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 64: Rising Sun [not-audio_url] [/not-audio_url]

Duration: 25:30
Japan Airlines is enjoying a charmed life right now. How good is it? In 2016, JAL was the most profitable of the large global airlines outside the U.S. All Nippon Airlines is also doing pretty well. ANA has narrowed the…
Airline Weekly Lounge Episode 63: All Smiles at American [not-audio_url] [/not-audio_url]

Duration: 26:25
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Airline Weekly Lounge Episode 62: United on Top [not-audio_url] [/not-audio_url]

Duration: 32:53
By just a tenth of a percent, United’s fourth quarter operating profit margin bested that of Delta—and likely that of American, which reports later—making United, for the quarter, No.1 among the Big Three U.S. carriers.…
Airline Weekly Lounge Episode 61: Worse, But Still Good [not-audio_url] [/not-audio_url]

Duration: 29:45
Rising labor costs at Delta dented its fourth quarter results significantly—but not enough to prevent the airline from posting a terrific profit for 2016. And the big story within the story is that revenues have stopped…
Airline Weekly Lounge Episode 60: Around and Around [not-audio_url] [/not-audio_url]

Duration: 34:45
SAS has tried and tried to turn itself around, but to no avail—at least judging by its recent earnings report. In fact, on profits alone, the airline’s third quarter was a step backward. What’s going wrong, and can it be…
Airline Weekly Lounge Episode 59: Kicking Off 2017 [not-audio_url] [/not-audio_url]

Duration: 43:29
Call it our year-in-preview show. In this first episode of 2017, we look at some of the more interesting stories that are ushering in the airline industry’s new year. Of course, 2017 doesn’t promise answers to all our qu…
Airline Weekly Lounge Episode 58: Lufthansa's Ambitions [not-audio_url] [/not-audio_url]

Duration: 35:09
If anybody needed a reminder that the airline business is an interesting business, they got it last week as Air Berlin announced it will be handing over a big chunk of itself to arch competitor Lufthansa. Will Air Berlin…
Airline Weekly Lounge Episode 57: South African Airways Is Troubled [not-audio_url] [/not-audio_url]

Duration: 31:42
South African Airways finally published its fiscal year results for the 12 months ending March 2015. Yes, that’s 2015. And the result—a $442m net loss—wasn’t worth the wait. But with the Ebola scare and high oil prices n…
Airline Weekly Lounge Episode 56: Frontier Airlines CEO Interview [not-audio_url] [/not-audio_url]

Duration: 24:14
Because Frontier Airlines is a non-publicly-traded carrier (which, for one thing, means it doesn’t have earnings calls), it’s all the more interesting to interview the airline's CEO Barry Biffle. Of course, we asked abou…
Airline Weekly Lounge Episode 55: Canadian Continuity [not-audio_url] [/not-audio_url]

Duration: 33:17
Despite a major oil bust and the weakening currency that followed, Canada’s airlines continue to plod along. Make no mistake, macro issues are leaving a mark on the earnings reports of Air Canada and WestJet, but the sto…