Skift Airline Weekly Lounge

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

Gordon Smith and Jay Shabat crunch the big numbers to reveal which U.S. carriers are in expansion mode in the first quarter of 2025 and which operators are shrinking year-on-year.  Takeaways The US airline industry is seeing a modest capacity increase of 1% for Q1 2025. Delta Airlines is focusing growth on mid-continent hubs like Atlanta and Minneapolis. United Airlines is experiencing the fastest growth among major carriers, with a 5% increase in capacity. American Airlines is slowing down growth, particularly at major hubs like LAX and JFK. Southwest Airlines is reducing capacity by 4% as part of a strategy to return to profitability. Alaska Airlines is growing modestly at 2%, focusing on secondary markets. JetBlue is shrinking overall by 3%, with significant cuts in Los Angeles and Newark. Spirit Airlines is undergoing restructuring due to bankruptcy, leading to drastic capacity cuts. Frontier Airlines is capitalizing on Spirit's struggles, with a 9% increase in capacity. The competitive landsca

In this week’s episode, Gordon Smith and Jay Shabat turn their attention to the year ahead. Going region-by-region, the pair share the emerging stories that are on their radar for 2025 and beyond.  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 week’s episode, Gordon Smith and Jay Shabat are back for the second half of their 2024 trends countdown. Hot topics include the impact of a strong U.S. Dollar and chronic supply chain issues. 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 week’s episode, Gordon Smith and Jay Shabat discuss the biggest trends to have shaped the airline sector in 2024. From continued consolidation to a horror show for U.S. LCCs, we reflect on a fascinating year for the industry. 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 week’s episode, Gordon Smith and Jay Shabat are joined by Skift airlines reporter Meghna Maharishi to discuss why ancillary fees are coming under pressure from lawmakers in Washington. In part two, Gordon and Jay turn their attention to Taiwan’s booming airline market and explore the key factors behind its recent success.  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 week's show, Airline Weekly's Gordon Smith is in conversation with Sean Donohue, CEO of Dallas-Fort Worth International Airport. This wide-ranging discussion includes insights into major terminal overhauls, attracting new airline partners, and ensuring operational resilience. 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.

Recorded at the Skift Global Forum East held in Dubai earlier this month, AirAsia CEO Tony Fernandes speaks to Skift Asia Editor Peden Bhutia. In a wide-ranging conversation, the pair discuss everything from a second Trump presidency to how Fernandes handled the aftermath of a deadly plane crash. Key Takeaways: Merger and Operational Adaptations: The merger of AirAsia and AirAsia X simplifies operations and capitalizes on the Airbus A321 LR and XLR, which reduce the need for wide-body aircraft. This strategy aligns with evolving demand and efficiency goals post-COVID-19. Resilience and Transparency: Fernandes highlights his commitment to transparency, particularly during crises like the pandemic and the loss of an aircraft. He sees open communication as critical to maintaining trust with customers, staff, and stakeholders, even when faced with criticism or financial challenges. Vision for Expansion and Legacy: Capital A is leveraging its resilience to expand into complementary sectors like logistics and finte

In this special episode, Gordon Smith is in conversation with American Airlines CEO, Robert Isom. Recorded at the Skift Aviation Forum in Dallas, the pair discuss many of the thorniest topics impacting the industry. From perspectives on a second Trump presidency to the challenges at Boeing - you can't afford to miss these exclusive insights from one of the biggest names in U.S. aviation. Key Takeaways Focus on Certainty and Collaboration: American Airlines CEO Robert Isom emphasized the importance of certainty in the airline industry and expressed optimism about working with government administrations to prioritize aviation investments, visa facilitation, and sustainability efforts. Record Holiday Performance and Demand: American Airlines achieved its busiest Thanksgiving in 2023 with record-low cancellations and strong demand. The company anticipates robust demand and reliability for the 2024 holiday season, supported by operational preparedness and system resilience. Labor Relations and Contracts: The airli

