Hello everyone! This week’s issue of PlaneBusiness Banter is now posted!
It’s another heavy earnings week issue this week as we take an in-depth look at the recent 4Q14 earnings reported by American Airlines, JetBlue, Allegiant, and Hawaiian. We also have the PlaneBusiness Earnings Summary for WestJet, which reported earnings Tuesday.
So which airline surprised us with their report — and not in a good way? That would be Hawaiian Airlines. If you’re wondering why shares of the stock fell of a cliff after the airline reported earnings, we’ll tell you why.
As for American, while some investors decided that lower-than-anticipated RASM guidance for 1Q15 was something to get worried about, (and one analyst actually downgraded the stock as a result of concerns over short-term sluggishness) I am not worried.
For that matter, Delta Air Lines announced lower than expected PRASM estimates for December on Tuesday.
Things are sluggish out there right now.
Now American has both its pilots and its flight attendants set with new JCBAs, the airline can devote more time and attention to other integration issues.
Best integration news we heard in the call? The airline has almost completed all the steps necessary to obtain single carrier status.
We were happy with JetBlue’s call as well. I like the attitude of the new management team. I think whatever drama has been sitting over the management team at JetBlue has finally left the building. That is a good thing.
Allegiant? What can I say? I hate the business model. But the airline continues to make money. With fuel dropping, it is only going to make more money.
We also talk about the situation developing with alliances — particularly with the Middle Eastern carriers, European carriers and U.S. partners. In case you missed it, Qatar announced a 10% stake in IAG Holdings last week, and today Korean Airlines announced a codeshare deal with American on Seoul/DFW routes. Why is this a big deal? Because Korean is a founding member of the SkyTeam alliance. Not sure what the folks in Atlanta think about this development.
All of this, and more, including the latest update on oil prices, in this week’s issue of PlaneBusiness Banter.