Skift Airline Weekly Lounge

In this episode of the Airline Weekly Lounge, hosts Gordon Smith and Jay Shabat delve into the latest financial results of Ryanair, discussing its operational strategies, challenges, and future outlook. They also explore the significant aircraft orders placed by Qatar Airways, analyzing the implications of these deals in the context of the current aviation market and geopolitical factors. The conversation highlights the contrasting business models of low-cost carriers in Europe and the U.S., as well as the resilience of airlines in navigating economic uncertainties. Takeaways Ryanair's latest financial results show a negative operating margin due to seasonal factors. Michael O'Leary's quotes reflect his candid approach to airline management and market dynamics. Ryanair's summer outlook appears positive, with strong forward bookings and constrained supply. Fuel prices are down, but Ryanair is heavily hedged against fluctuations. Qatar Airways has placed a significant order for Boeing aircraft,

In this week's show, Gordon Smith and Jay Shabat preview the latest financial results from Singapore Airlines, traditionally one of the world's most profitable long-haul operators. The pair also discuss highlights from an airline leadership conference and the latest Q1 earnings from global carriers. Connect with Airline WeeklyLinkedIn: https://www.linkedin.com/company/airline-weekly/X: https://x.com/Airline_Weekly/Facebook: https://www.facebook.com/airlineweekly/Instagram: https://www.instagram.com/skiftnews/WhatsApp: https://whatsapp.com/channel/0029VaAL375LikgIXmNPYQ0L/Subscribe to @SkiftNews and never miss an update from the airline and travel industries.

In this episode of the Airline Weekly Lounge, hosts Gordon Smith and Jay Shabat take listeners on a global tour of the airline industry's Q1 earnings results. They discuss the contrasting fortunes of airlines across Europe, North America, Latin America, and Asia, highlighting optimism amidst challenges, mixed results, and shifts in consumer behavior. The conversation emphasizes the impact of oil prices, demand trends, and the overall uncertainty in the airline market as they look ahead to the summer season and beyond. Takeaways Lufthansa and Air France are optimistic despite negative Q1 results. First quarter is typically weak for European airlines. Oil prices dropping significantly is beneficial for airlines. Demand for premium travel remains strong. JetBlue and Frontier faced significant challenges in Q1. Sun Country Airlines reported a strong operating margin. Mexican low-cost carriers are struggling due to changing consumer behavior. Latam Airlines raised their profit guidance am

In this episode of the Airline Weekly Lounge, Jay and Meghna discuss the recent Q1 earnings reports from major airlines, highlighting the mixed results and economic concerns affecting the industry. They delve into the challenges faced by American Airlines compared to its rivals, the importance of premium travel, and the potential impact of economic policies on consumer spending. The conversation then shifts to innovations in aviation, including flying cars and supersonic jets, exploring the skepticism surrounding these technologies and the regulatory hurdles they face. Takeaways American Airlines reported losses while Delta and United made profits. Economic concerns are affecting domestic travel demand. Premium travel remains strong despite economic uncertainty. Flying cars and supersonic jets are generating significant investment. Regulatory hurdles pose challenges for aviation innovations. Airlines are bracing for potential economic downturns. Consumer spending patterns may shift due

In this episode, Gordon and Jay delve into the latest financials from Korean Air, highlighting their Q1 earnings, the integration with Asiana Airlines, and the dynamics of the cargo business amidst global trade uncertainties. They also discuss the challenges faced by Chinese airlines, including their financial struggles and the impact of international relations on aircraft orders and operations. The conversation provides insights into the evolving landscape of the aviation industry in Asia. Go deeper with the cover story of the latest issue of Airline Weekly. Takeaways Korean Air reported a nine percent operating margin for Q1 2025. Demand for passenger travel remains strong, particularly within Asia. Korean Air's cargo business is significant, but faces challenges from tariffs. The integration with Asiana Airlines is ongoing and complex. Chinese airlines collectively lost nearly a billion dollars in 2024. China Southern Airlines was the only major Chinese carrier to report a profit. Domestic travel

