The U.S. Air Travel Recovery Flatlines

The U.S. Air Travel Recovery Flatlines

If one thing's clear from the airlines that have reported third-quarter results it's that the U.S. domestic travel recovery has plateaued. That's not necessarily bad, passenger numbers are above 2019 levels, but the industry's higher cost structure could make a low-growth environment challenging. Edward Russell and Jay Shabat discuss. Plus, the latest from Routes World in Istanbul. Reading List American Airlines Had a Rough Quarter, but Points to 2024 Tailwinds United Faces Higher Costs – and What Else We Learned on the Earnings Call Air France-KLM’s SAS Takeover: Do Copenhagen, Oslo, and Stockholm Hubs Stay? Fast-Growing Istanbul Airport Wants More Budget Airline Competition AirAsia, Chastened from Pandemic Losses, Takes Disciplined Approach to Growth Royal Jordanian, Wizz Air Weigh Costs of Israel-Hamas War

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Episoder(428)

Airline Weekly Lounge Episode 102: U.S. Airlines Sing the Blues

Airline Weekly Lounge Episode 102: U.S. Airlines Sing the Blues

So far all U.S. carriers have reported shrinking year-over-year profits in the second quarter. But nobody’s margin decline was worse than that of JetBlue, which posted a 9% operating margin, down from...

31 Jul 201837min

Airline Weekly Lounge Episode 101: Delta Holds Up Well

Airline Weekly Lounge Episode 101: Delta Holds Up Well

Rising costs aren’t keeping Delta down. Delta overcame a 33% year-over-year increase in fuel costs to produce more than $1.2b in net profits (excluding special items) and a handsome 16% quarterly oper...

17 Jul 201836min

Airline Weekly Lounge Episode 100: Frontier's Wild Ride

Airline Weekly Lounge Episode 100: Frontier's Wild Ride

Frontier Airlines has had one of the most topsy-turvy histories of any airline, and its first-quarter earnings report was no exception. Sporting a wild animal on each tail, the airline has been soarin...

3 Jul 201835min

Airline Weekly Lounge Episode 99: Say it Ain’t so, Mexico!

Airline Weekly Lounge Episode 99: Say it Ain’t so, Mexico!

Things haven’t gotten better in Mexico. Although Aeroméxico is at least coping better than its domestic competitors, all of which posted negative first-quarter margins in the double-digits. To make ma...

17 Jun 201829min

Airline Weekly Lounge Episode 98: Ryanair’s Resilience

Airline Weekly Lounge Episode 98: Ryanair’s Resilience

Despite a 29% year-over-year increase to its labor costs, Ryanair still posted a positive profit margin in the first quarter. Ryan’s eastern European counterpart, Wizz Air, meanwhile faced an even mor...

5 Jun 201839min

Airline Weekly Lounge Episode 97: Canadian Carriers Trading Places?

Airline Weekly Lounge Episode 97: Canadian Carriers Trading Places?

For the moment, WestJet is the more profitable carrier. But in recent years, Air Canada has closed the gap and, in the first quarter of 2018, we see signs that Air Canada—after years of giving chase—m...

22 Mai 201829min

Airline Weekly Lounge Episode 96: Profit Preservation for U.S. Carriers

Airline Weekly Lounge Episode 96: Profit Preservation for U.S. Carriers

Revenues for U.S. carriers remained terrifically healthy in the first quarter, and everybody made money. But rising labor and fuel costs generally shrunk year-over-year profit margins. United, which c...

1 Mai 201840min

Airline Weekly Lounge Episode 95: Cost Creep at Delta

Airline Weekly Lounge Episode 95: Cost Creep at Delta

For a second straight year, Delta’s operating profit margin has fallen year-over-year in the first quarter. The reason for the decline, once again, is rising costs. The good news: Rising revenues—from...

17 Apr 201834min

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