Turkish Airlines’ budget subsidiary is no longer an afterthought
Push back: inside the question
Ryanair buys planes again. Lots of planes. The Irish low-cost carrier chose the 737-10, the largest narrowbody offered by Boeing. Ryanair has ordered 150 of these, with an option to buy 150 more. Does it still have enough growth opportunity to fill all of these new planes as they move into the 2030s?
Ryanair is known for many things, including its habit of making ridiculously high profits at the peak of the third quarter – last year it had a margin of 35%! But nobody did that in the first quarter, right? Incorrect. Thai Airways stunned the aviation world with a 31% profit margin after a lackluster run for much of the 2010s. That’s peak season for Thailand’s massive tourism industry, which has apparently made a comeback. Bangkok Airways also had a good quarter.
Copa Airlines doesn’t seem to care what season it is – it apparently has a year-round money printing machine in its basement. Emirates posted a solid profit for the full financial year to March. But it is no longer a growth airline. Virgin Atlantic said it posted a loss on a pre-tax basis in 2022, another blemish on its poor financial record. In comparison, Air Canada posted a small first-quarter loss. The same goes for Türkiye’s Pegasus.
Read on for more information on Air France-KLM’s losses. But an important caveat before continuing: Jet fuel prices are currently down about 50% year-over-year, according to IATA. Yes, demand is still very strong. Have a great day today.
Airlines Weekly Lounge Podcast
Ryanair has given Boeing a boost by ordering as many as 300 of the new 737 Max, making things of the past a thing of the past. It’s the biggest order ever for the European discounter. Edward Russell and Jay Shabat discuss the deal. Also, first-quarter results from Air France-KLM and IAG. Listen to this week’s episode, and find The Lounge’s full archive here.
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