Skift Airline Weekly Lounge
Airline Weekly Lounge Episode 95: Cost Creep at Delta

Airline Weekly Lounge Episode 95: Cost Creep at Delta

April 17, 2018

For a second straight year, Delta’s operating profit margin has fallen year-over-year in the first quarter. The reason for the decline, once again, is rising costs. The good news: Rising revenues—from nearly every corner of Delta’s network—propelled the airline to a solid 8% operating profit margin. One of the rising costs is, of course, fuel.

Are fuel prices putting a damper on earnings overall? IAG seems interested in expanding its empire, having purchased a small stake in Norwegian and considering a full takeover. Lion Air, meanwhile, is purchasing planes… lots and lots of planes. In the U.S., Allegiant came under fire over safety concerns. Lastly, Frontier is adding 69 routes this month alone.

Airline Weekly Lounge Episode 94: Southern Discomfort

Airline Weekly Lounge Episode 94: Southern Discomfort

April 4, 2018

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?