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 56: Frontier Airlines CEO Interview

Airline Weekly Lounge Episode 56: Frontier Airlines CEO Interview

Because Frontier Airlines is a non-publicly-traded carrier (which, for one thing, means it doesn’t have earnings calls), it’s all the more interesting to interview the airline's CEO Barry Biffle. Of c...

20 Sep 201624min

Airline Weekly Lounge Episode 55: Canadian Continuity

Airline Weekly Lounge Episode 55: Canadian Continuity

Despite a major oil bust and the weakening currency that followed, Canada’s airlines continue to plod along. Make no mistake, macro issues are leaving a mark on the earnings reports of Air Canada and ...

13 Sep 201633min

Airline Weekly Lounge Episode 54: Qantas' Down Under Wonder

Airline Weekly Lounge Episode 54: Qantas' Down Under Wonder

Qantas reported a best-ever annual result. Not bad for a company that’s 95 years old. And not bad for a company that was barely breaking even just a few years ago. Virgin Australia, on the other hand,...

6 Sep 201638min

Airline Weekly Lounge Episode 53: Korean Competitive Crunch

Airline Weekly Lounge Episode 53: Korean Competitive Crunch

Korean carriers Asiana and Korean Air are being squeezed between rapid growth from Chinese carriers and new capacity coming out of Japan. But nonetheless, the two Korean carriers posted some of the mo...

16 Aug 201624min

Airline Weekly Lounge Episode 52: Don't Dismiss Swiss Airlines

Airline Weekly Lounge Episode 52: Don't Dismiss Swiss Airlines

One of the bright spots in the Lufthansa Group’s second quarter earnings report was its Swiss unit, which bested Lufthansa mainline, the Austrian unit and even the healthy maintenance unit. Meanwhile,...

9 Aug 201629min

Airline Weekly Lounge Episode 51: Air France Is Missing Out

Airline Weekly Lounge Episode 51: Air France Is Missing Out

The second quarter year-over-year profit margin improved at Air France/KLM, but only because of a huge windfall from fuel. In fact, the real story is that the airline group is largely missing out on p...

2 Aug 201623min

Airline Weekly Lounge Episode 50: Have U.S. Airlines Peaked?

Airline Weekly Lounge Episode 50: Have U.S. Airlines Peaked?

Earnings season is in full swing and really there’s too much to talk about within the average commute or treadmill run. So we’ll talk fast. And in this episode, our fast talk starts with American Airl...

26 Jul 201637min

Airline Weekly Lounge Episode 49: Delta Does it Again

Airline Weekly Lounge Episode 49: Delta Does it Again

Delta Airlines gets a lot of play in this episode, but it’s not because we’re obsessed with Delta. Rather, there are two practical reasons: First, Delta is the the earliest of the big airlines to repo...

19 Jul 201641min

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