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 38: Delta CEO Interview

Airline Weekly Lounge Episode 38: Delta CEO Interview

Delta’s new CEO Ed Bastian thinks it’s great that the competition is trying to catch up to Delta in terms of operational performance. He also says, without hesitation, that the competition—namely Amer...

4 Touko 201632min

Airline Weekly Lounge Episode 37: Southwest and Alaska Outperform

Airline Weekly Lounge Episode 37: Southwest and Alaska Outperform

While Delta, American and United have all seen both revenues and costs dropping, Southwest and Alaska just experienced the opposite in the first quarter. In fact, Southwest and Alaska rode a wave of r...

26 Huhti 201625min

Airline Weekly Lounge Episode 36: Delta Feels No Pain

Airline Weekly Lounge Episode 36: Delta Feels No Pain

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20 Huhti 201631min

Airline Weekly Lounge Episode 35: Chinese Airlines Show Stress

Airline Weekly Lounge Episode 35: Chinese Airlines Show Stress

Is China’s slowing economy taking its toll on the country’s Big Three carriers? So far Air China, China Eastern and China Southern have held up well and posted a rather good 2015. But the fourth quart...

13 Huhti 201629min

Airline Weekly Lounge Episode 34: Will Virgin and Alaska Be Happy Together?

Airline Weekly Lounge Episode 34: Will Virgin and Alaska Be Happy Together?

Alaska Airlines clearly wants to be the dominant carrier on the West Coast, and if its purchase of Virgin America goes through, it will have four focus cities—Los Angeles, San Francisco, Portland and ...

6 Huhti 201632min

Airline Weekly Lounge Episode 33: Is Virgin Merging With Alaska?

Airline Weekly Lounge Episode 33: Is Virgin Merging With Alaska?

If the U.S. airline market were to see even more consolidation, what kind of effect would it have? That’s one question we consider in a discussion about the possible acquisition of Virgin America by a...

29 Maalis 201630min

Airline Weekly Lounge Episode 32: Post-Brussels Attack Roundup

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Attacks at airports are rare, and Tuesday’s bombing at Brussels Airport will no doubt have repercussions around the world. Which airlines will see the worst financial impact from the attacks? Brussels...

22 Maalis 201630min

Airline Weekly Lounge Episode 31: Turkish Blend

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It’s good to be a Gulf carrier—Gulf carriers are well positioned to connect the whole world. But it might be better to be a near-the-Gulf carrier like Turkish Airlines. Turkish offers a blend of servi...

16 Maalis 201630min

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