In this episode of the Airline Weekly Lounge, hosts Gordon Smith and Jay Shabat discuss Delta Airlines' recent earnings report, highlighting a solid operating margin and the impact of tariffs and economic uncertainty on the airline industry. They explore the strength of Delta's loyalty program and the demographic trends influencing travel demand, particularly among baby boomers. The conversation also touches on the competitive landscape with United Airlines and the broader implications of fluctuating oil prices on airline profitability. Go deeper with the cover story of the latest issue of Airline Weekly. Takeaways Delta reported a 4.6% operating margin for Q1. Demand for premium travel is holding strong despite economic concerns. Corporate travel has seen a decline compared to previous years. Tariffs are creating uncertainty in the airline industry. Delta's loyalty program is a significant revenue driver. Baby boomers are a key demographic for transatlantic travel. Delta's balance sheet is improving

In this episode of the Airline Weekly Lounge, hosts Gordon Smith and Jay Shabbat discuss significant CEO departures in the airline industry, particularly focusing on Spirit Airlines and AirBaltic. They analyze the implications of these changes amidst economic uncertainty, including the impact of tariffs and fluctuating oil prices on airline operations and travel demand. The conversation shifts to the Canadian airline market, exploring how recent economic developments and tariffs are affecting travel patterns and airline strategies in Canada. Takeaways Martin Gauss has been dismissed as CEO of AirBaltic after 13 years. Spirit Airlines faces challenges post-bankruptcy with leadership changes. Economic uncertainty is impacting corporate and leisure travel demand. Oil prices dropping could benefit airlines amidst economic turmoil. Air Canada is seeing a 10% decline in US bookings from Canada. Tariffs on US imports are significantly affecting the Canadian economy. Porter Airlines is increasing US capacity

In this episode of the Airline Weekly Lounge, host Gordon Smith speaks with Tony Douglas, CEO of Riyadh Air, about the launch of the new national carrier for Saudi Arabia. They discuss the airline's ambitious plans, including achieving an Air Operator Certificate, the importance of digital transformation in enhancing guest experience, and the strategic partnerships being formed with other airlines. Tony shares insights into the fleet development, including orders for Boeing and Airbus aircraft, and the significance of loyalty programs in building customer engagement. The conversation highlights the exciting future of Riyadh Air as it prepares to take to the skies. Takeaways Riyadh Air aims to connect over 100 cities in five years. The airline has no legacy, allowing for innovative digital solutions. Achieving the AOC is a rigorous process ensuring compliance and capability. Digital transformation is key to enhancing guest experience. Hyper-personalization will cater to individual traveler preferences.

In this episode of the Airline Weekly Lounge, hosts Gordon Smith and Jay Shabbat discuss insights from the Skift India Forum, focusing on interviews with Campbell Wilson, CEO of Air India, and Peter Elbers, CEO of Indigo Airlines. They explore the transformation of Air India under Tata's ownership, the competitive landscape of the Indian airline market, and the impressive growth of Indigo. The conversation also highlights Pegasus Airlines in Turkey, discussing its profitability and expansion plans. The hosts emphasize the dynamic nature of the airline industry in India and Turkey, showcasing the potential for continued growth and innovation. Takeaways Air India is undergoing a significant transformation under Tata's ownership. Indigo Airlines is a major player in the Indian aviation market. Pegasus Airlines has shown remarkable profitability post-pandemic. The Indian airline market is experiencing unprecedented growth. Air India's ambitious fleet expansion includes 500 new aircraft orders. Indigo's foc

In this week’s episode, Gordon and Jay delve into the Caribbean airline market, highlighting key players like American Airlines and the emerging low-cost carrier Aerojet from the Dominican Republic. They discuss the competitive landscape, including JetBlue's dominance in the New York to Santo Domingo route. The conversation then shifts to Lufthansa, examining its recent financial struggles, the impact of Germany's economic challenges, and the delays in acquiring new aircraft. The hosts speculate on the future of Lufthansa as it attempts to improve profitability and navigate a complex airline environment. Takeaways The Caribbean airline market is dynamic and competitive. American Airlines is the largest player in the Caribbean. JetBlue is a significant competitor in the New York to Santo Domingo route. Aerojet is a new low-cost carrier from the Dominican Republic. Lufthansa's mainline lost money in 2024 despite strong demand. Germany's economic struggles have impacted Lufthansa's performance. Lufthansa

