Skift Airline Weekly Lounge

Delta Air Lines is making a play for more premium passengers in Los Angeles. Our reporter Brian Sumers took a field trip to LAX to talk to Delta leaders to see what the airline thinks sets it apart at the country's second-largest market. Then, Brian and Madhu Unnikrishnan use the "garden center index" to gauge how far the travel recovery has come.

Russia's invasion of Ukraine initially sent oil markets into a spiral. Prices may have come back down to earth, but oil remains volatile. Yet, U.S. airline executives aren't terribly concerned. More pressing is how to hire enough pilots to operate flights. Edward "Ned" Russell and Madhu Unnikrishnan report on what they learned at a recent industry conference and discuss which airlines plan to add or trim capacity this summer.

How does a country that spans 11 time zones function without long-haul aircraft? That is among the questions Russia Edward "Ned" Russell and Madhu Unnikrishnan consider in this week's episode. Russia's invasion of Ukraine continues to roil the airline and aerospace industries, as lessors write off their assets in the country and a growing list of companies say they no longer will support Russia's airlines. Meanwhile, the war's economic effects are only now beginning to come into focus. And Ned learns why edible oils are critical to the the world's economy.

In this week's episode, Edward "Ned" Russell and Madhu Unnikrishnan break down the many ways the Ukraine war will affect global aviation. Will lessors repossess jets by March 28? How will airlines reroute their polar flights? This global crisis has the potential to set aviation and aerospace back years. After the break, Madhu and Ned turn their attention to the growing U.S. pilot shortage and what that may mean for airline recovery.

This week, Accenture's Emily Weiss, global travel lead, and Scott Davidson, managing director-travel industry, talk to host Madhu Unnikrishnan about how different business travel may look when it returns. If the pandemic has taught the travel industry anything it's the "art of the possible," Weiss noted. Will digital nomads offset the slow return of business travel for airlines? And just how promising are eVTOLs in solving the urban mobility conundrum? Listen to this week's episode to find out.

Big news in the U.S. ultra-low-cost-carrier market this week, as Spirit and Frontier announced their plans to merge. Meanwhile, Allegiant's long-serving CEO Maury Gallagher, who helmed one of the most profitable airlines in the world, announced his retirement. Madhu Unnikrishnan and Edward "Ned" Russell. discuss the hurdles ahead for the merger, why Gallagher's retirement is significant, as well as why India's IndiGo is not concerned about a revitalized Air India.

Boeing hinted it would launch a new aircraft, and it did: The 777-8F, a freighter variant of its 777X program. Launch customer Qatar Airways put in an order for up to 50 of the new aircraft. Meanwhile, Ryanair's normally bullish CEO Michael O'Leary is less confident about summer demand. And network changes at the discounter make us wonder where the airline will put all its new Boeing 737 Maxes, or as Ryanair calls them "Gamechangers." Madhu Unnikrishnan and Edward "Ned" Russell ask why Ryanair is still trying to make "fetch" happen.

Cathay Pacific is struggling under new travel restrictions from the Hong Kong government, and the lack of any significant support from the government means it’s back in the red. Hosts Edward “Ned” Russell and Madhu Unnikrishnan also discuss cargo’s continued growth in 2021, and Airbus’ plan to launch a new cargo carrier with its bulbous Belugas, and they wrap with the throughline from the U.S. Big 3’s results.

The rollout of 5G wireless technology threatened major disruptions to the U.S. air transport system until it didn’t, in a crisis that J.P. Morgan analyst Jamie Baker likened to Y2K. Hosts Madhu Unnikrishnan and Edward “Ned” Russell also discuss the pilot shortage, and what they expected from American Airlines and United Airlines 2021 results.

Airbus and Boeing have split the commercial aircraft market for a while, but analysts say Boeing could become the junior partner if it doesn't come up with something for the middle of the market. Hosts Madhu Unnikrishnan and Edward "Ned" Russell chew on Boeing's options and discuss Airbus's rather good 2021.

