People like to fly during the holidays – and the airlines want to exploit that

by Scott Carmichael on

The airfare specialists over at Farecompare.com came across something rather unsettling a couple of days ago. When looking at the fares airlines loaded into the various booking systems, they noticed that American Airlines started adding a $10 fee applied to all flights on the Sunday after Thanksgiving (Nov. 29) and Jan. 2 and 3.

Shortly after that, United Airlines pulled the same stunt, followed by Delta Airlines. Essentially, this “Miscellaneous surcharge” is a way for the airlines to make a huge amount of money on the days people need them the most.

It may not be as pathetic as the new British Airways seat selection fee we wrote about, but it comes pretty damn close.

These holiday tickets are historically the most expensive of the season, but making all that extra cash isn’t enough for the airlines. The only way to stay away from this bogus surcharge is to avoid the three days mentioned above, or to pick an airline that has not (yet) chosen to climb on board the silly surcharge bandwagon.

American finds $2.9 billion: more routes added

by Tom Johansmeyer on

It’s hard to see how the machinations of Wall Street affect the end consumer, sometimes. In the case of American Airlines and its recent pickup of $2.9 billion, you can draw a straight line from the money to the exit row.

The hefty infusion, a risky move because revenues are down and this is not a trivial amount of debt, has already prompted announcements of schedule changes … for the better. American is planning to increase flying in New York, Chicago, Los Angeles, Dallas-Fort Worth and Miami, though there will be fewer flights in Raleigh/Durham and St. Louis. Look for 57 new daily flights at O’Hare, six more from JFK, two in Los Angeles and anther 19 in Dallas-Fort Worth.

The news comes at a time when most airlines are cutting back service as a way to control costs due to reductions in passenger traffic.

Since we’ve seen what fewer flights can mean – more crowded flights, less legroom and higher odds of getting stuck in a middle seat – the financial breathing room that American has gained could actually give you more actual breathing room the next time you fly. If American fill these extra seats (at the expense of your throwing up the armrest and claiming two), it will generate more revenue, which could turn into real growth. Maybe some of that cash will be used to bring back some amenities.

Blankets, anyone?

American Airlines employees busted for drug-smuggling

by Katie Hammel on

22 people were arrested Tuesday amidst allegations of smuggling drugs from Puerto Rico into the US on American Airlines planes. Nine of the people arrested were employees of the airline, who allegedly sent over 9,000 kilograms – almost 20,000 pounds – of cocaine to US destinations that included Miami, Orlando and New Jersey. According to the US Justice Department, the ring has been operating since 1999.

The workers are a mix of ground crew and baggage handlers who are suspected of using suitcases to smuggle the drugs onto the planes. According to the AP release, Puerto Rico is a popular entry choice for drug traffickers, as once the drugs reach the island, they don’t have to pass through customs in the US.

Agents from the FBI and DEA arrested the suspects at locations in Miami and Puerto Rico in a joint effort cleverly named “Operation Heavy Cargo”. If convicted, the suspects face life in prison and fines up to $4 million.

American Airlines issued a statement saying, “As a company, we hope that the actions of a few employees don’t reflect negatively on the tens of thousands of ethical American Airlines employees who work hard to serve the public daily.”

Relationship with JAL: Delta or American?

by Tom Johansmeyer on

Fliers in the United States may get more options when traveling to Japan, but it’s unsure which airline will be the one to deliver. Both Delta and American are said to be in talks with Japan Airlines, and the winner is likely to have greater access to the largest travel market in Asia. Delta’s deal is reported to be worth several hundred million dollars, while the American Airlines offer is said to be in excess of $1 billion.

For travelers, the result will be more choices when traveling to Japan. In addition to route sharing, frequent flier programs will show the impact of the relationship that either Delta or American will win … assuming they can get past the regulators. For Delta, the main problem will be that the largest airline in the United States will have a significant relationship with the largest airline in Japan, raising issues about competition.

It’s still early in the game, and the talks aren’t even being revealed by the airlines themselves. A tough financial year for the airline industry is likely to be a factor in any final deal, as well. There are a lot of moving parts, and it will take time to show which ones will eventually fit together.

Flying for the rest of the year – fewer seats, higher fares

by Scott Carmichael on

As the financial brainiacs of the world slowly start to see some gradual improvement in the global economy, the worlds airlines are pushing through some far reaching changes to their Q4 2009 schedules.

Because the recession hit the airlines so suddenly, none of them were able to make any major cuts to their schedules (these schedules are set in stone in advance).

Overcapacity has meant that 2009 was actually a very good year for passengers, with some of the lowest airfare we’ve seen in years.

Of course, now the airlines are looking at their new schedules, they are making sure that the overcapacity is a thing of the past, and that means trimming the schedule.

Obviously, fewer seats means more people fighting for the cheapest seats, which will naturally result in higher prices. The schedule cuts will bring airlines back to the levels post 9/11.

According to an AP report, American Airlines will be hit the hardest, with a 10.5% drop in passenger miles on its domestic routes. United Airlines is hit equally hard, with a 9% drop. It isn’t all bad news though – JetBlue expects a modest increase in passenger miles for the rest of the year.

Bottom line is – don’t expect any more amazing fare deals any time soon and think about booking early, because flights are probably going to be filling up pretty quickly.

(Image from Flickr, stevelyon)