Top five reasons you’ll pay more for flights

by Tom Johansmeyer on

It looks like flight deals are a thing of the past. The airline sector is starting to recover, as evidenced by an aggregate $1.3 billion in earnings for the six largest U.S. carriers last quarter, and more profits are said to be on the horizon. Of course, we’re still in the early stages, and those earnings do pale in comparison to the $22.7 billion in losses sustained in 2008 and 2009. So, the airlines are making up for lost time and taking advantage of a swing in the economy … that means you’re going to pay for it.

Good news for the airlines, of course, translates to a thinner wallet for you, but it indicates that you’re at least willing to handle the higher cost, since airlines tend to be price-takers rather than price setters.

Why are you going to pay more for flights? Here are the top five reasons:

1. Extra fees no longer “extra”: they’re part of the package now. Airlines raked in $13.5 billion from fees in 2009, a 43 percent spike year over year. They aren’t going away. As the industry recovers, this will help keep fares higher.

According to the Associated Press:

United and American led the way on “ancillary revenue,” including fees, at about $1.8 billion apiece last year, according to IdeaWorks. United Airlines President John Tague calls fees “an unequivocal success,” and suggests his airline could still double the amount it’s bringing in with baggage fees.

2. The market supports higher prices: airlines charge what they can get, as it is a consumer-driven market. So far, consumers are responding favorably to price increases, with fares up an average of 18 percent this summer.

3. Airlines to hold the line this fall: demand is expected to decline through the end of summer, and the airline will try to keep from offering deep discounts. In fact, many are offering deals to get passengers interested but are able to convert into higher-priced seats.

4. Shared armrests the norm: the planes are full. Delta filled close to 90 percent of its seats last month, with Continental at 87 percent and American at 86 percent. This means there are more fares covering the cost of the flight, which delivers favorable financial results.

5. Temptation to add flights resisted: rather than bring more planes out to handle this increase in demand, the airlines seem to be fighting the urge, because bookings are sluggish and the economic recovery is tenuous.

[photo by Ma1974 via Flickr]

Vegetarian child stranded in airport, fed burgers

by Tom Johansmeyer on

Julien Reid, at only nine years old, is used to air travel. He routinely flies between his parents in Ottawa, and San Francisco, so he’s seen it all … well, he has now. Reid was forgotten in a children’s waiting room in Chicago, where he spent eight hours waiting and hoping to be discovered.

According to the Ottawa Citizen:

He was in a “tiny, little room cramped with kids,” where they played the same video on a loop all day, he said. The only food he’d been given was McDonald’s, a less than satisfactory option for a vegetarian like him. He said he and the other children were yelled at “to stop being kids.”

Meanwhile, the flight left without Reid. How did it happen? Among the many calls made to find out what was happening, Reid’s mother, Genevieve Harte, spoke with the United Airlines attendant tasked with keeping an eye on the kids. According to the Citizen, “It was this frazzled attendant who let it slip, Harte said, that no one had come to fetch Julien to put him on his flight.”

Citing something of an airline “omerta” policy, Harte, who suspects her son was bumped from a crowded flight, told the citizen: “It’s a lot easier to have a kid that’s not going to say anything than an adult who has a business meeting that’s going to scream at you in front of everybody.”

United said it’s going to give Harte “a refund for the childcare fee and an undisclosed goodwill gesture.”

[photo by FHKE via Flickr]

Southwest bumps thin passenger off flight for two-seater

by Meg Nesterov on


Last week a 5-foot-4, 110-pound woman was removed from a Las Vegas to Sacramento Southwest flight in order to accommodate an overweight teenager who required two seats. Despite paying full-fare for the last available seat, the anonymous woman was booted off the flight when the heavier passenger boarded the plane just before departure. Southwest admits their handling of the incident was “awkward” but were reluctant to ask for volunteers to deplane as the overweight person was a minor and they didn’t want to cause her further embarrassment.

This isn’t the first time this year Southwest has had a weight-related controversy. In February, director/actor Kevin “Silent Bob” Smith tweeted that he was deemed a safety risk and bumped from a flight after he refused to buy a second seat. The airline claimed they were acting in accordance with their “Customer of Size” policy, but apologized to Mr. Smith. In response to this latest incident, he tweeted “Now me AND my wife can get booted off Southwest… TOGETHER!”

How do you think Southwest Air should have handled the situation?

[Photo credit: Flickr user David Reber]

United creates Optathlon games for day-of-departure prizes

by Grant Martin on

It’s a long shot, but if all of your attempts to find a better seat, upgrade and improve your upcoming trip on United Airlines have failed then there’s one last thing you can do. Last week, United launched a series of video games on their website with prizes aimed at traveling customers.

What can you win? Among other things, it’s possible to earn the opportunity to skip those pesky long lines at the TSA checkpoint or maybe even win an upgrade to economy plus. All you have to do is play for an entry.

Obviously, United’s new games are targeted at educating the consumer on their full host of products and upgrades, including economy plus (more leg room and closer to the front of the plane) and elite status. And you will have to install a little game widget into your browser to make the games work. But for the chance to win a sweet little upgrade either on the plane or at the airport, it’s definitely worth a shot. Besides, the games are kind of fun.

You can check out the full series of games over at Optathlon.com.

[image credit to flickr’s lovely lemur]

Shanghai: New route from China to North Korea

by Tom Johansmeyer on

It isn’t exactly a wide-open commercial route, but at least the door is slightly ajar. Korean Air charter flights will start flying from Shanghai to Pyongyang on August 6, 2010, when the first group of tourists will take advantage of this (rather slight) liberalization of North Korean travel rules.

The goal, of course, is to “help to further promote cooperation and exchanges between China and North Korea in trade, tourism and culture,” according to People’s Daily Online.

It doesn’t look like the move is coincidental, as this is the 60th anniversary of the start of what we call the “Korean War,” though on the other side of the border, it’s given the moniker, “the War to Resist U.S. Aggression and Aid Korea.”

August is a great time to go to Pyongyang, given the Arirang Festival, which usually runs until October. And since North Korea is now a new destination for the Chinese tourist travel market (since April 12, 2010), the locals can take full advantage of this unique opportunity.

[photo by yeowatzup via Flickr]