Skift Airline Weekly Lounge

With earnings season well underway, Gordon Smith and Jay Shabat examine the key trends and finer details from JetBlue and Volaris - two of the largest low-cost carriers in the Americas.

Fresh out of United's Q1 earnings call, Gordon Smith and Jay Shabat discuss the headline numbers and critical trends facing the U.S. carrier.

In this week's episode, Gordon Smith and Jay Shabat dig into Delta's latest earnings report to find out what's making the U.S. carrier one of the industry's biggest success stories.

In this week's episode, Gordon Smith is joined by Ashab Rizvi from Skift Research to discuss the key findings from a new report into the low-cost, long-haul airline sector.

In this special edition of the Airline Weekly Lounge, we sit down with Ryanair Group CEO Michael O'Leary. No subject is off the table as we discuss everything from social media to Southwest's business model. 

Gordon Smith and Jay Shabat discuss the global airports that look set to be the big winners and losers in the coming quarter.

Gordon Smith and Jay Shabat discuss the latest developments from the Lufthansa Group and explain why the German flag carrier is trailing competitors. We also review the key aviation highlights from the J.P. Morgan Industrials Conference in New York.

Gordon Smith and Jay Shabat discuss a new strategy from American Airlines to win back domestic market share and boost loyalty. We also examine the impact of Turkish Airlines' Australian debut on Qantas and other major carriers. 

Gordon Smith and Jay Shabat examine the latest results from IAG to find out how they compare with Air France-KLM. We also take a deep-dive into Latin America to explore the fortunes of Latam Airlines. 

Today we feature a portion of our Skift's Megatrends for 2024, as Skift Editor-in-Chief Sarah Kopit is joined by Airlines Editor and Reporter Gordon Smith and Airline Weekly Senior Analyst Jay Shabat, to discuss our some of our most "problematic" Megatrends. They cover the continuing supply chain issues faced by the aviation sector, and the impacts of the burgeoning climate crisis on the business of travel.  You can see all of Skift's Megatrends for 2024 right now at Skift.com/megatrends.

Gordon Smith and Jay Shabat discuss how Thai Airways has shaken off its pandemic problems and emerged as one of the world's most profitable carriers.

Gordon Smith and Jay Shabat discuss Frontier Airlines' bold new strategy which will see it cut capacity in Las Vegas and Florida. We also review the latest developments from Japan where the country's biggest carriers are enjoying a spike in premium demand.

Ryanair has its problems, but it is doing much better than most. As the Irish low-cost giant posts its latest earnings, Gordon Smith and Jay Shabat pick through the numbers and assess what the future could hold for the airline.

As airline earnings season continues to gather momentum, this week we examine the fortunes of United and easyJet. Gordon Smith and Jay Shabat discuss the major developments and identify the key trends at these two very different carriers. 

This week has seen major courtroom drama as the proposed JetBlue-Spirit merger was blocked by a U.S. judge. In this special episode, Gordon Smith and Jay Shabat discuss the implications of the ruling and assess the likely knock on impact for the wider airline industry.

Boeing's 737 Max is back in the headlines for all the wrong reasons. An Alaska Airlines 737-9 lost a door plug after a sudden decompression on January 5 that prompted the FAA to temporarily ground all Max 9 variants with door plugs. Edward Russell and Jay Shabat discuss. Plus, JetBlue's leadership transition and outlook. Reading List Buttigieg on Boeing 737 Max 9's Return: ‘Until It Is Ready, It's Not Ready' Alaska Cancels 737 Max 9 Flights Through Saturday as It Awaits FAA Approval for Inspections United Airlines Finds Loose Bolts on At Least 5 Boeing 737 Max 9 Planes JetBlue Names Joanna Geraghty as CEO, First Woman to Lead a Major U.S. Airline

