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.

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.

The World's Most Profitable Airlines

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

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<ul> <li><a href="https://airlineweekly.com/2023/08/jetblue-will-pay-dearly-to-end-its-alliance-with-american-airlines/" rel="nofollow" target="_blank">JetBlue Will Pay Dearly to End its Alliance With American Airlines</a></li> <li><a href="https://airlineweekly.com/2023/07/air-france-klm-looks-to-spin-off-loyalty-plan-as-results-lag-peers/" rel="nofollow" target="_blank">Air France-KLM Looks to Spin-Off Loyalty Plan as Results Lag Peers</a></li> <li><a href="https://skift.com/2023/07/28/british-airways-and-iberia-parent-iag-sees-no-travel-slowdown/" rel="nofollow" target="_blank">British Airways and Iberia Parent IAG Sees No Travel Slowdown</a></li></ul>

A Transatlantic Travel Boom

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

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 List<ul><li><a href="https://airlineweekly.com/2023/07/alaska-airlines-sees-domestic-fares-weaken-as-americans-take-more-international-trips/" rel="nofollow" target="_blank">Alaska Airlines Sees Domestic Fares Weaken as Americans Take More International Trips</a></li></ul>

Falling Airline Yields Do Not Mean Weak Demand

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 

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<ul> <li><a href="https://skift.com/2023/07/20/american-airlines-raises-outlook-after-strong-second-quarter-results/?__hstc=82850822.e6edc432d5806ef2e895909801df8638.1687857279628.1689905569129.1689938776766.14&amp;__hssc=82850822.3.1689938776766&amp;__hsfp=1658081462" rel="nofollow" target="_blank">American Airlines Raises Outlook After Strong Second Quarter Results</a></li> <li><a href="https://airlineweekly.com/2023/07/united-airlines-to-shrink-newark-departures-10-to-avoid-future-flight-disruptions/" rel="nofollow" target="_blank">United Airlines to Shrink Newark Departures 10% to Avoid Future Flight Disruptions</a></li> <li><a href="https://airlineweekly.com/2023/07/delta-results-lifted-by-strong-europe-and-latin-america-demand/" rel="nofollow" target="_blank">Delta Results Lifted by Strong Europe and Latin America Demand</a></li> </ul>

American and United's Strong Second Quarters

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

Norse Atlantic Airways President <a href="https://www.linkedin.com/in/charles-duncan-2b51b4/" rel="nofollow" target="_blank">Charles Duncan</a> 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. <h3>Reading List</h3> <ul> <li><a href="https://airlineweekly.com/2023/02/long-haul-discounter-norse-atlantic-sees-london-expansion-as-key-to-profits/" rel="nofollow" target="_blank">Long-Haul Discounter Norse Atlantic Sees London Expansion as Key to Profits</a></li> <li><a href="https://skift.com/2023/07/06/more-airlines-use-next-gen-tech-to-sell-journeys-on-other-carriers-or-trains/?__hstc=82850822.e6edc432d5806ef2e895909801df8638.1687857279628.1689280420528.1689333496939.7&amp;__hssc=82850822.2.1689333496939&amp;__hsfp=1658081462" rel="nofollow" target="_blank">More Airlines Use Next-Gen Tech to Sell Journeys on Other Carriers or Trains</a></li> <li><a href="https://crankyflier.com/2023/03/27/the-cranky-flier-interview-with-norse-atlantic-president-charles-duncan/" rel="nofollow" target="_blank">Cranky Flier Interview with Norse Atlantic President Charles Duncan</a></li></ul>

Norse Atlantic’s Strategy Comes Into Focus

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 

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:<ul> <li><a href="https://airlineweekly.com/2023/07/norwegian-air-steps-up-pressure-on-sas-with-105-million-wideroe-deal/" rel="nofollow" target="_blank">Norwegian Air Steps Up Pressure on SAS With $105 Million Wideroe Deal</a></li> <li><a href="https://airlineweekly.com/article/2023/05/30/whats-next-for-american-and-jetblue/" rel="nofollow" target="_blank">What’s Next for American and JetBlue?</a></li> <li><a href="https://airlineweekly.com/2023/05/whats-next-for-american-and-jetblue-after-court-rejects-alliance/" rel="nofollow" target="_blank">What’s Next for American and JetBlue After Court Rejects Alliance</a></li> </ul>

