Things are getting interesting in the U.S. After a decade of mostly benign market conditions, a pandemic-induced mega-shock has some airlines rethinking their strategies. American sees opportunity to fortify is lagging Northeastern presence by partnering with JetBlue. JetBlue sees the alliance as a way to fill some of its suddenly empty planes. Alaska, like JetBlue, is making moves in Los Angeles. All the while a new airline, David Neeleman’s Breeze, plots its autumn launch.
Delta is taking a more cautious approach as it nurses a $6b quarterly loss. This week, other U.S. airlines will take their turns reporting second quarter results. Expect lots of blood. And with lots of blood will come lots of lost jobs.
In developments outside the U.S., Virgin Atlantic secured the money it needs to survive, as discussed in this week’s feature story. Its rival British Airways, meanwhile, will give an early goodbye to its iconic B747s. BA’s joint venture partner Japan Airlines started another joint venture with Malaysia Airlines. Aeroflot unveiled a new long-term strategy that gives prominence to its low-cost carrier Pobeda. Mexico’s Interjet landed some much-needed capital. South African Airways is on track for a relaunch. And the world, hopefully, is another week closer to vaccinating its way free from the Covid nightmare.
Verbulence
"Customers are ultimately going to determine how big the airline is."
Delta CFO Paul Jacobson
Mondays With Skift Airline Weekly
Amy Burr of JetBlue Technology Ventures and Nirali Shah of Vantage Airport Group joined us on our livestream to discuss how technology can make travel safer. Missed it? You can hear a replay on our site. Registration is free for subscribers.
Earnings
April-June 2020 (3 Months)
Delta: -$5.7b/-$2.8b*; -308%
*Net result in USD/*Net result excluding special items/ Operating margin
Second quarter earnings season will be like nothing the airline industry has ever experienced before. And not in a good way. Delta gave the first indication of that last week, announcing a colossal $5.7b net loss, or $2.8b excluding special…
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They’re both now friends with American, fortifying the latter’s western and eastern flanks, respectively. But Alaska and JetBlue are showing no love for one another, in Los Angeles anyway. A week after JetBlue announced a major LAX offensive, Alaska hit…
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