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Part One: An Introduction to Airline Fuel Hedging
While news organizations often announce airlines’ financial results, it quickly becomes difficult to further dissect and understand the major cost drivers, particularly related to fuel. This is the first part of a two-part series explaining the basics of fuel hedging and how it impacts airlines around the world. The first part will focus on an […]
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Alaska Airlines Launches Service from San Jose, Calif. to Austin and Tucson
On Monday, Seattle-based Alaska Airlines commenced daily nonstop service from San Jose, Calif. to Austin and Tucson. With the addition of these flights Alaska will offer nonstop service to 18 destinations in the form of 31 daily departures from San Jose International Airport, more destinations than any other airline serving the airport. All three new […]
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The Importance of PRASM: What Is It and Why Is It So Critical for U.S. Airlines
Passenger Revenue per Available Seat Mile (PRASM) is a term thrown around the airline industry often. It’s a division of passenger revenue by available seat miles. The question of its importance has caused a divide between many, including analysts and airline executives. Revenue vs. Net Income The U.S. airlines in the past few years have […]
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Trip Report: TAP Portugal Retro-Themed Flight from Lisbon to Miami
TAP debuted their first retro aircraft livery in Miami on August 11, 2017 and graciously invited me to take part in the festivities. TAP Fleet Breakdown This retro themed TAP aircraft is part of a new branding effort as the airline is growing at a rapid pace. In July, the airline flew 1.4 million people […]
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American Airlines Announces New Seasonal Summer 2018 Routes
American Airlines launches new seasonal routes from Philadelphia International and Chicago O’Hare to Europe for Summer 2018. Flights will be available for booking starting August 21 for travel between May 4, 2018 to Oct. 27, 2018. New Chicago Routes Chicago O’Hare will have new service to Venice. The flights are scheduled to depart Chicago at […]
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Full Analysis: American Airlines Second Quarter Earnings Signal Both Growth and Analyst Concerns
American Airlines announced their second quarter earnings late last week, beating analyst expectations with revenues of $11.1 billion and a diluted EPS excluding special items of $1.92 vs analyst expectations of revenues of $11.08 billion and an EPS of $1.87. Second quarter net profit fell 15 percent due to increases in fuel and labor costs. […]
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United Airlines Stock Drops, Despite Strong Second Quarter Results
United Airlines experienced a strong second quarter of 2017, reporting a net income, excluding special charges, of $846 million against revenues of $10 billion. Though United posted excellent financials, their shares on the New York Stock Exchange still fell 5.9% due to sluggish 3rd quarter forecasts. United’s $10 billion revenue in the second quarter was an […]
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Delta’s Second Quarter Earnings Show Strong Revenue, Declining Net Profit
Delta announced its June quarter 2017 earnings, reporting a net income of $1.2 billion on revenues of $10.79 billion. The announcement highlights approximately a 20.8 percent fall in quarterly profit as operating expenses grew for the global airline. Operating revenues grew to $10.79 billion this quarter compared to $9.14 billion Q1 of 2017. This represents […]
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Trip Report: JetSmarter Private Club to the Nation’s Capital
Making the best use of ‘Summer Fridays’ at work, I made the decision to take last Friday off and hop on a flight using a service that many have never heard of: JetSmarter. Background on JetSmarter JetSmarter is a subscription-based private jet club. They have several charter shuttle operations across the United States, Europe, and […]