Norwegian Air's Wise Wideroe Move

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 

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<ul> <li><a href="https://airlineweekly.com/2023/06/delta-sees-gangbusters-recovery-downplays-industry-concerns/" rel="nofollow" target="_blank">Delta Sees ‘Gangbusters’ Recovery, Downplays Industry Concerns</a></li> <li><a href="https://skift.com/2023/06/27/delta-pins-new-hopes-on-gen-z-and-millennials-not-business-travelers/?__hstc=82850822.e560863f4f5d30b0f238cfda1cbce953.1688112094372.1688122700563.1688125212856.3&amp;__hssc=82850822.1.1688125212856&amp;__hsfp=3822375591" rel="nofollow" target="_blank">Delta Pins New Hopes on Gen Z and Millennials, Not Business Travelers</a></li> <li><a href="https://airlineweekly.com/2023/06/uniteds-new-york-distress-shows-how-weather-can-royally-mess-up-an-airlines-operations/" rel="nofollow" target="_blank">United’s New York Distress Shows how Weather Can Royally Mess Up an Airline’s Operations</a></li> </ul>

Diversifying Delta's Business

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

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<ul> <li><a href="https://airlineweekly.com/2023/06/indigos-giant-airbus-order-will-test-its-and-indias-international-aviation-ambitions/" rel="nofollow" target="_blank">IndiGo’s Giant Airbus Order Will Test Its and India’s International Aviation Ambitions</a></li> <li><a href="https://airlineweekly.com/2023/02/air-india-seals-34-billion-in-aircraft-orders-with-airbus-and-boeing/" rel="nofollow" target="_blank">Air India Seals $34 Billion in Aircraft Orders With Airbus and Boeing</a></li> <li><a href="https://airlineweekly.com/2023/06/alaska-airlines-ceo-no-small-cities-face-axe-yet/" rel="nofollow" target="_blank">Alaska Airlines CEO: No Small Cities Face Axe – Yet</a></li></ul>

India's Airlines Go Shopping in Paris

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

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<ul> <li><a href="https://airlineweekly.com/2023/05/air-canada-is-off-to-a-good-start/" rel="nofollow" target="_blank">Air Canada Is off to a Good Start</a></li> <li><a href="https://airlineweekly.com/2023/06/airline-execs-dismiss-slowdown-fears-say-it-is-best-recession-industry-ever-faced/" rel="nofollow" target="_blank">Airline Execs Dismiss Slowdown Fears, Say It is ‘Best Recession’ Industry Ever Faced</a></li></ul>

The Brains Behind Air Canada's Network

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.

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.

Takeaways From the IATA Annual Meeting

The editors of Airline Weekly discuss the most interesting developments within the commercial airline industry. In keeping with Airline Weekly’s style, conversation generally centers on one question: How do you make money in this industry?

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Airline Weekly Lounge

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 is going wrong for Alaska Airlines, which is enjoying life in all the right markets at the right time. JetBlue’s transcontinental routes, which used to be a vulnerability, are now making a mint for the airline. JetBlue even beat mighty Spirit by a whisker. Allegiant did fine despite an eye-popping drop in its profit margin. And, lastly Southwest was again a profit leader with its very conservative approach.

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 is going wrong for Alaska Airlines, which is enjoying life in all the right markets at the right time. JetBlue’s transcontinental routes, which used to be a vulnerability, are now making a mint for the airline. JetBlue even beat mighty Spirit by a whisker. Allegiant did fine despite an eye-popping drop in its profit margin. And, lastly Southwest was again a profit leader with its very conservative approach.

Airline Weekly Lounge Episode 78: The United Weigh

The airline is on such a roll that not even a grouchy demagogue can stop Delta. The Atlanta-based carrier posted a better second quarter than it did last year, and it leaves Delta with at least a slim shot of having its best year ever. Low fuel prices were a defining factor for the industry during the quarter, and Delta took full advantage. But it saw success on the revenue side too. Not all airlines were so lucky, including Norwegian, which posted a slightly negative operating margin during a quarter it really needs to be making money—a lot of money. Things are even more dire at South African Airways, although SAA has one thing Norwegian doesn’t have: a state sponsor. And Air France pilots agreed to allow the airline to create a low-cost unit. But is that even a good idea?

