Airlines Industry News & Updates

Delta Airlines

U.S. Carriers Report Double-Digit Increases in March Passenger Revenues
Airlines, struggling with another crisis, the cloud of ash from Iceland's Eyjafjallajokull volcano, which shut down European skies, did have some good news.

The Air Transport Association reported passenger revenues, based on data from nine major U.S. carriers, were up 15 percent in March, the third consecutive month of revenue growth.

International markets: passenger revenues were up 19.6 percent. The number of passengers was up slightly, 1.4 percent. Separately, the International Air Transport Association showed that international air traffic demand was up in March by 10.9 percent. (Source: ATA, IATA press releases).

Premium Travel Up Again in February
The front of the plane is filling up again, according to the International Air Transport Association's latest figures.

February saw a 5.9 percent increase in premium travel and a 6.9 percent increase in economy travel, IATA said.

The level of economy travel is close to recovering to early 2008 levels, but premium travel is still 16 percent down on previous highs. Still, as world trade increases, so does premium travel. The Far East, South American and Middle East did the best; Europe, the North Atlantic, the Pacific and Africa were weakest.

Europe Institutes Post-Volcano Relief Plan for Airlines
The volcanic ash that shut down the skies over Europe cost airlines, which already expected to lose $2.8 billion this year, another $1.7 billion, according to the International Air Transport Association.

The five-day shutdown, canceled 100,000 flights and left 10 million passengers stranded. However, the European Commission was asking member nations to provide airlines immediate relief with measures such as making market-rate loans and deferring payments for air traffic control services.

Under normal circumstances, that would be considered illegal aid under EU rules. The crisis also appeared to give impetus to move to create a single European Sky. (Source: IATA, news reports).

Gogo Inflight WiFi Introduces Monthly Subscription Good on Multiple Airlines
Aircell, a major provider of inflight WiFi, has introduced the Gogo Monthly Subscription, which you can use on any airline whose fleet uses Gogo's inflight WiFi service.

Previously such monthly subscriptions had only been good on one carrier-fine for a frequently flyer who always flies the same carrier, but not for those who fly different airlines in a single month.

It can be redeemed on any carrier using Gogo, but initially will be available for purchase only on AirTran Airways, American Airlines, Delta Air Lines and Virgin America; all airlines that have equipped a high percentage of their fleet with Gogo. (Source: Gogo press release).

Germany, Netherlands Integrate Trusted Traveler Programs With U.S.
The United States is integrating its biometric-based trusted traveler programs with those of the Netherlands and German.

These programs expedite pre-approved, low-risk travelers members' trips through Customs upon arriving in the country. Under these partnerships, travelers can apply for both the U.S. Global Entry and the German Automated and Biometric Border Control or the Netherlands Privium programs simultaneously. (Source: Department of Homeland Security).

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Airline updates: fees increase

Delta Airlines

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)

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June Footnotes for Airlines

Airlines Up Fares Again for 16th Time This Year
Airlines continued to increase fares and search for new revenue streams to help them cope with soaring fuel prices.

United Airlines initiated what was the 16th fare hike to stick since the beginning of the year, with fare increases that ranged from $10 to $60, depending on the route. Other legacy carriers—Continental Airlines, US Airways and Northwest matched.

American Airlines upped some fares and other carriers tacked on increases as well.

Rick Seaney, CEO of FareCompare.com, an airline comparison website, said that airlines have no choice but to pass on the cost of fuel to consumers and when passengers do begin to push back in significant numbers the airlines have no choice but slash capacity by that same amount. (Source: FareCompare.com.)

American Cuts Flights, Staff, Charges for First Checked Bag, Ups Other
Fees
American Airlines said it would charge its passengers $15 for their first checked bag as well as cut domestic flights by 11 to 12 percent as part of its efforts to cope with fuel costs.

At press time, no other carrier had followed American’s lead in charging for the first checked bag; Southwest Airlines, in fact, pointedly stated that it continues to let its customers check two bags—for free.

American, meanwhile, upped other fees, including those for oversized bags (from $100 to $15); ticket change fees from $100 to $150 for domestic tickets and from $100 to $200 to $150 to $250 for international tickets. It also upped its reservation service fee and AAdvantage Award ticket fees up by $5 each to $20. US Airways took another tactic—it said it would eliminate free snacks, although it will continue to serve free soft drinks.

And Midwest Airlines said it would begin charging $20 to check a second bag.
(Source: American, Southwest, Midwest Airlines press releases).

Major Carriers Continue to Experiment With All-Business Class Flights
The number of air travelers flying first or business class is dropping at increasingly faster rates, according to the International Air Transport Association, an industry group.
And three transatlantic carriers that offered premium seating—MAXJet, Eos and Silverjet—have ceased flying. But major carriers continue to experiment with the oncept. Singapore Airlines has introduced all-business class flights between New York and Singapore.

