American Airlines truly set itself apart from its peers in the third quarter—and not in a good way. AA posted a dismal 7.5% operating profit margin, nearly half of Delta’s 13.9% margin. But, with good reason, management remains optimistic. United, on the other hand, has plenty to smile about right now as it offset 100% […]
Airline Weekly Lounge Episode 107: Amazing Race
Delta is doing a remarkable job keeping pace with rapidly rising costs. Sure, the airline’s third-quarter fuel bill rose 35% year over year. But rising revenues offset enough of those costs that Delta’s operating profit margin fell only two points. Meanwhile, what’s behind American’s recent troubles? Unfortunately, when American reports later in the month, it’s […]
Capital Concerns: Air China is a champion. But for how long? Big challenges are coming.
Among America’s Big Three airlines, there’s a clear profit champion. It’s Delta. Among Europe’s Big Three, there’s a clear profit champion: It’s IAG. And among China’s Big Three? The champion is no less clear: It’s Air China. But Air China, more so than its champion counterparts abroad, has a lot to be nervous about. Problems, […]
Airline Weekly Lounge Episode 102: Singing the Blues
So far all U.S. carriers have reported shrinking year-over-year profits in the second quarter. But nobody’s margin decline was worse than that of JetBlue, which posted a 9% operating margin, down from 19% the year before. Allegiant had the best margin of the bunch, narrowly besting Southwest and Delta, both of which had shining quarters. […]
Boiled by Oil: For U.S. airlines, profits are falling even at a time of epic demand strength
It takes a long time to descend from a high mountain. But U.S. airline profitability is indeed descending, still strong relative to the global average but getting further away from its peak. During the springtime April-to-June quarter, the sector’s nine major publicly-traded airlines collectively earned a 13% operating margin, down from close to 18% in […]
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