Description  In this reaction podcast, Airline Weekly's Jay Shabat discusses Spirit Airlines' Chapter 11 bankruptcy filing this morning, the factors leading to it, and its implications. Unlike traditional airline bankruptcies, Spirit's case involves a pre-packaged restructuring plan aimed at addressing its financial troubles quickly. Jay delves into Spirit’s historical reliance on an ultra-low-cost carrier model, challenges post-pandemic, and competitive pressures that have compounded its financial woes. He also highlights the broader implications of this bankruptcy on shareholders, employees, and the aviation industry. Key Takeaways  Pre-Packaged Bankruptcy Strategy: Spirit Airlines' Chapter 11 bankruptcy is structured to quickly address financial challenges, including converting debt to equity and securing additional funding. Operations will continue unaffected.  Contributing Factors: Persistent losses, competitive pressures, operational disruptions (e.g., engine issues), and inflationary costs have severel

This week we have an extra special treat for you. Recorded at the Skift Aviation Forum, held in Dallas, Texas on November 12th, we're in conversation with the IATA Director General Willie Walsh. Walsh and host Gordon Smith discuss pivotal topics in the aviation industry, including challenges for low-cost carriers, geopolitical concerns, the pursuit of sustainability, and the evolving economic landscape of airlines. Walsh offers insights into the resilience of the industry, the transition to sustainable aviation fuel (SAF), and the implications of regulatory and geopolitical decisions. Key Takeaways Low-Cost Carrier Engagement with IATA: Despite the historical perception of IATA as primarily serving legacy carriers, low-cost airlines are showing increased interest in joining. Walsh highlights the advantages IATA offers, such as settlement systems and commercial services, which are increasingly relevant to these carriers. Geopolitical Challenges and Aviation Safety: Walsh addresses ongoing issues like the suspe

In this week's episode, Gordon Smith and Jay Shabat preview the upcoming Skift Aviation Forum, being held in Dallas on November 12. From overcapacity to sustainability, the pair explore some of the most important themes that are likely to shape discussions at the event. For more information on the Forum visit live.skift.com. This episode is presented by American Airlines. Key Takeaways: DFW Market Significance: The Dallas-Fort Worth market is a critical and rapidly growing hub for airlines. DFW’s metro area is close to surpassing Chicago as the third-largest in the United States, making it a key center for major players including American Airlines and Southwest. Challenges for Airlines and Sustainability Costs: Looking ahead to the Skift Aviation Forum, we examine recent comments by Willie Walsh, IATA’s Director General. He argues that airlines should not bear the full cost of the transition to Sustainable Aviation Fuel (SAF) and suggests some expenses will likely be passed to passengers. Abra Group and Latin

Presented by American Airlines In this special episode, Gordon Smith and Jay Shabat discuss the key takeaways from LATAM's investor day event in New York. The pair explore how the company's turbulent history has influenced its current success. We also learn about the continued challenges facing the group as it sets ambitious targets for 2025 and beyond. Key Takeaways: LATAM Airlines' Origins and Challenges: LATAM began as LAN in Chile, thriving in a difficult South American airline market due to Chile’s developed economy, particularly its copper wealth. Over time, LAN expanded by forming joint ventures across South America, but its 2010 merger with Brazil's Tam, aimed at increasing scale, led to operational challenges and weaker profit margins until 2018-2019. Post-COVID Restructuring and Success: After filing for bankruptcy during COVID, LATAM underwent significant restructuring, which improved its financial performance. By 2023, the airline achieved an 11% operating margin, surpassing its pre-merger perfo

