Issue No. 814

European Airlines' Uncertain Summer

While U.S. CEOs Chill the Champagne, Europe's Airlines Expect a Different Summer

Pushing Back: Inside the Issue

After the first week of U.S. airline industry earnings calls last month, one thing became clear: U.S. airline CEOs expect leisure demand to go through the roof as people cooped up from more than a year of lockdowns flock to beaches, national parks, theme parks, and to go visit Grandma. After a week of European airline earnings, however, another thing becomes clear: European CEOs are much more muted. The pace of vaccinations has been much slower across Europe (with some notable exceptions) than in the U.S. Moreover, several European countries maintain strict travel restrictions. Despite European Union officials saying the bloc could welcome vaccinated tourists this summer, there isn't a single standard for vaccine documentation and verification — and meanwhile the summer season starts in just a few weeks.

Elsewhere in this issue, lessors believe airlines will lease a larger portion of their fleets after the pandemic recedes. U.S. startup Avelo heads to the East Coast (after launching in California last month). Allegiant bats away threats posed by startups (including Avelo, headed by former Allegiant executive Andrew Levy). Norse Atlantic tries to head off complaints that plagued Norwegian by meeting with a key U.S. union. Air Canada calls on its country's government to ease restrictions. copa And we crunch the numbers on how green the six largest global airlines are.

Verbulence

"We would expect bookings to recover if governments are serious about reopening. People want to fly."

IAG CEO Luis Gallego

The Airline Weekly Lounge Podcast

New episodes drop every week and are available wherever you get your podcasts and on AirlineWeekly.com. In the latest podcast, Edward "Ned" Russell and Madhu Unnikrishnan talk about Ned's field trip to American's MRO in Tulsa, Okla., as well as what the summer might hold for European airlines. Listen to the episode.

Weekly Skies

Corporate restructurings seem to be in the air in Europe with International Airlines Group placing Aer Lingus on notice amid what executives call Europe's most "stringent" travel restrictions. The London-based group is "considering the necessary steps we need to take"…

Routes and Networks

New Haven, Conn., is best known as the home of Yale University and for its pizza. As soon as July, it will also boast the East Coast base of start-up carrier Avelo. The airline will base several Boeing 737-700s and…

Fleet

The future of the Boeing 737 program could hinge on when (and whether) Russia and China re-certify the 737 Max. Not only are the two countries' airlines barred from operating the type, but foreign airlines can't fly the Max to…

Sky Money

Fresh off a small first quarter profit thanks to Uncle Sam, Allegiant Air raised nearly $296 million by issuing 1.35 million shares of new stock last week. Shares priced at $219 each, or a $15 discount off the closing price…

State of the Unions

Norse Atlantic Airways, the startup that plans to pick up the low-cost, long-haul mantle that Norwegian has retreated from, is taking an unusual step. The carrier is hoping to forestall the labor opposition that plagued Norwegian Air International's (NAI) entry…

By the Numbers

The growing importance of environmental sustainability to airlines was made clear during this quarter's earnings calls. All of the major airlines and lessors spent significant portions of their presentations highlighting their bona fides and outlining plans for the future. Although…