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Home Stocks And Finance

Reflecting on the tumultuous year of 2024 for U.S. airlines: from door plugs to bankruptcy

December 26, 2024
in Stocks And Finance
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Reflecting on the tumultuous year of 2024 for U.S. airlines: from door plugs to bankruptcy
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People check-in for their flights at the airport ahead of the Thanksgiving Holiday at Hartsfield-Jackson Atlanta International Airport, in Atlanta, Georgia, U.S., November 27, 2024.

Megan Varner | Reuters

It’s been another eventful year for U.S. air travel. Just five days into the year, a door panel blew off of a nearly new Boeing 737 Max, operated by Alaska Airlines, as it climbed out of Portland, Oregon, after sunset, plunging the airplane manufacturer back in crisis mode and delaying deliveries of new jets for months.

Two weeks later, a federal judge blocked JetBlue Airways‘ planned purchase of Spirit Airlines, leaving the smaller, battered budget carrier to fend for itself. Struggling Spirit ultimately filed for Chapter 11 bankruptcy protection in November.

The drama-filled year also included an activist campaign at one of the country’s most cautious carriers, a tech meltdown that stranded hundreds of thousands of travelers during the height of summer travel and the first major U.S. airline merger since Barack Obama was president.

Federal Aviation Administration chief Mike Whitaker announced he’ll step down on Jan. 20, about a year into a five-year term, and the day President-elect Donald Trump is inaugurated, leaving the critical agency that oversees everything from aircraft certification to the U.S. airspace yet again without a leader. Airline CEOs have been clamoring for more air traffic controllers and investment in air traffic technology.

Meanwhile, carriers duked it out for who could be the most “premium” and profitable, with cabins closer to the front of the plane becoming more popular purchases for travelers (sorry to those seeking free upgrades). The top two contenders — stalwart Delta and challenger United — brought most of the industry’s profits, and their stock prices hit records, while smaller airlines leaned into roomier seats and announced higher-end credit cards.

Airlines played chicken until the industry trimmed its glut of U.S. flights that were pushing down fares. But the international travel boom, well into the off-season, is showing no signs of slowing down. Through it all, demand for air travel overall smashed records, and CEOs are optimistic about next year, too.

Here’s how they each fared in 2024:

Delta Air Lines

Travelers from France wait on their delayed flight on the check-in floor of the Delta Air Lines terminal at Los Angeles International Airport (LAX) on July 23, 2024 in Los Angeles, California.

Mario Tama | Getty Images

The most profitable of U.S. carriers struggled to recover from a July 19 CrowdStrike outage that took hundreds of Microsoft Windows machines offline. It cost Delta Air Lines more than $500 million and left thousands of stranded customers, with a cancellation tally that topped all of 2019. Still, the carrier’s stock price hit a record this month.

CEO Ed Bastian told CNBC last week that demand looks strong going into 2025. The airline has been stepping up its premium offerings for high-paying customers, like with three new Delta One lounges, dedicated to travelers flying in that eponymous highest-tier cabin; New York, Los Angeles and Boston opened this year, with more on the way.

It’s a sign of Delta’s continued focus on upscale travelers and its “premium” brand, which like Spirit for budget travel, has become a punchline about the upper end of travel to the point that a “Saturday Night Live” sketch last week featured Martin Short playing a Delta employee who blocks actor Paul Rudd from entering a coveted Delta Sky Club, saying his name “sounds poor.”

Delta stopped short of rolling out a business-class lite product that some analysts expected during a November investor day, but the new lounges could relieve crowding at Delta’s popular Sky Clubs.

United Airlines

An American Airlines airplane passes behind a United Airlines airplane at Newark Liberty International Airport in Newark, New Jersey, on Sept. 28, 2024.

Gary Hershorn | Corbis News | Getty Images

Can it beat Delta? It’s not clear whether the Magnolia Bakery banana pudding is enough to get more travelers to buy up to first class, but United Airlines is making other big moves, like expanding its network to include more premium leisure destinations from Mongolia to Greenland to northern Spain in the next year to capture customers seeking to travel off the beaten path of traditional U.S. airline destinations.

The carrier has thrilled investors with its results this year and set lofty targets for next year. Its stock has more than doubled in 2024, becoming the top-performing carrier.

United is introducing freshly outfitted narrow-body planes with new interiors featuring seat-back screens and Bluetooth connections into its fleet. It announced a Wi-Fi partnership powered by Elon Musk-owned SpaceX’s Starlink, and it won’t charge for the service, following Delta and JetBlue.

CEO Scott Kirby early in the year said the carrier isn’t counting on Boeing’s yet-to-be-certified 737 Max 10 and will look at more Airbus planes as…



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Tags: Aerospace and defense industryAirlinesAlaska Air Group IncAllegiant Travel CoAmazon.com IncAmerican Airlines Group IncBankruptcyBoeing CoBreaking News: BusinessBreaking News: EconomyBreaking News: MarketsBusinessbusiness newsCitigroup IncCrowdStrike Holdings IncDelta Air Lines IncDonald TrumpdoorEconomyEd BastianElon MuskFrontier Group Holdings IncJetBlue Airways CorpJoanna GeraghtyLifeMarketsMicrosoft CorpplugsReflectingS&P 500 IndexScott KirbySun Country Airlines Holdings IncTransportationTraveltumultuousU.SUnited Airlines Holdings IncUnited StatesYear
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