Should Spirit and Other Value Airlines LIV?
The piece draws a parallel between the financially strained LIV Golf league and U.S. ultra‑low‑cost carriers such as Spirit and Frontier, arguing both rely on massive external capital to sustain loss‑making operations. It cites the Saudi Public Investment Fund’s >$5 billion infusion into LIV and the UK entity’s $461.8 million loss in 2024, while the combined Spirit‑Frontier model shows roughly $5 billion in pre‑tax losses and comparable debt. Rising jet‑fuel costs—now about $4.50 per gallon versus $2.20 a few years ago—exacerbate the airlines’ cash‑flow challenges. The author concludes that without a fundamental shift, these businesses face an uncertain long‑term viability.
If the Government ... "Were to Go Into the Funeral Business, People Would Stop Dying"
The author argues that a government bailout of Spirit Airlines would harm the U.S. domestic airline market, which is already strained by rising labor costs, soaring jet‑fuel prices, and a surplus of seats. The piece notes that the pandemic exposed...
Neeleman Might Want to Assess Breeze's Balance Sheet Too - Only It Hasn't Been Audited
Breeze Airways, founded by serial airline entrepreneur David Neeleman, continues to operate without an audited balance sheet, leaving its true debt load opaque. The carrier relies heavily on federal subsidies, EAS and MRG payments, and airport grants to fund rapid...
Value Airlines to Travel to Washington - Will It Be Another Band-Aid, Bailout, or A Real Fix?
Value‑airline groups including Allegiant, Frontier, Avelo, Sun Country and Spirit are heading to Washington to press the Biden administration for relief, arguing that the pandemic‑era aid skewed toward legacy carriers and that the broken air‑traffic‑management (ATM) system hampers competition. The...
If United Is Serious About a Dance Partner, Is It Really About the Network?
United Airlines is weighing a partnership that could reshape its domestic network, but the debate centers on whether the value lies in merging routes or acquiring a loyalty program. Analysts argue that a United‑American combination would primarily add the AAdvantage...
US Airlines: Further Bifurcating the Bifurcation
The airline sector is facing a deepening split as higher fuel prices and looming government policy changes strain low‑cost carriers while larger carriers like Delta, United and Southwest lean on stronger balance sheets. Delta reported a better‑than‑expected Q2 outlook that...
U.S. AIRLINES, THE FINAL FOUR and THE MASTERS TOONAMENT
The post weaves together the NCAA Final Four, the Masters golf tournament, and the U.S. airline sector to highlight systemic inefficiencies. It praises Delta’s sustained leadership while questioning United’s progress and uses Dan Hurley’s coaching success as an analogy for...
The Allegiant Airports Conference and Leocha's Travelers United
At the Allegiant Airports Conference, the keynote speaker warned that the U.S. aviation system is stuck in an over‑capacity mindset, relying on 350 commercial airports and subsidies like EAS and SCASD despite a mature market. He argued that the real...
Commodity Industries Are Comprised of Ubiquitous Product Offerings
The recent Swelbar post revisits a 2021 presentation titled “Flight 031120: Departing Ubiquity Destined for Segmentation?” which argues that many commodity industries are defined by ubiquitous, undifferentiated products. It highlights the late Mike Levine’s insights on how such markets can...
A Side-by-Side of AA V. UA at ORD
American Airlines and United Airlines are expanding service at Chicago O'Hare, but the growth in flight frequencies exceeds the growth in available seats. United’s increase outpaces American’s, highlighting a more aggressive capacity push. Larger aircraft configurations are being deployed, which...
Crain's Chicago Business on American Airlines V. United Airlines at O'Hare
American Airlines and United Airlines are slated to boost their summer 2026 schedules at O'Hare by double‑digit percentages, pushing the airport's traffic to roughly 15% above last summer levels. The surge includes dozens of new nonstop flights to smaller markets,...
Aviation Week on the Value Airline Sector in 2030
Aviation Week’s Daily Memo projects a stark transformation for U.S. ultra‑low‑cost carriers (ULCCs) by 2030. Rising labor, airport and supply‑chain costs are eroding the traditional seat‑cost advantage, prompting all value airlines to add premium products and seek new revenue streams....
[COPY] The Airline Data Project
The episode delves into the Airline Data Project, an expansion of MIT's original dataset, now covering U.S. airline operations from 2017 onward. It explains how the project aggregates flight schedules, performance metrics, and financial data to enable rigorous research and...
United Airlines V. United Airlines Flight Attendants
The episode examines United Airlines' stalled contract negotiations with its flight‑attendant union, focusing on the demand for "ground pay"—compensation for time spent before doors close and after they open. It links this labor dispute to broader industry inefficiencies caused by...
Jimmy Dempsey's Frontier Airlines
The episode examines Frontier Airlines’ turnaround under new CEO Jimmy Dempsey, focusing on his four‑point strategy: rightsizing the fleet, tightening cost discipline, cutting cancellations and boosting on‑time performance, and deepening customer loyalty. Analysts debate the merits of increasing frequency on...