In this episode of the Airline Weekly Lounge, hosts Gordon Smith and Jay Shabbitt delve into the latest earnings season results for airlines globally. They discuss the impact of fluctuating fuel prices, analyze the performance of various airlines in Q4, and highlight the winners and losers in the industry. The conversation also covers the broader economic context affecting airline profitability and provides insights into future trends and expectations for the airline industry. Takeaways Fuel prices are trending down, which could benefit airlines. Thai Airways has made a remarkable turnaround, achieving high margins. Demand for air travel remains strong, especially in premium segments. US airlines like Delta and United are performing well due to premium demand. Air France and KLM are facing challenges despite some recovery in demand. Aeromexico's bankruptcy has led to a successful turnaround. The economic landscape is shifting, impacting airline performance. Airlines are adjusting their strategies in

In this episode of the Airline Weekly Lounge, host Gordon Smith, along with guests Jay Shabbat and Meghna Maharishi, discuss the significant strategic changes at Southwest Airlines. The conversation covers the airline's decision to implement bag fees, the introduction of a basic economy fare, and the overall impact of these changes on the brand and customer loyalty. The discussion also touches on the competitive landscape of the airline industry, market reactions, and potential implications for mergers and acquisitions. The episode concludes with reflections on the historical context of these changes and what they mean for the future of Southwest Airlines. Takeaways Southwest Airlines is undergoing a radical strategic change. The elimination of the free bag policy marks a significant shift. Elliott Management's influence is evident in Southwest's new policies. The introduction of a basic economy fare aligns Southwest with industry norms. Market reactions to Southwest's changes have been mixed but gener

In this week's episode, Gordon and Jay discuss the latest financial results and operational strategies of British Airways and Qantas. They delve into British Airways' impressive earnings, particularly in the North Atlantic market, and the implications of potential Heathrow expansion. The conversation then shifts to Qantas, highlighting its strong domestic performance and the challenges it faces in international markets, including competition and currency fluctuations. The episode concludes with insights into Qantas' ambitious Project Sunrise, aiming for nonstop flights to major cities by 2027. Takeaways British Airways reported strong earnings, particularly in Q4. The North Atlantic market is crucial for British Airways' success. 30% of short-haul passengers on British Airways connect to long-haul flights. Heathrow's expansion is a contentious issue for airlines. BA Holidays has become a significant profit center for British Airways. Qantas reported a solid 12% operating margin in its latest results. T

This week hosts Gordon Smith and Jay Shabat discuss the upcoming Skift India Forum, focusing on major airline players like Air India and Indigo. They explore Singapore Airlines' strategic investment in Air India and the implications of fleet expansions for Indigo. The conversation shifts to insights from the U.S. airline industry, highlighting trends in consolidation and the future of low-cost carriers. The hosts provide a comprehensive overview of the evolving landscape of the airline industry, emphasizing the significance of market dynamics and strategic partnerships. The CEOs of both Air India and Indigo will be on stage at Skift India Forum. Learn more here: https://live.skift.com/skift-india-forum/ Key Takeaways Air India and Indigo are pivotal players in the Indian aviation market. Singapore Airlines has a significant stake in the newly merged Air India. Indigo is expanding its fleet with new 787 Dreamliners. The U.S. airline industry is experiencing a consolidation trend. Low-cost carriers face ch

In this week's episode, Gordon Smith is joined by Airline Weekly's Jay Shabat and Skift airlines reporter Meghna Maharishi. Part one is focused on the big picture trends as U.S. earnings season draws to a close. In part two, the trio discuss the first involuntary layoffs in Southwest history and assess their wider impact on the airline.  Read the latest issue of Airline Weekly. Takeaways The US airline industry saw a collective operating profit margin of 9% in Q4. Southwest Airlines announced layoffs affecting 15% of its corporate workforce. Premium travel and international routes are driving growth for major carriers. JetBlue faced challenges with disappointing earnings despite strategic changes. Fuel prices significantly influenced airline earnings in Q4. Corporate travel demand is rebounding, benefiting major airlines. Southwest's layoffs mark a significant shift in its corporate culture. The performance of low-cost carriers varied, with some showing signs of recovery. Spirit Airlines' bankruptcy

