Airlines

United shareholders fly into more turbulence

18 May 2018

CFO Andrew Levy, hired to help the embattled $19 bln airline in dogfights with cheaper rivals. is leaving after less than two years. As its chairman also takes off, United looks less able than peers to combat rising oil prices and seat capacity hitting margins. Time to buckle up.

Singapore Airlines is cruising comfortably

18 May 2018

The $10 bln flag carrier beat forecasts with a 148 pct jump in annual earnings. Its overhaul is working, and a plan to absorb regional arm SilkAir looks sensible. There is more to do, but the group can afford to take its time evaluating growth options, including India.

China’s airlines are set for a long-haul price war

17 May 2018

Beijing is freeing local carriers to raise fees at home and fight for share on international routes. State ownership endures, however, as do distorting airspace restrictions. A painful battle over fares is in the offing, and will come at foreign rivals' expense.

EasyJet’s winning streak relies on rivals’ pain

15 May 2018

The UK airline reported its best ever first-half revenue and turned a pre-tax loss into a small profit after stripping out Berlin expansion costs. Problems that plagued Ryanair and Air France flattered the results. The 6.7 bln pound carrier could use a more reliable propellant.

Air France offers Macron a hands-off opportunity

7 May 2018

The French-Dutch airline’s CEO quit after staff rejected his pay deal, triggering market chaos. The travails of insolvent peer Alitalia provide a window into the toxicity of unruly unions and bad state policy. Resisting the urge to meddle will help the president’s pro-business push.

Air France-KLM staff chaos allows IAG to fly ahead

4 May 2018

The European airline warned that much of its 2018 operating profit will be wiped out by French strikes. Higher fuel charges and increased competition are creating headwinds for all carriers. But British Airways owner IAG’s success in slashing costs helps protect its bottom line.

United and Equifax boost GE chairman-CEO splitters

24 Apr 2018

The airline says having an independent chair lets CEO Oscar Munoz focus on running the company. Equifax is keeping the double act it adopted after last year’s massive hack. It’s recognition there are two jobs that need doing. Beleaguered GE is looking increasingly out of step.

IAG picks good time to ride Norwegian jet stream

12 Apr 2018

The owner of British Airways may bid for budget carrier Norwegian Air Shuttle. The target’s plan to disrupt transatlantic travel is taking off, but its finances are stretched, and rival bidders may struggle to match an offer from IAG. Investors shouldn’t bet on too big a premium.

Cerberus Alitalia carve-up would not fly with Rome

11 Apr 2018

The private equity firm is reported to be plotting a three-headed bid for the Italian airline. It would see easyJet take short-haul routes and Air France-KLM long ones, while Cerberus puts up the cash. But a breakup plan will not pass muster with a new nationalist government.

Lufthansa’s next challenge will be domestic

15 Mar 2018

The German airline is reaping the rewards of a 2014 plan to take on no-frills giants like Ryanair. Barring an unexpected rise in oil prices, Chief Executive Carsten Spohr’s next challenge will be to fight off cut-price competitors when they try to encroach on his home turf.

Georgia gives Amazon one great reason to stay away

27 Feb 2018

The Peach State's Lt. Governor hoisted a big red flag for the e-commerce giant. By lobbying to remove tax breaks for Delta Air Lines, a punishment for withdrawing discounts for NRA members, he makes Georgia an untrustworthy partner – and a poor choice for Amazon’s new HQ.

Airbus’s sunnier skies still contain clouds

15 Feb 2018

Shares in the aerospace giant jumped by one-tenth on Thursday following an 8 percent rise in operating profit, higher than analysts expected. But its operating margin still lags those of U.S. rival Boeing. Closing the gap could be complicated by a fresh stateside corruption probe.

United puts airlines’ stability into tailspin

25 Jan 2018

CEO Oscar Munoz plans to put more planes in the skies, sparking fears of a price war and wiping billions off United’s and rivals’ market values. Industry profitability has already lost some altitude. A return to rampant competition will make that worse – especially for Munoz.

EasyJet’s life is about to become harder

23 Jan 2017

Rivals’ misery helped boost the budget airline’s revenue in the last three months of 2017. New boss Johan Lundgren is optimistic passenger numbers will grow but may run out of beginners’ luck. Rising fuel costs and a fightback by Ryanair make rosy promises difficult to deliver.

Ryanair pilots are key to regaining European crown

11 Jan 2018

Lufthansa overtook the Irish carrier to become Europe’s largest airline in 2017. Though acquisitions boosted the German group, Ryanair’s target of 200 mln passengers by 2024 depends on steady expansion. Unless it can win over irate pilots, its growth prospects will be grounded.

Ryanair investors faintly see higher-cost future

18 Dec 2017

They have knocked over 2 bln euros off the budget airline’s market value since it caved in and recognised unions on Friday, averting a Christmas strike. That’s more than the extra staff outlays may be worth. If easyJet is a guide, though, Ryanair’s expenses will rise further.

Alitalia needs help to regain cruising altitude

1 Dec 2017

The insolvent airline has attracted bidders including Lufthansa and easyJet. Its 12,000 staff make it look bulky compared to budget carriers. Though the Italian government opposes drastic layoffs, further cost-cutting is necessary to return the carrier to financial health.

Singapore Airlines seeks altitude to outfly rivals

8 Nov 2017

The city-state’s $9 bln flag carrier has embraced change. It has a restructuring plan, a low-cost arm, and a fancier first class. But with Norwegian Air and Qantas invading profitable routes, it will have to crack on. That includes deciding what to do with regional arm SilkAir.

Qatar Airways gets seat for any Cathay dealmaking

5 Nov 2017

The Middle Eastern group is buying 9.6 pct of the troubled Hong Kong outfit for $661 mln. Building small stakes in rival airlines rarely works well. But should top shareholder Swire seek to sell, it now has a second party to play off against Air China, Cathay’s other big backer.

Twin tailwinds help Ryanair weather pilot crisis

31 Oct 2017

The 20 bln euro no-frills airline will meet its full-year profit goal despite a rostering mess that cost it thousands of flights. Passenger numbers were up 11 pct in the six months to September. Ryanair’s fare cuts helped, but it also got lucky with rivals’ bankruptcies.