strategy, forecasted consumption is now 48 percent hedged for the remainder of 2010, 55 percent hedged in 2011, 50 percent hedged in 2012 and 20 percent hedged in 2013.

As of June 30, 2010, in addition to committed unsecured financing on its three remaining newbuild ships, liquidity was $1 billion, including cash and the undrawn portion of the company"s unsecured revolving credit facility. Based on current ship orders, projected capital expenditures for 2010, 2011 and 2012 are $2.2 billion, $1 billion, and $1 billion, respectively. Capacity increases for the same three years are 11.5 percent, 7.1 percent and 2 percent, respectively. These capacity estimates reflect the recently announced February 2011 sale of the Celebrity Mercury. For more information, visit www.rclinvestor.com.  
 

Continental Airlines, mirroring other major U.S. carriers’ positive financial results, reported second quarter 2010 net income of $233 million for the second quarter, compared with a net loss of $213 million a year ago. The airline said it had the highest second quarter pretax profit since 2000. Total revenue for the second quarter of 2010 was $3.7 billion, an increase of 18.6 percent compared to the same period in 2009. Passenger revenue for the second quarter rose 19.7 percent ($544 million) compared to the same period in 2009.

Consolidated revenue passenger miles (RPMs) for the second quarter of 2010 increased 2.0 percent while capacity (available seat miles, ASMs) remained flat year-over-year, resulting in a record second quarter consolidated load factor of 84.6 percent.

Continental"s mainline cost per available seat mile (CASM) increased 3.9 percent in the second quarter 2010 compared to the same period last year. Mainline fuel prices for the second quarter increased 8.7 percent compared to the second quarter of 2009, while mainline fuel consumption declined 1.1 percent year-over-year on 0.7 percent less mainline capacity.

Continental, which is in the process of merging with United Airlines, recorded $18 million of merger-related costs, largely due to financial advisor, legal, accounting and consultant fees and communication costs. The merger is expected to deliver $1 billion to $1.2 billion in net annual synergies by 2013, including between $800 million and $900 million of incremental annual revenues, in large part from expanded customer options resulting from the greater scope and scale of the network, and additional international service enabled by the broader network of the combined carrier. For more information, visit www.continental.com.
 

JetBlue Airways reported record revenues and its highest-ever quarterly operating income for the second quarter and was optimistic about the future, forecasting higher revenues and more flights to the destinations it serves. Dave Barger, JetBlue’s CEO, credited improved demand and the exceptional customer service JetBlue provides for its return to profitability and its highest-ever operating income. The airline reported net income of $30 million, compared to $20 million a year ago.

JetBlue said it will increase capacity between 6 and 8 percent in the third quarter and for the full year. "With some of our biggest challenges behind us -- including the closure of JFK Airport"s principal runway and the implementation of Saber -- we are optimistic about the rest of the year,” said Ed Barnes, JetBlue"s CFO.

Operating income for the quarter was $94 million, resulting in a 10.1 percent operating margin, compared to operating income of $76 million and 9.4 percent operating margin in the second quarter of 2009. JetBlue reported record second quarter revenues of $939 million. Revenue passenger miles for the second quarter increased 8.9 percent to 7.1 billion on a 5.5 percent increase in capacity, resulting in a second quarter load factor of 82.0 percent, an increase of 2.5 points year over year. Yield per passenger mile in the second quarter was 11.93 cents, up 8.2 percent compared to the second quarter of 2009. Passenger revenue per available seat mile (PRASM) for the second quarter 2010 increased 11.7 percent year over year to 9.78 cents and operating revenue per available seat mile (RASM) increased 10.4 percent year-over-year to 10.81 cents.

Operating expenses for the quarter increased 15.5 percent, or $114 million, over the prior year period. JetBlue"s operating expense per available seat mile (CASM) for the second quarter increased 9.5 percent year-over-year to 9.72 cents. Excluding fuel, CASM increased 8.2 percent to 6.51 cents. JetBlue continued to hedge fuel to help manage price volatility. Specifically, JetBlue hedged approximately 45 percent of its fuel consumption during the second quarter, resulting in a realized fuel price of $2.30 per gallon, a 12.3 percent increase over second quarter 2009 realized fuel price of $2.05. The airline recorded $2 million in losses on fuel hedges that settled during the second quarter. For more information, visit www.jetblue.com.
 

