American, Alaska, Southwest: Who Came Out on Top?

American, Alaska, Southwest: Who Came Out on Top?

Today hosts Gordon Smith and Jay Shabat discuss the latest earnings reports from major U.S. airlines, focusing on the performance of American Airlines, Southwest Airlines, and Alaska Airlines. They analyze the factors affecting profitability, including operating margins, domestic exposure, labor costs, and market dynamics. The conversation also touches on the upcoming European airline earnings and the competitive landscape in the airline industry. Takeaways Delta and United reported strong operating margins of 13% and 12%. American Airlines' operating margin was 8%, indicating challenges ahead. Southwest Airlines reported a disappointing 3% margin, half of last year's performance. Non-fuel costs have significantly increased for airlines, impacting profitability. Premium travel demand remains strong, benefiting airlines like Delta and United. American Airlines has a higher domestic exposure compared to its competitors. A distribution misstep has negatively affected American Airlines' performance. American Airlines faces a credit card contract disadvantage compared to Delta and United. Alaska Airlines is performing well, with a strong loyalty program and corporate travel exposure. The upcoming European airline earnings reports are highly anticipated. Connect with Airline WeeklyLinkedIn: https://www.linkedin.com/company/airline-weekly/X: https://x.com/Airline_Weekly/Facebook: https://www.facebook.com/airlineweekly/Instagram: https://www.instagram.com/skiftnews/WhatsApp: https://whatsapp.com/channel/0029VaAL375LikgIXmNPYQ0L/Subscribe to @SkiftNews and never miss an update from the airline and travel industries.

Episoder(423)

Airline Weekly Lounge Episode 89: Delta’s Clear Skies

Airline Weekly Lounge Episode 89: Delta’s Clear Skies

Delta’s 2017 profits were down slightly from the glory days of 2015 and 2016. But make no mistake: This airline is performing very well. Consider that fuel prices increased 23% in the fourth quarter, ...

24 Jan 201831min

Airline Weekly Lounge Episode 88: SAS Spells Success

Airline Weekly Lounge Episode 88: SAS Spells Success

Just a few years ago, the often-troubled SAS was merely inches away from seeing its light burn out permanently. Since then the airline has rallied. This past October the airline completed its best fis...

10 Jan 201830min

Airline Weekly Lounge Episode 87: Jet Airways Troubled No More?

Airline Weekly Lounge Episode 87: Jet Airways Troubled No More?

Jet Airways had a pretty mediocre third quarter. Still, there are plenty of signs of hope for the often troubled airline. In fact, Jet has posted 10 consecutive profitable quarters. India’s low-cost c...

12 Des 201731min

Airline Weekly Lounge Episode 86: An Easy Bet on Low-Cost Carriers

Airline Weekly Lounge Episode 86: An Easy Bet on Low-Cost Carriers

European low-cost carrier easyJet isn’t doing as well as competing LCCs Ryanair and Wizz Air. But make no mistake: easyJet is doing well. The airline’s 20% operating profit margin for the April-throug...

29 Nov 201737min

Airline Weekly Lounge Episode 85: High-Flyin’ Ryan

Airline Weekly Lounge Episode 85: High-Flyin’ Ryan

The third quarter is usually a splendid time for airline profits in Europe, and this year has been no exception. Ryanair is more than surviving its recent bout of operational difficulties, having turn...

15 Nov 201730min

Airline Weekly Lounge Episode 84: Sound the Alarm for U.S. Airline Earnings?

Airline Weekly Lounge Episode 84: Sound the Alarm for U.S. Airline Earnings?

With most of the U.S. airlines having reported third-quarter earnings, it’s now clear that rising revenues aren’t keeping up with rising costs. While every U.S. airline fell victim to this condition, ...

31 Okt 201734min

Airline Weekly Lounge Episode 83: Solid Start to Earnings Season

Airline Weekly Lounge Episode 83: Solid Start to Earnings Season

Despite being dinged by rising costs, Delta opened the third-quarter earnings season with its customary show of strength. Revenues rose 6% on just 2% growth, and it posted a 16% operating profit margi...

17 Okt 201733min

Airline Weekly Lounge Episode 82: Whoa Mexico

Airline Weekly Lounge Episode 82: Whoa Mexico

The food scene and the tequila are great in Mexico. The airline industry? Not so much—at least at the moment. Everybody lost money in the first quarter of 2017. In the second quarter, only one airline...

4 Okt 201741min

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