Issue No. 882
Government Policies Threaten The Future of KLM's Amsterdam Hub
Pushing Back: Inside the Issue
Amid the quiet before earnings season, airlines looked on with unease as oil prices marched upward again. The pronouncement of an OPEC supply cut has Brent crude flirting with the $100 per barrel mark, never a good sign for the industry. For the world as a whole, high commodity prices, high interest rates, and high U.S. dollar exchange rates make for what one commentator called an “excitable” macroeconomic situation. A better word might be “combustible.”
Europe and its struggles to replace Russian energy represent one potential economic threat to airlines. Most of Europe’s airlines, though, continue to report strong bookings, especially for leisure routes. The same is true for most airlines around the world, including Asian carriers like Singapore Airlines, which says even routes to Japan and China are starting to see greater activity.
Flight activity, however, will be severely limited at Amsterdam's Schiphol airport in the coming years, a major challenge for KLM as we discuss in this week’s feature story. Next week, get ready for the start of third quarter earnings coverage, beginning with Delta. The Atlanta-based giant gets things started on Thursday.
Airline Weekly Lounge Podcast
What’s the ado with Austin, Cancun, Ho Chi Minh City, Paris Orly, and Riyadh? All of the airports are seeing tremendous growth above pre-pandemic levels. Edward Russell and Jay Shabat discuss why. Plus, Boeing’s 737 Max: the good news and bad news. Listen to this week’s episode to find out. A full archive of the 'Lounge is here.