In this episode of the Airline Weekly Lounge, hosts Gordon Smith and Jay Shabat delve into the current state of Japan Airlines and British Airways. They explore Japan Airlines' historical performance, recent financial trends, and the challenges it faces in a competitive market. The discussion then shifts to British Airways' recent changes to its loyalty program, which have sparked significant public reaction. The hosts analyze the implications of these changes and the competitive landscape between British Airways and Virgin Atlantic, concluding with insights into the future of both airlines. Read the latest issue of Airline Weekly. Takeaways Japan Airlines has experienced a decline in operating margins over the years. The airline's profitability peaked in 2012, making it the most profitable airline globally at that time. The Hawaii-Japan market was a significant revenue source for JAL, which has diminished post-pandemic. North America has become a strong market for Japan Airlines, contributing to its rece

In this episode of the Airline Weekly Lounge, hosts Gordon Smith and Jay Shabat delve into the potential merger between Frontier Airlines and Spirit Airlines. They discuss the historical context of their relationship, the current status of Spirit's bankruptcy, and Frontier's renewed offer. The conversation explores the implications of a merger, including potential synergies and market power, while also addressing the challenges faced by low-cost carriers in the current economic climate. Additionally, they touch on rumors surrounding United Airlines and JetBlue, providing insights into the broader landscape of airline mergers and acquisitions. Takeaways The potential merger between Frontier and Spirit could reshape the U.S. airline industry. Spirit's bankruptcy is a unique case, focusing on debt reduction rather than traditional restructuring. Frontier's recent offer to Spirit was deemed insufficient by Spirit's management. Airline mergers historically have a strong track record of success in the U.S. The

Note: This episode was recorded prior to the American Eagle collision with a military helicopter on January 29, 2025. In this episode of the Airline Weekly Lounge, hosts Jay Shabat and Meghna Maharishi analyze the financial performance and strategic direction of American Airlines and Breeze Airways. American Airlines, despite improving its operating margin to 8% in Q4 2024, continues to lag behind United and Delta, facing challenges with international growth, fleet limitations, and regional jet reliance. Meanwhile, Breeze Airways, a young ultra-low-cost carrier, has reported its first profitable quarter, leveraging a premium product strategy and expansion into underserved markets. The discussion highlights American’s struggles to compete globally and Breeze’s progress toward sustainability in the low-cost space. With key insights on fleet choices, network expansion, and industry trends, this episode offers a compelling look into the evolving U.S. airline landscape. Seven Key Takeaways: American Airlines' Q4

In this episode of the Airline Weekly Lounge, hosts Gordon Smith and Jay Shabbat discuss significant developments in the airline industry, focusing on a potential mega merger in Brazil involving Azul and Gol, and the acquisition of ITA Airways by the Lufthansa Group. They explore the implications of these mergers on competition, market dynamics, and the challenges faced by low-cost carriers in South America. The conversation also delves into the historical context of airline operations in Italy and the strategic positioning of Lufthansa in the European market. Connect with Airline Weekly LinkedIn: https://www.linkedin.com/company/airline-weekly/ X: https://x.com/Airline_Weekly/ Facebook: https://www.facebook.com/airlineweekly/ Instagram: https://www.instagram.com/skiftnews/ WhatsApp: https://whatsapp.com/channel/0029VaAL375LikgIXmNPYQ0L/ Subscribe to @SkiftNews and never miss an update from the airline and travel industries.

In this episode, Gordon and Jay discuss the current state of the Egyptian aviation scene, highlighting the booming tourism sector despite regional unrest. They explore the factors contributing to Egypt's tourism success, including its geographical advantages, affordability, and the influx of Russian tourists. The conversation then shifts to European air capacity trends, examining the disparities in growth among various countries and the impact of economic conditions on the airline industry. Takeaways Egypt's tourism sector welcomed 15.7 million visitors last year, an all-time high. Geopolitically, Egypt is well-positioned as a crossroads for tourism. The devaluation of the Egyptian pound has made travel to Egypt more affordable for Europeans. Russian tourists have significantly increased their visits to Egypt since the Ukraine conflict. Egypt Air faces challenges competing with international airlines but plays a crucial role in tourism. The majority of visitors to Egypt travel on package tours, indicat