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)

What a Frontier-Spirit Merger Means for Air Travel

What a Frontier-Spirit Merger Means for Air Travel

In this episode of the Airline Weekly Lounge, hosts Gordon Smith and Jay Shabat delve into the potential merger between Frontier Airlines and Spirit Airlines. They discuss the historical context of th...

8 Feb 202534min

Breeze Airways' Big Break: A ULCC Finally Profits

Breeze Airways' Big Break: A ULCC Finally Profits

Note: This episode was recorded prior to the American Eagle collision with a military helicopter on January 29, 2025. In this episode of the Airline Weekly Lounge, hosts Jay Shabat and Meghna Maharish...

31 Jan 202526min

Setting the Scene for a Brazilian Airline Mega-Merger

Setting the Scene for a Brazilian Airline Mega-Merger

In this episode of the Airline Weekly Lounge, hosts Gordon Smith and Jay Shabbat discuss significant developments in the airline industry, focusing on a potential mega merger in Brazil involving Azul ...

24 Jan 202539min

Why Egypt Is an Airline Market Worth Watching

Why Egypt Is an Airline Market Worth Watching

In this episode, Gordon and Jay discuss the current state of the Egyptian aviation scene, highlighting the booming tourism sector despite regional unrest. They explore the factors contributing to Egyp...

17 Jan 202532min

 The U.S. Airlines Growing and Shrinking in 2025

The U.S. Airlines Growing and Shrinking in 2025

Gordon Smith and Jay Shabat crunch the big numbers to reveal which U.S. carriers are in expansion mode in the first quarter of 2025 and which operators are shrinking year-on-year.  Takeaways The US ...

10 Jan 202532min

What Does 2025 Mean for the Airline Industry?

What Does 2025 Mean for the Airline Industry?

In this week’s episode, Gordon Smith and Jay Shabat turn their attention to the year ahead. Going region-by-region, the pair share the emerging stories that are on their radar for 2025 and beyond.  C...

2 Jan 202531min

The Biggest Airline Trends of 2024 (Part Two)

The Biggest Airline Trends of 2024 (Part Two)

In this week’s episode, Gordon Smith and Jay Shabat are back for the second half of their 2024 trends countdown. Hot topics include the impact of a strong U.S. Dollar and chronic supply chain issues. ...

27 Des 202430min

The Biggest Airline Trends of 2024 (Part One)

The Biggest Airline Trends of 2024 (Part One)

In this week’s episode, Gordon Smith and Jay Shabat discuss the biggest trends to have shaped the airline sector in 2024. From continued consolidation to a horror show for U.S. LCCs, we reflect on a f...

19 Des 202434min

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