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WSJ What’s News

What’s News in Earnings: Inside Airlines’ Holiday Pricing Strategy

WSJ What’s News

The Wall Street Journal

News, Daily News

44K Ratings

🗓️ 28 October 2025

⏱️ 6 minutes

🧾️ Download transcript

Summary

Bonus Episode for Oct. 28. Earlier this year, economic uncertainty weighed on airlines, as Americans were rethinking their travel plans. With the busy holiday travel period approaching, executives at carriers such as Delta Air Lines, United Airlines and American Airlines say demand is improving. WSJ reporter Dean Seal discusses how these carriers’ money-making strategies are beginning to pay off. WSJ travel reporter Jacob Passy hosts this special bonus episode of What's News in Earnings, where we dig into companies’ earnings reports and analyst calls to find out what’s going on under the hood of the American economy. Sign up for the WSJ's free Markets A.M. newsletter. Further Reading:  Delta Predicts Premium Seat Sales to Overtake Economy as Soon as 2026 United Airlines Expects Stronger Revenue Trends in Holiday Season Southwest’s Revenue Is Growing. Stronger Travel Demand and Bag Fees Are Helping. American Airlines Lifts Profit Target for 2025 Alaska Airlines Works to Restore Operations After Tech Outage Grounds Flights GE Aerospace Boosts Guidance as Air-Travel Demand Stabilizes Learn more about your ad choices. Visit megaphone.fm/adchoices

Transcript

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0:00.0

Hey listeners, it's October 28th. I'm Jacob Passy for the Wall Street Journal. And this is

0:09.2

What's News and Earnings. Our look at the big themes there's standing out this earnings season.

0:14.9

This year, the airline industry has been on less than solid ground. Many Americans were skipping

0:20.2

vacations because of concerns about the state of the economy.

0:23.6

This quarter though, things are beginning to look up and airlines are getting ready for the holiday travel season.

0:28.6

Plus, they're implementing new pricing models, allowing them to charge more for airfare.

0:34.6

So which carriers are poised for liftoff? We're joined by Wall Street Journal reporter

0:39.4

Dean Seale, who's been tracking airlines for us.

0:48.9

So, Dean, how has travel demand been shaping up lately? Are people still postponing their travel plans like they were earlier in the year?

0:56.8

No, so demand has actually definitely been on an upswing right now. You're right that earlier this year, there was a few different things that impacted demand and that definitely weighed on airline revenues.

1:05.8

We had the fatal crash in January, and that was cited by a lot of airlines as impacting their volumes.

1:12.5

And then in April, we had President Trump's tariff campaign that also weighed on consumer

1:17.9

confidence and in turn fell on travel demand.

1:21.1

But most of the airlines are saying now that demand is picked up.

1:23.7

It started to happen later in the summer.

1:26.0

Some carriers are saying in July, others saw it more in August, September,

1:28.3

but it's definitely been on a resurgence right now, and we're seeing that carrying into the holiday season.

1:33.3

And so what's the outlook for international travel these days?

1:36.3

So international travel is actually doing really well, and part of that is we're seeing more premium seats being sold,

1:43.3

and premium seats tend to be correlated

1:45.4

with an increase in international travel because people are taking longer trips they're going to

1:49.8

want some maybe extra leg room or they might be carrying extra baggage with them. So as we're seeing

...

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