Gordon Smith

American Airlines has avoided big widebody bets – but that restraint may soon become a competitive liability.

Chinese airlines are missing the party. While carriers across East Asia thrive on red-hot premium demand, Mainland China’s 'Big Three' have struggled for six straight years, hampered by lost North American routes, outdated fleets, and stiff competition. Can they catch up?

Unlike Dubai, Virgin has decided to scrap rather than simply suspend its Saudi service – this suggests the challenges go beyond wartime woes. 

Cebu Pacific is feeling the pressure. Fuel prices have surged, yet rising fares and resilient demand are keeping revenues climbing almost as fast. How long can this delicate balance last? We explore the growing risks facing airlines in this week’s feature story.

Airlines are running a high-stakes race: can revenues keep pace with soaring fuel costs, or will the balance tip as we head into Q2?

Between insurance hurdles and tight capacity controls, the line between “can’t fly” and “won’t fly” in this complex operating environment is becoming increasingly blurred.

Fuel accounts for roughly 20–30% of an airline’s operating costs—so when prices surge, the impact can be immediate and significant.

In the last 24 hours, two of the three biggest Gulf carriers have eased loyalty rules. A simple case of looking after the customer or a sign that disruption may outlast current recovery timelines?

This bold approach reduces operational complexity and resets customer expectations, but also suggests that carriers see instability in the region lasting well beyond the immediate crisis window.

Cathay Pacific has come full circle. After losing about $4 billion during the pandemic years, the Hong Kong carrier has earned roughly the same amount back over the past three – its best run of profitability in decades. Can Cathay sustain its momentum – or will the next cycle look very different? We examine the outlook in this week’s feature story.