Airline Weekly Lounge

What's the ado with Austin, Cancun, Ho Chi Minh City, Paris Orly, and Riyadh? All of the airports are seeing tremendous growth above pre-pandemic levels. Edward Russell and Jay Shabat discuss why. Plus, Boeing's 737 Max: the good news and bad news.

The "real revenue growth" at American Airlines is in blended trips, or travel that includes both business and personal aspects, Chief Commercial Officer Vasu Raja said at the Skift Global Forum earlier in September. Nearly half of the airline’s revenues now come from these blended trips. What’s more, this new classification of trip is driving the carrier’s revenue growth more than anything else today. “What the pandemic really unlocked, and the recovery from it, is the great merging,” Raja said. “People don’t need to keep need to keep a work life for five days, personal life for two days, and carve out two weeks a year for vacations.” Listen to Skift Founder and CEO Rafat Ali and Raja's fascinating discussion at the forum in full.

The U.S. travel recovery is strong, and maybe nearly complete. If there is one airport that epitomizes the strength of the leisure-first recovery, it is Orlando where seemingly endless domestic demand before the pandemic has translated to much the same post-pandemic. Listen to Edward Russell discuss the state of the industry with moderator Racquel Asa, chief marketing officer at Beep, at an event marking the opening of the airport's new $2.8 billion Terminal C. Also, chilaquiles.

Is Indian aviation's moment here? Air India under Tata ownership has a deal for new airplanes, while the country's largest airline, IndiGo, keeps growing and several new startups are adding new competition to the market. Edward Russell and Jay Shabat discuss, plus the Tijuana Airport's Cross Border Xpress bridge to the U.S. and how its changing California-Mexico travel.

Chinese airlines struggled mightily during the first half of the year under the country's zero-Covid policy. The Big 3 all lost money but China Eastern, based in Shanghai — which suffered several lockdowns — lost the most. Edward Russell and Jay Shabat discuss the situation and how it may be turning around. Plus, Orlando Airport's new $2.8 billion terminal.

What does post-pandemic life like for a destination carrier like Hawaiian Airlines? CEO Peter Ingram joins Edward Russell to discuss the airline's recovery and outlook, including the long-awaited reopening of Japan. Plus, what Hawaiian might do with the new Boeing 787s that arrive soon.

Flying through London is getting a little better with the end of capacity caps at Gatwick Airport. But constraints remain in place at Heathrow until the end of October, and British Airways has already reduced its schedules through the winter. And always eager Ryanair is ready with more seats to grab market share, Edward Russell and Jay Shabat discuss the situation. Also, American Airlines' regional strategy.

The Lufthansa Group has spent the better part of 20 years trying to improve its fortunes through consolidation. Some deals, like of Swiss, have been winners, others, like of Austrian and Brussels, not so much. Edward Russell and Jay Shabat discuss Lufthansa's aim, and what a potential ITA Airways deal could mean for the group. Also, what's in the Inflation Reduction Act for airlines.

Meet Steve Sisneros, the airport czar at Southwest Airlines. As vice president of airport affairs, he oversees current and future real estate at the carrier's 121 airports. Edward Russell and Sisneros chat about Southwest's new facilities in Denver and Phoenix, and the status of Terminal 0 plans in Los Angeles.

Southwest Airlines had a secret weapon in the second quarter: Its fuel hedges. That helped propel it to an impressive 17% operating margin. High oil prices pulled down the results of most other U.S. airlines during what was an otherwise strong quarter. Also, Edward Russell and Jay Shabat discuss what’s next for JetBlue and Spirit now that they’ve agreed to merge.

Airlines globally will need more than 41,000 aircraft over the next 20 years, according to Boeing's latest outlook. Edward Russell sat down with Boeing's Vice President of Commercial Marketing Darren Hulst at the Farnborough Air Show to discuss the outlook. Also, what is Boeing's response in the so-called middle-of-the-market that Airbus has run away with with its A321neo? Get more essential airline news at Airline Weekly.

What's travel like in the U.S. now? Busy and, in some cases, like a T.J. Maxx, The Wall Street Journal's new travel columnist Dawn Gilbertson told Edward Russell of her 11 flight, six airline "stress test" of the system over the July Fourth holiday weekend. We also chat with her about her role and her view on covering airlines and the travel industry.

Scandinavian airline SAS is in bankruptcy after years of struggles. Edward Russell and Jay Shabat discuss how the carrier could still struggle to extract needed savings, particularly from aircraft lessors. And, will Star Alliance’s new partnership with German rail operator Deutsche Bahn really reduce carbon emissions? More coverage of SAS's woes: SAS Joins List of Airline Failures and Bankruptcies Since Pandemic’s Start SAS Airlines’ Bankruptcy Follows Months of a Showdown Over Aircraft Leases Scandinavia’s SAS Files for Bankruptcy Protection in the U.S.

For those who hoped we'd have a resolution to the Spirit Airlines merger saga this week, no dice. The carrier delayed, again, a key shareholder vote on whether to merge with Frontier Airlines. Edward Russell and Jay Shabat discuss the latest turns, and why JetBlue Airways is so keen to acquire Spirit. Also, the outlook for July Fourth holiday weekend travel in the U.S.

Are profits on approach for airlines in 2023? Edward "Ned" Russell and Jay Shabat discuss IATA's updated outlook, and Director General Willie Walsh's comments at the annual general meeting in Doha. Also, SkyWest Airlines has a novel approach to expanding the pool of pilots.

