March 28, 2017
When is a $2 billion annual profit disappointing? Answer: When you’re a giant airline group like Lufthansa, and $2 billion amounts to a mere 5% operating margin—and that lackluster result comes despite fuel costs dropping 16% year over year. But there are a few signs of hope.
Meanwhile, American Airlines is purchasing a $200-million stake in China Southern. Frontier Airlines and Silver Airways are ending their short-lived Cuba service. And LATAM, still recovering from Brazil’s economic and currency collapse, is fighting two other battles—a cargo malaise and increased competition. Nonetheless, South America’s largest airline did enjoy improved annual profits year over year.
March 15, 2017
Once again we consider the ongoing demand problems in Turkey. The numbers are in, and they’re not pretty. Turkish Airlines posted a $300 million loss in 2016. Pegasus Airlines chipped another $50 million loss, a comparably bad number. But there are signs of hope. One of those signs could be the recent decline in oil prices. If this is the beginning of a downward trend, many—but not all—airlines around the world will rejoice, especially in the U.S. Pop quiz: What do the giant, mature airports Amsterdam and Seoul Inchon have in common? Answer: They’re both growing relatively fast. Why? Also, what does the upgauging trend mean for the A319-NEO and B737-MAX? And we close the show with a look at the weather—seriously. Click here to subscribe to podcast. –Jason Cottrell Subscribe to Podcast | Listen Whenever: iTunes | Stitcher