The airline is on such a roll that not even a grouchy demagogue can stop Delta. The Atlanta-based carrier posted a better second quarter than it did last year, and it leaves Delta with at least a slim shot of having its best year ever. Low fuel prices were a defining factor for the industry during the quarter, and Delta took full advantage. But it saw success on the revenue side too. Not all airlines were so lucky, including Norwegian, which posted a slightly negative operating margin during a quarter it really needs to be making money—a lot of money. Things are even more dire at South African Airways, although SAA has one thing Norwegian doesn’t have: a state sponsor. And Air France pilots agreed to allow the airline to create a low-cost unit. But is that even a good idea?

Airline Weekly Lounge Episode 77: Another Win for Delta

With a new year underway, we’re thinking about what will happen in 2019—always a dicey proposition. In this episode, we consider the prospects of airlines around the world. Some, like Aeroflot and Turkish Airlines, are facing huge opportunities. Others, like Jet Airways and South African Airlines, are facing grave challenges. Will the International Airlines Group make another offer for Norwegian? Will Alitalia find a partner? Will Lion Air cancel plane orders? Will Emirates and Etihad merge? In short, what will 2019 bring? In this episode, we reluctantly offer some predictions.

With a new year underway, we’re thinking about what will happen in 2019—always a dicey proposition. In this episode, we consider the prospects of airlines around the world. Some, like Aeroflot and Turkish Airlines, are facing huge opportunities. Others, like Jet Airways and South African Airlines, are facing grave challenges. Will the International Airlines Group make another offer for Norwegian? Will Alitalia find a partner? Will Lion Air cancel plane orders? Will Emirates and Etihad merge? In short, what will 2019 bring? In this episode, we reluctantly offer some predictions.

Airline Weekly Lounge Episode 112: Prediction Affliction

Thomas Cook

The UK government this week engages in another set of inquiries on why Thomas Cook went bankrupt, which is the perfect time to ask Skift Europe Editor Patrick Whyte, who has been covering the story, what happened. How did the "booking clerk to the empire" go belly-up after more than 150 years? Whyte explains that the company was struggling under a massive debt load and had struggled with maintaining a large number of travel agencies as booking habits changed. But Whyte noted that parts of the business remain — Condor, in Germany, and the subsidiary in the Nordic countries. European and UK holidaymakers may see fares rise in the short term as airlines backfill the capacity hole left by Thomas Cook's bankruptcy, but Whyte believed the capacity shortfall would be filled by next summer. 

The UK government this week engages in another set of inquiries on why Thomas Cook went bankrupt, which is the perfect time to ask Skift Europe Editor Patrick Whyte, who has been covering the story, what happened. How did the "booking clerk to the empire" go belly-up after more than 150 years? Whyte explains that the company was struggling under a massive debt load and had struggled with maintaining a large number of travel agencies as booking habits changed. But Whyte noted that parts of the business remain — Condor, in Germany, and the subsidiary in the Nordic countries. European and UK holidaymakers may see fares rise in the short term as airlines backfill the capacity hole left by Thomas Cook's bankruptcy, but Whyte believed the capacity shortfall would be filled by next summer.

What Happened to Thomas Cook?

Revenues for U.S. carriers remained terrifically healthy in the first quarter, and everybody made money. But rising labor and fuel costs generally shrunk year-over-year profit margins. United, which continues to trail Delta and American in profitability, did a pretty good job of preserving its margin. Profits slid a bit more at American, but it was especially buoyant in Latin America, where AA is the leading U.S. carrier. One airline that saw rather grisly margin deterioration was Alaska as fuel, labor and maintenance cost increases severely outpaced revenues. JetBlue and Spirit both did okay, but one was happier than the other. Southwest and Hawaiian posted handsome 12% margins in the off-peak quarter. Meanwhile, Allegiant was in a class by itself, posting a 19% first-quarter profit margin.

Revenues for U.S. carriers remained terrifically healthy in the first quarter, and everybody made money. But rising labor and fuel costs generally shrunk year-over-year profit margins. United, which continues to trail Delta and American in profitability, did a pretty good job of preserving its margin. Profits slid a bit more at American, but it was especially buoyant in Latin America, where AA is the leading U.S. carrier. One airline that saw rather grisly margin deterioration was Alaska as fuel, labor and maintenance cost increases severely outpaced revenues. JetBlue and Spirit both did okay, but one was happier than the other. Southwest and Hawaiian posted handsome 12% margins in the off-peak quarter. Meanwhile, Allegiant was in a class by itself, posting a 19% first-quarter profit margin.

