Lufthansa’s urge to merge – Airline Weekly

Is consolidation the answer to Lufthansa’s paltry profits?

Pushing back: inside the problem

Second-quarter earnings results continue to roll, illustrating an airline industry benefiting from an upsurge in demand, but also a shortage of supply, especially people and planes.

Korean Air stole the show with an impressive 22% operating margin for the quarter, benefiting from Seoul’s status as a global cargo hub. It might be better to abandon passenger transport altogether. Strength in passengers and cargo helped Turkish Airlines achieve strong profits in the June quarter. Middle East LCCs Air Arabia and Jazeera Airways also posted strong profits. Things have been much tougher, however, for Cathay Pacific in Hong Kong, where air traffic volumes remain a fraction of what they once were. On the other side of the earth, Latam posted another operating loss as it neared an exit from bankruptcy court in the United States. But Azul was profitable again, in a slow period for Brazil.

Finally, Boeing is delivering 787s again. Airlines continue to cut flights to ensure smoother operations. And for some in the United States, the peak summer season is now already largely over, with schools back in session across much of the country.

Weekly Airline Lounge Podcast

Meet Steve Sisneros, the Southwest Airport Czar. As vice president of airport affairs, he oversees current and future real estate at the airline’s 121 airports. Edward Russell and Sisneros discuss Southwest’s new facilities in Denver and Phoenix, and the status of plans for Terminal 0 in Los Angeles. Listen to this week’s episode to find out. A complete archive of the ‘Lounge is here.

weekly sky

Round of applause for Korea’s largest airline. With one of the largest air cargo operations in the industry, Korean Air has weathered the pandemic with consistent operating profits. Last quarter, with cargo still booming amid congested global supply chains, the airline…


Boeing resumed deliveries of its flagship widebody, the 787, on August 10. American Airlines has taken the first delivery in more than a year, a 787-8 registered N880BJ. The American aircraft was one of 11,787 originally scheduled to…

Roads and Networks

Avianca plans to add six new routes as it continues to expand point-to-point flights on its map. The Star Alliance airline is seeking approval from the Colombian civil aviation regulator to add daily flights between: Cartagena and Santiago, Chile and São…

state of unions

They say imitation is the greatest form of flattery. That maxim holds true in the US regional airline industry, which is seeking to combat a pilot shortage that threatens air service to smaller communities across the country.


Who remembers this? In 2007, just before the global financial crisis, the Lufthansa Group bought a 16% stake in JetBlue Airways. The idea: Establish greater influence in New York, America’s largest airline market. In the end, the move turned out…

In numbers

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