International Premium Travel Sees First Uptick in Nearly Two Years
The International Air Transport Association reported that international premium travel was up 1.7 percent in December 2009 over a year earlier. That’s the first increase since May 2008. Economy travel was up five percent over a year earlier.

The recession hit airlines hard throughout the first half of 2009, but a post-recession upturn began in the second half. May marked the low point for premium travel while February marked the low point for economy travel. (Source: IATA press release).

Global Air Capacity Grows for the Sixth Month in a Row More good news came from OAG, the aviation data tracking company.

It reported that in February, global airline capacity was up five percent, the sixth month in a row that it has increased. The single exception: North America, which reported a one percent decline in February in both flight frequency and capacity.

However, North America saw positive growth of three percent and two percent for frequency and capacity in flights to and from the region. Decreases continue on service between North America and Western Europe, where routes have five percent fewer seats and five percent fewer flights for the month.

Still, the OAG said airlines are adding routes in North America—108, with most being domestic flights. (Source: OAG press release).

U.S. Airline Revenue Up for First Time in More Than a Year
Other positive airline news: The Air Transport Association reported that passenger revenue rose 1.4 percent in January, reversing 14 consecutive months of declines.

Traffic was down very slightly--.4 percent—and the average price to fly one mile was up very slightly--.6 percent. James C. May, president and CEO of the ATA, said that the small revenue increase, coupled with a 17 percent increase in cargo traffic, could be the sign of a recovery. (Source: ATA press release).

Business Travel Continues Slow Recovery
Business travel continues its slow recovery with more than one in seven (15 percent) adults planning at least one business trip during the next six months, up from 13 percent recorded one year earlier.

According to the travel horizons survey co-authored by Ypartnership and the U.S. Travel Association.The U.S. Travel Association projects a slight increase in both business and leisure travel for 2010 over 2009. The "perceived safety of travel," declined from 93.8 in October 2009 to 84.8 in February 2010, presumably due to lingering concerns about the "Christmas Bomber" incident that occurred in Detroit over the recent holidays. (Source: Ypartnership and U.S. Travel Association press release).

Virgin America Ups Baggage Fees, American Charges for Blankets
Airlines continue to add on fees. American Airlines, following the lead of other airlines, will charge $8 for blankets and pillows in coach starting May 1.

Virgin America upped its baggage fee for all checked bags to $25 from $20. First Class passengers continue to check two bags for free; Main Cabin select and Main Cabin passengers with refundable fares can check their first bag for free. (Source: Virgin America press release, American statement).

Road Warriors Biggest Worry is Those at Home
Nearly 74 percent of business travelers say their stay-behind spouse has expressed concern about being left home alone, according to a survey commissioned by Logitech, a Swiss technology company.

Even more, 79 percent frequently worry about their significant other when traveling for business. Fifty-nine percent said they would look for a job with less business travel when the economy improves. And 54 percent would take a $5,000 paycut if it meant never having to travel for work again. (Source: Logitech press release)

Holiday Travel Gets Even Pricier
Flying on peak travel dates has always cost more, but this year it’s more expensive than ever, thanks to $10 surcharges several carriers are levying each way on certain dates.

Peak travel surcharge dates, according the fare monitoring site FareCompare.com, are Nov. 29 and 30, Dec. 19, 26 and 27, Jan 2 and 3, March 14, 20, 21 and 28, April 11 and May 28. American Airlines introduced the surcharge, US Airways followed and several others matched. (Source: FareCompare.com.)

Budding Corporate Travel Demand Sparks Airline Optimism
Corporate travel demand is improving, according to executives of the major legacy airlines.

They say corporate clients are taking to the skies in greater numbers, companies are easing restrictions and travelers in some cases are booking closer in to travel dates and increasingly selecting full fares.

"A lot of our corporate accounts are starting to hit the road again," said Delta Air Lines President Ed Bastian, adding that corporate fliers are "starting to move up the price point." Analysts sounded a similar theme throughout the industry's earnings calls. "There is evidence of improving travel demand, including from corporations," said Kevin Crissey of UBS. "All of the companies that have reported have cited this to one extent or another." Source: BTN Online

New Air-Traffic-Control Systems Offer Improved Communications Air-traffic controllers in the U.S., Europe, Canada, Australia, and New Zealand now have modern satellite-based systems that operate over oceans.

With frequent automatic position reporting from airplanes and email-like communications between pilots and controllers, these new systems are designed to fill the kind of communication void that occurred after Air France Flight 447 crashed in the Atlantic Ocean last June.

The new systems offer many other benefits as well. The FAA’s NextGen program is aiming at extending these satellite benefits over land as well as over oceans, replacing the current ground-based communication system. (Source: The Wall Street Journal)

United Offers One-Year, $249 Baggage Fee
United Airlines has put a new twist on baggage fees with Premier Baggage, charging customers a flat price that allows them to check two standard bags at no additional cost every time they fly on a United or United Express operated flight in a year. Customers can purchase a subscription for an introductory price of $249, entitling them to check two standard bags on United and United Express operated flights domestically and internationally, where applicable, rather than paying to check bags each trip.

The annual subscription also covers the standard checked baggage charge for up to eight companions traveling under the same confirmation number as the subscriber.

Mileage Plus Premier members are exempt from first and second bag fees on standard bags. (Source: United press release).

Track Flights on Your iPhone
FlightAware, which has more than two million monthly users using it for flight tracking, has released an application for the Apple iPhone and iPod Touch.

Users can download the free app from the Apple App Store, allowing them to track the real-time status and position of airline and private flights in the United States on their iPhones. (Source: FlightAware press release).

