Good evening everyone! This week’s issue of PlaneBusiness Banter is now posted!
This week we are talking about everything from Spirit’s “Hate” campaign to the Frontier Airlines’ Captain who ordered pizza for everyone on his diverted flight. But in-between we talk about a lot of serious stuff too.
After Delta’s announcement that it had seen a bit of weakness on the international front the week before, and the thrashing that Wall Street did to the sector as a result, all eyes were on the rest of the “Big Four” last week as they issued traffic updates, RASM updates, and in some cases, margin estimate updates.
So what did we learn?
We learned that Delta Air Lines and American Airlines will post the best margins for 2Q14. We learned that while United Airlines did forecast a better than expected RASM performance for 2Q14, the airline will still lag both of its major peers in terms of RASM performance and margin performance.
Oh, and if the revenue brains at United are still trying to digest Imperial Capital analyst Bob McAdoo’s recent long research report in which he made the case why United should shut down its hub at IAD, last week he came out with another long look at United and its revenue woes. But this time he focused on the West Coast. We’ll tell you what he thinks the airline should be doing there and how much money they are losing because they aren’t.
But that all of this didn’t matter to Wall Street investors, as they jumped back into shares of United Airlines last week with a vengeance after the airline upped its previous RASM guidance. The stock ended the week up 15%.
Meanwhile, for all the aircraft geeks out there, the Farnborough International Airshow opened Sunday. Lots of news already from there, including a confirmation of a huge Boeing 777X order with Emirates; a much-needed Bombardier CSeries order from a British leasing firm; and Boeing confirmed Sunday that it is going to adapt the 737-800 MAX so that it can have a maximum seating capacity of 200.
Whew. We figure this means that big Ryanair’s order can’t be that far behind.
The move to appeal to the ULCC crowd is not unexpected from Boeing. Airbus had already announced it June increases in maximum capacity seating for both the A320 and the A321.
But this is just the tip of the iceberg. We talk about Norwegian, and their new service to New York; we talk about the pros and cons of why Norwegian should be allowed to operate its new subsidiary in the U.S.; we talk about the latest DOT Air Travel Consumer numbers (hint: Delta continues to lead the big four; Southwest continues to lag; and Alaska Airlines had another great month) and much, much more.
All in this week’s issue of PlaneBusiness Banter!