Brendan Vacations is offering 20 percent agent commission on all Ireland escorted and independent itineraries (land portion only) booked and deposited through July 31. Brendan’s Ireland packages include Mystic Dublin and Discover Ireland through Self Drive as well as Self Drive Ireland with a Castle, Bed & Breakfast, a six-day/five-night program priced from $499 per person land only, including six days manual economy Hertz car rental with unlimited mileage (pick up and drop off Dublin Airport); one night at the four-star Fitzpatrick Castle in a Standard Room; three nights in Open B&B Town & Country Homes; one night at the four-star Clontarf Castle in a standard room; breakfast daily; and all hotel taxes.

Brendan Vacations is offering 20 percent agent commission on all Ireland escorted and independent itineraries (land portion only) booked and deposited through July 31. Brendan’s Ireland packages include Mystic Dublin and Discover Ireland through Self Drive as well as Self Drive Ireland with a Castle, Bed & Breakfast, a six-day/five-night program priced from $499 per person land only, including six days manual economy Hertz car rental with unlimited mileage (pick up and drop off Dublin Airport); one night at the four-star Fitzpatrick Castle in a Standard Room; three nights in Open B&B Town & Country Homes; one night at the four-star Clontarf Castle in a standard room; breakfast daily; and all hotel taxes.

Enchanting Blarney Golf Resort is a six-day/five-night program priced from $699 per person land only, including six days compact manual Alamo car rental with unlimited mileage; two nights at the four and a half star Blarney Golf Resort in a superior room; three nights at the four-star Burlington Hotel in a standard room; one spa treatment for two in Blarney Golf Resort; breakfast daily; and all ground taxes.

Brendan Vacations is a leading U.S. tour operator offering a wide selection of escorted, independent, and locally hosted and group travel options. Established in 1969, Brendan"s portfolio includes over 800 packages and 10,000 hotels in Ireland, the U.K., Europe, Egypt, Asia, Australia, New Zealand, Tahiti, Fiji, Mexico, and South and Central America. For more information, call 800-421-8446 or visit www.BrendanVacations.com.
 

Starwood Hotels & Resorts Worldwide, Inc reported EPS from continuing operations for the second quarter of 2010 of $0.42 per share compared to $0.78 in the second quarter of 2009. Excluding special items, EPS from continuing operations was $0.35 for the second quarter of 2010 compared to $0.22 in the second quarter of 2009. Excluding special items, the effective income tax rate in the second quarter of 2010 was 16.1 percent compared to 23.5 percent in the same period of 2009.

Royal Caribbean Cruises Ltd. (RCCL) reported second quarter 2010 net income increased to $60.5 million, or $0.28 per share, compared to a net loss of $35.1 million, or ($0.16) per share, in second quarter of 2009. Revenues improved to $1.6 billion in the second quarter of 2010 compared to $1.3 billion in the second quarter of 2009, as a result of capacity increases and yield improvements. Net yields for the second quarter of 2010 increased 4.9 percent despite the impact of the stronger U.S. dollar.

The cruise company also said business conditions have remained on target in each of its main markets while improved cost control has enabled it to raise its earnings guidance for the year. Operating costs were lower than expected due mainly to strong cost control, energy conservation measures, expense timing and currency fluctuations;

RCCL said second quarter net yields increased 4.9 percent (5.4 percent on a Constant Currency basis). Second quarter net cruise costs per APCD (NCC) declined 2.8 percent (2 percent on a Constant Currency basis). The company said net yields are expected to increase approximately 4 percent in the third quarter and 3 to 4 percent for the year as a whole (7 percent and 4 to 5 percent, respectively, on a Constant Currency basis). NCC are expected to be down 1 percent for the third quarter and down approximately 1 to 2 percent for the full year. EPS expectation for the full year 2010 has been increased by $0.10 to $2.25 to $2.35. Third quarter 2010 EPS is expected to be in the range of $1.52 to $1.57.

