Scott Kirby’s Post

#FleetUpdate #UA #1Q24 #Earnings - Converted a portion of Boeing MAX 10 aircraft orders to Boeing MAX 9 from 2025 through 2027; maintained the right to convert more Boeing MAX 10 into MAX 8 or MAX 9 as needed. - Have agreed to letters of intent with two lessors to lease 35 new Airbus A321neos with CFM engines expected in 2026 and 2027. - Due to manufacturing and certification delays from prior years, by the end of 2023, the airline's contractual aircraft commitments for 2024 had increased to 183 narrowbody aircraft. At the beginning of 2024, these delays were anticipated to continue and the company expected 101 narrowbody deliveries. Following the 737 MAX 9 grounding and the FAA's announced significant production capacity constraints on Boeing, the company now anticipates 61 narrowbody aircraft and 5 widebody aircraft to be delivered in 2024.

British Airways owner International Consolidated Airlines Group SA (LSE:IAG) took off on Thursday after US-based rivals signalled improving transatlantic demand. United Airlines Holdings Inc (NASDAQ:UAL, ETR:UAL1) said on Wednesday that it expected to see strong demand over the summer, fuelling a record for passenger numbers this year. “On demand, we see continued positive momentum in bookings across all customer segments,” chief executive Scott Kirby said.  “[This includes] the most price-sensitive customers to ‘domestic road warriors’ and up to the premium global customer.” United forecast per-share earnings to exceed analysts' expectations over the first quarter, despite being pushed to a US$164 million loss last year by forced groundings of its Boeing 737 MAX 9s after January’s Alaska Air door panel blowout. “Current results are very strong, but the future is even brighter,” chief financial officer... More at #Proactive #ProactiveInvestors http://ow.ly/2gmv105pRZC

Record revenue at American Airlines! American Airlines reported a record full-year revenue of approximately $53 billion for 2023. ✈ Net Income: The GAAP net income for the fourth quarter was $19 million, and for the full year, it was $822 million. ✈ Debt Reduction: The company reduced its total debt by $3.2 billion in 2023, aiming for a $15 billion reduction by 2025. ✈ Operational Reliability: Achieved the best-ever fourth-quarter and full-year completion factor with the lowest number of cancellations since the merger in 2013. Overall it is another success story for US carriers over the busy holiday season. No immediate signs of a 777 or 787 order. Although I'm certain this is coming in 2024. #airlines #aviation

American Airlines is in need of a strategy reset. It alienated lucrative corporate customers with a sales overhaul, and a focus on small US cities isn't paying the dividends hoped. “We've got some work to do on building back from the hole we've created for ourselves,” American CEO Robert Isom said in a mea culpa to investors at the Bernstein Strategic Decisions Conference this week. What does American need to do? To be clear, the building blocks of post-pandemic success are there from a decently sized international network to a broad selection of premium products and one of the largest loyalty programs in the world. Still, American would likely benefit from a basket of changes from rebuilding its sales team and reestablishing relationships with large corporates to probably some network tweaks that favor lucrative long-haul international routes. Read more on FlightGlobal. #airlines https://lnkd.in/eNPKbXGN

After a long time I have seen a large airline acknowledging strategy error. I hope that the #Americanairline is quickly able to recover and recoup relations with the travel agent fraternity. It is relevant in the Indian context. there are some very disturbing trends that are developing. 1. airlines are continuously reducing sales staff and cost. The ratio of sales staff on industry wise basis have come down from 9% to 4% over 2013 vs 2023. 2. The distribution cost aka agency cost (largely) has come down to 3.5% from 7% over the same period. 3. Reliance on online portals has increased, however beyond a level this will no more remain a symbiotic relation. this has been witnessed in a series of mishaps in airline revenue management. for example "series fare" which started as a way of easy money, soon became bette-noir of atleast two airlines, one the Goair collapsed due to yield dilution and second is struggling with yield 30% lower then leader. Thankfully this industry wise malice is now capped. Undoubtedly technology is playing a large part in reducing distribution cost, but airlines should be aware and consciously build a team that can work towards robust partnership with agents with focus of increasing yield. One cannot be dependent solely on the distribution strength of technology providers, as soon they start getting a pricing advantage they start driving airline yield down. I hope #airindia and #indigo takes cognisance and start to invest in sales teams.

FORT WORTH- American Airlines (AA) reported a loss for the third quarter and revised its profit outlook for the year, citing higher fuel costs as a contributing factor. The airline now anticipates earning between $2.25 and $2.50 per share on an adjusted basis for the year, which is a decrease from the July estimate of $3 to $3.75. #American #Americanairlineflight #AmericanAirlines #AmericanAirlinesflight #AmericanAirlinesnews #AmericanAirlinesThirdQuarterResults #AmericanFinancialPerformance

We all know that airfares have increased over the past couple years and so have the stock prices for companies like United Airlines up over 30% and Delta Airlines is up 50%. What you may not know is those pesty little baggage fees are really adding a lot of revenue for the airlines. In 2023 American Airlines had baggage fee revenue of $1.36 billion and yes that is billion. That was closely followed by United Airlines with $1.22 billion in baggage fees and even discount airline Frontier experienced $880 million in baggage fees. Southwest is missing out on all these additional fees with only $73.4 million in baggage fees in 2023. Obviously the airlines are benefiting from tremendously from these baggage fees, which go right to the bottom line so important to remember that when you’re shopping for flights to remember to add back in what you will pay for the baggage fee as this is a big profit area for the airlines. A company by the name of Elliot Management has taken a $1.9 billion stake in Southwest Airlines. I believe down the road you may see Southwest Airlines jump on board with the others and start charging baggage fees to help their slumping profits. Many people love Southwest Airlines for the way they used to run their business, but as I’ve said before, the only thing that stays the same in this world is change. #stocks #stockmarket #investing #investors #unitedairlines #southwest #southwestairlines #baggesfees #deltairlines #flights #airports

We all know that airfares have increased over the past couple years and so have the stock prices for companies like United Airlines up over 30% and Delta Airlines is up 50%. What you may not know is those pesty little baggage fees are really adding a lot of revenue for the airlines. In 2023 American Airlines had baggage fee revenue of $1.36 billion and yes that is billion. That was closely followed by United Airlines with $1.22 billion in baggage fees and even discount airline Frontier experienced $880 million in baggage fees. Southwest is missing out on all these additional fees with only $73.4 million in baggage fees in 2023. Obviously the airlines are benefiting from tremendously from these baggage fees, which go right to the bottom line so important to remember that when you’re shopping for flights to remember to add back in what you will pay for the baggage fee as this is a big profit area for the airlines. A company by the name of Elliot Management has taken a $1.9 billion stake in Southwest Airlines. I believe down the road you may see Southwest Airlines jump on board with the others and start charging baggage fees to help their slumping profits. Many people love Southwest Airlines for the way they used to run their business, but as I’ve said before, the only thing that stays the same in this world is change. #stocks #stockmarket #investing #investors #unitedairlines #southwest #southwestairlines #baggesfees #deltairlines #flights #airports

FORT WORTH- American Airlines (AA) reported a loss for the third quarter and revised its profit outlook for the year, citing higher fuel costs as a contributing factor. The airline now anticipates earning between $2.25 and $2.50 per share on an adjusted basis for the year, which is a decrease from the July estimate of $3 to $3.75. #American #Americanairlineflight #AmericanAirlines #AmericanAirlinesflight #AmericanAirlinesnews #AmericanAirlinesThirdQuarterResults #AmericanFinancialPerformance