Katherine Chiglinsky, Bloomberg
It sounds like Warren Buffet is not spooked by higher oil prices. That probably bodes well for everyone else invested in airlines.
1 month ago
Mary Schlangenstein, Bloomberg
It's a shame for people who truly need support animals, but too many travelers have been abusing the system for years. It's nice to see Southwest doing something about it.
Mary Schlangenstein and Alan Levin, Bloomberg
Southwest is making the right call to inspect its engines more often than the Federal Aviation Administration requires. It has had two scary engine failures recently, and one resulted in a passenger's death. It's better to be safe than sorry.
2 months ago
Brian Sumers, Skift
You have to give Southwest Airlines CEO Gary Kelly credit. Analysts are constantly prodding him to embrace tried-and-true approaches for generating ancillary revenue. For the most part, he resists. He doesn't want to mess with the airline's secret sauce.
Peanuts have long been associated with Southwest, so it makes sense this development is newsworthy. But in recent years, on longer flights, Southwest has given out more substantial and tastier snacks. If those munchies disappeared, that would be more disappointing.
The Department of Transportation's inspector general has several ongoing audits trying to measure the effectiveness of the Federal Aviation Administration. That's probably a nuisance to the FAA, but it's not necessarily a bad thing. Oversight is important.
3 months ago
This strategy is nothing new for major airlines. They all try to steal passengers from their competitors using lucrative frequent flyer promotions. But Southwest has played this game less often, because in the past, it wasn't much of a competitor to Delta, American and United. But times change, and Southwest apparently is betting it can play in the big leagues.
Justin Bachman and Mary Schlangenstein, Bloomberg
The U.S. aviation landscape has changed a lot over the last decade with a series of mergers cutting the number of carriers. Not only has this shored up their financials, but it has also made strike action less likely. A good thing for management maybe but not so good for employees looking for a better deal.
In the airline industry, bigger is almost always better. But Hawaiian Airlines is betting its unique niche will help it as more competitors add capacity in its markets. Still, the airline could someday be a takeover target for another airline that wants to grow.
4 months ago
Remember when airline CEOs argued mergers would benefit consumers because it would create more formidable competitors? It's looking like they were right — at least short term. Fuel prices are surging, and airline executives would love to raise fares. But it's hard for one airline to pass on added costs to travelers if the pack doesn't follow. For now, the pack isn't following.
Hawaiian Airlines executives are talking a big game about how they're ready for competition from Southwest Airlines. Is it true? Or are Hawaiian's executives nervous behind the scenes as they prepare for Southwest's Hawaii expansion?
Poor Gogo. Its stock is getting pummeled in public markets, and there doesn't seem to be a lot of hope among investors. How will the company respond?
