Airline Weekly Lounge Episode 63: All Smiles

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While the revenue story has improved for U.S. carriers, the cost story has become a headwind. Still, as American Airlines demonstrated in its fourth quarter results, costs are a headwind that can be overcome. With that, AA joined Delta and United in delivering solid fourth quarters and downright strong full-year results. And things only got […]

Airline Weekly Lounge Episode 60: Around and Around

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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 […]

Blue No More: With altered tactics and some favorable macro forces, JetBlue is on the upswing

JetBlue is on the upswing

As recently as 2014, just two U.S. airlines—United and Virgin America, both then synonymous with despair—recorded lower operating margins than JetBlue. Even more uncomfortably, JetBlue’s margin was a massive 10 points lower than Spirit’s, giving rise to a dominant new narrative: Ultra-low-cost carriers were conquering the world, while JetBlue, with its higher-cost model, was falling […]

Airline Weekly Lounge Episode 51: French Miss

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The second quarter year-over-year profit margin improved at Air France/KLM, but only because of a huge windfall from fuel. In fact, the real story is that the airline group is largely missing out on profits that normally would come from such a lift from fuel. Another airline group, IAG (the parent company of British Airways, […]

Airline Weekly Lounge Episode 39 – Wing and a Prayer

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Is growing Eurowings a safe bet? Lufthansa’s low-cost unit had a rough first quarter and that might not be the last. Eurowings is growing like gangbusters, propelling itself into the teeth of a crowded airline market and doing so with an unproven low-cost longhaul model. Lufthansa’s competitor Air France/KLM meanwhile posted a first-quarter loss, pulled […]