Airlines, airports and passengers: nothing but gains this year [INFOGRAPHICS]

by Tom Johansmeyer on

There are a whole lot more of us flying this year: 4.3 percent more, to be exact. That’s the increase in domestic air traffic from September 2009 to September 2010, according to the latest data from the U.S. Department of Transportation. In that month, U.S. airlines had 57.3 million passengers, leading to the largest year-over-year gain since September 2007. Meanwhile, international passenger traffic on U.S. flights surged 9.4 percent year over year.

For the first three quarters of 2010, scheduled domestic and international passengers were up 1.5 percent, suggesting that the recovery has gained momentum throughout the year. Domestic passengers gained 1 percent, with international passengers up 5.3 percent. Relative to 2008, though, passenger traffic is off 6.8 percent.

So, who wins? Of course, the airlines have had a relatively fantastic year, especially the worst of them. Delta, considered bottom of the barrel, surged from #3 in September 2009 to #1 in September 2010, with more than 9 million enplaned passengers, up 68.6 percent year over year (but don’t forget that the Northwest merger plays a role in this. Delta‘s also the top dog for the first nine months of the year for the same reason, followed by Southwest, American Airlines and United Airlines.


Atlanta Hartsfield-Jackson International Airport remains the busiest in the United States by a considerable margin. Close to 32 million passengers passed through in the first nine months of 2010, an increase of 1.1 percent year over year. Atlanta led Chicago O’Hare, which came in second, by more than 9 million passengers so far this year. For the greatest gains, look to Charlotte: it was eighth on the list but posted a growth rate of 6.5 percent YTD.

Las Vegas was the only airport in the top 10 for the first nine months of 2010 to post a year-over-year decline. The number of enplaned passengers dropped by a rather substantial 3.6 percent year over year, hardly surprising given the fact that the Las Vegas tourism business has been slammed by the recession. Also, outbound traffic from Las Vegas is likely constrained by the local economy, which has been battered pretty badly (as real estate prices indicate).


Even though the number of passengers increased for airlines and airports, the number of flights operated slipped 1.2 percent from the first nine months of 2009 to the first nine months of 2010. Likely, the airlines were tightening up their flights, making better use of available seats and cutting expenses.

[photo by Yaisog Bonegnasher via Flickr]

How much are you really paying for your plane ticket?

by Tom Johansmeyer on

We’ve heard airline employees gripe ad nauseam about how flying just isn’t what it used to be … because it’s so much cheaper than it was back in the glory days. True, we’re looking at a much different world post-regulation, but that was so long ago that it isn’t relevant any more.

So, what about today? Are airlines still getting hammered in the deal (as they contend), or are consumers giving ’til it hurts? The answer, of course, is somewhere in the middle.

You probably saw my story this week that puts plane tickets up 13.1 percent year over year for the second quarter, though it really just offsets a 13 percent decline last year. Nonetheless, the $341 average domestic fare is close to the 2008 peak of $346 and the third-highest average domestic fare attained since 1995 (2006 came in second at $342). It really does feel like we’re getting screwed.

Think again. Airline employees have a point, but only narrowly.


Adjusted to 1995-equivalent dollars, the average domestic fare this year is only $238. That’s a 20 percent drop from the $297 average fare in 1995. Over the past 15 years, the airline industry has lost a lot of ground. The peak, in 1995-equivalent dollars, was reached in 1999 ($302) and maintained in 2000 ($300) before the slide began. Even in this analysis, however, 2010 shows a marked improvement from the 2009 level of $213 (in 1995-equivalent dollars).

So, in pure cash, the airlines have been getting shafted. The industry’s position falls apart, however, when you consider the inclusion of ancillary fees, which are expected to be good for $8.9 billion in airline profits this year, according to IATA. The inflation-adjusted fare we’re paying doesn’t include the amenities we used to receive … and the airlines are generating extra income from what they used to include in the price of a ticket.

There’s no doubt that airfare is cheaper than it’s been in at least a decade and a half, but you’re not getting the value you used to.

[photo by Mr. T in DC]

Federal judge will decide on your right to relax, not airlines

by Tom Johansmeyer on

Nobody likes it when the passenger in front of him reclines. I can’t fathom any circumstance in which having the person’s seatback on your lap is enjoyable. I have numerous tactics I use to prevent the person in front of me from reclining, and I suspect I’m not alone (in fairness to the person behind me, I rarely recline, and if I do, it’s never more than half way).

