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 57: South African Airways Is Troubled

Airline Weekly Lounge Episode 57: South African Airways Is Troubled

South African Airways finally published its fiscal year results for the 12 months ending March 2015. Yes, that’s 2015. And the result—a $442m net loss—wasn’t worth the wait. But with the Ebola scare a...

27 Sep 201631min

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

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