June 17, 2018
Things haven’t gotten better in Mexico. Although Aeroméxico is at least coping better than its domestic competitors, all of which posted negative first-quarter margins in the double-digits. To make matters worse, construction of Mexico City’s much-needed new airport might be suspended as soon as July. North of the border, Delta and Southwest are seeing more cost pressures in the second quarter.
Lastly, America is getting a new airline called Moxy. Adding to the excitement is that the man behind the project, David Neeleman, is known for inventive business models such as JetBlue and Brazil’s Azul. Sure enough, from what we know, Moxy appears to have some unique qualities.
June 5, 2018
Despite a 29% year-over-year increase to its labor costs, Ryanair still posted a positive profit margin in the first quarter. Ryan’s eastern European counterpart, Wizz Air, meanwhile faced an even more daunting 43% rise in labor costs and handled it with equal aplomb. Scandinavian Airlines is plodding along, but so are a lot of other legacy carriers in Europe. For the moment, that’s okay.
Doing much less than okay is El Al, an airline suffering a big loss in its first quarter despite Tel Aviv enjoying terrific growth in tourism. In the U.S., Delta and United say they don’t fear high oil prices or low-cost longhaul carriers. Should they? Lastly, airBaltic looks for a suitor, and Aeroflot takes a step backward.