Saturday, December 28, 2024

What’s Ahead for the Airline Industry in 2025? (Connecting the Dots: The Boeing Company, United Airlines, American Airlines, The FAA & Soros Funding, All Networking)

What’s Ahead for the Airline Industry in 2025? (Connecting the Dots: The Boeing Company, United Airlines, American Airlines, The FAA & Soros Funding, All Networking)

The airline industry has experienced the best and the worst times in the soon-to-be-ended current year.

The Epoch Times

By Panos Mourdoukoutas 12/28/2024 Updated:12/28/2024

A Spirit Airlines Airbus A320 and a United Airlines Airbus A319 arrive at LaGuardia Airport in New York City on Jan. 9, 2024. Spirit’s successful business model inspired other companies, including United Airlines. Charly Triballeau/AFP via Getty Images

https://www.theepochtimes.com/business/whats-ahead-for-the-airline-industry-in-2025-post-5782606?c=share_pos2&pid=iOS_app_share

The skies look clear for the airline industry for the new year: The Boeing strike is over, traveling demand is robust, airlines are well prepared to monetize their assets, and the incoming Washington administration could pave the way for consolidations.

The airline industry has experienced the best and the worst times in the soon-to-be-ended current year. The best times were due to the acceleration of the post-COVID-19 demand recovery for traveling, with bookings hitting a record during the year.

The worst time was when a midair door panel blew off the new Boeing 737 MAX, tarnishing the iconic manufacturer’s image.

Then, Boeing machinists had a multi-week strike, adding to the industry’s woes.

In addition, there were IT failures during the peak summer season, which stranded travelers worldwide and cost airlines hundreds of millions of dollars.

The best time was the end of this year when travel hit records and airlines booked hefty profits.

nvestors have zeroed in on airline stocks, which are soaring and outpacing the broader market year-to-date. At the forefront are United Airlines shares, up 143 percent; Delta, up 55 percent; and American Airlines, up 27 percent; compared with 26 percent of the S&P 500.

The situation could improve further in 2025 for several reasons. One of them is that the Boeing strike is over, and the iconic aircraft manufacturer is working to fix its quality problems. It’s bringing back production in-house (insourcing) by acquiring critical suppliers, such as Spirit AeroSystems, which it sold in 2005.

Wall Street is beginning to warm up again to the iconic company, with its shares up by close to 18 percent in the past month.

Another factor is that the U.S. economy remains strong thanks to robust consumer spending, including spending on traveling, which is expected to reach as much as $1.22 trillion by 2027.

A third factor is airliners’ efforts to better monetize their assets, such as broadening seat choices by creating new classes of seats such as “premium” and “premium select” with a higher price tag.

“Airlines, including the traditional low-cost carriers, are likely to continue to expand their premium offerings, as travelers show no signs of relenting on their demand for higher-end experiences,” Julian Kheel, CEO and founder of Tripsight Inc., told The Epoch Times via email.

Joe Cronin, president of International Citizens Insurance, sees the increase in demand for premium travel as a critical driver behind this trend.

“Mid-tier airlines like United are already innovating with upgraded amenities and domestic business-class offerings,” he told The Epoch Times via email. “Different luxury experiences will likely be developed by amending the designs of airplane cabins or the standards of inflight service. The emphasis on premium products may create tougher competition for high-end customers, further stimulating carriers to upgrade their services.”

Aiding airliners’ efforts to monetize their assets is the diffusion of artificial intelligence (AI).

“AI is going to play a leading role for change in 2025, including within the airline industry,” Brittany Betts, director of PR and marketing for the luxury travel brand The 100 Collection, told The Epoch Times in an email. “We will start to see huge efficiency changes in the airline industry as AI gets integrated into air-traffic control systems, baggage management technology, and understanding how best to design and optimize the interior of a plane.”

Still, there’s a fourth factor: deregulation. The incoming Trump administration could be lenient on M&A, fostering consolidation in the industry.

“With the return of a Republican administration, airlines that fell on hard times in 2024 may make new attempts at merging with competitors in the hopes that new leadership at federal agencies will look more favorably on the agreements,” Kheel said.

Cronin believes the industry is already ripe for the unfolding of this trend.

“The latest bankruptcy of Spirit Airlines and the buyout of Alaska Air by Hawaiian Airlines signal a trend toward greater consolidation in the airline industry,” he said. “This suggests that the smaller and weak airlines will continue to struggle, while larger airlines are expected to pursue mergers or acquisitions to enhance their market presence.”

Meanwhile, Cronin said that being operationally and technologically up to date will become a priority for the industry.

“The IT systems failure that cost Delta a lot in 2024 exposed massive vulnerabilities in its outdated digital systems. Airlines need to upgrade their frameworks to allow for proper operations throughout busy hours,” he said. “Undoubtedly, automation and AI technologies will be among the necessary investments. From a traveler’s perspective, the need for protection from trip interruptions in the event of delays and system failures becomes apparent; comprehensive travel insurance is necessary to cover these costs.”

Connecting the Dots:
Edmund P. Giambastiani Jr.
 is a director at the Boeing Company and a lifetime director for the Atlantic Council of the United States (think tank).

Stanley O. Roth is a VP for the Boeing Company and was a director at the Atlantic Council of the United States (think tank).

James L. Jones Jr. was a director at the Boeing Company and is a director at the Atlantic Council of the United States (think tank).

