United and Alaska Airlines Navigate Uncertainty

United and Alaska Airlines Navigate Uncertainty

Airline Weekly’s Jay Shabat is joined by former Airline Weekly Editor Madhu Unnikrishnan to discuss United Airlines’ and Alaska Airlines’ first quarter earnings reports from earlier this week. The conversation starts with United’s challenges in January and February, and notes investors will tolerate it if they have a strong March and the rest of the year. United is working to rectify its problems in Florida and has a lot of aircraft coming along in the next few years to put somewhere. The company has also benefited from a trend in premium leisure travel, which has helped fill the seats in the premium cabins. The three big U.S. carriers – United, Delta, and American – are doing well compared to the domestic carriers. They have the advantage of the demand being strong, and a lot of foreign carriers cutting capacity during the pandemic. Next, they discuss Alaska Airlines and mention that the company reported negative 4.6 operating margin for the first quarter, which is not good compared to their positive 2.5% operating margin in 2019. Alaska has historically had weak first quarters, and they sometimes lose money in January and February, but they have been a very successful and profitable airline. They also discuss where Alaska fits in the overall U.S. airline picture, as it is not a low-cost carrier like Frontier nor a full-service airline like Delta and United. Reading List Alaska Airlines Optimistic Despite January and February Stumbles United Sees 2023 as Setting Course for Its Post-Pandemic Future

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Airline Weekly Lounge Episode 104: Better, But Not Good

Airline Weekly Lounge Episode 104: Better, But Not Good

Revenues and margins improved for Cathay Pacific in the first half of 2018, and the second half is usually better for Cathay. Still, will it be enough to lift the Hong Kong carrier out of its malaise?...

28 Elo 201833min

Airline Weekly Lounge Episode 103: Canadian Conundrum

Airline Weekly Lounge Episode 103: Canadian Conundrum

Thanks to rising costs, it’s no surprise profits have declined at Air Canada and WestJet. But rising costs alone don’t explain how these Canadian carriers continue to consistently underperform their U...

14 Elo 201837min

Airline Weekly Lounge Episode 102: U.S. Airlines Sing the Blues

Airline Weekly Lounge Episode 102: U.S. Airlines Sing the Blues

So far all U.S. carriers have reported shrinking year-over-year profits in the second quarter. But nobody’s margin decline was worse than that of JetBlue, which posted a 9% operating margin, down from...

31 Heinä 201837min

Airline Weekly Lounge Episode 101: Delta Holds Up Well

Airline Weekly Lounge Episode 101: Delta Holds Up Well

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17 Heinä 201836min

Airline Weekly Lounge Episode 100: Frontier's Wild Ride

Airline Weekly Lounge Episode 100: Frontier's Wild Ride

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3 Heinä 201835min

Airline Weekly Lounge Episode 99: Say it Ain’t so, Mexico!

Airline Weekly Lounge Episode 99: Say it Ain’t so, Mexico!

Things haven’t gotten better in Mexico. Although Aeroméxico is at least coping better than its domestic competitors, all of which posted negative first-quarter margins in the double-digits. To make ma...

17 Kesä 201829min

Airline Weekly Lounge Episode 98: Ryanair’s Resilience

Airline Weekly Lounge Episode 98: Ryanair’s Resilience

Despite a 29% year-over-year increase to its labor costs, Ryanair still posted a positive profit margin in the first quarter. Ryan’s eastern European counterpart, Wizz Air, meanwhile faced an even mor...

5 Kesä 201839min

Airline Weekly Lounge Episode 97: Canadian Carriers Trading Places?

Airline Weekly Lounge Episode 97: Canadian Carriers Trading Places?

For the moment, WestJet is the more profitable carrier. But in recent years, Air Canada has closed the gap and, in the first quarter of 2018, we see signs that Air Canada—after years of giving chase—m...

22 Touko 201829min

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