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Tag 757

Rising fuel costs for US airlines

10 13 2021 2 08 09 PM

Delta stated today on its earnings call its concern with rising fuel prices, and how this will negatively impact their earnings.  The rise in traffic is welcome, but that rise may not be fast enough to offset rising fuel costs.…

The Duopoly remains unstable

9 10 2021 10 58 22 AM

Observers of the commercial aviation space would do well to study game theory.  First, because it helps to better understand the choices facing the two primary players. Second, because it helps one better comprehend possible next steps and the downstream…

The US Middle of Market surge

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As US airlines navigate their way through the pandemic, it has become clear that each airline takes slightly different paths to seek their lowest seat cost production.  While seeking the lowest seat cost is a perennial goal for all airlines, …

The compelling A321neo

A321neo Take Off scaled

In the US, and probably globally, fuel represents about 40% of airline operating costs. Cutting fuel burn is going to remain a prime focus at every airline.  The case to retire aircraft is driven by MRO costs, but even if…

Thoughts on SkyWest’s latest order

e175

Yesterday SkyWest and Embraer announced an order for another 16 E-175s.  This order boosts SkyWest’s E-175 fleet, which is already the world’s largest of the type.  These 16 aircraft will be used exclusively for Delta Air Lines regional service.  SkyWest…