Airline Weekly Lounge Episode 96: Profit Preservation for U.S. Carriers

Will there be a deal or won't there? The Indian government now says it wants to sell 100% of the state-owned carrier, but who will buy it? The airline is notoriously saddled with debt and has a restive labor force. Airline Weekly Senior Analyst Jay Shabat acknowledges Air India's problems but notes that the beleaguered carrier actually has some strengths and assets that a would-be buyer could find attractive. Will any company step forward to buy the Flying Maharajah? Listen to this week's episode to find out.

Will there be a deal or won't there? The Indian government now says it wants to sell 100% of the state-owned carrier, but who will buy it? The airline is notoriously saddled with debt and has a restive labor force. Airline Weekly Senior Analyst Jay Shabat acknowledges Air India's problems but notes that the beleaguered carrier actually has some strengths and assets that a would-be buyer could find attractive. Will any company step forward to buy the Flying Maharajah? Listen to this week's episode to find out.

What's the Deal With Air India?

A single year can result in dramatic change within the airline industry, so an entire decade could see it completely transformed. After 10 years of strong profits and relatively stable oil prices in the 2010s, what does the decade ahead hold in store for the U.S. airline industry? Editor Madhu Unnikrishnan and co-founder and Senior Analyst Jay Shabat game out what might happen in the next 5–10 years — and whether Boeing ever will build the NMA.

A single year can result in dramatic change within the airline industry, so an entire decade could see it completely transformed. After 10 years of strong profits and relatively stable oil prices in the 2010s, what does the decade ahead hold in store for the U.S. airline industry? Editor Madhu Unnikrishnan and co-founder and Senior Analyst Jay Shabat game out what might happen in the next 5–10 years — and whether Boeing ever will build the NMA.

Looking Into Our Crystal Ball

Scott Kirby

United Airlines President Scott Kirby issued a warning to potential new-entrant low-cost-carriers, including JetBlue founder David Neeleman’s Moxie: United will match your fares. Kirby, speaking on stage at Skift Forum Asia in Singapore in June, said he’s heard of about 50 airlines over the years that were supposed to be created but Virgin America, founded in 2004, was the last startup airline in the United States that actually became a reality. The low-cost airline model is predicated on the competition not matching prices, Kirby said, and unlike the situation over the last 30 years, United now has the capabilities with segmentation, including basic economy, to go tit-for-tat with the new entrants. Listen for the full interview with Skift Editor-in-Chief Tom Lowry. 

United Airlines President Scott Kirby issued a warning to potential new-entrant low-cost-carriers, including JetBlue founder <a href="https://skift.com/2018/12/19/david-neeleman-taps-ex-allegiant-air-exec-for-top-strategy-role-at-his-new-airline/" rel="nofollow" target="_blank">David Neeleman’s Moxie</a>: United will match your fares. Kirby, speaking on stage at <a href="https://skift.com/sfa2019/" rel="nofollow" target="_blank">Skift Forum Asia</a> in Singapore in June, said he’s heard of about 50 airlines over the years that were supposed to be created but Virgin America, founded in 2004, was the last startup airline in the United States that actually became a reality. The low-cost airline model is predicated on the competition not matching prices, Kirby said, and unlike the situation over the last 30 years, United now has the capabilities with segmentation, including basic economy, to go tit-for-tat with the new entrants. Listen for the full interview with Skift Editor-in-Chief Tom Lowry.

Interview: United President Scott Kirby

Back in the aughts, Airlines for America's Chief Economist John Heimlich often showed a slide with an alarming statistic: Coffee giant Starbucks' market capitalization was more than that of the entire U.S. airline industry combined. So much has changed in the last 10 years, as the airline industry recovered from the 9/11 terrorist attacks, SARS, and oil prices of $148 per barrel, among other trials and tribulations. Skift Airline Weekly Editor Madhu Unnikrishnan and Heimlich had a chance to catch up at the Boyd Group's International Aviation Forecast Summit in August. Unnikrishnan reminded Heimlich of that slide and asked him if those turbulent times could return. Heimlich explained how the industry has changed: different management, improved aircraft technology, and consolidation being among the most important factors. But he warned that the airline industry is uniquely exposed to exogenous shocks, like geopolitical turmoil, weather, and the price of oil. The airline industry is continuing to evolve, with new aircraft technology, like the Airbus A321 XLR, making low-cost, long-haul a better business proposition, Heimlich said. But will anyone crack that low-cost, long-haul code? And what about small-community air service in the U.S. and Canada, now that airlines have retired or are in the process of retiring their smallest aircraft?

