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A Hainan 787 pulls into the gate at Chicago O'Hare (Photo: AirlineGeeks | Ryan Ewing)

Airline Giant HNA Aviation Given Lifeline by Chinese Government

China’s HNA Group, owner of Hainan Airlines, has been granted a lifeline by the Chinese government amid recent financial troubles, mainly surrounding a large amount of debt accrued due to numerous acquisitions. One of HNA’s largest and most well-known entities is HNA Aviation which holds a majority stakes in 13 airlines in China and Hong Kong, including Hainan Airlines, Beijing Capital Airlines, Hong Kong Airlines, and HK Express. The group also has minority stakes in airlines outside of China that include…

$2.2 Billion: Two Ways to Run a Profitable Airline

$2.2 billion. The net profit of two of the world’s major airlines in 2016. Those airlines, however, have much less in common than their financials might seem to indicate. One operates the truest example of a hub-and-spoke model in the world, with wide-bodied Boeing 777s and Airbus A380s touching every…

Whether to Lease or to Buy: An Introduction to Aircraft…

Aircraft are considerably expensive purchases, especially when buying dozens of them for your airline. With orders frequently totaling in the billions of dollars, it is hard to imagine how an airline could possibly pay for all of the planes they have. Purchasing huge numbers of aircraft can tie up considerable…

American Airlines Releases Q3 Earnings: Analysts React to 2018 Capacity…

On October 26, American Airlines presented its third-quarter results, highlighting operating revenues up 2.7 percent year-over-year to $10.9 billion. However, due to increased costs, the net income was down more than 15 percent from the third quarter of 2016 at $624 million. Total revenue of $10.9 billion was expected by…

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…

The Importance of PRASM: What Is It and Why Is…

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…