Airline Weekly Lounge Episode 62: United on Top

The Airline Weekly Lounge Cover 150

By just a tenth of a percent, United’s fourth quarter operating profit margin bested that of Delta—and likely that of American, who reports later—making United, for the quarter, No.1 among the Big Three U.S. carriers. So, has the natural order shifted from United being a perennial laggard to leader? We’ll see. But, make no mistake, […]

Airline Weekly Lounge Episode 61: Worse, but still good

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Rising labor costs at Delta dented its fourth quarter results significantly—but not enough to prevent the airline from posting a terrific profit for 2016. And the big story within the story is that revenues have stopped falling. All in all, Delta remains bullish, which is a nice way to kick off earnings season. Also in […]

Airline Weekly Lounge Episode 53: Korean Crunch

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Korean carriers Asiana and Korean Air are being squeezed between rapid growth from Chinese carriers and new capacity coming out of Japan. But nonetheless, the two Korean carriers posted some of the most improved earnings among widebody carriers worldwide. Japan Airlines and All Nippon, meanwhile, both regressed in their year-over-year earnings despite a strengthening yen […]

Airline Weekly Lounge Episode 52: Don’t Dismiss Swiss

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One of the bright spots in the Lufthansa Group’s second quarter earnings report was its Swiss unit, which bested Lufthansa mainline, the Austrian unit and even the healthy maintenance unit. Meanwhile, Eurowings was the worst performing airline of the group, with a negative one percent margin—but that was a great improvement from the first quarter. […]

America’s Golden Eggs: Why are giant U.S. airlines so profitable now? Don’t overlook the importance of FFPs

Aug 1

How did they do it? How did U.S. airlines— especially legacy airlines— transform themselves, over the course of a decade, from financial laughingstocks of the global airline industry into paragons of profitability? Certainly, the “Three Cs,” as they are often called in these pages—consolidation, capacity discipline and charging extra for products and services that were […]