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 72: Good Is Good Enough

Airline Weekly Lounge Episode 72: Good Is Good Enough

The earnings picture for U.S. carriers in the first quarter was much worse than last year’s Q1—but that doesn’t mean it wasn’t good. It was indeed good—and good is good. Their success comes while wres...

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Airline Weekly Lounge Episode 71: Delta Keeps Dealing

Airline Weekly Lounge Episode 71: Delta Keeps Dealing

Delta saw its operating profit margin slashed severely in the first quarter compared to last year’s Q1. Nonetheless there are plenty of reasons to smile—that’s how good things are at Delta right now—i...

25 Apr 201733min

Airline Weekly Lounge Episode 70: Virgin Sacrificed

Airline Weekly Lounge Episode 70: Virgin Sacrificed

The merger of Alaska Airlines and Virgin American is now well under way and begs the question: How is the integration taking shape? In a word: rosy. Of course, Alaska will be sacrificing the Virgin br...

11 Apr 201738min

Airline Weekly Lounge Episode 69: Lackluster Lufthansa

Airline Weekly Lounge Episode 69: Lackluster Lufthansa

When is a $2 billion annual profit disappointing? Answer: When you’re a giant airline group like Lufthansa, and $2 billion amounts to a mere 5% operating margin—and that lackluster result comes despit...

28 Mar 201731min

Airline Weekly Lounge Episode 68: Turkey’s Tough Times

Airline Weekly Lounge Episode 68: Turkey’s Tough Times

Once again we consider the ongoing demand problems in Turkey. The numbers are in, and they’re not pretty. Turkish Airlines posted a $300 million loss in 2016. Pegasus Airlines chipped another $50 mill...

15 Mar 201731min

Airline Weekly Lounge Episode 67: IAG Outperforms

Airline Weekly Lounge Episode 67: IAG Outperforms

With its fourth quarter results and a standout 2016, IAG, the airline group that includes British Airways, Iberia, Aer Lingus and Vueling, continues to separate itself from the other two members of Eu...

28 Feb 201734min

Airline Weekly Lounge Episode 66: Searching for Positives

Airline Weekly Lounge Episode 66: Searching for Positives

Air France/KLM had some good news in 2016. For one thing, its Transavia unit broke even. Also, KLM made a decent profit. But the story is rather disappointing from there, with the group posting a mere...

22 Feb 201737min

Airline Weekly Lounge Episode 65: LCCs' Strong Finish

Airline Weekly Lounge Episode 65: LCCs' Strong Finish

Europe certainly has its share of struggling airlines, but Ryanair, easyJet and Wizz Air are not among them. And for Ryanair and Wizz, fourth quarter earnings simply topped off a triumphant 2016. (eas...

14 Feb 201734min

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