How should airlines invest their record profits?

June 20th, 2016 at 6:11:22 AM permalink
Pacomartin
Member since: Oct 24, 2012
Threads: 1068
Posts: 12569
Price Waterhouse Cooper points out that the 10 largest carriers had an average operating margin of 17.4% in 2015, a stark turnaround from the heavy losses suffered by the carriers during the economic recession and the razor-thin margins in the following few years. Airlines have returned some of those profits to shareholders in the form of dividends and stock buybacks, and a few have approved pay raises for pilots, flight attendants and other workers.

Investments in innovations that improve passenger convenience, such as smartphone apps that warn about traffic conditions and long security checkpoint wait times and allow fliers to automatically check luggage.


There was no mention about removing a row of seats from each plane.

Emirates is operating 143 B777s with up to 245 on order. They are showing no interest in the new Airbus 350's after they cancelled their order for 70 in June 2014. Their inventory of the A380 stands at 79 with 13 more coming with the same engine. Then they have an order for 50 more with the Rolls Royce engine, but I still think they will cancel if there is no NeoA380 model.
June 20th, 2016 at 6:55:11 AM permalink
Nareed
Member since: Oct 24, 2012
Threads: 346
Posts: 12545
Quote: Pacomartin
There was no mention about removing a row of seats from each plane.


That's not surprising. One reason the airlines are making so much money is the high density seating configuration.

But I hear some legacy airlines are bringing back free snacks.
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