“What a difference a year makes. It is gratifying to post another solid quarter with improvement in yields and strong cost control,” said Richard Fain, RCCL’s chairman and chief executive officer. “Despite ongoing uncertainty with the economy, our profitability continues to improve and our booking environment continues to be remarkably stable. We remain focused on strengthening our financial position and I am encouraged about the tremendous global response to our brands.”

Improved fuel consumption efforts resulted in significantly better fuel consumption of 318,000 metric tons during the second quarter. At-the-pump pricing (including the benefit of the company"s hedging) was virtually unchanged. Altogether, the quarter"s fuel expenditures were approximately $6 million better than previous calculations.

“Demand for our cruises remains on track with our earlier projections," said Brian Rice, executive vice president and chief financial officer. “The strengthening of the U.S. dollar will clearly result in a reduction of our reported yields, but also provides a corresponding reduction in expenses. Most importantly, our continued focus on cost controls and efficiency is driving improved earnings.”

Given the recent volatility in currency exchange rates, RCCL said it is expanding its disclosures regarding currency and has defined a non-GAAP measure of “Constant Currency.” Based on current estimates for 2010, the company anticipates that 30 percent of its net revenues, and 20 percent of its NCC excluding fuel will be denominated in currencies other than U.S. dollar, with the British pound and the euro being the most significant components.

The company does not forecast fuel prices and its cost calculations are based on current at-the-pump prices net of hedging impacts. Based on today"s fuel prices RCCL has included $170 million and $652 million of fuel expense in its third quarter 2010 and full year 2010 guidance, respectively. The company said it has made additional progress over the past quarter in optimizing the fuel consumption on many of its newer itineraries, as well as fine tuning the operations on its newest hardware. The ongoing focus on fuel consumption has allowed the company to further reduce its full year 2010 consumption estimate to 1,327,000 metric tons of fuel versus the estimates the company provided in April. The company"s fuel consumption is currently 47 percent hedged for the third quarter of 2010. In keeping with its previously disclosed hedging strategy, forecasted consumption is now 48 percent hedged for the remainder of 2010, 55 percent hedged in 2011, 50 percent hedged in 2012 and 20 percent hedged in 2013.

As of June 30, 2010, in addition to committed unsecured financing on its three remaining newbuild ships, liquidity was $1 billion, including cash and the undrawn portion of the company"s unsecured revolving credit facility. Based on current ship orders, projected capital expenditures for 2010, 2011 and 2012 are $2.2 billion, $1 billion, and $1 billion, respectively. Capacity increases for the same three years are 11.5 percent, 7.1 percent and 2 percent, respectively. These capacity estimates reflect the recently announced February 2011 sale of the Celebrity Mercury. For more information, visit www.rclinvestor.com.  
 

Continental Airlines, mirroring other major U.S. carriers’ positive financial results, reported second quarter 2010 net income of $233 million for the second quarter, compared with a net loss of $213 million a year ago. The airline said it had the highest second quarter pretax profit since 2000. Total revenue for the second quarter of 2010 was $3.7 billion, an increase of 18.6 percent compared to the same period in 2009. Passenger revenue for the second quarter rose 19.7 percent ($544 million) compared to the same period in 2009.

Consolidated revenue passenger miles (RPMs) for the second quarter of 2010 increased 2.0 percent while capacity (available seat miles, ASMs) remained flat year-over-year, resulting in a record second quarter consolidated load factor of 84.6 percent.

Continental"s mainline cost per available seat mile (CASM) increased 3.9 percent in the second quarter 2010 compared to the same period last year. Mainline fuel prices for the second quarter increased 8.7 percent compared to the second quarter of 2009, while mainline fuel consumption declined 1.1 percent year-over-year on 0.7 percent less mainline capacity.

Continental, which is in the process of merging with United Airlines, recorded $18 million of merger-related costs, largely due to financial advisor, legal, accounting and consultant fees and communication costs. The merger is expected to deliver $1 billion to $1.2 billion in net annual synergies by 2013, including between $800 million and $900 million of incremental annual revenues, in large part from expanded customer options resulting from the greater scope and scale of the network, and additional international service enabled by the broader network of the combined carrier. For more information, visit www.continental.com.
 

