Issue No. 874

Lufthansa's Urge to Merge

Is Consolidation the Answer to Lufthansa's Paltry Profits?

Pushing Back: Inside the Issue

The second quarter earnings results keep rolling in, depicting an airline industry enjoying a resurgence in demand, but also a shortage of supply, especially of people and planes.

Korean Air stole the show with a thundering 22 percent operating margin for the quarter, taking advantage of Seoul’s status as a leading global cargo hub. Perhaps it’d be best off abandoning the passenger business altogether. Passenger and cargo strength alike helped Turkish Airlines deliver strong June quarter profits. The Middle Eastern LCCs Air Arabia and Jazeera Airways posted solid profits as well. Things were much tougher, on the other hand, for Cathay Pacific in Hong Kong, where air traffic volumes remain a fraction of what they once were. On the other side of the earth, Latam posted another operating loss as it nears an exit from bankruptcy court in the U.S. But Azul was again profitable, in what is an off-peak period for Brazil.   

Finally, Boeing is delivering 787s again. Airlines continue to cut flights to ensure smoother operations. And for some in the U.S., the peak summer season is now already largely finished, with schools back in session throughout much of the country.  

Airline Weekly Lounge Podcast

Meet Steve Sisneros, the airport czar at Southwest. As vice president of airport affairs, he oversees current and future real estate at the airline's 121 airports. Edward Russell and Sisneros chat about Southwest's new facilities in Denver and Phoenix, and the status of Terminal 0 plans in Los Angeles. Listen to this week’s episode to find out. A full archive of the 'Lounge is here.

Weekly Skies

Round of applause for Korea’s largest airline. Thanks to one of the industry’s largest air cargo operations, Korean Air sailed through the pandemic with consistent operating profits. Last quarter, with cargo still booming amid bottlenecked global supply chains, the airline…

Fleet

Boeing resumed deliveries of its flagship widebody, the 787, on August 10. American Airlines took the first delivery in more than a year, a 787-8 with registration N880BJ. The American aircraft was one of 11 787s that were originally due…

Routes and Networks

Avianca plans to add six new routes as it continues to expand point-to-point flights across its map. The Star Alliance airline is seeking approval from Colombia's civil aviation regulator to add daily flights between: Cartagena and Santiago, Chile, and São…

State of the Unions

They say imitation is the greatest form of flattery. That maxim is proving true in the U.S. regional airline sector as it looks to combat a pilot shortage that threatens air service to small communities across the country.

Feature Story

Who remembers this? In 2007, just before the global financial crisis, the Lufthansa Group purchased a 16 percent ownership stake in JetBlue Airways. The idea: To establish greater influence in New York, America’s largest airline market. Ultimately, the move proved…