TheStreet’s Post

Ever since a federal judge blocked JetBlue's plan to acquire Spirit Airlines for $3.6 billion back in January, speculation around whether the low-cost carrier would be able to turn around its finances without filing for bankruptcy has swirled. The $142.6 million loss for the second quarter of 2024 that Spirit reported back in May marks the airline's tenth consecutive unprofitable quarter. It has also taken a major hit by the ongoing recall of the Pratt & Whitney engines used in the Airbus A321neo planes that make up a large part of Spirit's fleet. On July 16, Spirit Airlines announced that it would further cut its revenue outlook to $1.28 billion from the $1.32 to $1.34 billion announced back in May. Spirit may be struggling, but its main problems also affect other airlines.

DALLAS- Southwest Airlines (WN) is notably recognized for its unique boarding process, where passengers do not have assigned seats beforehand. However, following hints of potential changes mentioned during an earnings call in Q1 2024, it seems the airline has started implementing a new offering. #southwest #SouthwestAirlines #SouthwestAirlines737MAX #SouthwestAirlinesBoardingProcess #SouthwestBoardingProblemSolution #SouthwestBoardingProcess #Southwestnews

DALLAS- Southwest Airlines (WN) is notably recognized for its unique boarding process, where passengers do not have assigned seats beforehand. However, following hints of potential changes mentioned during an earnings call in Q1 2024, it seems the airline has started implementing a new offering. #southwest #SouthwestAirlines #SouthwestAirlines737MAX #SouthwestAirlinesBoardingProcess #SouthwestBoardingProblemSolution #SouthwestBoardingProcess #Southwestnews

Spirit Airlines #SAVE on Friday raised its financial forecast for the fourth quarter of 2023, sending shares soaring 17% after a rout earlier this week following a judge’s ruling that blocked JetBlue Airways #JBLU from buying the budget carrier. Spirit Airlines said in a filing that it expects revenue to come in at the high end of its earlier forecasts, thanks to strong bookings at the end of the year. It estimated adjusted negative margins of 12% to 13%, improvement from a previous forecast for as much as a 19% negative margin for the last three months of the year. The airline also credited lower fuel costs and other expenses in its updated estimates. #US #market

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

𝗦𝗽𝗶𝗿𝗶𝘁 𝗔𝗶𝗿𝗹𝗶𝗻𝗲𝘀 𝗦𝗰𝗿𝗮𝗽𝘀 𝗙𝗲𝗲𝘀 𝗧𝗼 𝗔𝘁𝘁𝗿𝗮𝗰𝘁 𝗖𝘂𝘀𝘁𝗼𝗺𝗲𝗿𝘀 Simple Flying, an industry publication, reports that all ticket fares are now available without those fees, following in the footsteps of Frontier Airlines, which also recently eliminated change fees. Read the full story > https://lnkd.in/eGNNYUyT #TicketFares #AirlineNews #RetailWire

The pandemic has pushed the limits of cost reduction even further amongst legacy careers, through product, network and fleet harmonisations. Full service airlines tend to adopt a business model which has failed before, but proves to be successful for now: being hybrid sets a battlefield where low cost carriers seem to be losing ground, prominently in the US market. At the moment, European LCCs are flying high, but legacy careers record soaring profits and higher passenger numbers year-on-year : Lufthansa Group - 20% increase in FY2023 compared to FY2022 AirFrance KLM - 10% increase in FY2023/FY2022 BA - 20% From Southwest to Spirit, budget airlines are in a tailspin https://lnkd.in/dfcj-G6P from The Economist

DALLAS- Southwest Airlines (WN) is contemplating alterations to its single-class, open-seating cabins as part of a strategy to enhance revenue, revealed CEO Bob Jordan in an interview with CNBC on Thursday. This prospective change would represent one of the most significant shifts in the airline's history. #southwest #SouthwestAirlines #SouthwestCEO #SouthwestCEOBobJordan #SouthwestFirstQuarterLoss #SouthwestFirstQuarterResults #SouthwestFirstQuarterRevenue #SouthwestOpenSeating #SouthwestPremiumSeats #SouthwestQ12024Results

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