What does Air France-KLM think of the future? It's bullish. Jay Shabat and Edward Russell discuss the group's recent investor day. Reading List Air France-KLM Bullish on the Future TAP Air Portugal Sale Delayed Up To a Year, Air France-KLM CEO Says The Airline Weekly team outlines the significant changes at Air France-KLM since Ben Smith became CEO in 2018. The airline, which was underperforming compared to its peers, has seen considerable improvements, particularly in the operating margin of Air France, which was notably low in 2019. Key strategies discussed include the transformation of Air France's short-haul routes, particularly moving operations at Orly Airport to their low-cost carrier, Transavia France. This move aims to address the historic losses in domestic routes. They also touch on the expansion of the Flying Blue loyalty program and the integration of SAS's loyalty program. The hosts discuss the airline's fleet strategies, focusing on Air France KLM's preference for the Airbus A350 and Boeing 787 and 777 models, and the potential risks of relying heavily on a single aircraft type. Shabat and Russell also cover Air France KLM's business strategy, including their approach to fleet diversification and cost-cutting measures, and they speculate on potential future developments, like the acquisition of Air Europa if IAG's deal falls through, and the impact of Air France-KLM's stake in SAS. Hosts: Jay Shabat and Edward Russel Producer: Jose Marmolejos

Delta, JetBlue, and Southwest all dropped updates on the fourth quarter outlook in recent weeks. The verdict? Travel demand is good, fuel is down, and operations are largely better than expected. Edward Russell and Jay Shabat disucss. Plus, the state of airline labor relations in the U.S.  Reading List Delta Lays Out the Case For Continued Strength Flight Attendants Want More from U.S. Airlines. It Might Take a Strike to Get There. The flight attendants of CHAOS (Planet Money)

There are three big reasons for Alaska Airlines proposed $1.9 billion merger with Hawaiian Airlines: scale, loyalty, and premium traffic. And there are lots of questions too. Edward Russell and Jay Shabat discuss. Reading List Alaska Airlines in Deal to Buy Hawaiian Airlines for $1.9 Billion Alaska Airlines Needs New Growth – That's Why It's Looking to Buy Hawaiian Alaska-Hawaiian Merger Faces a Justice Department Wary of Airline Combos What Could an Alaska-Hawaiian Loyalty Program Look Like? Think Marriott Bonvoy 8 Airline Mergers That Shaped Today's U.S. Industry

Virgin Atlantic in a good year turns a modest profit. In bad years, it loses money. So why is Shai Weiss so confident the airline will turn a profit next year? Jay Shabat and Edward Russell settle in for a cuppa to discuss. Plus, EasyJet's results. Reading List Virgin Atlantic CEO Focused on Return to Profitability in 2024 Virgin Atlantic Pressures UK for Sustainable Aviation Fuel Support EasyJet Raises Profit Outlook After ‘Record' Summer, Orders More Airbus Planes

With the team out for the U.S. Thanksgiving holiday, we're bringing you another session from the recent Skift Aviation Forum: Air Lease Corp. Executive Chairman Steven Udvar-Hazy in conversation with Brian Sumers of The Airline Observer. Enjoy!

It was a busy week for Airbus and particularly Boeing in Dubai. The airframers racked up more than 330 firm orders for new aircraft from Emirates, Ethiopian, FlyDubai, and others at the airshow. Edward Russell and Jay Shabat discuss. Plus, Korean Air's summer quarter results. Reading List Emirates' Tim Clark on ‘Trust' in Boeing, Supply Chain Issues and the End of Innovation Emirates Makes $52 Billion Deal With Boeing At Dubai Airshow

Ryanair and Singapore Airlines had good summers, and the former will be among the most profitable globally. Both, however, are watching industry schedules closely as they look forward through the winter. Edward Russell and Jay Shabat discuss. Reading List Ryanair Expects Summer Revenue Surge to Continue as Competitors Slow Growth Singapore Airlines Doubles Down on Strategic Initiatives as Competitors Recover

American Airlines CEO Robert Isom joined Edward Russell on stage at the Skift Aviation Forum on November 1. Enjoy their wide-ranging discussion from the year-end holiday outlook to international growth and boosting loyalty revenues. Reading List American Airlines CEO Seeks to Boost Revenue and Enhance Loyalty Program American Airlines CEO Defends Direct Selling Push in Face of Travel Agent Complaints American Airlines Had a Rough Quarter, but Points to 2024 Tailwinds

Hawaiian Airlines and Volaris are two very different carriers. But they have one thing in common right now: A lot of planes affected by the issues with certain Pratt & Whitney geared turbofan engines on Airbus A320neo-family aircraft. Edward Russell and Jay Shabat discuss. Reading List Volaris Cuts Capacity Growth as Pratt & Whitney Engine Issues Ground 16 Planes Airbus A320neo Pratt Engine Issues to Ground 650 Planes Next Year Hawaiian Airlines Defends Tokyo Haneda Flight Rights as United Seeks to Expand