Back in the aughts, Airlines for America's Chief Economist John Heimlich often showed a slide with an alarming statistic: Coffee giant Starbucks' market capitalization was more than that of the entire U.S. airline industry combined. So much has changed in the last 10 years, as the airline industry recovered from the 9/11 terrorist attacks, SARS, and oil prices of $148 per barrel, among other trials and tribulations. Skift Airline Weekly Editor Madhu Unnikrishnan and Heimlich had a chance to catch up at the <a href="https://web.cvent.com/event/7ce588c5-cc15-46de-8c92-aabb2f62057f/summary" rel="nofollow" target="_blank">Boyd Group's International Aviation Forecast Summit</a> in August. Unnikrishnan reminded Heimlich of that slide and asked him if those turbulent times could return. Heimlich explained how the industry has changed: different management, improved aircraft technology, and consolidation being among the most important factors. But he warned that the airline industry is uniquely exposed to exogenous shocks, like geopolitical turmoil, weather, and the price of oil. The airline industry is continuing to evolve, with new aircraft technology, like the Airbus A321 XLR, making low-cost, long-haul a better business proposition, Heimlich said. But will anyone crack that low-cost, long-haul code? And what about small-community air service in the U.S. and Canada, now that airlines have retired or are in the process of retiring their smallest aircraft?

Interview: Airlines for America's Chief Economist

Skift Europe Editor Patrick Whyte joined Skift Airline Weekly Editor Madhu Unnikrishnan to share his insights on the latest in European airline news. First, of course, Whyte takes a look at why Air Europa's parent company Globalia would want to sell one of its largest business units to IAG. Is there a future for vertically integrated travel companies, especially after behemoth Thomas Cook went bankrupt? Whyte points out, however, that parts of the bankrupt Thomas Cook's empire have lived to see another day, including Condor and the company's Nordic operations. Even the travel agencies have a new lease on life. Whyte also discussed Air France/KLM's plans for the future.  Listen to the full podcast here, on iTunes, Google Play, or wherever you get your podcasts.

Skift Europe Editor Patrick Whyte joined Skift Airline Weekly Editor Madhu Unnikrishnan to share his insights on the latest in European airline news. First, of course, Whyte takes a look at why Air Europa's parent company Globalia would want to sell one of its largest business units to IAG. Is there a future for vertically integrated travel companies, especially after behemoth Thomas Cook went bankrupt? Whyte points out, however, that parts of the bankrupt Thomas Cook's empire have lived to see another day, including Condor and the company's Nordic operations. Even the travel agencies have a new lease on life. Whyte also discussed Air France/KLM's plans for the future.  Listen to the full podcast here, on iTunes, Google Play, or wherever you get your podcasts.

Much Ado About Europe

Despite being dinged by rising costs, Delta opened the third-quarter earnings season with its customary show of strength. Revenues rose 6% on just 2% growth, and it posted a 16% operating profit margin. While things aren’t quite as good in Europe, airlines there have much to look forward to, namely the elimination—one way or another—of Monarch, Air Berlin, Czech Airlines and possibly Alitalia. Is that enough to lift other European carriers? Lufthansa seems especially confident. It’s looking to not only lose a competitor in Air Berlin but also gain planes for its Eurowings unit—and it’s placed a bid for parts of Alitalia. Meanwhile, Bombardier might have found a solution to its Boeing problem by—wait for it—partnering with Airbus. Lastly, Southwest appears to be at last headed for Hawaii. No doubt the mai tais will be nice, but can the LCC compete there?

Despite being dinged by rising costs, Delta opened the third-quarter earnings season with its customary show of strength. Revenues rose 6% on just 2% growth, and it posted a 16% operating profit margin. While things aren’t quite as good in Europe, airlines there have much to look forward to, namely the elimination—one way or another—of Monarch, Air Berlin, Czech Airlines and possibly Alitalia. Is that enough to lift other European carriers? Lufthansa seems especially confident. It’s looking to not only lose a competitor in Air Berlin but also gain planes for its Eurowings unit—and it’s placed a bid for parts of Alitalia. Meanwhile, Bombardier might have found a solution to its Boeing problem by—wait for it—partnering with Airbus. Lastly, Southwest appears to be at last headed for Hawaii. No doubt the mai tais will be nice, but can the LCC compete there?