Rozanne L. Ridgway was a director at the Boeing Company and a co-chair for the Atlantic Council of the United States (think tank).

Stanley Ebner was the SVP at the Boeing Company and is a lifetime director for the Atlantic Council of the United States (think tank).

Open Society Foundations was a funder for the Atlantic Council of the United States (think tank).

George Soros is the founder & chairman for the Open Society Foundations and was the chairman for the Foundation to Promote Open Society

Foundation to Promote Open Society was a funder for the Brookings Institution (think tank).

Vernon E. Jordan Jr. is an honorary trustee at the Brookings Institution (think tank)Valerie B. Jarrett’s great uncle and a senior counsel for Akin, Gump, Strauss, Hauer & Feld, LLP.

Akin, Gump, Strauss, Hauer & Feld, LLP is the lobby firm for the Boeing Company.

Cameron F. Kerry is a fellow at the Brookings Institution (think tank)John F. Kerry’s brother and a senior counsel at Sidley Austin LLP.

Kathryn B. Thomson was a partner at Sidley Austin LLP and is the chief counsel for the Federal Aviation Administration (FAA).

Federal Aviation Administration (FAA) is a division of the U.S. Department of Transportation.

Michelle Obama was a lawyer at Sidley Austin LLP and Mayor Richard M. Daley’s staffer.

Ray H. LaHood was the secretary at the U.S. Department of Transportation for the Barack Obama administration and Kathryn B. Thomson was his counselor.

Christopher P. Lu is married to Kathryn B. Thomson, was the White House cabinet secretary for the Barack Obama administrationBarack Obama’s legislative director and a litigation associate at Sidley Austin LLP.

Barack Obama was an intern at Sidley Austin LLP and Madelyn Payne Dunham was his maternal grandmother.

Madelyn Payne Dunham was Barack Obama’s maternal grandmother and an aircraft inspector for the Boeing Company.

Stanley Ebner was the SVP at the Boeing Company and is a lifetime director for the Atlantic Council of the United States (think tank).

Open Society Foundations was a funder for the Atlantic Council of the United States (think tank).

George Soros is the founder & chairman for the Open Society Foundations and was the chairman for the Foundation to Promote Open Society

Foundation to Promote Open Society was a funder for the Aspen Institute (think tank).

Walter Isaacson is the president & CEO for the Aspen Institute (think tank), a director at the United Continental Holdings, Inc., was a director at United Airlines and the chairman & CEO for CNN.

Aleksandra Johnson was a producer for CNN, a director of public affairs for the U.S. Department of Transportation and is an assistant to the secretary for the Federal Aviation Administration (FAA).

Federal Aviation Administration (FAA) is a division of the U.S. Department of Transportation.

Susan L. Kurland was an associate administrator for the Federal Aviation Administration (FAA), a deputy corporation counsel for Chicago (IL) and is an assistant secretary for aviation & international affairs for the U.S. Department of Transportation.

Federal Aviation Administration (FAA) is a division of the U.S. Department of Transportation.

United Airlines is a subsidiary of United Continental Holdings, Inc.

Oscar Munoz is the president & CEO for the United Continental Holdings, Inc. and a director at World Business Chicago.

Glenn F. Tilton was the chairman for the United Continental Holdings, Inc. and is a director at World Business Chicago.

Richard M. Daley was a director at the World Business Chicago, the Chicago (IL) mayor and Michelle Obama was his staffer.

Michelle Obama was Mayor Richard M. Daley’s staffer and a lawyer at Sidley Austin LLP.

Kathryn B. Thomson was a partner at Sidley Austin LLP and is the chief counsel for the Federal Aviation Administration (FAA).

Cameron F. Kerry is a senior counsel at Sidley Austin LLP, John F. Kerry’s brother and a fellow at the Brookings Institution (think tank).

Foundation to Promote Open Society was a funder for the Brookings Institution (think tank).

George Soros was the chairman for the Foundation to Promote Open Society

Judith Rodin was an honorary trustee at the Brookings Institution (think tank) and is a director at the AMR Corporation.

AMR Corporation is the parent company for American Airlines.

Resources: Past Research

Boeing Accepts Plea Deal to Avoid Criminal Trial Over 737 Max Crashes, No Immunity for Other Incidents (Connecting the Dots: Boeing, DOJ, FAA, FBI, Economic Club of Washington, Smithsonian Institution & Soros Fundong, All Networking) (Past Research on Boeing)

Monday, July 8, 2024

https://thesteadydrip.blogspot.com/2024/07/boeing-accepts-plea-deal-to-avoid.html

American Airlines reveals data breach — two months after it was discovered (Connecting the Dots: American Airlines, Samsung, Bill Clinton & the Soros Funded Think Tanks All Networking) (Past Research on American Airlines)

Tuesday, September 20, 2022

https://thesteadydrip.blogspot.com/2022/09/american-airlines-reveals-data-breach.html

Here's how often airlines involuntarily bump passengers (Past Research on United Airlines)

Monday, April 10, 2017

https://thesteadydrip.blogspot.com/2017/04/heres-how-often-airlines-involuntarily.html

FAA: 'No experience necessary' for air-traffic control (Past Research on the Federal Aviation Administration (FAA))

Monday, February 17, 2014

https://thesteadydrip.blogspot.com/2014/02/faa-no-experience-necessary-for-air.html

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