U.S. airlines sounded common themes as they disclosed gargantuan second-quarter losses. Demand recovery was promising, until it wasn’t. Costs are down sharply, but more painful labor cuts are necessary. Corporate and international traffic volumes remain negligible. Carriers are dialing back…
Read The IssueLet’s describe current airline industry conditions in just four words: Demand great, supply constrained. Or perhaps you prefer: Revenues strong, costs rising. The point is, airlines around the world are filling their planes and collecting handsome fares. But they’re also...
Read MoreIt’s Turkey time. Not the bird, the country. Turkish Airlines and its low-cost rival Pegasus are giving thanks for an astounding set of summertime financial and operational achievements, earning monstrously large profit margins while growing capacity by double digits from...
Read MoreIs the ultra-low-cost business model dead? Underwhelming earnings at Allegiant and Wizz Air lent firepower to the thesis, argued most prominently by United’s chief Scott Kirby. Both carriers beg to differ, blaming their summertime setbacks on operational woes and other...
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