The aviation sector has had a difficult time since the pandemic. Routes have been closed, and travelers have been prevented from entering certain countries. But despite this, they have achieved excellent quarterly results, better than expected.
To summarize the third quarter.
We have listed some airlines with excellent earnings reports for the latest quarter.
- United Airlines reported the Third Quarter of 2022, a net profit of $942 million, down 8% from the same quarter in pre-pandemic 2019, and $12.9 billion in revenue, up 13% compared to Q3 in 2019. This quarter has another piece of great news for the company.
- United Airlines generated a loss of $1.4 billion in the first quarter on revenue of $7.57 billion. Despite this, the airline recovered in the second and third quarters. United and Emirates Airlines will sell seats on each other’s planes, marking a turnaround in the business models of the two once-enemy airlines.
- Air France-KLM, the Franco-Dutch holding company, posted a positive operating result of €1,024 million, up €897 million at constant exchange rates compared to last year. Net income for the third quarter of 2022 was €460 million, an increase of €653 million on the previous year. Air France is a subsidiary of the Air France-KLM group.
- Jetblue has some excellent news, not only for the quarter but also for the year. The airline is posting a substantial profit for the first time since the pandemic. In the third quarter of 2022, the company earned $2.3 billion in unrestricted cash, short-term investments, long-term marketable securities, and cash equivalents. This quarter sums up about 28% of their 2019 revenue. JetBlue had a debt-to-capital ratio of 53% at the end of September 2022.
- Spirit Airlines shareholders approved the Jetblue merger; for $3.9billion. There is still some way to go; they will complete the union in early 2024.
The Storm is Never Too Far Away.
- In the first week of September, a private jet with a family on board crashed into the Baltic Sea after “rapidly losing altitude” off Lative, Spain. On board was a family of three – a father, mother, and daughter – accompanied by the pilot. All were found dead; authorities said the plane ran out of fuel.
- Kenya Airways announced on September 2, 2022, the death of one of its passengers, nine days after another passenger was found dead on board one of its planes. The flight took off from Nairobi on September 2, 2022, at 11.55 pm. According to Kenya Airways, the person was found unconscious mid-flight on board and was later pronounced dead after test results.
The New Perspective
Now airline operations are returning to normal, some carriers are taking the opportunity to try new adventures. And others are making partnerships – because two is better than one.
- United Airlines has acquired 200 electric air taxis capable of traveling up to 250 kilometers on a single battery charge. United will invest $15 million in the electric aircraft company Eve Air Mobility. United’s electric planes will carry passengers and cargo around the city and airports.
- Air Canada also announced an agreement to purchase 30 ES-30 electric regional aircraft from Swedish manufacturer Heart Aerospace. The aircraft is expected to enter service in 2028 and can travel up to 800 km without emitting any carbon emissions. The other clause in the contract is that Air Canada will make a $5 million investment to the manufacturer, to support research and development (R&D) costs.
- While some airlines are waiting to receive their orders for electric aircraft, others are considering taking the plunge. Harbour air has made its first electric flight. The trip from the Fraser River terminal to Patrica Bay on Vancouver Island took 24 minutes. The plane covered 45 miles (72 km) on electric power alone and still had plenty of energy.
- Lufthansa and Amadeus have announced that they will expand their partnership to modernize further the travel distribution and sales business for the final quarter. The association between Amadeus and Lufthansa is part of a new move by the airlines to increase bookings for the courier group.
- Iberia Airlines had signed an agreement with the Madrid Community to promote the city to North America Travelers. The city has been on a promotional tour of the US to boost the city’s tourism sector. Of the 2.6 million tourists who traveled to Madrid, almost 12% came from the United States
- American Airlines resumed its flight to Cuba on July 13, 2022. The US Department of Transportation (USDOT) has approved American Airlines’ request to return to the island. Five destinations were banned by (USDOT) in 2019 Santa Clara, Holguin, Camaguey, Varadero, and Santiago de Cuba. The Trump administration decided to limit the ability of the Havana government to repress Cubans and support Venezuelan President Nicolas Maduro.
- Qantas announced in August that it would resume flights to New York, which had been closed for three years. Delta also said in August that it would resume its Tokyo-Los Angeles flight on October 31, 2022, in response to the opening of Japan to travelers
The airlines have hopefully left the worst behind, with passengers flocking to airports. But improvement must make in the quality of service by implementing an employee retention policy to avoid the chaos created by lost luggage, flight delays, etc. After three years of restrictions, some more severe than others in some countries, the number of travelers will only increase, and we need to be better prepared.
Tell us, do you think we left the worst behind us? Will Q4 2022 and, looking forward 2023, be better? Let us know in a comment below.