PlaneBusiness Banter Now Posted!

home-typewriter copy 1What is another word for….exhaustion? The latest edition of PlaneBusiness Banter, which I think probably runs at least 80 pages printed out — is now posted.

Yes, it is earnings time. That lovely time of year that rolls around every three months. This week we have in-depth looks at the recent earnings results from United Airlines, American Airlines, Alaska Air Group and Southwest Airlines. 

Short and sweet? No real big surprises, although Southwest and United spooked some investors with their less than expected PRASM guidance. But both airlines posted strong 3Q14 numbers.

As for American Airlines, the airline continues to post very strong margins and nice fat profits — while still very much in the early stages of its merger. Excellent job. Give these guys another year and who knows how much money they will be making.

Alaska Air Group? These guys just will not be stopped. Not by Virgin America. Not by Allegiant. And not, it appears,  by Delta Air Lines either.  Alaska posted an excellent quarter with nothing short of mind-blowing margins — while it continues to fight the increase in capacity in its home turf from Delta. 

Yes, in case you missed that movie a while back — we’re pretty certain the plotline went something like this. Delta says to Alaska, “Stop codesharing with American Airlines or we’ll huff and we’ll puff and we’ll blow your house down.”

Alaska responded, as best we can tell by essentially saying, “Bring it on.”

Fun to watch.

In addition to all the earnings fun this week, our curiosity was piqued by some comments that Scott Hamilton with the Leeham Group made this week. Those comments? Instead of buying new Boeing or Airbus widebodies, could Delta Air Lines maybe purchase some pre-owned Boeing 777-200ERs? Interesting thing to ponder. He might very well be right. That RFP is still hanging, and in Delta’s 3Q14 earnings call last week, CEO Richard Anderson discussed the RRP and talked about ownership costs, and this and that and ….the upshot is….. I wouldn’t be surprised to see Delta looking at some used widebodied aircraft. Certainly wouldn’t be the first time.

We presented at the Business Travel News “Travel Trends and Forecast” event last week in Chicago. My friends at United Airlines should be happy. Not only did I have two excellent flights on the airline last week, but there was a very palpable uptick in the positive feedback about the airline from the corporate travel manager group to whom I spoke. Much better than a year ago. The airline still needs to become more consistent in its operations  – but there is progress being made.

Fantastic week last week for the airline sector. We’ll update everyone on who did what.

All this, and lots and lots and lots more — in this week’s edition of PlaneBusiness Banter