Weekly Skies

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Latam, now out of bankruptcy, reports solid Q4 profits.

Latam, South America’s largest airline group, reported a solid if unspectacular 8 percent operating margin for the fourth quarter of 2022. The company, operating under bankruptcy protection from 2020 until last November, earned a 12 percent operating margin in the...

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U.S. Sues to Block JetBlue-Spirit Merger

The U.S. Department of Justice has filed a suit to block the proposed $3.8 billion merger of JetBlue Airways and Spirit Airlines citing competition concerns. The regulator claimed that the merger would negatively impact consumers by raising airfares by on...

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Another Great Quarter for Turkish Airlines

Turkish Airlines began its fourth quarter earnings call with an expression of condolences for those affected by the recent earthquakes that killed more than 40,000 people. With respect to its financial results, it was once again a triumphant quarter for...

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IAG’s New Deal for Air Europa

International Airlines Group has reached a deal to acquire the rest of Air Europa for €400 million ($422 million) that it thinks will pass muster with European authorities. Unveiled Friday, IAG would buy the remaining 80 percent of Mallorca-based airline from its...

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JetBlue Faces Choices Over Spirit Merger

JetBlue Airways has one big bargaining chip that it can offer the U.S. Department of Justice in exchange for approval of its proposed merger with Spirit Airlines: Its alliance with American Airlines. The alliance card, which until now JetBlue executives...

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Southwest to Invest Millions in Winter Operational Resiliency

Southwest Airlines Chief Operating Officer Andrew Watterson promised lawmakers "hundreds of millions of dollars" in additional upgrades to the carrier's winter operations infrastructure while in Washington, D.C., during a hearing last week. “We messed up,” he said at a hearing...

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Q4 Earnings: ANA, Korean Air, Ryanair, and More

Japan was one of the last major airline markets to reopen its borders. Finally, the reopening happened in October, triggering the start of a revival for the country’s two major airlines. All Nippon Airways (ANA), the larger and more domestic...

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Southwest Vows Quick Return to Recovery After Meltdown

Two months. That’s how long Southwest Airlines expects there to be an impact on bookings from its massive holiday meltdown that disrupted millions of travelers over Christmas and New Years. The Dallas-based carrier forecasts a $300-350 million hit to revenues...

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Ryanair Sets Booking Record

“This is the biggest growth opportunity I have seen for the last 20 years,” Ryanair CEO Michael O’Leary said last week. The airline surpassed 2019 traffic levels in 2022 and predicts robust growth this year as it rapidly pulls out...

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Delta Reports Strong Profits, More Ahead

After two years of airline industry hell, Delta Air Lines was happy to report that “2022 was a strong year.” It didn’t start that way, with nearly $800 million in first quarter losses — operating margin in the period was...

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The Initial Costs of Southwest’s Meltdown

Southwest Airlines faces a $725-825 million hit to its pre-tax income in the fourth quarter from its operational meltdown during the year-end holiday season. The Dallas-based carrier disclosed the initial hit last week. In addition to the top line reduction,...

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Transat Stabilizes

Canadian leisure airline Transat, which had a pre-pandemic deal to merge with Air Canada, ultimately remained independent (European competition regulators didn’t like the idea). The pandemic itself was of course greatly damaging to its business. But conditions are much better...

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