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

Episoder(422)

Airline Weekly Lounge Episode 80: Dismay at Cathay Pacific

Airline Weekly Lounge Episode 80: Dismay at Cathay Pacific

Cathay Pacific has seen all its oxygen sucked out of the room by the hyper growth of the Chinese carriers. Is there anything to be done? Sometimes waiting is the best option. Australia has two major a...

5 Sep 201735min

Airline Weekly Lounge Episode 79: Turkish Airlines' Turnaround

Airline Weekly Lounge Episode 79: Turkish Airlines' Turnaround

After losing $300m in 2016 as a result of some horrific exposure to terrorism and political tumult, things are looking up for Turkish Airlines. In its second quarter, the airline posted a 5% operating...

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Airline Weekly Lounge Episode 78: The United Weigh

Airline Weekly Lounge Episode 78: The United Weigh

United is still trailing its peers, but can it catch up? That’s the question we weigh first in this episode. In the second quarter, American Airlines bested United with a 16% operating margin versus U...

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Airline Weekly Lounge Episode 77: Another Win for Delta

Airline Weekly Lounge Episode 77: Another Win for Delta

The airline is on such a roll that not even a grouchy demagogue can stop Delta. The Atlanta-based carrier posted a better second quarter than it did last year, and it leaves Delta with at least a slim...

18 Jul 201743min

Airline Weekly Lounge Episode 76: Six Months in 30 Minutes

Airline Weekly Lounge Episode 76: Six Months in 30 Minutes

Terror attacks… a blockade… Alitalia… The first half of 2017 has been interesting—even against the airline industry’s high standard in that department. In just a 30-minute episode we attempt to unpack...

4 Jul 201733min

Airline Weekly Lounge Episode 75: Qatar Airways' Lessons

Airline Weekly Lounge Episode 75: Qatar Airways' Lessons

So this is happening: A major international airline faces a blockade. We admit it—this is a new one for us, with little to no history as a guide. Nonetheless, Qatar Airways faces a travel and trade em...

20 Jun 201730min

Airline Weekly Lounge Episode 74: Fueling Success

Airline Weekly Lounge Episode 74: Fueling Success

Ryanair was one of just three individual airlines in Europe to post an operating profit in the first quarter. The success came not only by way of the airline’s juggernaut of a business model, but also...

6 Jun 201732min

Airline Weekly Lounge Episode 73: Southern Comfort

Airline Weekly Lounge Episode 73: Southern Comfort

Having just weathered a once-in-a-generation economic crisis, the airlines of South America just enjoyed a smooth first quarter. All the major South American airlines profited, and some even posted ma...

24 Mai 201729min

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