US airlines hope for faster China rebound after strong quarter in Asia
Top US airlines posted record Q3 revenue, but rising fuel prices and uncertainty surrounding China travel demand are clouding the outlook for the end of the year. American Airlines on Thursday reported that revenue edged up 0.1% to $13.5b, while posting a $545m net loss that the carrier attributed to one-time payments related to a new labor agreement with its pilots. United Airlines logged a 12.5% revenue gain to $14.5b and net income of $1.1b, up 21% on the year, the company reported this week. Delta Air Lines tallied an 11% rise to $15.5b in revenue for the third quarter with net income of $1.1b, an increase of 59%, it said last week. The results continued a streak of strong earnings following the pandemic reopening, but expectations for the fourth quarter have been dampened by the sharp increase in jet fuel prices since previous three months, as well as uncertainty over the conflict in the Middle East. All three airlines have halted flights to Israel. Asia-Pacific travel continues to drive growth, as it has done since the region reopened for tourism later than its Western counterparts. September brought a slow but steady return of flights between the U.S. and China, with more on the horizon. As domestic revenue growth moderates from the "revenge travel" boom, the airlines are focusing on regions like Asia to drive growth. "Asia is still, however you want to look at it, very strong," said Andrew Nocella, United's CCO. "We're going to focus our efforts where we see that growth, where we see the profitability opportunity. And if you look at our schedules going into next year, you can see that a gigantic percent change in our capacity is, in fact, Asia." Delta's revenue in the Pacific region climbed 65% on the year to $559m, thanks partly to a 70% increase in capacity, both by far the largest increase for any of the carrier's regional operations. The airline said it expects to boost capacity in the region 40%-50% in the December quarter.<br/>
https://portal.staralliance.com/cms/news/hot-topics/2023-10-20/general/us-airlines-hope-for-faster-china-rebound-after-strong-quarter-in-asia
https://portal.staralliance.com/cms/logo.png
US airlines hope for faster China rebound after strong quarter in Asia
Top US airlines posted record Q3 revenue, but rising fuel prices and uncertainty surrounding China travel demand are clouding the outlook for the end of the year. American Airlines on Thursday reported that revenue edged up 0.1% to $13.5b, while posting a $545m net loss that the carrier attributed to one-time payments related to a new labor agreement with its pilots. United Airlines logged a 12.5% revenue gain to $14.5b and net income of $1.1b, up 21% on the year, the company reported this week. Delta Air Lines tallied an 11% rise to $15.5b in revenue for the third quarter with net income of $1.1b, an increase of 59%, it said last week. The results continued a streak of strong earnings following the pandemic reopening, but expectations for the fourth quarter have been dampened by the sharp increase in jet fuel prices since previous three months, as well as uncertainty over the conflict in the Middle East. All three airlines have halted flights to Israel. Asia-Pacific travel continues to drive growth, as it has done since the region reopened for tourism later than its Western counterparts. September brought a slow but steady return of flights between the U.S. and China, with more on the horizon. As domestic revenue growth moderates from the "revenge travel" boom, the airlines are focusing on regions like Asia to drive growth. "Asia is still, however you want to look at it, very strong," said Andrew Nocella, United's CCO. "We're going to focus our efforts where we see that growth, where we see the profitability opportunity. And if you look at our schedules going into next year, you can see that a gigantic percent change in our capacity is, in fact, Asia." Delta's revenue in the Pacific region climbed 65% on the year to $559m, thanks partly to a 70% increase in capacity, both by far the largest increase for any of the carrier's regional operations. The airline said it expects to boost capacity in the region 40%-50% in the December quarter.<br/>