So, when you drive your knees into the seatback in front of you, are you being an unreasonable and impolite … or are you depriving the passenger in front of you of his right to recline?

It looks like the answer will come from the U.S. District Court of Colorado.

On an American Airlines flight from Los Angeles to Denver, two passengers got into a rather heated argument over this right (or privilege) to recline. CNN reports:

As Brian Dougal leaned back on the Denver-bound flight late last month, he felt someone bump his seat, according to a criminal complaint filed in the U.S. District Court of Colorado.

“Are you serious? My knees are up against the seat,” said the man behind him, identified as Tomislav Zelenovic, according to the complaint.

Dougal suggested that Zelenovic also recline, slide into an empty seat next to him or move his legs to the side. Dougal told the man in 10C that he paid for his seat and was going to recline it.

Zelenovic then shook the back of Dougal’s seat and grabbed his right ear, pulling it back and down with enough force to knock Dougal’s glasses off his face, according to the complaint.

Okay, that is hard core. The cops were waiting for Zelenovic on the ground, and he was charged with assault (he’s pleading not guilty).

Yeah, this behavior is nothing short of absurd, but it does speak to the fundamental issue of whether we should (or should) be able to recline. Frankly, this debacle makes Michael O’Leary look like a genius. After all, you can’t recline if you can’t even sit down, right?

Hey, how do you feel about reclining? Drop a comment below to share your thoughts.

[photo by Andrew Mason via Flickr]

Former flight attendant feels overwhelmed and tubby

by Tom Johansmeyer on

During a visit at the Queens Criminal Court to report on his substance abuse treatment progress, former JetBlue flight attendant Steven Slater said, “I am a little overwhelmed.” He added, “I’m trying to stay focused and organized and keeping my priorities straight,” according to the NY Post.

The former flight attendant was ordered into counseling as part of a plea agreement to two counts of criminal mischief. He also lost his job and has agreed to pay JetBlue $10,000 to replace the chute he used to slide to freedom after an altercation with a passenger. There’s been no indication of whether he has to reimburse the airline for the Blue Moon beer he took with him.

The judge advised that Slater not “get worn out with all your activities” and suggested that he “have a good holiday season.”

Outside the courthouse, a photographer paid Slater a compliment on his appearance, but the latter didn’t agree, saying, “I need to lose 25 pounds.”

Cheap tickets still exist, despite airfare inflation

by Tom Johansmeyer on

Is it really getting more expensive to fly? Earlier this week, the Department of Transportation revealed that ticket prices were up 13.1 percent year over year for the second quarter of 2010, a stunning increase – though tempered by the fact that fares actually fell 13 percent year over year from the second quarter of 2008 to the second quarter of 2009. If nothing else, this does raise concerns about whether we won’t have access to cheap tickets for a while.

With some strength coming back to the travel market, it’s easy to speculate that rates will continue to rise, especially if business travelers come back into airports in force. And when you look at the history of airfares over the past decade and a half, it’s easy to see why. Despite grumblings in the industry that flying is getting cheaper, average fares have climbed 14.8 percent cumulatively from 1995 to 2010, with 2010’s average domestic fare of $341 approaching the 2008 peak for this period of $346.


But, there’s a silver lining. There’s still enough market inefficiency to make deals possible, and the rising strength of intermediaries (i.e., online travel agencies) means that you should be able to score some great fares next year. As the battle for brand recognition as a way to access consumer wallets heats up, look for competition to put some pressure on the economic drivers that push fares higher.

I’ve heard from Bill Miller, Sr. VP of Strategic Partnerships at CheapOair that average ticket price (base fare only) fell 0.3 percent year over year for domestic flights and climbed 0.2 percent year over year for international flights. Effectively, this translates to no change while the underlying carriers are pushing fares higher.

Miller tells me, “At CheapoAir we work hard to keep airfare prices low for our customers. Year-over-year, airline ticket prices that customers buy from us have actually decreased very slightly. And, our international airfare prices have gone up very slightly. We will continue to focus on finding low airfares for our customers as that is what is important to them.”

So, while fares are still at close to their highest levels since 1995, it doesn’t mean there’s reason to give up hope. Combine the fact that you can still find bargains with the increase in purchasing power that accompanies an economic recovery, and you’re in better shape than you think.

Time to get out on the road!

[photo by AMagill via Flickr]