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The Big Airlines Lost Money Flying Passengers Last Year. So How Did They All Turn Profits? | Global News Avenue

The Big Airlines Lost Money Flying Passengers Last Year. So How Did They All Turn Profits?

Key points

  • Last year, the revenue of the four largest airlines in the United States (Dalta, Union, United, and Southwest Airlines) exceeded US $ 200 billion, but in fact they lost the actual transportation of passengers.
  • The cost of all four carrier’s seats is higher than passengers in each seat in 2024.
  • Nonetheless, the airline was in a net profit last year. Credit cards are the main reasons for the situation.

The four largest airlines in the United States generated $ 200 billion in revenue last year. All of them lost money for transport passengers.

All four vectors-Delta Air Lines (Dar), United Airlines (UAL), American Airlines (AAL) And Southwest Airlines (like) – In the 2024 profitable, net income merged nearly $ 8 billion, and its operating income was $ 14 billion. However, the cost of all four available seats (CASM) is higher than that of PRASM. In other words, the airlines lost money on the surface.

So how do they make a profit? The carrier of the cost and aircraft fuel leader is largely favorable for the common brand credit card due to the favorable brand credit card.

Last year, Daimei Airlines, which has the highest operating profit (US $ 6 billion) and operating income ($ 61.64 billion) last year, said that PRASM was 17.65 cents, but CASM was 19.30 cents. Manchester United has the closest to the four people who make money through this measure. This is closely concerned by industry experts, but its interest of 16.66 cents is far lower than its CASM with 16.70 cents.

The fate of the airline was reversed in 2020

Due to the popularity, these four airlines are higher than CASM than CASM, but their income is more than 2020. Since then, no one is right.

At least in the next few years, the analysts of Alpha tracked analysts have continued this model in the next few years. However, they believe that Manchester United has a higher rate than CASM in this year and 2028.

Co -chief business official Andrew Norella explained in the fourth quarter income appeal of the carrier that it plans to retain ability. Increasing capacity-Total number of seats available on each flight on a given route-Due to the additional supply of potential supply, PRASM may be dropped pressure.

“In 2025, we plan to decline to the minimum capacity growth in the first quarter to support the continuous PR disease strength.”

This is where the airline actually makes money

Airlines can attribute profits to things in pockets instead of luggage: important reasons for credit cards. In a broad sense, airlines sold frequent flight mileage to credit card companies in a favorable way, and then the card issuer provided a reward to the cardholder as a reward.

Delta earn about $ 7.4 billion (American Express) from American Express (AXP) President Glen Hauenstein said at the company’s fourth quarter tax conference call: “Last year, the high -level growth of common brand expenditures and drivers of more than 1 million new card drivers.”

American Signed an exclusive transaction And Citi (Citi (C) On the common brand credit card in early December, its shares rose 17 % that day.

The airline said that in the 12 months as of September 30, its common brand’s credit card and other Patters received a revenue of $ 5.6 billion. It is expected that this number will continue to grow, which will eventually be close to $ 10 billion.

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