Airlines

Sustainable fuel surge may mean fewer UK flights

24 Mar 2025

Britain wants airlines to ramp up use of sustainable aviation fuel at a faster pace than in the EU. That’s laudable, with the hard-to-decarbonise sector accounting for 2% of global emissions. But the margin hit for short-haul carriers like easyJet may risk them flying elsewhere.

Airline alarms are more dire than Big Tech buzz

11 Mar 2025

Southwest and Delta both slashed first-quarter financial projections as Apple, Microsoft and peers lost $750 bln of combined market value. The huge IT selloff provides a sensible check on exuberance. US carriers, however, are flagging a more troubling sign of economic weakness.

European airline tailwinds cloud M&A glide path

6 Mar 2025

Lufthansa and Air France-KLM shares leapt after strong finishes to the year, closing the gap with bigger $20 bln rival IAG. Eventually, Europe’s market could slim down to a small group including these players. Scope for a stronger 2025 makes it less clear who will buy what.

Aircraft maintenance boom has further to fly

14 Feb 2025

In 2024, stuttering production of new jets saw repairs of older models take on fresh import for the likes of Melrose and Safran. This year deliveries could rise by 25%. But supply chain uncertainty and strong flying demand mean the maintenance profit engine can continue to motor.

Crabs on a plane pinch budget US airline deal

12 Feb 2025

Spirit rejected rival Frontier’s latest takeover bid and shared synergies worth some $5 bln in favor of a post-bankruptcy standalone future. The suitor, previously thwarted by shareholders, is now at odds with creditors. Crustacean mentality has sabotaged the sanest outcome.

Melrose flags a way through aerospace turbulence

18 Nov 2024

The $8 bln aero supplier’s shares jumped after it reported improved revenue and reaffirmed targets. Melrose’s focus on planes has coincided with big customers slowing the supply of new jets. The good news is that demand for older aircraft repairs is rising sharply.

European airlines’ tough summer adds to M&A logic

11 Nov 2024

Carriers such as $8 bln Lufthansa and $2 bln Air France-KLM saw rising costs and competition on Eastern routes from Chinese rivals. The logical response for EU players is to look West instead. Bidding for Portugal’s state-owned TAP would drive much-needed consolidation.

Budget US airlines look clearer for deal takeoff

23 Oct 2024

Frontier may be mulling a fresh offer to buy struggling rival Spirit two years after JetBlue’s doomed interruption. Stern trustbusters and $3 bln of debt will be steep hurdles. But boss Barry Biffle has a better shot now, if he stays disciplined with a bid this time.

Elliott takes flyer with elite intimidation status

14 Oct 2024

The hedge fund escalated its battle with $18 bln Southwest and CEO Bob Jordan by calling for a shareholder meeting to shake up the board. It’s a rare public clash as companies increasingly acquiesce to pushy investors. If the airline prevails, it may embolden others to push back.

Capital woes are no rebuttal to merger foes

4 Oct 2024

Budget airline Spirit may file for bankruptcy after competition cops grounded a merger with rival JetBlue. A judge ignored pleas that the firm is failing – but even now, Spirit doesn’t meet a legal test that’s strict for good reason. The market has ways to fix bad businesses.

Bain jets towards first-class lounge Down Under

2 Oct 2024

The private equity firm is selling 25% of Virgin Australia to Qatar Airways for an undisclosed sum ahead of an IPO. Fold in last year’s dividend recap and assume it’s growing like larger rival Qantas, and the airline is en route to delivering Bain a sky-high 40%-plus return.

Southwest’s new flight plan carries excess baggage

27 Sep 2024

The $18 bln airline expects seat fees to help lift its operating margin to 10%, but not until 2027. Captain Bob Jordan and his crew also have consistently missed targets. A tough overhaul and a weak track record will weigh them down in the dogfight with pushy investor Elliott.

Southwest shareholders needn’t act like passengers

14 Aug 2024

Rabble-rouser Elliott escalated its battle with the $15 bln airline by unveiling a dissident board slate. The timing is odd: sitting directors just won overwhelming support. It’s a question of persuading investors they deserve a smoother ride than sheep-like flyers tolerate.

Airlines’ margins head to lower cruising altitude

2 Aug 2024

Carriers from $2 bln Air France-KLM to $7 bln Lufthansa reported healthy demand in the first half of 2024. But earnings are falling as expenses bite. With the switch to sustainable aviation fuel threatening to push costs ever higher, investors are bracing for smaller margins.

Boeing and Airbus headwinds are hard to escape

23 Jul 2024

The troubled US jet maker and its European rival aren’t delivering as many planes as customers want. On this Exchange podcast, AirInsight co-founder Addison Schonland explains how some problems stretch back to Covid, whether a third player can break the duopoly, and much more.

Ryanair leads airline sector into strategic cloud

22 Jul 2024

The $17 bln carrier’s shares sank 15% after it warned of weaker summer fares. The airline had hoped slow delivery of planes would mean less competition, allowing it to hike prices and weather higher costs. If customers are now saying no, that’s a problem for the whole sector.

Cyber meltdown points to downsides of efficiency

19 Jul 2024

A software update by $83 bln CrowdStrike grounded flights and disrupted financial markets. That’s possible because businesses work with a small number of providers, seeking lower costs. It supports rich tech valuations, but also heightens the risks of a catastrophic failure.

Airbus hit leaves investors flying without a radar

25 Jun 2024

The $110 bln planemaker’s shares fell 11% after it said that engine shortages scuppered its delivery target. The group is struggling to capitalise on rival Boeing’s woes. Supply-chain uncertainty is also stopping the wider sector from putting the pandemic in the rear-view mirror.

Barbarians at Southwest gate overdo upgrade plea

13 Jun 2024

The $17 bln airline’s slow response to weak performance made it an easy target for pushy investor Elliott. Boss Bob Jordan may struggle to keep his job, let alone reshape the business model. Yet his new dissident is too facile about jettisoning defining parts of the culture.

Antitrust worries risk clipping EU airlines’ wings

24 May 2024

Groups like Lufthansa and IAG are seeking greater scale to better compete globally. But Brussels frets that regional tie-ups will lead to higher fares and reduced consumer choice. Blocking the $8 bln German firm’s play for smaller peer ITA could mean other deals won’t take off.