It’s good to be a Gulf carrier—Gulf carriers are well positioned to connect the whole world. But it might be better to be a near-the-Gulf carrier like Turkish Airlines. Turkish offers a blend of service as an intercontinental carrier and also as a gateway to an entire continent. We discuss Turkish’s fleet, revenue concerns, growth plans and what kind of threat Pegasus poses. Cathay Pacific had a rather ordinary fourth quarter, but the Hong Kong carrier was likely happy to get that.

In South America, LATAM might be thinking the same thing despite very different circumstances. Ethiopian Airlines had a terrific quarter, growing revenues and notching a 10% operating margin. And Air New Zealand and United announced a joint venture just days after we discussed it on the Lounge. Coincidence?