JetBlue Airways reported record revenues and its highest-ever quarterly operating income for the second quarter and was optimistic about the future, forecasting higher revenues and more flights to the destinations it serves. Dave Barger, JetBlue’s CEO, credited improved demand and the exceptional customer service JetBlue provides for its return to profitability and its highest-ever operating income. The airline reported net income of $30 million, compared to $20 million a year ago.

JetBlue said it will increase capacity between 6 and 8 percent in the third quarter and for the full year. "With some of our biggest challenges behind us -- including the closure of JFK Airport"s principal runway and the implementation of Saber -- we are optimistic about the rest of the year,” said Ed Barnes, JetBlue"s CFO.

Operating income for the quarter was $94 million, resulting in a 10.1 percent operating margin, compared to operating income of $76 million and 9.4 percent operating margin in the second quarter of 2009. JetBlue reported record second quarter revenues of $939 million. Revenue passenger miles for the second quarter increased 8.9 percent to 7.1 billion on a 5.5 percent increase in capacity, resulting in a second quarter load factor of 82.0 percent, an increase of 2.5 points year over year. Yield per passenger mile in the second quarter was 11.93 cents, up 8.2 percent compared to the second quarter of 2009. Passenger revenue per available seat mile (PRASM) for the second quarter 2010 increased 11.7 percent year over year to 9.78 cents and operating revenue per available seat mile (RASM) increased 10.4 percent year-over-year to 10.81 cents.

Operating expenses for the quarter increased 15.5 percent, or $114 million, over the prior year period. JetBlue"s operating expense per available seat mile (CASM) for the second quarter increased 9.5 percent year-over-year to 9.72 cents. Excluding fuel, CASM increased 8.2 percent to 6.51 cents. JetBlue continued to hedge fuel to help manage price volatility. Specifically, JetBlue hedged approximately 45 percent of its fuel consumption during the second quarter, resulting in a realized fuel price of $2.30 per gallon, a 12.3 percent increase over second quarter 2009 realized fuel price of $2.05. The airline recorded $2 million in losses on fuel hedges that settled during the second quarter. For more information, visit www.jetblue.com.
 

Starwood Hotels & Resorts Worldwide, Inc reported EPS from continuing operations for the second quarter of 2010 of $0.42 per share compared to $0.78 in the second quarter of 2009. Excluding special items, EPS from continuing operations was $0.35 for the second quarter of 2010 compared to $0.22 in the second quarter of 2009. Excluding special items, the effective income tax rate in the second quarter of 2010 was 16.1 percent compared to 23.5 percent in the same period of 2009.

Income from continuing operations was $79 million in the second quarter of 2010 compared to $140 million in 2009. Excluding special items, income from continuing operations was $67 million in the second quarter of 2010 compared to $40 million in 2009. Net income, which includes a $36 million after-tax gain in discontinued operations from the sale of two hotels, was $114 million and EPS was $0.61 in the second quarter of 2010, compared to net income of $134 million and EPS of $0.74 in the second quarter of 2009. Net income in 2009 includes a $120 million income tax benefit associated with an Italian tax incentive program.

Starwood’s worldwide system-wide revPAR (revenue per available room) for Same-Store Hotels increased 13.1 percent (11.9 percent in constant dollars) compared to the second quarter of 2009. System-wide revPAR for Same-Store Hotels in North America increased 12 percent (10.6 percent in constant dollars). Management and franchise revenues increased 14 percent compared to 2009. Worldwide Same-Store company-operated gross operating profit margins increased approximately 150 basis points. Worldwide revPAR for Starwood branded Same-Store Owned Hotels increased 18.4 percent (16.4 percent in constant dollars) compared to the second quarter of 2009. RevPAR for Starwood branded Same-Store Owned Hotels in North America increased 21.1 percent (17.6 percent in constant dollars). Margins at Starwood branded Same-Store Owned Hotels Worldwide increased 400 basis points. Operating income from vacation ownership and residential increased $6 million compared to 2009.