It should have been a great holiday season for the U.S. industry, with bookings approaching 2019 levels, but a combination of Omicron-related crew shortages and terrible weather forced airlines to cancel thousands of flights. Edward Russell and Madhu Unnikrishnan dig into what happened and discuss the FAA's spat with the Commerce Department over 5G networks.

Who is Robert Isom? Madhu and Ned discuss American Airlines' new CEO, and recount retiring CEO Doug Parker’s long career. Also, Southwest Airlines is cautious for 2022, while Azul charges ahead with the bulls.

This week Edward Russell and Madhu Unnikrishnan mull the new Omicron variant, and what impact it may — or may not — have on the airline recovery. Also, how EasyJet and SAS did during their 2021 fiscal years (hint: Lots of red), and the busy, yet uneventful, Thanksgiving holiday travel week in the U.S.

Like many airline chiefs, Doug Parker is “bullish” on the future, particularly after a surge in demand for transatlantic flights after the travel ban lifted on Nov. 8. But American Airlines is poised to begin 2022 as a larger airline — despite labor woes. Speaking at Skift Aviation Forum on November 17, 2021, Parker said business travel will return to 2019 levels, at some point. Listen now for the full interview with Skift Airline Weekly Editor Madhu Unnikrishnan.  Read more coverage of the aviation industry at airlineweekly.com

"We will win customers on quality,” Kirby said at the Skift Aviation Forumon November 17, 2021. And he had plenty of examples quality improvements to cite: The addition of premium-heavy “high-J” Boeing 767-300ERs that fly to Europe, the Bombardier CRJ-550 that met pilot contract rules while bringing a dual-class product to smaller cities, and a return of in-seat entertainment screens to its domestic mainline narrow-body fleet to name a few. And, while further out, United is investing in new spaces in Denver and Newark, and possibly in Washington, D.C. Listen now for the full interview with Skift contributor Brian Sumers.  Read more coverage of the airlines industry at skift.com/airlines

This week Edward Russell and Madhu Unnikrishnan chew over why optimism reigns among airline CEOs, who believe the third quarter was the inflection point, and now the recovery will be more real. CEOs say, of course, warn that no one knows how Covid-19 will play out, but they're bullish on next year. Next, Madhu and Ned discuss delivery delays at Boeing and whether Airbus will face similar problems when it ramps up production over the next couple of years. 

This week in the 'Lounge, Ned and Madhu discuss the U.S. reopening for vaccinated travelers and what that means for airlines. But what caught their attention was the strong rebound Brazil's airlines have made. After a terrible second quarter marked by devastating Covid wave, Brazil's airlines are reaping the benefits of the country's strong and widespread vaccination program. Finally, Ned and Madhu mourn the Eastern Shuttle, which American is finally ending, and wonder where they can watch "Love on the Eastern Shuttle," a long-forgotten movie about the route.

Ned Russell and Madhu Unnikrishnan make the water jump across the Atlantic this week, where Air France-KLM, Lufthansa, and Ryanair reported results. Optimism abounds for 2022, and competition is heating up, with Ryanair playing offense and Lufthansa defense. And in South America, Azul has its eyes on a big prize: Latam Airlines Group.

Earnings season continues, with JetBlue, Hawaiian, and Spirit rounding out the U.S. carriers. Once again, all eyes are on the fourth quarter of this year and the first quarter of next year. Ned Russell and Madhu Unnikrishnan chew over why JetBlue has reason for hope. Meanwhile, the best thing that anyone can say about Boeing is that its loss narrowed, and the Airline Weekly team looks at what's going on with the airframer. Finally, Avianca had its day in court.

Ned and Madhu digest United's third-quarter earnings in this latest episode of the Lounge and observe that airline CEO predictions about the recovery run the gamut from United CEO Scott Kirby's extreme bullishiness to the more cautious optimism expressed by Southwest CEO Gary Kelly and Avianca CEO Adrian Neuhauser. And will Norse Atlantic make a go of low-cost longhaul? Find out in this week's show.