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

Breeze Airways founder and CEO, and perennial airline entrepreneur, David Neeleman sat down for a wide ranging conversation with Brian Sumers at the Skift Global Forum in New York this week. On stage, Neeleman spoke of everything from soft fall travel demand to Breeze's international plans, and his views of sustainable aviation fuels. Reading List Breeze Sees Softer Bookings as Airline Growth Outpaces Fall Travel Demand Spirit Airlines Stuns with Forecast of Steep Third-Quarter Loss JetBlue Founder Neeleman's 5th Act Breeze Airways Is Finally Taking Off

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

Both Ryanair and Alaska Airlines reported some decline in yields in the second quarter and continuing into the third. But they also made clear: Overall travel demand remains robust on both sides of the Atlantic. Edward Russell and Jay Shabat discuss what's happening. Reading ListAlaska Airlines Sees Domestic Fares Weaken as Americans Take More International Trips

American Airlines and United Airlines just reported record second-quarter results, including double-digit operating margins. Will the magic continue through the third quarter and beyond? Edward Russell and Jay Shabat discuss. Reading List American Airlines Raises Outlook After Strong Second Quarter Results United Airlines to Shrink Newark Departures 10% to Avoid Future Flight Disruptions Delta Results Lifted by Strong Europe and Latin America Demand

Norse Atlantic Airways President Charles Duncan is optimistic, if nothing else, about the longhaul low-cost airline's future. But even with some summer profits under its belt, he and his team still spend nine months of the year planning for the low-demand winter season. Duncan chats with Edward Russell about the airline's strategy a year after launch, and how it plans to make the aforementioned winter work. Reading List Long-Haul Discounter Norse Atlantic Sees London Expansion as Key to Profits More Airlines Use Next-Gen Tech to Sell Journeys on Other Carriers or Trains Cranky Flier Interview with Norse Atlantic President Charles Duncan

After a decade of reckless growth in the aughts, Norwegian Air made a strategically smart decision in its deal to buy regional Wideroe. The combination would, if approved by regulators, make Norwegian-Wideroe larger than SAS in terms of seats in the Nordics. Edward Russell and Jay Shabat discuss. Plus, JetBlue is ending its alliance with American Airlines. Reading List: Norwegian Air Steps Up Pressure on SAS With $105 Million Wideroe Deal What's Next for American and JetBlue? What's Next for American and JetBlue After Court Rejects Alliance

Delta Air Lines held an investor day this week where CEO Ed Bastian said business was “gangbusters.” That's what Wall Street wanted to hear but it appears also true for a company that sees significant delta ahead, and is actively working to grow high-margin tertiary businesses. Edward Russell and Jay Shabat discuss. Plus, the operational distress in the northeastern U.S. this week. Reading List Delta Sees ‘Gangbusters' Recovery, Downplays Industry Concerns Delta Pins New Hopes on Gen Z and Millennials, Not Business Travelers United's New York Distress Shows how Weather Can Royally Mess Up an Airline's Operations

Indian airlines IndiGo and Air India grabbed headlines with orders at the Paris Airshow this week. Can the country support all of their planned growth? Edward Russell and Jay Shabat discuss. Plus, the recovery for Alaska Airlines. Reading List IndiGo's Giant Airbus Order Will Test Its and India's International Aviation Ambitions Air India Seals $34 Billion in Aircraft Orders With Airbus and Boeing Alaska Airlines CEO: No Small Cities Face Axe – Yet

Air Canada is flying double-daily high-density Boeing 777s — its equivalent of an Airbus A380 as Mark Galardo put it — to Athens this summer to meet some of the best travel demand it has ever seen. Galardo, the airline's executive vice president for revenue and network planning, joined host Edward Russell in the Lounge to chat about summer demand, Air Canada's recovery, and the evolving Canadian domestic market. Reading List Air Canada Is off to a Good Start Airline Execs Dismiss Slowdown Fears, Say It is ‘Best Recession' Industry Ever Faced

The mood in Istanbul at the IATA Annual General Meeting was definitely jubilant this year. Despite all the challenges airlines face — and, frankly, when do they not face challenges? — attendees celebrated strong demand, cheaper fuel, and other tailwinds. Will the good times continue? Edward Russell, fresh off the plane back, and Jay Shabat discuss. Plus, the industry's sustainability challenge and IndiGo's international plans.

