Airline profit margins 2017-01-17T20:03:58Z Follow @AskHoward HONOLULU (HawaiiNewsNow) - Now that all the airlines have reported full-year 2016 profits, who had the best operating margins? Allegiant was tops at 30%. Allegiant flies really old jets it buys outright. No costly lease payments. But full service Alaska Airlines had a 23% operating margin. Thats the same as European no-frill carrier Ryanair, whose CEO infamously joked that he might charge to use the lavatory. Then Southwest, 21%, and JetBlue, 20%, both discount carriers. Hawaiian Airlines was next at 18%. And the big three? Delta, 18%, American, 16%, United, 14%. Mind you, all these airlines are profitable.
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Alitalia remains a basket case, and others are also battling with legacy costs. Prior to Cruz joining last year, BA was one of the first large international airlines to charges passengers in economy and even business class (if they didn't have status with the airline) for seat assignments. It also cut legroom in its European business class cabins and followed a number of airlines that have packed in more seats in the economy class cabins of its Boeing-777s, a workhorse for flights that can range more than 10 hours. IAG CEO Willie Walsh who first came to BA as CEO after turning around Aer Lingus has been called "Slasher Willie." A presentation last year to financial analysts quoted him as telling colleagues, "Show me the f*****g money," exerting his managers to scrape more revenue from its passengers. No doubt he deserves credit for making tough decisions. Under Cruz BA has introduced "Hand Baggage-Only" fares* ( Gary Leff emailed me to let me know this was launched pre-Cruz) where even top level members of its loyalty program have to pay for checked baggage and seat assignments. It comes alongside a number of small cuts, such as eliminating the traditional second meal on westbound transatlantic flights to a package of chips, taking away cheese and crackers from the main meal and even bringing the scalpel to its First Class cabin, removing flowers that used to be in the restrooms, slashing extended "Bistro" menu options, cutting out a tasting menu it offered aboard its Airbus A380s and removing an amuse bouche from meal service. The moves are to address increasing competition from low-cost carriers such as Ryanair and easyJet on European routes and Norwegian Air Shuttle, WestJet and WOW Air on its prized routes to North America. Norwegian is promising fares as low as $69 to cross the pond.
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The couple's 72-year marriage is the longest of any presidential couple in U.S. history, and the doctors said they have been a great support to each other. "They truly do have just such an amazing love for each other and that really came across here," Mynderse said, adding that Barbara Bush spent much her hospital stay by her husband's side. "Part of why she ended up, I think, in the hospital was because even though she was ill, she was trying to be by his bedside all the time." Doerr said: "They're essentially therapy for each other. They help and are compliant in terms of when one of them doesn't want to take a breathing treatment, the other says, 'Get on that.' It helps our cause." Bush, who served as president from 1989 to 1993, has a form of Parkinson's disease and uses a motorized scooter or a wheelchair for mobility. He was hospitalized in 2015 in Maine after cheap flights to NewYork falling at his summer home and breaking a bone in his neck. He was also hospitalized in Houston the previous December for about a week for shortness of breath. He spent Christmas 2012 in intensive care for a bronchitis-related cough and other issues. The former president and his wife appear to have touched the medical staff with their humility. Mynderse told reporters that when she informed the former president she would be speaking at a news conference Monday, he replied: "About what?" "I said, 'About you!' And he said, 'People want to know about me?'" she said. "They're so humble.
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