United shares took a tumble on Thursday, dropping more than 12 percent after the United management team failed to leave analysts satisfied with the outlook of the company. The airline reported better than expected third quarter results, but its adjusted earnings fell sharply year-over-year. A Rough Third Quarter Revenue decreased year over year due to […]
Aerolineas Argentinas is the latest of a growing list of airlines to indefinitely suspend flights to the Venezuelan capital of Caracas, citing concerns over security in Venezuela due to increasing violence and immense political uncertainty. This suspension follows a temporary suspension announced in early August due to “operative matters” likely regarding security and financial concerns. […]
As the flag carrier of India, Air India has encountered troubling times over the past few years, finally resulting in the Indian government beginning proceedings to privatize the airline. The airline has been bleeding cash for years, being propped up by taxpayer money without many consequences. However, the Indian government has finally had enough dealing […]
Ryanair has had a rough several weeks to say the least, driven by continued flight cancellations and a possible pilot strike for the airline. In short summary, the airline recently learned that it will not have enough pilots to fly its remaining 2017 schedule due to errors in its scheduling of pilots for vacation, along […]
While the previous post served as an introduction to the various types of fuel hedging methods, this post will focus on several real world examples of fuel hedging done right and wrong throughout the airline industry. As mentioned previously fuel hedging is the strategy that airlines use to control their fuel costs in a market […]
Earlier this week, United Technologies Corp agreed to purchase Rockwell Collins, Inc. for approximately $23 billion. This proposed merger has the potential to significantly shake things up within the aircraft-parts manufacturing industry. United Technologies Corp is among the largest aircraft-parts manufacturers in the world, producing a considerable amount of aerospace systems including aircraft engines, which […]
American Airlines has finally launched Basic Economy fares on all routes in the continental United States for immediate travel. American Airlines initially rolled out Basic Economy for sale on February 21 for travel beginning March 1, with some of the initial routes including flights to Canada, Mexico, and Caribbean. At that time it was announced […]
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 […]
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 […]
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 […]
