United Closes the Gap on Delta

United Closes the Gap on Delta

Author: Skift October 18, 2024 Duration: 28:50
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 million in potential revenue due to reduced travel to Paris during the Olympics. Domestic and International Trends for Delta  Jay explains other factors affecting Delta’s Q3 performance, including domestic overcapacity and softer international demand in regions like Korea and Taiwan. However, domestic conditions improved toward the end of the quarter, thanks to capacity cuts by rivals such as Southwest and JetBlue. Delta expects a strong Q4, driven by these adjustments and lower fuel prices. United Airlines and Q3 Competition  We preview United Airlines' Q3 results. Jay notes that United typically performs better in Q3 due to its business-heavy hubs and strong domestic capacity growth. United has increased its domestic seat capacity by 9% in Q4, with routes like Newark-San Francisco enjoying growth. Virgin Australia’s Latest Financials The podcast ends with a brief discussion about Virgin Australia, which recently made headlines after Qatar Airways acquired a 25% stake in the airline. This move has sparked industry interest as it could strengthen Virgin Australia's international partnerships and expand its market presence. 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.

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 94: Southern Discomfort [not-audio_url] [/not-audio_url]

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Airline Weekly Lounge Episode 93: Separation Anxiety [not-audio_url] [/not-audio_url]

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Airline Weekly Lounge Episode 92: Kiwis and Kangaroos [not-audio_url] [/not-audio_url]

Duration: 30:45
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Airline Weekly Lounge Episode 91:  The Best Performers of 2017? [not-audio_url] [/not-audio_url]

Duration: 30:10
Not only does Ryanair keep on rolling, it seems to be gaining speed. Its full-year 2017 operating profit margin will almost certainly be the world’s best after every airline has reported. Ryan-like Wizz Air is also among…
Airline Weekly Lounge Episode 90: Success in the U.S. [not-audio_url] [/not-audio_url]

Duration: 27:55
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Airline Weekly Lounge Episode 89: Delta’s Clear Skies [not-audio_url] [/not-audio_url]

Duration: 31:05
Delta’s 2017 profits were down slightly from the glory days of 2015 and 2016. But make no mistake: This airline is performing very well. Consider that fuel prices increased 23% in the fourth quarter, and the airline was…
Airline Weekly Lounge Episode 88: SAS Spells Success [not-audio_url] [/not-audio_url]

Duration: 30:59
Just a few years ago, the often-troubled SAS was merely inches away from seeing its light burn out permanently. Since then the airline has rallied. This past October the airline completed its best fiscal year in two deca…
Airline Weekly Lounge Episode 87: Jet Airways Troubled No More? [not-audio_url] [/not-audio_url]

Duration: 31:26
Jet Airways had a pretty mediocre third quarter. Still, there are plenty of signs of hope for the often troubled airline. In fact, Jet has posted 10 consecutive profitable quarters. India’s low-cost carrier IndiGo, meanw…
Airline Weekly Lounge Episode 86: An Easy Bet on Low-Cost Carriers [not-audio_url] [/not-audio_url]

Duration: 37:00
European low-cost carrier easyJet isn’t doing as well as competing LCCs Ryanair and Wizz Air. But make no mistake: easyJet is doing well. The airline’s 20% operating profit margin for the April-through-September period p…
Airline Weekly Lounge Episode 85: High-Flyin’ Ryan [not-audio_url] [/not-audio_url]

Duration: 30:27
The third quarter is usually a splendid time for airline profits in Europe, and this year has been no exception. Ryanair is more than surviving its recent bout of operational difficulties, having turned in a stellar earn…