Airline Weekly Lounge Episode 83: Solid Start to Earnings Season

Numbers were put to the misery South African Airways has been experiencing when, last month, the airline finally reported earnings for its fiscal year ending in March 2017. Those numbers included a gut-wrenching negative 9% operating profit margin on the year. “Crisis” isn’t too strong of a word. What is SAA doing to turn things around? Elsewhere, it’s steady-as-she-goes for Cebu Pacific, which again is sitting among the world’s profit leaders. The Indian government has solicited bids for a 76% stake in Air India. Any taker would get the surprisingly-profitable Air India Express but would also have to assume a considerable amount of debt. Plus, the comeback continues at Kenya Airways. And lastly, will Berlin’s new airport ever open?

Numbers were put to the misery South African Airways has been experiencing when, last month, the airline finally reported earnings for its fiscal year ending in March 2017. Those numbers included a gut-wrenching negative 9% operating profit margin on the year. “Crisis” isn’t too strong of a word. What is SAA doing to turn things around? Elsewhere, it’s steady-as-she-goes for Cebu Pacific, which again is sitting among the world’s profit leaders. The Indian government has solicited bids for a 76% stake in Air India. Any taker would get the surprisingly-profitable Air India Express but would also have to assume a considerable amount of debt. Plus, the comeback continues at Kenya Airways. And lastly, will Berlin’s new airport ever open?

Airline Weekly Lounge Episode 94: Southern Discomfort

European low-cost carrier easyJet isn’t doing as well as competing LCCs Ryanair and Wizz Air. But make no mistake: easyJet is doing well. The airline’s 20% operating profit margin for the April-through-September period puts it among the most profitable carriers in the world at the moment. In the U.S., Delta and Alaska Airlines have been waging a battle for Seattle for years. And more recently, Delta and JetBlue are brawling in Boston. Is it possible all three airlines are making money at these highly contested airports? LATAM continues to rebound from the Brazilian recession. Avianca had a good summer despite labor strife and ending service to Venezuela. Finally, we close this episode looking at some growing and slowing airports.

European low-cost carrier easyJet isn’t doing as well as competing LCCs Ryanair and Wizz Air. But make no mistake: easyJet is doing well. The airline’s 20% operating profit margin for the April-through-September period puts it among the most profitable carriers in the world at the moment. In the U.S., Delta and Alaska Airlines have been waging a battle for Seattle for years. And more recently, Delta and JetBlue are brawling in Boston. Is it possible all three airlines are making money at these highly contested airports? LATAM continues to rebound from the Brazilian recession. Avianca had a good summer despite labor strife and ending service to Venezuela. Finally, we close this episode looking at some growing and slowing airports.

Airline Weekly Lounge Episode 86: An Easy Bet on Low-Cost Carriers

Rising costs aren’t keeping Delta down. Delta overcame a 33% year-over-year increase in fuel costs to produce more than $1.2b in net profits (excluding special items) and a handsome 16% quarterly operating margin. In fact, despite the increased costs, Delta almost matched last year’s 18% Q2 margin. And the airline thinks it can return to improving margins by year’s end. Meanwhile, it’s hard to imagine Norwegian’s results being more different. Norwegian chalked up a negative 3% operating profit margin, a ghastly result for the usually strong second quarter. JetBlue ordered CS300s—except now we’re calling them A220-300s. That deal surely made Airbus and its new partner Bombardier happy. In turn, Boeing is partnering with Embraer. What does this shakeup to the aircraft manufacturer space mean?

Rising costs aren’t keeping Delta down. Delta overcame a 33% year-over-year increase in fuel costs to produce more than $1.2b in net profits (excluding special items) and a handsome 16% quarterly operating margin. In fact, despite the increased costs, Delta almost matched last year’s 18% Q2 margin. And the airline thinks it can return to improving margins by year’s end. Meanwhile, it’s hard to imagine Norwegian’s results being more different. Norwegian chalked up a negative 3% operating profit margin, a ghastly result for the usually strong second quarter. JetBlue ordered CS300s—except now we’re calling them A220-300s. That deal surely made Airbus and its new partner Bombardier happy. In turn, Boeing is partnering with Embraer. What does this shakeup to the aircraft manufacturer space mean?

