Airline Investors Brace for Turbulence

The transcript discusses the recent developments in the airline industry, focusing on United Airlines' decision to match fares with discount airlines, which has caused concern among investors. This has led to other airlines like American and Southwest also matching fares. Delta Airlines has responded by cutting its revenue and operating margin forecasts due to increased competition and rising fuel costs. The transcript also explores the cyclical nature of price wars in the airline industry, referencing a previous price war initiated by American Airlines that lasted over a year and affected investor confidence.

What prompted United Airlines to start matching fares?

• Increased passenger demand

• Discounts by Frontier and Spirit Airlines

• A rise in fuel costs

• A new government regulation

Which airlines followed United Airlines in matching fares?

• Frontier and Spirit

• Alaska and Hawaiian

• American and Southwest

• Delta and JetBlue

What additional challenge is Delta Airlines facing besides fare matching?

• New safety regulations

• Decreased passenger numbers

• Rising fuel costs

• Labor strikes

How long did the previous price war initiated by American Airlines last?

• Three months

• Two years

• Over a year

• Six months

What recent trend is observed in the airline industry after a period of improvement?

• Increased government subsidies

• Return to discounting fares

• Expansion of international routes

• Introduction of new aircraft models