J.P. Morgan’s Post

Just what is happening in the U.S.? Too many seats. And there are more on the way. There. We said it. Numerous explanations have attempted to decipher the Q2 domestic RASM surprises in the U.S., but none consider they were no surprise at all. Expressly ignoring the warnings leading into earnings season (yet implicitly and selfishly reminding that it was our research that warned of this very phenomenon), the explanations of sub-par domestic RASM have spanned the spectrum: either demand is collapsing, or passengers are just busy visiting Europe. We don’t believe either of these two explanations to be the case. A clear trend emerges of airlines that added domestic capacity, and the resultant RASM decreases. The more seats, the harder it is to fill them at reasonable fares. Yet passenger numbers and revenues are still up. Why is that? Because demand is still strong. The problem isn’t that passengers have gone away (yet). The problem is the 10%-20% increases in domestic capacity. You can read the entire analysis here: https://lnkd.in/gdSMATai Consider subscribing while you're there. It's free. #aviation #airlinesandairplanes

Steering through the turbulence of today's market requires more than just intuition; it demands a strategic analysis of where we are and an insightful forecast of where we're headed. Step 1 for airline survival? Delve into the depths of market trends and passenger demand to make informed decisions that keep us flying high and ahead.  #AviationStrategy #MarketTrends #PassengerDemand #FutureOfFlight

Industries evolve, often in unexpected directions. Adaptability and innovative partnerships can reveal opportunities where we least expect them. I reckon, for airlines, the sky isn't the limit anymore. 😂 🛫 "Consumers now charge nearly 1 percent of U.S. GDP to Delta’s American Express credit cards alone. A 2020 analysis by the Financial Times found that Wall Street lenders valued the major airlines’ mileage programs more highly than the airlines themselves. United’s MileagePlus program, for example, was valued at $22 billion, while the company’s market cap at the time was only $10.6 billion." #BusinessTrends #AirlineIndustry #FinancialInnovation #traveltrends #loyaltyprograms #americanexpress #deltaairlines https://lnkd.in/gGSBS_pX

Delta Air Lines (NYSE:DAL) #shares were under pressure after it joined other major #USAirlines in halting flights to Tel Aviv following Israel’s declaration of war in response to a large-scale attack by Hamas. However, third-quarter results ahead of the opening bell on October 12, 2023, may give #investors a reason to cheer. Like other airlines, Delta is expected to have continued to benefit from strong #travel demand following the Covid-19 pandemic. While ticket prices have cooled off, available seat miles will likely be up. The airline is expected to report a 13% rise in adjusted revenue to $14.6 billion for the quarter, while adjusted earnings per share are likely to rise 27% to $1.92 per share, according to Zacks Investment Research. More at #Proactive #ProactiveInvestors #NYSE #DAL http://ow.ly/VcHJ104Xfe7

Taking Flight: A Robust Growth Outlook for the Domestic Airline Industry!   The domestic airline industry is set to witness a surge in operating profit, exceeding 20% in the next fiscal, following a near-tripling this fiscal. Fueled by a strong recovery in passenger traffic, the industry's ability to pass on volatile fuel prices to flyers, and reduced fluctuation in foreign exchange rates, how will this impact the growth outlook? Uncover insights from the latest #CRISILPerspective : https://lnkd.in/gYdQazGe

📊 New Research: U.S. Heavyweights in 20 Charts: Delta Air Lines vs United Airlines vs American Airlines What you'll learn: 🔸Comparison of key financial and operational indicators 🔸Loyalty Program Comparison, Composition of Fleet and Network for each airline 🔸Stock price performance and valuations for each airline 💡 This comprehensive report is free for all Airline Weekly subscribers. Access it now: https://hubs.li/Q025ljQ10

Here's a fascinating read if you like to follow the dynamic #strategy landscape of airlines. As the market in the U.S. changes once again, it's time for incumbents and challengers to revisit and make new choices pertaining to where to play, and how to win. https://lnkd.in/drCGKbWS

The story of Q1 2024: International up, domestic flat - what the airlines see. Our recent newsletter pulls back the curtain to show what's being discussed at the airlines. Once a week, airline network planning teams receive a 13-page PDF detailing the strategic moves made in North America during the prior week. Hundreds of airline executives worldwide subscribe to Cranky Network Weekly. Each Sunday afternoon, they receive the report describing the North American chess moves of the prior week and setting the gameboard for the strategies about to be deployed. This chart was published months ago and identified a trend early. That trend? Planned domestic capacity for Q1 2024 is largely flat while growth is almost entirely limited to the international sector. Things changed in the U.S. in Q3. The domestic recovery became recovered, but the international recovery continued. As we were watching huge year-over-year capacity increases continue through the year, at some point you start lapping last year’s big increases. That’s happening now. Looking into the Jan 2024 schedule, we have noticed a distinct split between domestic and international flying. Some international comps are still in crazy land, with 2023 numbers not yet in full recovery mode, but the domestic comparisons are… um… less. Read the breakdown of trends we are looking at over the past six months and consider being ahead of the curve: https://lnkd.in/gNn-UQAs #aviation #airlinesandairplanes

Access qualitative airline risk commentary and comparisons with the most detailed intelligence and expert insights for 300+ airlines across the globe. Click here to learn more and book a demo ➡️ https://lnkd.in/eQ7HcPUv #IBAAirlines #AirlineData #AirlineAnalysis #AviationIntelligence

Air Charter Services Market Trends, Drivers, Report Analysis By 2032 Global air charter services market size is expected at $36.11 Bn by 2027 at a growth rate of 5.1% and growth analysis by The Business Research Company. Explore More@ https://lnkd.in/gHaURfkQ #marketresearch #marketintelligence #marketreport #industryanalysis #TheBusinessResearchCompany #aircharterservicesmarket