Airline Weekly Lounge Episode 101: Delta Holds Up Well

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. American’s quarter was marred by its mishandling of basic economy, plus it wasn’t helped by its domestic-heavy network. Alaska has been lacking the right product to take advantage of booming premium demand in the transcon market. Spirit, while still quite profitable, is learning to live in a world where big carriers now pay attention to it. Hawaiian couldn’t have been happy with its nine-point margin decline. Speaking of happy—that might describe United, which showed surprising resilience in Q2.

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. American’s quarter was marred by its mishandling of basic economy, plus it wasn’t helped by its domestic-heavy network. Alaska has been lacking the right product to take advantage of booming premium demand in the transcon market. Spirit, while still quite profitable, is learning to live in a world where big carriers now pay attention to it. Hawaiian couldn’t have been happy with its nine-point margin decline. Speaking of happy—that might describe United, which showed surprising resilience in Q2.

Airline Weekly Lounge Episode 102: U.S. Airlines Sing the Blues

Frontier Airlines has had one of the most topsy-turvy histories of any airline, and its first-quarter earnings report was no exception. Sporting a wild animal on each tail, the airline has been soaring in recent years. In 2017, Frontier had the seventh best operating profit margin in the world. But something happened in Q1 2018, as its margin was cut in half. Meanwhile, Air France/KLM searches for a CEO. Also, how important is it that United Airlines—by a wide margin—gets more revenue from Asia than Delta and American? Norwegian continues to lose money and remains, for the moment, without a buyer to bail it out. But at least Norwegian isn’t Fastjet, which notched a negative 55% operating profit margin in 2017.

Frontier Airlines has had one of the most topsy-turvy histories of any airline, and its first-quarter earnings report was no exception. Sporting a wild animal on each tail, the airline has been soaring in recent years. In 2017, Frontier had the seventh best operating profit margin in the world. But something happened in Q1 2018, as its margin was cut in half. Meanwhile, Air France/KLM searches for a CEO. Also, how important is it that United Airlines—by a wide margin—gets more revenue from Asia than Delta and American? Norwegian continues to lose money and remains, for the moment, without a buyer to bail it out. But at least Norwegian isn’t Fastjet, which notched a negative 55% operating profit margin in 2017.

Airline Weekly Lounge Episode 100: Frontier's Wild Ride

Alex Cruz

The Skift Airline Weekly Lounge returns with an exclusive interview with British Airways CEO Alex Cruz. Since taking over as CEO and chairman of British Airways in 2016, Cruz has endured his fair share of criticism over some of the changes he made to the airline, particularly with regards to food on short-haul flights. But Cruz, speaking at Skift Forum Europe in London on April 30, 2019, said the changes were necessary in turning the carrier into a more customer-focused airline as well as one that is much more financially stable. “When we started this new phase of British Airways, there were many decisions to be taken with regards to the direction of the company, and some of those decisions that were made early on were indeed probably less welcome than others,” Cruz said.

The Skift Airline Weekly Lounge returns with an exclusive interview with British Airways CEO Alex Cruz. Since taking over as <a href="http://mediacentre.britishairways.com/factsheets/details/86/Factsheets-3/26" rel="nofollow" target="_blank">CEO and chairman of British Airways in 2016</a>, Cruz has endured his fair share of criticism over some of the changes he made to the airline, particularly with <a href="https://www.independent.co.uk/travel/news-and-advice/british-airways-food-flights-menu-costs-latest-charge-short-haul-economy-class-a8095536.html" rel="nofollow" target="_blank">regards to food on short-haul flights.</a> But Cruz, speaking at Skift Forum Europe in London on April 30, 2019, said the changes were necessary in turning the carrier into a more customer-focused airline as well as one that is much more financially stable. “When we started this new phase of British Airways, there were many decisions to be taken with regards to the direction of the company, and some of those decisions that were made early on were indeed probably less welcome than others,” Cruz said.

