Emirates announced (28-Sep-2011) plans to launch services from Dubai to Seattle and Dallas/Fort Worth and enhance its premium customer experience at San Francisco International Airport. The airline will launch daily service to Dallas/Fort Worth on 02-Feb-2012 and daily service to Seattle on 01-Mar-2012, both with three-class B777 equipment - see Route Changes Table for more information. The destinations will be Emirates' fifth and sixth in the US. Emirates also plans to open a new customer lounge at San Francisco International in Nov-2011. [more - original PR]
Emirates expands in the US with Seattle, Dallas service
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Mexico-US transborder airline market Part 1: Interjet and Volaris capitalise on new US opportunities
Mexican low cost airlines Volaris and Interjet are engaged in a significant transborder push in 2016. Combined, the airlines will launch a dozen routes to the US as an upcoming new bilateral lifts restrictions on the number of airlines operating routes between the US and Mexico. With many countries in Latin and Central America experiencing economic weakness, the US is a safer bet for expansion in the near term.
Volaris and Interjet target different passenger segments, and the airlines have little overlap on the new flights that they are launching to the US. Volaris cites numerous route opportunities in the US transborder market, and has grown rapidly in that space during the past several years. Interjet has grown more slowly but has quickly broadened its US reach in 2016, entering some markets that already have ample service.
Although US airlines still dominate the transborder market Mexican airlines are working to chip away at the sizeable gap between them, growing their international passenger numbers 10% year-on-year for the first five months of 2016.
(This is Part 1 of two reports examining the Mexico-US transborder market. Part 2 will focus on the proposed joint venture between Aeromexico and Delta).
Hawaiian Airlines: cost creep casts a slight shadow over a favourable PRASM performance
Hawaiian Airlines’ geography has been a boon for the airline throughout 2016 as the company’s unit revenue performance has outpaced that of its peers. Hawaiian has benefitted from immunity to the lack of pricing traction in many domestic markets on the US mainland, and rational capacity deployment on is largest North American routes.
The company expects to continue posting a unit revenue outperformance for the remainder of 2016, driven by still favourable capacity trends in its markets. Hawaiian’s own capacity growth is expected to fall between 3% and 4% for 2016, and remain in the low- to mid- single-digit range for the foreseeable future.
Although Hawaiian continues to outperform the industry in unit revenue, the company is facing inflated unit costs in 2016 driven by several factors, including increased compensation and technology investments. The airline is also in the middle of pilot negotiations, and has acknowledged additional cost headwinds once a new collective bargaining agreement is reached.