High-Speed Rail Could Ease Air Gridlock
A Brookings Institution study finds that air corridors of 500 miles or less between metropolitan hubs —distances at which trains can compete with planes—are the source of an increasing number of air delays. One reason for the congestion — no alternative transportation.

The delays can be so onerous that they discourage some would be travelers, who opt to stay home. The government is investing billions to improve rail options in some of these markets, but it will be years before they’re ready for consumers to ride. (Sources: Brookings Institution press release).

After Month-Long Hiatus, Airlines Try Another Fare Hike
The airfare monitoring website FareCompare.com reported that Northwest Airlines upped its domestic fares by nearly $80 roundtrip in over 4,000 city pairs for both business and leisure travelers.

The increase came after nearly a month of no airfare hikes. Rick Seaney, CEO of FareCompare, said that fares may be topping out, due to a sluggish economy and the fact that oil is down, relatively speaking, to the mid $120s per barrel.

He said revenue from added fees is also kicking in. (Source: FareCompare.com).

Delta Doubles Fee for Second Bag, Northwest Charges for First Bag FF Ticket Delta Air Lines upped its charge for a second bag to $50 from $25. It also said it would increase fees for specialty items that require special handling such as surfboards or ski equipment on domestic and international flights.

The new fees apply to tickets bought after July 31 for travel on or after Aug. 5. First Class, BusinessElite and Medallion customers will continue to be able to check up to three bags at no charge.

Customers checking bags on international flights may continue checking a first and second bag at no charge.

Northwest Airlines instituted a $15 charge for the first checked bagged, following American Airlines, United Airlines and US Airways’ lead; this applied to tickets sold after July 10 for travel starting Aug. 28.

Frequent flier elites are exempt from the policy, along with full-fare coach passengers. As of Sept. 15, it will also begin charging service fees for frequent flyer tickets: $25 for domestic, $50 for transatlantic and $100 for transpacific travel. (Source: Delta, Northwest press releases).

Hawaiian Charges for First Bag, Phone Bookings
Hawaiian Airlines began charging $15 for the first piece of checked luggage on flights between the mainland U.S. and Hawaii; the first bag remains free on interisland flights.

Hawaiian will also begin charging a $10 ticketing fee for telephone bookings for interisland flights, $20 for all other routes and $25 for ticketing at the airport. (Source: Hawaiian Airlines press release).

Flight Attendants Decry Turning Planes into Flying Vending Machines
The Association of Flight Attendants-CWA (AFA-CWA), lamented the fact that US Airways is now charging for soft drinks in flight, saying it was turning aircraft into “flying vending machines.”

The group said the airline is nickel and diming passengers and turning flight attendants, who are safety pros, into cashiers. (Source: AFA-CWA press release).

Delta Restructures Loyalty Program, Upping Some Mileage Requirements

Delta Air Lines said it was restructuring its SkyMiles frequent flyer program, saying it wanted to give its members greater flexibility and more options when redeeming miles, including the ability to again book the last seat on a flight using miles and three redemption tiers for Award Travel within the continental United States, Alaska and Canada..

Tiers will start at 25,000, 40,000 and 60,000 miles round-trip rather than the two current Award levels starting at 25,000 and 50,000 miles for travel within the continental United States, Alaska and Canada. (Source: Delta press release).

Northwest Ads Nonstop Milwaukee-Los Angeles Service
Northwest Airlines is beginning daily nonstop service between Milwaukee and Los Angeles beginning Sept. 6, using the 148-seat Airbus 320. (Source: Northwest press release).

Loews Hotels Introduces Baggage Buy Back Program

In the wake of American Airlines’ new $15 fee for checking bags, , Loews Hotels has introduced a new “Baggage Buy Back” incentive that will reimburse guests for their $15 checked baggage fee.

Arriving guests simply present any airline bag fee receipt at the front desk to receive the rebate, which will be issued in the form of a credit to their bill at checkout. The Baggage Buy Back rebate is available at Loews’ 18 properties in the U.S. and Canada, from June 15 through Labor Day, Sept. 1.

Loews Hotels will offer credit for up to two bags for a maximum of $30 per occupied room per stay. (Source: Loews press release).

Cars

Airline Loyalty Programs Offering Savings, Bonus Miles to Car Renters Airlines are giving their frequent flyer members a chance to earn more miles or get discounts when they rent cars.

Delta Air Lines and Advantage Rent A Car are partnering to allow SkyMiles members
to earn 200 miles per day on any class of vehicle rental through Advantage. with a maximum of 2,000 miles per rental. Additionally, SkyMiles members may earn up to 6,000 miles for rentals completed through July 13.

Northwest Airlines is partnering with Hertz to allow WorldPerks members to save 50 percent and earning double miles on weekend rentals in the U.S., Canada and Puerto Rico through June 30. WorldPerks members can earn 50 WorldPerks miles per day for Hertz rentals of one to four days, and 500 WorldPerks miles for Hertz rentals of five days or more.(Source: Advantage, Northwest press releases).

Spotlight On…..What You Really Dislike About Flying

It’s not the individual airlines that so frustrate air travelers, according to a new Travel Industry Association survey of air travelers. What irritates you most is the air travel process.

The TIA survey of more than 1,000 air travelers found that the more you fly, the more frustrated you get.

• Seventy-eight percent of air travelers believe the air travel system is either broken or in need of moderate correction
• Sixty-two percent believe the air travel system is deteriorating
• Thirty-three percent of air travelers are dissatisfied with the air travel system and 48 percent of frequent air travelers (those who do five trips or more per year) are dissatisfied
• Thirty-nine percent feel their time is not respected in the air travel process and that increases to 51 percent among frequent travelers.

The TIA is blaming flight delays caused by an outdated air traffic control system as a fundamental cause of the aviation industry’s problems and is holding a summit later this money to push Congress to address the problem.