In October, Lufthansa will introduce all-business class service between Boston and Munich. That’s in addition to the all-business class service it operates between Chicago and Düsseldorf, Newark and Düsseldorf and Frankfurt and Düsseldorf.

Meanwhile, on June 19, OpenSkies, a British Airways-backed carrier that has three classes of service but has allocated nearly two-thirds of the plane to premium seats, will begin to fly between New York and Paris. And L’Avion, the all-business class French carrier, is now code sharing with OpenSkies to offer three flights daily between Paris and JFK (Sources: IATA, Singapore Airlines, Lufthansa, OpenSkies and L’Avion press releases.)

Network Carriers Add International Flights, Low Cost Carriers Add
Domestic
Some U.S. carriers are adding flights, many focusing on international routes. Northwest Airlines has begun flying between Memphis and Columbia, Mo., and began serving Taipei via Tokyo. Delta Air Lines began flying from New York to Georgetown, Guyana and will start flight from Atlanta to Kuwait in November.

On the domestic front, JetBlue has begun daily service from Boston’s Logan International Airport to Chicago O’Hare and New Orleans. Southwest Airlines is adding flights from Denver to San Francisco and from Denver to Omaha in September.
(Source: Northwest, Delta, JetBlue and Southwest press releases).

New Virgin Atlantic Boston Clubhouse
At last, it’s here – the new Boston Clubhouse has opened its doors and is now accepting Upper Class flyers and Flying Club Gold members for some preflight rest, relaxation and pampering. Boston Clubhouse features a deli counter and bar, dedicated business area with PCs, free WiFi connection, charging facility for mobiles and blackberries, dining, lounge seating, free newspapers and magazines.

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Airlines Information, May 2008

Airlines Up Change Fees, Institute Minimum Stay Requirement

In airlines ongoing quest for additional revenues in the face of $120-a-barrel oil, several network carriers have upped their change fees and re-instituted Saturday night stay and/or minimum stay requirements.

Airlines

United Airlines increased its change fees by 50 percent to $150 and added a Saturday night stay requirement on routes in about 65 percent of its markets.

Continental upped its change fee to $150 for domestic and $250 for international flights. US Airways upped the cost of its change fees by $50, to $150 for domestic and $250 for international flights.In some instances, top customers, such as elite members of airline loyalty programs, are exempt from these fees.

In addition, United, Delta Air Lines, American Airlines, Northwest Airlines and Continental have instituted minimum stay requirements on all or many of their routes.

Meanwhile, most network carriers and some low cost carriers, including JetBlue and AirTran have added fees for checking a second bag; fees range from$10 to $25. (Source: airline press releases).

Compensation Doubles for Involuntary Bumping
If you’re involuntarily bumped from your flight, you’ll get twice as much as you used to get. Effective this month, if you’re bumped you can receive up to $400 if you’re rescheduled to arrive within two hours of your original arrival time on domestic flights, four hours on international flights, and up to $800 if you’re not rerouted within that time frame.

The rule now covers aircraft seating 30 people or more; it previously covered flights with 60 seats and up. Reimbursement is determined by the price of the ticket, its refundability and the length of the delay. (Source: DOT press release).

DOT, FAA Announce Plans Designed to Ease Congestion
Even though airlines are reducing their domestic capacity, many by as much as five percent, aviation congestion remains a problem.

The Department of Transportation and the Federal Aviation Administration have announced a new routing alternative that will provide an “escape route” into Canadian airspace so that aircraft can fly around summer thunderstorms and high winds. And, the FAA is opening a second westbound route for aircraft, which will provide a parallel route along a heavily traveled corridor, which should cut westbound delays out of New York.

The DOT has also proposed auctioning off a limited amount of slots-the number of flights airlines can operate in a single day-at LaGuardia. The Air Transport Association, an airline trade group, is opposing such market-based solutions, saying that the DOT doesn’t have the authority to institute auctions and congestion pricing and that they are inconsistent with international practices. (Source: DOT, ATA press releases.)

Fare Expert Finds Majority of Airline Attempts to Hike Fares Are ticking
When Delta Air Lines and Northwest Airlines announced their proposed merger, they said that stratospheric oil prices have fundamentally changed the economics of aviation.

Oil prices are fueling mergers and other alliance, bankruptcies (more than a half dozen this spring, with the latest being the premium transatlantic carrier Eos), capacity reductions and ongoing fare hikes.

Rick Seaney, CEO of the airfare monitoring site FareCompare.com, has been tracking airline fare increases and reports that the airlines have attempted 14 price hikes so far this year; nine have been successful.

Summer demand and soaring fuel prices are making airlines comfortable with these increases, meaning travelers need to lock in summer travel now. (Source: FareCompare.com)

Virgin Atlantic Adds Second Dulles-London Flight for Summer
Virgin Atlantic has begun a second daily flight between Washington Dulles International and London Heathrow. The flight will operate until October 26. (Source: Virgin Atlantic press release).

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