During the second quarter of 2010, Starwood signed 25 hotel management and franchise contracts, representing approximately 6,400 rooms, of which 18 are new builds and seven are conversions from other brands. At June 30, 2010, the company had approximately 350 hotels in the active pipeline representing approximately 85,000 rooms. During the second quarter of 2010, 18 new hotels and resorts (representing approximately 4,100 rooms) entered the system, including the Le Méridien Philadelphia (Pennsylvania, 192 rooms), Sheraton Brooklyn New York Hotel (New York, 321 rooms), Sheraton Hsinchu (Taiwan, 359 rooms), and The Romanos, a Luxury Collection Resort, Costa Navarino (Greece, 321 rooms). Six properties (representing approximately 1,600 rooms) were removed from the system during the quarter. On April 15, 2010, the company completed the sale of the former W Court and Tuscany in New York for gross proceeds of $78 million. These hotels were sold unencumbered by management contracts and are no longer part of the Starwood system.

“Starwood’s global footprint and strong brands drove the company’s second quarter revenues and earnings above expectations,” said Frits van Paasschen, Starwood’s CEO. “Average daily rates are back into positive territory as occupancy levels continue their steady ascent towards pre-crisis levels. The relaunch of Sheraton is enjoying a terrific response with strong increases in North American market share during the first six months of 2010. While global lodging demand is solid, the economic outlook around the world remains unpredictable. We will continue to plan for a range of potential scenarios, but each entails a focus on driving top-line growth with strong discipline in our cost base. We remain cautiously confident in our near-term outlook and are bullish over the long-term given our growth prospects.” For more information, visit www.starwoodhotels.com.
 

British Airways and Unite, the union representing BA cabin crew, are disputing the outcome of cabin crew’s vote on BA’s last offer. Unite, the union representing BA cabin crew, says that only 15 percent of the crew accepted the deal, but BA says that only 25 percent of the crew voted against the deal and that the “vast majority” either supported the deal or did not vote.

Royal Caribbean Cruises Ltd. (RCCL) reported second quarter 2010 net income increased to $60.5 million, or $0.28 per share, compared to a net loss of $35.1 million, or ($0.16) per share, in second quarter of 2009. Revenues improved to $1.6 billion in the second quarter of 2010 compared to $1.3 billion in the second quarter of 2009, as a result of capacity increases and yield improvements. Net yields for the second quarter of 2010 increased 4.9 percent despite the impact of the stronger U.S. dollar.

The cruise company also said business conditions have remained on target in each of its main markets while improved cost control has enabled it to raise its earnings guidance for the year. Operating costs were lower than expected due mainly to strong cost control, energy conservation measures, expense timing and currency fluctuations;

RCCL said second quarter net yields increased 4.9 percent (5.4 percent on a Constant Currency basis). Second quarter net cruise costs per APCD (NCC) declined 2.8 percent (2 percent on a Constant Currency basis). The company said net yields are expected to increase approximately 4 percent in the third quarter and 3 to 4 percent for the year as a whole (7 percent and 4 to 5 percent, respectively, on a Constant Currency basis). NCC are expected to be down 1 percent for the third quarter and down approximately 1 to 2 percent for the full year. EPS expectation for the full year 2010 has been increased by $0.10 to $2.25 to $2.35. Third quarter 2010 EPS is expected to be in the range of $1.52 to $1.57.

“What a difference a year makes. It is gratifying to post another solid quarter with improvement in yields and strong cost control,” said Richard Fain, RCCL’s chairman and chief executive officer. “Despite ongoing uncertainty with the economy, our profitability continues to improve and our booking environment continues to be remarkably stable. We remain focused on strengthening our financial position and I am encouraged about the tremendous global response to our brands.”

Improved fuel consumption efforts resulted in significantly better fuel consumption of 318,000 metric tons during the second quarter. At-the-pump pricing (including the benefit of the company"s hedging) was virtually unchanged. Altogether, the quarter"s fuel expenditures were approximately $6 million better than previous calculations.

“Demand for our cruises remains on track with our earlier projections," said Brian Rice, executive vice president and chief financial officer. “The strengthening of the U.S. dollar will clearly result in a reduction of our reported yields, but also provides a corresponding reduction in expenses. Most importantly, our continued focus on cost controls and efficiency is driving improved earnings.”

Given the recent volatility in currency exchange rates, RCCL said it is expanding its disclosures regarding currency and has defined a non-GAAP measure of “Constant Currency.” Based on current estimates for 2010, the company anticipates that 30 percent of its net revenues, and 20 percent of its NCC excluding fuel will be denominated in currencies other than U.S. dollar, with the British pound and the euro being the most significant components.