Interview: British Airways CEO Alex Cruz

Delta’s 2017 profits were down slightly from the glory days of 2015 and 2016. But make no mistake: This airline is performing very well. Consider that fuel prices increased 23% in the fourth quarter, and the airline was still slightly more profitable in the quarter year over year. The transatlantic market is performing well. The Asian market is performing well. The South American market is performing better. And that’s all before you get to Atlanta, which is one of the most valuable pieces on the worldwide airline chessboard. For a little more color on Delta’s positioning around the globe, this episode includes an interview with Steve Sear, Delta’s President of International and Executive Vice President of Global Sales. Click here to subscribe to podcast. –Jason Cottrell Subscribe to Podcast | Listen Whenever: iTunes | Stitcher

Airline Weekly Lounge Episode 89: Delta’s Clear Skies

In this episode of the Skift Airline Weekly Lounge podcast, Skift Travel Senior Aviation Business Editor Brian Sumers and I discuss the interviews we did on stage at Skift Global Forum in New York City, Sept. 18–19. Air France/KLM CEO Ben Smith told us how he's trying to rationalize and simplify Air France's network (while leaving KLM largely alone). American Airlines Chief Financial Officer Derek Kerr promised the carrier would recover from a difficult summer. And Delta CEO Ed Bastian spoke about transforming the airline into a trusted global brand. Sumers and I chew on our conversations at Skift Global Forum and wonder just why Smith's favorite aircraft is the B747.  —Madhu Unnikrishnan, editor, Skift Airline Weekly

In this episode of the Skift Airline Weekly Lounge podcast, Skift Travel Senior Aviation Business Editor Brian Sumers and I discuss the interviews we did on stage at Skift Global Forum in New York City, Sept. 18–19. Air France/KLM CEO Ben Smith told us how he's trying to <a href="https://skift.com/2019/09/19/air-france-klm-ceo-opens-up-on-turnaround-efforts-amid-legacy-woes/" rel="nofollow" target="_blank">rationalize and simplify</a> Air France's network (while leaving KLM largely alone). American Airlines Chief Financial Officer Derek Kerr promised the carrier <a href="https://skift.com/2019/09/18/american-airlines-vows-to-rebound-after-brutal-summer-says-cfo/" rel="nofollow" target="_blank">would recover</a> from a difficult summer. And Delta CEO Ed Bastian spoke about transforming the airline into a <a href="https://skift.com/2019/09/18/technology-not-economics-is-keeping-delta-air-lines-from-offering-free-wi-fi/" rel="nofollow" target="_blank">trusted global brand</a>. Sumers and I chew on our conversations at Skift Global Forum and wonder just why Smith's favorite aircraft is the B747.  —Madhu Unnikrishnan, editor, Skift Airline Weekly

Airline Execs at Skift Global Forum

After pummeling each other for years, Icelandair and Wow Air agreed to a truce in the form of a merger. But the merger fell through. Now Wow Air may be finding comfort with serial airline investor Indigo Partners. What will that mean for both airlines? Aeroflot apparently finds comfort in being big. In fact, the Russian airline is looking to nearly double its fleet size in just five years. Meanwhile, Mexico’s airline industry nervously watches as it appears more and more likely that Mexico City’s one-third-built airport won’t be seen to fruition. What did Aegean do this summer? For one thing, it posted a Ryanair-like profit margin. Lastly, U.S. airlines are getting bullish about the fourth quarter.

After pummeling each other for years, Icelandair and Wow Air agreed to a truce in the form of a merger. But the merger fell through. Now Wow Air may be finding comfort with serial airline investor Indigo Partners. What will that mean for both airlines? Aeroflot apparently finds comfort in being big. In fact, the Russian airline is looking to nearly double its fleet size in just five years. Meanwhile, Mexico’s airline industry nervously watches as it appears more and more likely that Mexico City’s one-third-built airport won’t be seen to fruition. What did Aegean do this summer? For one thing, it posted a Ryanair-like profit margin. Lastly, U.S. airlines are getting bullish about the fourth quarter.

Airline Weekly Lounge Episode 111: Deal. No Deal. Deal?

The best podcast episodes about true crime. For any thrill seeking podcast listeners who just can't get enough of the captivating stories of murderers and criminals. This topic has all the best episodes from many different true crime podcasts.  Add episodes you're interested into your queue below!

Best True Crime Podcasts

The best podcast episodes on global issues affecting everyone. Covering topics such as the #metoo movement, climate change, the impact of technology and some of the biggest global issues facing us right now. For anyone interested in learning more about the world, and some of the issues we're facing, pick an episode below and start listening! Add episodes you're interested into your queue below!