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 24: Rapidly Receding Revenues

Airline Weekly Lounge Episode 24: Rapidly Receding Revenues

Where Delta’s revenues were relatively resilient, United’s are rapidly receding, at least in the fourth quarter. In Episode 24—informally “part two” of U.S. earnings season—we discuss the sources of U...

27 Tammi 201631min

Airline Weekly Lounge Episode 23: Relatively Resilient Revenues

Airline Weekly Lounge Episode 23: Relatively Resilient Revenues

Delta kicked off earnings season with—yawn—another record-breaking fourth quarter highlighted by a pre-tax profit that starts with a “b” (and ends with an “illion.”) The success is coming from a lot o...

20 Tammi 201626min

Airline Weekly Lounge Episode 22: Fast and Furious in India

Airline Weekly Lounge Episode 22: Fast and Furious in India

Regardless of whether it’s up or down, India’s airline market tends to be one of thrills and spills. And right now, we’re seeing both—IndiGo is providing the thrills, Air India the spills. Meanwhile, ...

12 Tammi 201627min

Airline Weekly Lounge Episode 21: Ultra Low-Cost Competition

Airline Weekly Lounge Episode 21: Ultra Low-Cost Competition

Ultra-low-cost carriers like Frontier Airlines are facing in 2016 a whole different animal—a beast that we call “fare compression.” In fact, America in 2016 might see a first-time experiment in which ...

6 Tammi 201628min

Airline Weekly Lounge Episode 20: Mexico's Low-Cost Renaissance

Airline Weekly Lounge Episode 20: Mexico's Low-Cost Renaissance

Mexico is finding joy in a low-cost carrier renaissance as Volaris, Interjet and VivaAerobus are all growing and profiting. But the profits aren’t being distributed equally. Why is one carrier perform...

16 Joulu 201536min

Airline Weekly Lounge Episode 19: American Air CEO Interview

Airline Weekly Lounge Episode 19: American Air CEO Interview

Shouldn’t Doug Parker be dancing in the end zone? He is, after all, the CEO of a mega-airline with mega-profits at a time of economic strength and falling fuel prices. But even this airline has challe...

9 Joulu 201537min

Airline Weekly Lounge Episode 18: Korean Air's Success Amid the Struggle

Airline Weekly Lounge Episode 18: Korean Air's Success Amid the Struggle

The number of challenges facing Korean Air could fill an A380. Nonetheless the airline remains quite profitable. Korean Air’s prime competitor, Asiana, has not been as fortunate, and we discuss the di...

1 Joulu 201525min

Airline Weekly Lounge Episode 17: EasyJet Does It

Airline Weekly Lounge Episode 17: EasyJet Does It

Not so surprisingly, easyJet wrapped up a strong earnings season in Europe with some strong numbers of its own. We looked at what’s working for easyJet but also why it can’t quite top rivals Ryanair o...

24 Marras 201524min

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