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 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…
Airline Weekly Lounge Episode 25: JetBlue Breaks Out [not-audio_url] [/not-audio_url]

Duration: 35:54
JetBlue’s big fourth quarter was kind of a big deal. Low oil prices essentially mean that every airline is making money right now, but JetBlue’s 21% operating margin is about more than just oil prices. The airline is cha…