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
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 administration, Barack
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