The company does not forecast fuel prices and its cost calculations are based on current at-the-pump prices net of hedging impacts. Based on today"s fuel prices RCCL has included $170 million and $652 million of fuel expense in its third quarter 2010 and full year 2010 guidance, respectively. The company said it has made additional progress over the past quarter in optimizing the fuel consumption on many of its newer itineraries, as well as fine tuning the operations on its newest hardware. The ongoing focus on fuel consumption has allowed the company to further reduce its full year 2010 consumption estimate to 1,327,000 metric tons of fuel versus the estimates the company provided in April. The company"s fuel consumption is currently 47 percent hedged for the third quarter of 2010. In keeping with its previously disclosed hedging strategy, forecasted consumption is now 48 percent hedged for the remainder of 2010, 55 percent hedged in 2011, 50 percent hedged in 2012 and 20 percent hedged in 2013.

As of June 30, 2010, in addition to committed unsecured financing on its three remaining newbuild ships, liquidity was $1 billion, including cash and the undrawn portion of the company"s unsecured revolving credit facility. Based on current ship orders, projected capital expenditures for 2010, 2011 and 2012 are $2.2 billion, $1 billion, and $1 billion, respectively. Capacity increases for the same three years are 11.5 percent, 7.1 percent and 2 percent, respectively. These capacity estimates reflect the recently announced February 2011 sale of the Celebrity Mercury. For more information, visit www.rclinvestor.com.  
 

Continental Airlines, mirroring other major U.S. carriers’ positive financial results, reported second quarter 2010 net income of $233 million for the second quarter, compared with a net loss of $213 million a year ago. The airline said it had the highest second quarter pretax profit since 2000. Total revenue for the second quarter of 2010 was $3.7 billion, an increase of 18.6 percent compared to the same period in 2009. Passenger revenue for the second quarter rose 19.7 percent ($544 million) compared to the same period in 2009.

Consolidated revenue passenger miles (RPMs) for the second quarter of 2010 increased 2.0 percent while capacity (available seat miles, ASMs) remained flat year-over-year, resulting in a record second quarter consolidated load factor of 84.6 percent.

Continental"s mainline cost per available seat mile (CASM) increased 3.9 percent in the second quarter 2010 compared to the same period last year. Mainline fuel prices for the second quarter increased 8.7 percent compared to the second quarter of 2009, while mainline fuel consumption declined 1.1 percent year-over-year on 0.7 percent less mainline capacity.

Continental, which is in the process of merging with United Airlines, recorded $18 million of merger-related costs, largely due to financial advisor, legal, accounting and consultant fees and communication costs. The merger is expected to deliver $1 billion to $1.2 billion in net annual synergies by 2013, including between $800 million and $900 million of incremental annual revenues, in large part from expanded customer options resulting from the greater scope and scale of the network, and additional international service enabled by the broader network of the combined carrier. For more information, visit www.continental.com.
 

JetBlue Airways reported record revenues and its highest-ever quarterly operating income for the second quarter and was optimistic about the future, forecasting higher revenues and more flights to the destinations it serves. Dave Barger, JetBlue’s CEO, credited improved demand and the exceptional customer service JetBlue provides for its return to profitability and its highest-ever operating income. The airline reported net income of $30 million, compared to $20 million a year ago.

JetBlue said it will increase capacity between 6 and 8 percent in the third quarter and for the full year. "With some of our biggest challenges behind us -- including the closure of JFK Airport"s principal runway and the implementation of Saber -- we are optimistic about the rest of the year,” said Ed Barnes, JetBlue"s CFO.

Operating income for the quarter was $94 million, resulting in a 10.1 percent operating margin, compared to operating income of $76 million and 9.4 percent operating margin in the second quarter of 2009. JetBlue reported record second quarter revenues of $939 million. Revenue passenger miles for the second quarter increased 8.9 percent to 7.1 billion on a 5.5 percent increase in capacity, resulting in a second quarter load factor of 82.0 percent, an increase of 2.5 points year over year. Yield per passenger mile in the second quarter was 11.93 cents, up 8.2 percent compared to the second quarter of 2009. Passenger revenue per available seat mile (PRASM) for the second quarter 2010 increased 11.7 percent year over year to 9.78 cents and operating revenue per available seat mile (RASM) increased 10.4 percent year-over-year to 10.81 cents.

