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?