Airline Weekly Lounge

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.

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