Operating expenses for the quarter increased 15.5 percent, or $114 million, over the prior year period. JetBlue"s operating expense per available seat mile (CASM) for the second quarter increased 9.5 percent year-over-year to 9.72 cents. Excluding fuel, CASM increased 8.2 percent to 6.51 cents. JetBlue continued to hedge fuel to help manage price volatility. Specifically, JetBlue hedged approximately 45 percent of its fuel consumption during the second quarter, resulting in a realized fuel price of $2.30 per gallon, a 12.3 percent increase over second quarter 2009 realized fuel price of $2.05. The airline recorded $2 million in losses on fuel hedges that settled during the second quarter. For more information, visit www.jetblue.com.
 

Starwood Hotels & Resorts Worldwide, Inc reported EPS from continuing operations for the second quarter of 2010 of $0.42 per share compared to $0.78 in the second quarter of 2009. Excluding special items, EPS from continuing operations was $0.35 for the second quarter of 2010 compared to $0.22 in the second quarter of 2009. Excluding special items, the effective income tax rate in the second quarter of 2010 was 16.1 percent compared to 23.5 percent in the same period of 2009.

Income from continuing operations was $79 million in the second quarter of 2010 compared to $140 million in 2009. Excluding special items, income from continuing operations was $67 million in the second quarter of 2010 compared to $40 million in 2009. Net income, which includes a $36 million after-tax gain in discontinued operations from the sale of two hotels, was $114 million and EPS was $0.61 in the second quarter of 2010, compared to net income of $134 million and EPS of $0.74 in the second quarter of 2009. Net income in 2009 includes a $120 million income tax benefit associated with an Italian tax incentive program.

Starwood’s worldwide system-wide revPAR (revenue per available room) for Same-Store Hotels increased 13.1 percent (11.9 percent in constant dollars) compared to the second quarter of 2009. System-wide revPAR for Same-Store Hotels in North America increased 12 percent (10.6 percent in constant dollars). Management and franchise revenues increased 14 percent compared to 2009. Worldwide Same-Store company-operated gross operating profit margins increased approximately 150 basis points. Worldwide revPAR for Starwood branded Same-Store Owned Hotels increased 18.4 percent (16.4 percent in constant dollars) compared to the second quarter of 2009. RevPAR for Starwood branded Same-Store Owned Hotels in North America increased 21.1 percent (17.6 percent in constant dollars). Margins at Starwood branded Same-Store Owned Hotels Worldwide increased 400 basis points. Operating income from vacation ownership and residential increased $6 million compared to 2009.

During the second quarter of 2010, Starwood signed 25 hotel management and franchise contracts, representing approximately 6,400 rooms, of which 18 are new builds and seven are conversions from other brands. At June 30, 2010, the company had approximately 350 hotels in the active pipeline representing approximately 85,000 rooms. During the second quarter of 2010, 18 new hotels and resorts (representing approximately 4,100 rooms) entered the system, including the Le Méridien Philadelphia (Pennsylvania, 192 rooms), Sheraton Brooklyn New York Hotel (New York, 321 rooms), Sheraton Hsinchu (Taiwan, 359 rooms), and The Romanos, a Luxury Collection Resort, Costa Navarino (Greece, 321 rooms). Six properties (representing approximately 1,600 rooms) were removed from the system during the quarter. On April 15, 2010, the company completed the sale of the former W Court and Tuscany in New York for gross proceeds of $78 million. These hotels were sold unencumbered by management contracts and are no longer part of the Starwood system.

“Starwood’s global footprint and strong brands drove the company’s second quarter revenues and earnings above expectations,” said Frits van Paasschen, Starwood’s CEO. “Average daily rates are back into positive territory as occupancy levels continue their steady ascent towards pre-crisis levels. The relaunch of Sheraton is enjoying a terrific response with strong increases in North American market share during the first six months of 2010. While global lodging demand is solid, the economic outlook around the world remains unpredictable. We will continue to plan for a range of potential scenarios, but each entails a focus on driving top-line growth with strong discipline in our cost base. We remain cautiously confident in our near-term outlook and are bullish over the long-term given our growth prospects.” For more information, visit www.starwoodhotels.com.
 

