Airline Weekly Lounge Episode 2: Postcards from the Hedge

Airline Weekly Lounge Episode 2: Postcards from the Hedge

Author: Skift July 29, 2015 Duration: 23:24
American Airlines doesn’t hedge its jet fuel, and now it’s enjoying the fruits of that somewhat contrarian strategy. Is AA onto something here? Is fuel hedging a smart play? Will other airlines mimic AA and reject hedging altogether? Those are some of the questions I ask Seth Kaplan in our second episode of The Airline Weekly Lounge. Also, while AA was on the right side of the fuel hedge bet, Air France/KLM was on the wrong side. The company was also on the wrong side of the euro-dollar bet and those two forces combined to further punish the already-limping airline pair. Back in America, Spirit Airlines had a great quarter by its own standards—but mediocre by its standards. Part of its difficulty was due to a softening revenue picture. Is such heated competition in the U.S. a surprise so soon after consolidation and with high oil prices such a recent memory? Lastly, we discuss WestJet, the subject of this week’s Airline Weekly’s cover story. The Canadian airline is clearly not afraid to changes its business model. We look at WestJet’s endeavors and more in this week’s episode.

Step inside the Airline Weekly Lounge, a podcast from Skift where the editors behind the industry publication gather for a deeper, more conversational look at the world of commercial flight. This isn't just a recap of headlines; it's a focused exploration of the complex forces shaping how airlines operate, compete, and ultimately survive. Each episode digs into the week's most intriguing developments, from fleet strategies and route networks to labor dynamics and the evolving culture of travel, always with a keen eye on the bottom line. The central, driving question remains: how do carriers actually turn a profit in this famously volatile business? You'll hear analysis that connects financial results to real-world operations, discussing everything from premium cabin innovations and loyalty program economics to airport politics and environmental pressures. The tone is informed and accessible, peeling back the layers on both major global network carriers and regional players. For anyone curious about the business realities behind their boarding pass, this podcast offers a regular dose of context and clarity, revealing the intricate balance of economics, service, and strategy that keeps the industry aloft. Join the editors in the lounge for a perspective that goes beyond the news cycle.
Author: Language: English Episodes: 423

Airline Weekly Lounge
Podcast Episodes
Airline Weekly Lounge Episode 35: Chinese Airlines Show Stress [not-audio_url] [/not-audio_url]

Duration: 29:29
Is China’s slowing economy taking its toll on the country’s Big Three carriers? So far Air China, China Eastern and China Southern have held up well and posted a rather good 2015. But the fourth quarter of 2015 showed so…
Airline Weekly Lounge Episode 33: Is Virgin Merging With Alaska? [not-audio_url] [/not-audio_url]

Duration: 30:10
If the U.S. airline market were to see even more consolidation, what kind of effect would it have? That’s one question we consider in a discussion about the possible acquisition of Virgin America by another airline. We a…
Airline Weekly Lounge Episode 32: Post-Brussels Attack Roundup [not-audio_url] [/not-audio_url]

Duration: 30:45
Attacks at airports are rare, and Tuesday’s bombing at Brussels Airport will no doubt have repercussions around the world. Which airlines will see the worst financial impact from the attacks? Brussels Airlines, not surpr…
Airline Weekly Lounge Episode 31: Turkish Blend [not-audio_url] [/not-audio_url]

Duration: 30:20
It’s good to be a Gulf carrier—Gulf carriers are well positioned to connect the whole world. But it might be better to be a near-the-Gulf carrier like Turkish Airlines. Turkish offers a blend of service as an intercontin…
Airline Weekly Lounge Episode 30: Qantas' Boomerang Effect [not-audio_url] [/not-audio_url]

Duration: 28:45
After hitting the floor in 2013, Qantas, has—like a boomerang—come all the way back and more. In fact, the Australian carrier set an annual profit record in 2015. Despite enjoying the same advantages inherent to the Land…
Airline Weekly Lounge Episode 29: IAG Has all the Right Moves [not-audio_url] [/not-audio_url]

Duration: 24:45
IAG, the airline group that includes British Airways, Iberia, Vueling and Aer Lingus, is continuing its run of success—a run that probably has peers such as Air France/KLM and Lufthansa feeling a bit envious. In fact, wh…
Airline Weekly Lounge Episode 28: The French Correction [not-audio_url] [/not-audio_url]

Duration: 29:15
What’s it gonna take to fix Air France/KLM? The airline group has a number of problems—from labor inflexibility to a soft French economy—all in a very competitive part of the world. But there are reasons for hope: Gulf c…
Airline Weekly Lounge Episode 27: Profits Cool in Scandinavia [not-audio_url] [/not-audio_url]

Duration: 23:46
Finnair, Norwegian and Icelandair all had rather forgettable off-peak fourth quarters, but not because of the chilly weather they are all enduring. Rather, each has a unique set of challenges and opportunities. Finnair’s…
Airline Weekly Lounge Episode 26: Singapore's Swing [not-audio_url] [/not-audio_url]

Duration: 22:43
Singapore Airlines swung back to solid profits in 2015. Does this turnaround mean the airline is returning to its former glory, not seen since 2010? Or are low fuel prices just making everyone look good? Korean Air and A…