Presented by American Airlines In this week's episode Gordon Smith and Jay Shabat provide an early status update on Q3 earnings season. With Delta on the back foot after the CrowdStrike chaos and Olympic disruption, United is eyeing the top spot. The pair also discuss the latest financials from Virgin Australia and ask what could be next for the carrier. Key Takeaways: Upcoming Skift Aviation Forum  Hosts Gordon and Jay discuss the upcoming Skift Aviation Forum on November 12th in Dallas. The event will feature a star-studded lineup of airline executives, including CEOs from major carriers like American Airlines and Southwest. Visit live.skift.com for tickets and further information. Delta’s Q3 Earnings: Challenges and Setbacks  The conversation shifts to Delta's Q3 earnings, which were slightly weaker than expected, with a 9% operating margin. The airline was negatively impacted by a software issue with CrowdStrike, costing them about 2 percentage points in margin. Additionally, they lost around $100 millio

Presented by American Airlines In this week's show, Gordon Smith and Jay Shabat explain the key elements to watch as third-quarter earnings season begins. The pair discuss all-important factors including aircraft supply shortages, oversupply in U.S. markets, and a possible resurgence in corporate travel. Key Takeaways: Q3 Earnings Preview: Delta is set to kick off Q3 earnings season this week with valuable insights into operational efficiency and profitability. The company faces heightened expectations following a year of travel recovery, but there are concerns about overcapacity. Investors are watching closely to see if Delta can maintain its industry-leading margins and sustain revenue growth from both business and leisure travelers. U.S. Airline Industry Trends: The broader U.S. airline industry is facing moderate headwinds, with airlines grappling with excess domestic capacity. This is putting pressure on margins as carriers strive to remain profitable in a competitive environment. The industry's over-e

Presented by American Airlines In this week’s episode, Jay Shabat and Meghna Maharishi discuss Southwest's latest turnaround plan. They also look at the current state of the transatlantic market connecting the U.S. with Europe.  Key Takeaways Southwest Airlines' Strategic Changes: Southwest plans to implement premium seating, red-eye flights, and cut back services in some areas like Atlanta to improve profitability. The airline also plans to monetize aircraft delivery delays and expects a positive outcome despite pressure from activist investors like Elliott Management, which is advocating for leadership changes. Execution of the Plan is Crucial: While Southwest's strategy received a positive reception from investors, the main challenge lies in how effectively the airline can execute these changes within the expected timeframe, with some analysts expressing skepticism. Southwest’s Strong Historical Performance: Despite recent financial challenges, Southwest has had a solid historical track record, especially

Presented by American Airlines In this week's episode, Gordon Smith and Jay Shabat discuss the final results from Airline Weekly's Earnings Scoreboard for Q2 2024. From household names to niche regional players, we examine the carriers that had the strongest performance in the all-important second quarter. Connect with Skift 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 travel industry.

Presented by American Airlines In this special episode, Gordon Smith and Jay Shabat are in New York City for the Skift Global Forum. Recorded just minutes after stepping off stage, the pair debrief following a wide-ranging discussion with United Airlines Chief Commercial Officer Andrew Nocella. From Boeing strikes to overtourism we explore the big takeaways. Connect with Skift 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 travel industry.

Presented by American Airlines In part one, Gordon Smith and Jay Shabat examine the huge changes taking place across Southwest Airlines' network and reveal the big winners and losers as the LCC's route map evolves. In part two, we discuss the key trends to watch for the coming season in the U.S. airline sector.  Episode Summary Southwest Airlines Leadership CEO Exit: Gary Kelly, former CEO and chairman, to step down amid pressure from Elliott Management, a hostile investor. Current Leadership: CEO Bob Jordan retains the board’s confidence; no imminent changes announced. Upcoming milestones: Investor Day: September 26, 2024. Board meeting: November 2024. Southwest’s Network Cuts Significant capacity reduction, including a 1% overall decrease in 2024. Q4 2024 will see an 8% reduction in seat capacity. Capacity cuts attributed to Boeing delays and internal decisions to improve financials. Southwest’s Top Airports Busiest Airports: Denver (up 87% in 10 years), Las Vegas, Baltimore, Chicago (Midway), and Dallas