The Harris Poll has found that for Americans, if they could vacation in any country in the world, outside the U.S. without any worry about the cost, Italy would be the number one country, up from number two on the list last year. Australia drops from number one to number two this year; only the second time since 1997 it has left the top spot. These are some of the results of poll of 2,227 adults surveyed online between June 14 and 21, 2010 by Harris Interactive.

Moving up to number three from fifth last year is Ireland, while Great Britain drops one spot to fourth and France drops one spot to fifth on the list this year. Rounding out the top ten, in a tie for sixth is Greece (up from eighth last year) and Germany (sixth last year); Japan is number eight (down from number seven); Spain moves up one spot to number nine; and New Zealand moves down one spot to number 10. Looking a little further into the list, Israel returns to the list for the first time since 2001 at number 11, followed by Canada at number 12 (down from number 11) and Mexico at number 13 again this year. The Netherlands debuts on the vacation destination list at number 14 and Switzerland is at number 15, down from 12th on the list last year. Two countries drop off the list this year -- Brazil, which was number 14 last year and Jamaica, which was number 15.

The Harris poll found that men and women have different favorites. For men, Australia is number one, while for women, Italy takes the top spot. There are also differences by generation. Echo Boomers (those 18-33) and Baby Boomers (those 46-64) selected Italy as their top vacation destination. However, for Gen Xers (those 34-45) and Matures (those 65 and older), Australia is number one.

By region, almost half of Americans (49 percent) choose a country in Europe, while one-quarter (24 percent) choose a destination in Asia or the Pacific region. Just over one in ten U.S. adults (11 percent) pick a country in the Americas or the Caribbean, while 4 percent choose a country in Africa and 3 percent choose one in the Middle East. There is also a small percentage of people (7 percent) who wouldn"t go anywhere outside the U.S., more than last year (4 percent).
The Harris Poll was conducted online within the United States between June 14 and 21, 2010 among 2,227 adults (aged 18 and over). Figures for age, sex, race/ethnicity, education, region and household income were weighted where necessary to bring them into line with their actual proportions in the population. Propensity score weighting was also used to adjust for respondents" propensity to be online. For more information, visit www.harrisinteractive.com.
 

British Airways and Unite, the union representing BA cabin crew, are disputing the outcome of cabin crew’s vote on BA’s last offer. Unite, the union representing BA cabin crew, says that only 15 percent of the crew accepted the deal, but BA says that only 25 percent of the crew voted against the deal and that the “vast majority” either supported the deal or did not vote.

“With only around a quarter of our cabin crew voting against the deal, support for Unite is ebbing away. The union has lost the moral authority to represent the views of our cabin crew,” BA said. “Such a low turnout raises serious questions for Unite and shows it does not have a clear mandate to reject our offer.”

BA denied claims that employees were suspended for striking or talking to the media. It said that recent suspensions were related to allegations from other employees of bullying and intimidation. It said that of 55 disciplinary cases, eight had no action taken and employees went back to work, seven were asked to have conversations with their line managers after returning to work, and 28 received written warnings and went back to work. Twelve have been dismissed, subject to appeal, for serious cases of misconduct.

BA said that it has made a “fair and reasonable offer, which is intended to address concerns existing crew may have about the impact of new crew, who we are now recruiting to begin flying in November.” The offer includes a rise in base pay of up to 5.9 per cent over the two years starting next February – on top of annual incremental salary rises. BA said it will provide a new top-up payment for route allowances, which means all Heathrow crew will receive a guaranteed minimum amount irrespective of the routes they fly.

BA said that its proposal also includes a firm commitment that crew can keep their current pay and conditions, an assurance that promotions and part-time contracts within its current fleet will be on existing terms and conditions, an assurance that Heathrow crew can transfer between short-haul and long-haul fleet on current terms and conditions, a fair share of routes and access to new aircraft across all fleets, and a commitment to look for opportunities for growth at Gatwick. For more information, visit www.ba.com or www.unitetheunion.org.