Breaking Down Japan Airlines and British Airways

In this episode of the Airline Weekly Lounge, hosts Gordon Smith and Jay Shabat delve into the latest developments at Japan Airlines and British Airways. They explore JAL's historical performance, recent financial trends, and the challenges it faces in a competitive market.

The discussion then shifts to British Airways' recent changes to its loyalty program, which have sparked significant public reaction. The hosts analyze the implications of these changes and the competitive landscape between British Airways and Virgin Atlantic, concluding with insights into the future of both airlines.

This episode is presented by Riyadh Air.

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Takeaways

• Japan Airlines has experienced a decline in operating margins over the years.
• The airline's profitability peaked in 2012, making it one of the most profitable airlines globally at that time.
• The Hawaii-Japan market was a significant revenue source for JAL, which has diminished post-pandemic.
• Continental North America has become a strong market for Japan Airlines, contributing to its recent performance.
• Elsewhere, British Airways is transitioning to a revenue-based loyalty program, moving away from distance-based rewards.
• The announcement of BA's loyalty changes has led to public debate and dissatisfaction among some frequent flyers.
• Virgin Atlantic is capitalizing on the dissatisfaction with BA's loyalty program changes.
• The airline industry is evolving, with more airlines likely to adopt revenue-based loyalty systems.