The food scene and the tequila are great in Mexico. The airline industry? Not so much—at least at the moment. Everybody lost money in the first quarter of 2017. In the second quarter, only one airline—VivaAerobus—did merely okay. What has happened to the usually high-flying Volaris? Even Interjet has outperformed Volaris in the first half. […]
Airline Weekly Lounge Episode 78: The United Weigh
United is still trailing its peers, but can it catch up? That’s the question we weigh first in this episode. In the second quarter, American Airlines bested United with a 16% operating margin versus United’s 14%. One thing that went right for AA: Latin America. One thing that went wrong for United: Asia. Meanwhile, little […]
Ultra-worried?: Is the ultra-LCC business model running into trouble?
It was an earnings call so uncomfortable that anyone who listened or participated still recalls it well. “Is this really all you’ve got?” asked Jamie Baker, a Wall Street analyst. “I mean, in other businesses that I can think of, when there’s a company standing out like this, you sort of expect, you know, a […]
A Tale of Two Texas Cities: San Antonio is the bigger city. But airlines are flocking to Austin.
Last week was a great week for San Antonio International Airport. True, it was far from the only U.S. airport to benefit from Frontier’s blitz of new route announcements (21 new airports and 85 new routes; see page 8). But few airports got quite as much of Frontier’s attention as San Antonio—the ultra-LCC blessed it […]
Airline Weekly Lounge Episode 60: Around and Around
SAS has tried and tried to turn itself around, but to no avail—at least judging by its recent earnings report. In fact, on profits alone, the airline’s third quarter was a step backward. What’s going wrong, and can it be fixed? Meanwhile, Frontier Airlines posted a tremendous profit in the third quarter, with an operating […]
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