Having just weathered a once-in-a-generation economic crisis, the airlines of South America just enjoyed a smooth first quarter. All the major South American airlines profited, and some even posted margins to brag about. But in Mexico, things were miserable. All four major carriers there lost money in the quarter, and some did so in a […]
The Airline Weekly Lounge
Every Wednesday the editors of Airline Weekly discuss a few of the week’s more interesting developments within the commercial airline industry. In keeping with Airline Weekly’s style, conversation generally centers on one question: How do you make money in this industry?
The earnings picture for U.S. carriers in the first quarter was much worse than last year’s Q1—but that doesn’t mean it wasn’t good. It was indeed good—and good is good. Their success comes while wrestling with rising labor and fuel costs, and fickle demand. Allegiant continues to lead, and with confidence surely brimming, it’s buying […]
Delta saw its operating profit margin slashed severely in the first quarter compared to last year’s Q1. Nonetheless there are plenty of reasons to smile—that’s how good things are at Delta right now—including beating rival United Airlines, which posted a much smaller profit. But the game isn’t over, and United has plenty of valuable cards […]
The merger of Alaska Airlines and Virgin American is now well under way and begs the question: How is the integration taking shape? In a word: rosy. Of course, Alaska will be sacrificing the Virgin brand. But Alaska’s management says it’s finding more synergies on both the cost and revenue sides than expected. One of […]
When is a $2 billion annual profit disappointing? Answer: When you’re a giant airline group like Lufthansa, and $2 billion amounts to a mere 5% operating margin—and that lackluster result comes despite fuel costs dropping 16% year over year. But there are a few signs of hope. Meanwhile, American Airlines is purchasing a $200-million stake […]