From CNBC: 2024-12-26 18:25:21

As the year comes to a close, the U.S. air travel industry has seen its fair share of ups and downs. From Boeing 737 Max incidents to airline mergers and bankruptcies, it’s been a turbulent year. FAA chief Mike Whitaker announced his resignation, leaving the agency leaderless. Carriers like Delta and United battled for premium passengers, while international travel boomed despite challenges in the industry.

Delta Air Lines faced a major outage that cost over $500 million and left customers stranded. The airline focused on upscale travelers with new lounges and premium offerings. While they considered a business-class lite product, the carrier continued to emphasize its premium brand. Despite challenges, Delta’s stock reached record highs this year.

United Airlines expanded its network to include more premium leisure destinations and introduced new Wi-Fi partnerships. CEO Scott Kirby expressed interest in more Airbus planes and offered free Wi-Fi powered by SpaceX’s Starlink. The carrier’s stock doubled in 2024, making it the top-performing airline.

Southwest Airlines made a major change by introducing assigned seating and premium seats with extra legroom to boost revenue. After an activist investor pushed for changes, Southwest appointed new board members and retained its CEO. The carrier faced challenges but continued to adapt its strategy to meet market demands.

American Airlines ousted its commercial chief after a failed sales strategy and revised its credit card partnership. The carrier is optimistic about future demand and profitability. American Airlines made changes to its leadership and business model, focusing on direct sales to business travelers and improving its financial outlook.

Spirit Airlines faced setbacks this year, including a blocked acquisition and bankruptcy filing. The budget carrier struggled with labor costs, competition, and engine recalls, leading to financial challenges. Spirit filed for Chapter 11 bankruptcy protection and aims to emerge in early 2025. The carrier shifted its business model to offer more bundled options for customers.

JetBlue Airways focused on cost-cutting and profitability after a failed acquisition. The carrier introduced domestic business class seats and improved its financial performance. JetBlue’s stock price rose significantly in 2024, outperforming the market. The airline’s strategy shift and new offerings resonated with investors and customers.

Alaska Airlines dealt with a door plug blowout incident and completed a merger with Hawaiian Airlines. The carrier focused on global expansion and premium service offerings. Alaska Airlines saw strong profits and stock performance in 2024. The airline’s ambitious plans for growth and expansion set it apart in a competitive market.

Frontier Airlines aimed to go upscale with first-class domestic seats and bundled offerings. The carrier focused on profitability and network optimization to improve margins. Frontier’s CEO expects double-digit margins by mid-2025 and credits recent network changes for positive results. The airline’s strategic initiatives have helped drive financial improvements.

Allegiant Air faced challenges with its hotel business but saw improved performance in its airline operations. The carrier underwent a strategic review for its Sunseeker Resort and updated its guidance for the fourth quarter. Allegiant Airlines experienced high demand and profitability in peak periods, signaling a positive outlook for the company.

Sun Country Airlines maintained strong margins and profitability, thanks to its cargo-flying contract with Amazon and strategic schedule adjustments. The carrier’s revenue diversity and economic moat have helped it weather industry challenges. Sun Country’s success in adapting to market conditions and focusing on profitable routes has positioned it well for continued growth.



Read more at CNBC: A look back at U.S. airlines’ wild 2024, from door plugs to bankruptcy