Low-Cost Carriers Show Profit, Legacy Carriers Lose Money
Low-cost regional carriers reported a profit in the first quarter while network
carriers posted a second consecutive loss, according to the U.S. Department
of Transportation's Bureau of Transportation Statistics.
The six network carriers posted a loss of 0.7% in the first quarter with a combined operating loss of $163 million. That was better than the previous quarter, when they reported a loss margin of 4.0 percent with a loss of $867 million.
The seven low-cost carriers reported a 2.4% profits of $115 mil. (Source: DOT press release).
Baggage and Other Fees Adding Up For Carriers
From January to March, the airlines collected $769 mil in baggage fees and $554
mil from reservation fees, according to the Department of Transportation.
The numbers do not include fees from seating assignments and on-board sales of food, drink, blankets pillows, and entertainment, which are reported in a another category.
First quarter of 2010 airline revenue from all ancillary sources was $1.9 bil, with Delta reported the most at $592 mil.
Passenger fees and ancillary from other sources constituted 6.2% of the total revenue of the 28 carriers reporting ancillary revenue. Spirit Airlines' reported the largest of any carrier, 21.7%. (Source: DOT press release).
American Pioneers Another New Fee
American Airlines is introducing Your Choice services, which includes Boarding and Flexibility Packages, that will start at $9 one way. This places travelers in Group 1 of General Boarding, so they can board right after PriorityAAccess customers.
It provides a $75 Flight Change Discount, which means that if travelers need to change their itinerary, they'll save $75 off the regular service charge when applicable. It allows you to go standby for an earlier flight on your day of departure at no charge.
Prices vary based by market and routing. (Source: American press release).
Delta Drops Fee for Last-Minute Frequent Flyer Tickets
Delta Air Lines has dropped its fees, which went as high as $150, for frequent flyer tickets redeemed 20 days and less before departure. Until the change, it cost $150 to book a frequent flyer ticket within three days of departure,
$100 for between four and seven days and $75 to book within eight to 20 days.
Tickets booked 21 days out or more had no redemption fee. Delta also instituted a first checked bag free benefit for customers with a Consumer or Business Gold, Platinum, or Reserve Delta SkyMiles CreditCard from American Express. (Source: Delta press release).
Air Traffic Inches Passed Pre-Recession Levels
Air travel inched passed pre-recessions levels, according to the International Air Transport Association.
International scheduled traffic statistics for May showed an 11.7 percent increase in passenger traffic over May 2009. South America saw the biggest growth, 23.6%; Asia-Pacific saw a 13.2% growth. Europe saw 8.3% growth.
The U.S. saw a 10.9% increase; the region's careful matching of capacity to demand has driven load factors to 82.4%, the highest of all regions. (Source: IATA press release).
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