finance

The volatility and uncertainty of the aviation industry were in evidence on Thursday with the release of 2017 results for two of Europe’s most well-known airlines, Lufthansa and Virgin Atlantic.  Deutsche Lufthansa AG, the parent company of the German airline, reported a record 70 percent increase in earnings before interest and taxes (EBIT) to €2.97 […]

Hong Kong-based Cathay Pacific announced a loss of $1.45 billion HKD ($185 million USD), nearly triple the $525 million HKD ($66.9 million USD) loss reported a year ago. This loss signifies the airline’s first back-to-back loss in 71 years, mainly due to intense competition and overcapacity in the region. Cathay has struggled over the past […]

Canada’s second-largest airline, WestJet, announced last week that their long-time CEO Gregg Saretsky would be retiring with immediate effect.  The move on Thursday surprised many in the aviation industry given the immediacy of the decision and Saretsky’s success in leading WestJet as it evolved from a low-cost carrier into a player in international markets. As […]

Qatar Airways announced on Wednesday they would report a “very large loss” for the current fiscal year as a result of a blockade placed on the nation by various other Middle East nations last June. The blockade – imposed by Saudi Arabia, Egypt, the United Arab Emirates, and Bahrain as a response to the country’s […]

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, […]

$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 corner of the globe. For […]

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 capital and weigh down balance […]

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 analysts and the adjusted earnings […]

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 […]

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 […]