Korean Divergence: Airline Weekly Lounge Episode 41

Jay Shabat
May 25th, 2016 at 12:01 AM EDT

Why are we seeing such different results from the two big Korean airlines? Korean Air again overcame systemic challenges to deliver a standout performance in the first quarter. And although the fuel situation certainly helped, the story wasn’t only about fuel. If you don’t believe us, just ask Korean’s chief rival Asiana, who struggled mightily in the same quarter. And although there’s no sign of a joint venture happening between Korean Air and Delta, we discuss it anyway, because that’s how we are.

Terrorism is—for good reason—on the minds of airlines around the world right now. It’s wreaking havoc on the balance sheet of Turkey’s Pegasus, which is losing a lot of money. But terrorism might be having the opposite effect for Thai Airways, which has made a brilliant return to profitability. We touch on SpiceJet, a comeback story in its own right. And, of course, we talk about what last week’s horrible crash means for Egyptair in the longer run.

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