Skift Airline Weekly Lounge
Airline Weekly Lounge Episode 73: Southern Comfort

Airline Weekly Lounge Episode 73: Southern Comfort

May 24, 2017

Having just weathered a once-in-a-generation economic crisis, the airlines of South America just enjoyed a smooth first quarter. All the major South American airlines profited, and some even posted margins to brag about. But in Mexico, things were miserable. All four major carriers there lost money in the quarter, and some did so in a ghastly fashion.

In fact, Volaris, who’s been a leader of the pack in recent years, is the country’s biggest loser so far in 2017. Meanwhile, Aeromexico managed well under the circumstances. Two culprits for the Mexican malaise were the pummeled peso and Easter hopping over to the second quarter this year. Plus, we talk about the effect new aircraft are having on airlines and how profit sharing is moving the industry from a fixed-cost business at least a few inches closer to a variable-cost industry.

Airline Weekly Lounge Episode 72: Good Is Good Enough

Airline Weekly Lounge Episode 72: Good Is Good Enough

May 10, 2017

The earnings picture for U.S. carriers in the first quarter was much worse than last year’s Q1—but that doesn’t mean it wasn’t good. It was indeed good—and good is good. Their success comes while wrestling with rising labor and fuel costs, and fickle demand.

Allegiant continues to lead, and with confidence surely brimming, it’s buying new planes and slowing growth. American is benefiting from improving conditions in South American and at its Dallas-Fort Worth hub. Despite a big profit decline, Southwest posted a double-digit profit margin. JetBlue had a particularly bad fuel bill. Spirit is enduring an operational mess. And Alaska did just fine despite some bad weather.