U.S. airports saw roughly 300,000 more travelers than in 2019 over the Memorial Day weekend holiday, a sign of a busy summer to come. Are airlines ready? Edward Russell and Jay Shabat discuss. Plus, Delta is hit with a greenwashing lawsuit.

Icelandair had a rough few years before and during Covid. But the airline believes it has turned the financial corner, and forecasts its best results in seven years. Edward Russell and Jay Shabat discuss. Plus, Turkish Airlines' big plans for Anadolujet. Reading List Icelandair Rides High Yields to Profits Turkish Airlines to Spin Off Low-Cost Carrier Anadolujet

Air Canada lost money in the first quarter of 2023. But that's no surprise. Wintertime losses are common for the carrier. But the red ink was minimal, setting it up for a strong year. Plus, a discussion about San Francisco's struggling airline market. Jay Shabat is joined by Madhu Unnikrishnan to discuss Air Canada's Q1 earnings and what's going at SFO. Reading List Air Canada Posts a Loss Despite Strong Travel Demand Airlines Face Capacity Scarcity Amid Aircraft and Engine Shortage Chart: Air Hockey Fight

Ryanair gave Boeing a boost, and let bygones be bygones, by ordering up to 300 new 737 Maxes. It's the European discounter's largest-ever order. Edward Russell and Jay Shabat discuss the deal. Plus, Air France-KLM and IAG's first-quarter results. Reading List Ryanair Looks East With New Boeing 737 Maxes From Its Largest Order Ever Air France-KLM Eyes Expansion in Booming South America With Potential TAP Deal Iberia Leads Europe's IAG to Winter Profits

Alan Joyce took over Qantas Airways just as the Great Recession descended in 2008. He set about turning around its money-losing longhaul business, forging new international ties, and cementing Qantas' dominance of the Australian domestic market. Edward Russell and Jay Shabat discuss Joyce's legacy and the challenges that confront incoming CEO Vanessa Hudson. Plus, Lufthansa's somewhat concerning first-quarter results. Reading List New Qantas CEO Must Build on Predecessor's Legacy Qantas Picks Finance Chief Vanessa Hudson as First Female CEO Lufthansa Sees Record Summer Revenue Thanks to Capacity Limits

JetBlue has a New York problem. The city that made the airline could hold it back this summer if the Federal Aviation Administration's air traffic control staffing issues are as bad as forecast. Edward Russell and Jay Shabat discuss. Plus, WestJet pursues a new, least bad strategy. Reading List Q&A With WestJet CEO Alexis von Hoensbroech JetBlue Sounds Alarm on New York Flight Delays This Summer Delta, United, JetBlue, American to Cut New York Flights This Summer to Reduce Delays

Airline Weekly's Jay Shabat is joined by former Airline Weekly Editor Madhu Unnikrishnan to discuss United Airlines' and Alaska Airlines' first quarter earnings reports from earlier this week.  The conversation starts with United's challenges in January and February, and notes investors will tolerate it if they have a strong March and the rest of the year. United is working to rectify its problems in Florida and has a lot of aircraft coming along in the next few years to put somewhere. The company has also benefited from a trend in premium leisure travel, which has helped fill the seats in the premium cabins. The three big U.S. carriers – United, Delta, and American – are doing well compared to the domestic carriers. They have the advantage of the demand being strong, and a lot of foreign carriers cutting capacity during the pandemic. Next, they discuss Alaska Airlines and mention that the company reported negative 4.6 operating margin for the first quarter, which is not good compared to their positive 2.5% operating margin in 2019. Alaska has historically had weak first quarters, and they sometimes lose money in January and February, but they have been a very successful and profitable airline. They also discuss where Alaska fits in the overall U.S. airline picture, as it is not a low-cost carrier like Frontier nor a full-service airline like Delta and United. Reading List Alaska Airlines Optimistic Despite January and February Stumbles United Sees 2023 as Setting Course for Its Post-Pandemic Future

Delta Air Lines kicked off the first-quarter earnings season this week. Edward Russell and Jay Shabat discuss what they expect. Plus, can American Airlines catch up to the pack? Reading List Delta Margin Recovery to Near Pre-Pandemic Levels in Second Quarter American Airlines Expects a Good First Quarter, the Second Is an Open Question American, Still Less Profitable than Delta and United, Attempts to Catch Up