Why is Wizz Air CEO Joszef Varadi "happy" to compete with Ryanair and why does he think it's the legacy carriers that should be scared? Edward "Ned" Russell and Madhu Unnikrishnan, in his last appearance on the 'Lounge, discuss this and why Varadi is excited about the carrier's expansion in the Middle East. Then, the pair turn their attention on sustainable aviation fuel and what exactly "green hydrogen" may be and why the JetBlue-Spirit-Frontier saga would be a good plot line on "Days of Our Lives."

Delta Air Lines now forecasts its summer revenues will outpace 2019, a significant milestone in the U.S. airline industry's recovery. But all is not golden as costs, particularly fuel, are rising as well. Edward “Ned” Russell and Madhu Unnikrishnan then head to Europe, discussing SAS' threat of a potential bankruptcy restructuring and Pieter Elbers' exit from KLM.

Just how bullish is IndiGo CEO Ronojoy Dutta on India's airline market? Very, very bullish. But Edward "Ned Russell" and Madhu Unnikrishnan note that others have predicted that India's aviation market is about to take off (Kingfisher? Jet Airways?). So what makes Dutta so confident? Listen to this week's episode to find out.

Abra, the new holding company planned by Colombia's Avianca and Brazil's Gol, would knit together South America in what Copa CEO called a spider web (although he said he's not too concerned about it). In this week's episode, Edward "Ned" Russell and Madhu Unnikrishnan take a look at what the new transnational company could look like and why Copa is doing well. And then they blame Alanis Morrissete for ruining the word "ironic."

Tempers are flaring as airlines, unions, and even Congress point fingers at who's to blame for the pilot shortage. Edward "Ned" Russell and Madhu Unnikrishnan discuss an innovative program at Southern Airways Express as well as why Mesa CEO Jonathan Ornstein may have a point about foreign pilots flying into the U.S. and the challenges to changing the 1,500-hour rule. Later, the pair look into the great summer ahead for the European Big Three and why Azul is having a banner year.

Airlines are sparring over Newark Liberty International Airport, as United claims the FAA is allowing low-cost-carriers to go over the 79 flight operations per hour cap. But Spirit and JetBlue refute that claim and say United should reduce its own operations if it wants fewer delays. Who's right? That's what Madhu Unnikrishnan and Edward "Ned" Russell discuss, before turning to how the lack of spare Airbus A220 parts is forcing AirBaltic to wet-lease a Boeing 737 from Ukraine International Airlines.

Edward “Ned” Russell and Madhu Unnikrishnan are in the thick of first quarter earnings. The takeaway so far: demand changed for the better in March but summer may not be as rosy as many hoped, at least for travelers. Staffing concerns continue to weigh on schedules, threatening limited and pricey options for those with pent-up demand to travel.

Cape Air CEO Linda Markham warns that the U.S. industry’s every-airline-for-themselves approach to easing the pilot shortage may not be the best way to address supply. Edward “Ned” Russell and Madhu Unnikrishnan discuss her comments, and our favorite spokes-seagull. Then, Delta Air Lines was the industry’s bellwether on financials with the recovery turn it saw in March apparently set to carry other U.S. airlines back to the black.

It’s that time of year again: earnings! Delta Air Lines kicked off the first quarter results season with better than expected financials that reflected the two halves of the quarter; one characterized by Omicron and the other by pent-up demand. Edward “Ned” Russell and Madhu Unnikrishnan also discuss how the U.S. pilot shortage has spread to mid-size carriers Alaska Airlines and JetBlue.

In a surprise move, JetBlue Airways unveiled an unsolicited bid for Spirit Airlines, potentially derailing the latter’s deal with Frontier Airlines. But, given the potential market clout a larger ULCC could be to JetBlue, especially on busy Florida routes, maybe it’s not such a surprise. Edward “Ned” Russell and Madhu Unnikrishnan discuss the merger machinations, and the word from European airlines at the recent Airlines for Europe summit.

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.

This week in the Lounge, Madhu and Ned breakdown Delta's third-quarter earnings, and take bets on whether premium leisure is the travel trend of the future that CEO Ed Bastian thinks it is. Also, Southwest burns out and United wants its Pratt & Whitney-powered 777s back for what could be a blockbuster Summer 2022 across the North Atlantic.

Airline Weekly's' Edward "Ned" Russell heard a variety of forecasts for when business travel will return at the IATA Annual General Meeting this week in Boston. He and Madhu Unnikrishnan discuss whether Emirates President Tim Clark is right that business travel will return next year or Avianca CEO Adrian Neuhauser is correct to be more pessimistic in predicting half of all business travel is gone forever. Later, the Airline Weekly team discusses sustainability and how IATA plans to reach its ambitious climate goals.

Airline Weekly's Edward Russell reports back on the annual Regional Airline Association Leaders Conference, where executives said their long-standing labor issues expanded during the crisis. Also, Madhu and Ned discuss Qatar Airways' results, and the American Airlines and Southwest Airlines pilot union objections to vaccine mandates.

This week's episode of the 'Lounge comes to you live from the TWA Hotel at New York Kennedy during the Skift Global Forum 2021. The Airline Weekly team discusses why Air France-KLM Group CEO Ben Smith was "pleasantly shocked," incoming Southwest CEO Robert Jordan's concerns about hiring, and what the Justice Department hopes to accomplish with its suit agains

This week the Airline Weekly team chews over why Australia's competition regulator denied Qantas and Japan Airlines a joint venture. Will Fly Play buck the odds and make low-cost longhaul work? And, with gratuitous references to unicorns, Sasquatches, white whales, and other mythical animals, Ned and Madhu discuss Boeing's $9 trillion aerospace outlook.