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 17: EasyJet Does It

Airline Weekly Lounge Episode 17: EasyJet Does It

Not so surprisingly, easyJet wrapped up a strong earnings season in Europe with some strong numbers of its own. We looked at what’s working for easyJet but also why it can’t quite top rivals Ryanair o...

24 Nov 201524min

Airline Weekly Lounge Episode 16: Spirit Air CEO Interview

Airline Weekly Lounge Episode 16: Spirit Air CEO Interview

More than anything, Spirit Airlines’ business model is built on low fares, which it uses to stimulate demand and fill its planes. But what happens when fuel prices drop, enabling airlines like JetBlue...

17 Nov 201529min

Airline Weekly Lounge Episode 14: IAG Is A-OK

Airline Weekly Lounge Episode 14: IAG Is A-OK

Whew! The busiest week of earnings season has us hustling. We kick off our around-the-world sprint with IAG, the airline group that is British Airways, Iberia, Vueling and more recently Aer Lingus. Wh...

4 Nov 201523min

Airline Weekly Lounge Episode 13: Great American

Airline Weekly Lounge Episode 13: Great American

Well that didn’t last long. American Airlines, the biggest carrier in the world, set a new quarterly profit record, with a $1.9b net profit in the third quarter. Of course, there are some technicaliti...

27 Okt 201522min

Airline Weekly Lounge Episode 12: Delta's Payday

Airline Weekly Lounge Episode 12: Delta's Payday

How did Delta achieve its record-breaking quarter? We touch on some of the root causes, including Delta’s push for cheap aircraft and near-perfect operations. Also, we discuss Delta’s plan for flat or...

20 Okt 201520min

Airline Weekly Lounge Episode 11: Lufthansa's Competition Grows

Airline Weekly Lounge Episode 11: Lufthansa's Competition Grows

Lufthansa is facing competition from Ryanair, Wizz Air, easyJet, Air Berlin, Vueling, Turkish Airlines, Emirates and probably your brother. Competition is not a new thing, but the severity is growing....

14 Okt 201524min

Airline Weekly Lounge Episode 10: Southwest’s Golden Years

Airline Weekly Lounge Episode 10: Southwest’s Golden Years

In airline years, Southwest is certainly old enough to be put out to pasture. Instead, the massive airline is making money like never before. Could some of its contrarian moves, like no bag fees, actu...

7 Okt 201520min

Airline Weekly Lounge Episode 9: A New Frontier

Airline Weekly Lounge Episode 9: A New Frontier

Posting a $54m profit in its second quarter, Frontier Airlines has joined the ranks of America’s most profitable airlines. Frontier and America’s other ultra-low-cost carrier, Spirit, are both highly ...

30 Sep 201526min

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