Airline Weekly Lounge

If one thing's clear from the airlines that have reported third-quarter results it's that the U.S. domestic travel recovery has plateaued. That's not necessarily bad, passenger numbers are above 2019 levels, but the industry's higher cost structure could make a low-growth environment challenging. Edward Russell and Jay Shabat discuss. Plus, the latest from Routes World in Istanbul.Reading List American Airlines Had a Rough Quarter, but Points to 2024 Tailwinds United Faces Higher Costs – and What Else We Learned on the Earnings Call Air France-KLM’s SAS Takeover: Do Copenhagen, Oslo, and Stockholm Hubs Stay? Fast-Growing Istanbul Airport Wants More Budget Airline Competition AirAsia, Chastened from Pandemic Losses, Takes Disciplined Approach to Growth Royal Jordanian, Wizz Air Weigh Costs of Israel-Hamas War

The reaction to Delta Air Lines' controversial loyalty program changes so far have proved more bluster than anything else. Its profit, and outlook, remain sound even as U.S. domestic demand slows to "steady." Edward Russell and Jay Shabat discuss. Plus, Virgin Australia is (finally) back in the black.Reading List Delta Profit Intact After Controversial SkyMiles Changes The U.S. Economy’s Secret Weapon: Seniors With Money to Spend Virgin Australia Back to Profitability but Still Faces Uphill Battle Versus Qantas

SAS is making some big changes. As part of its bankruptcy restructuring, Air France-KLM, along with other investors, will take a minority stake in the Scandinavian airline prompting a new commercial alignment and its move to the SkyTeam — not "StarTeam" — Alliance. Edward Russell and Jay Shabat discuss. Plus, has United ordered too many planes?Learn more and register for the Skift Aviation Forum on November 1 in Fort Worth, Texas.Reading List Air France-KLM to Take Stake in SAS Under $1.2 Billion Deal Portugal to Sell Majority Stake in National Airline TAP United Buys 110 Airbus and Boeing Planes Amid Persistent Capacity Constraints

David Neeleman, Founder and CEO of Breeze Airways, discusses US travel demand and their focus on underserved markets. He explores the concept of trip cost versus per seat cost in the airline industry and talks about airline fees and skepticism about sustainable aviation fuel. Neeleman also discusses marketing promises, carbon offsetting, challenges faced by discount airlines like Breeze, and the difficulties in naming the airline.

Mexico's airlines face two countervailing trends: the reopening of the U.S. to new growth countered by new restrictions at the country's busiest airport, Mexico City International. Edward Russell and Jay Shabat discuss. Plus, what U.S. airports grew most the over the past 10 years?Reading List Mexico’s Airlines Lifted by U.S. Upgrade but Face Quagmire in Mexico City Giant Dallas-Fort Worth and Denver Airports Anticipate Big Growth This Year Delta’s Expansion in Austin May Be Too Little, Too Late to Catch American and Southwest

Slower bookings and "heightened" airfare discounting are hurting Frontier Airlines and Spirit Airlines this quarter. That means potentially deep losses for the ultra low-cost carriers. Edward Russell and Jay Shabat discuss what happened. Plus, the latest on the Pratt & Whitney geared turbofan engine situation.Reading List Spirit Airlines Stuns with Forecast of Steep Third-Quarter Loss Airbus A320neo Pratt Engine Issues to Ground 650 Planes Next Year

Fuel prices keep steadily rising after bottoming out in May. That's beginning to take a bite out the airline financial outlook for the third and fourth quarters. Edward Russell and Jay Shabat discuss. Plus, competition in Scandinavia.Reading List 3 U.S. Airlines Issue Warnings About Higher Third Quarter Fuel Costs SAS CEO Downplays Competition from Norwegian Air and Ryanair

How are airlines doing as the second-quarter earnings season wraps up? Generally good, but yield and cost concerns persist. Edward Russell and Jay Shabat discuss. Plus, Air Arabia’s impressive results. We are taking a summer hiatus for the next two weeks. Expect the next episode of the Airline Weekly Lounge on September 8.Reading List Air Arabia Unveils World-Leading Second Quarter Profits U.S. Airline Review: Top 10 Takeaways from Second Quarter Earnings

Edward Russell and Jay Shabat discuss the latest Airline Weekly profit rankings for the second quarter. Plus, the latest developments at Hong Kong's Cathay Pacific.

There was one thing in common across Air France-KLM, IAG, and JetBlue in the second quarter: Transatlantic travel demand is booming. That helped lift the first two to impressive profits. But, at the latter, it wasn't enough to offset numerous U.S. domestic challenges. Edward Russell and Jay Shabat discuss.Reading List JetBlue Will Pay Dearly to End its Alliance With American Airlines Air France-KLM Looks to Spin-Off Loyalty Plan as Results Lag Peers British Airways and Iberia Parent IAG Sees No Travel Slowdown