Airlines Shake Off Oil Prices, Raise Revenue Expectations
Delta, United, and Southwest all said bookings are as strong as ever and expect to turn a profit in Q2 and beyond, despite rapidly rising oil prices and a potential end to the on-board mask mandate next month.
Delta Air Lines expects to make up for all of the increase in fuel prices – and then some – during the second quarter. The airline said last week it experienced its highest level of one-day cash sales in its history, with an expectation that Q1 sales will end up at 78% of 2019’s levels – a marked increase from the 72% it predicted at the start of the year.
American and United both expect first-quarter revenue to be higher than expected, with AA at 83% of 2019, better than the 78% it predicted, and UA thinks it will end up between 75% and 80% of 2019’s total. Southwest raised its revenue outlook this morning to as much as 92% of 2019’s levels, and that’s before considering the revenue earned from passengers buying early-bird to sit one row closer than they normally would.
Indigo Partners Inquires About Lighting Money on Fire
Indigo Partners is the latest name leaked that’s interested in scooping up some or all of ITA Airways from the Italian government. Italian media reported last week that an unnamed international equity fund had sent an expression of interest to the government, but the name of the fund wasn’t known until now.
Indigo partners has stakes in several ULCC’s around the world including Frontier and Spirit, Wizz Air, Canadian carrier Lynx Air, Volaris in Mexico, and JetSMART in Chile. The group is clearly experienced at owning dumpster fires and if it’s willing to bring its unique experience to ITA, who are we to stop them?
Indigo Partners joins two other bids for the beleaguered carrier that are known at this point — Lufthansa’s interest in a minority share of the airline and Delta and Air France/KLM’s desire for a majority, controlling stake.
Emirates to Launch Tel Aviv Service on June 23
Emirates’ once-delayed, much-anticipated start to service to Tel Aviv will now take place this summer, with once-daily flights beginning June 23. The B777-300ER operating the route will feature eight first-class seats, 24 lie-flat seats in biz, and 302 seats in the back where you don’t want to be.
Scheduled commercial air service between Israel and the United Arab Emirates is a new concept, after the 2020 Abraham Accords normalized relations between the two countries. Flydubai, along with Israel’s flag carrier El Al and LCC Arkia already have begun service between the two cities. Emirates will be the only airline operating a widebody on the route, for those who just can’t survive without a lie-flat and extra bin space on the three-hour jaunt.
The city pair was supposed to first receive service on Emirates late last year, but it was delayed when Israel shut its borders following the Omicron outbreak.
- Delta will begin daily regional service from New York/LGA to Dayton, Oklahoma City and Roanoke on June 6.
- EVA Air plans to convert three B777 passenger aircraft into freighters.
- Hawaiian is opening a new maintenance base in Long Beach.
- Niceair named London, Copenhagen, and Tenerife as its first three destinations. Someone should probably let the carrier know there’s like 14 airports in London and it’ll need to pick one.
- Norse Atlantic is delaying its launch to June, as one of the men named Bjørn that run the airline are concerned about gas prices.
- Pakistan International Airlines will begin once-weekly nonstop service from Lahore to Sydney. Shockingly the carrier has not yet announced a date when the service will begin.
- PLAY took delivery of its first A320neo earlier this month and isn’t playing around, now expecting to have it joined by an A321neo(LR) by May.
- Ryanair is being accused of jacking up prices on flights for refugees fleeing Ukraine.
- Silk Way West Airlines has taken over two B747-400s previously operated by Russian carrier Sky Gates Airlines.
- United says more frequent flier miles have been cashed in over the past month than during any 30-day period in the airline’s history.
Why are helium, curium, and barium the medical elements?
Because if you can’t heal-ium or cure-ium, you bury-um.