Which airline charged more than $500 million in cancellation fees?

There isn’t as much money in cancellations as there is in baggage fees, it seems. So far, close to $2.6 billion has been charged for bags this year (with three quarters measured), and U.S. airlines have only racked up $1.7 billion in cancellation fees. And, as usual, there’s one culprit that consumes around 30 percent of this, with the top five airlines accounting for more than 80 percent of the cancellation fees charged in the United States so far this year, according to the Department of Transportation.

Curious? Well, the list will look pretty familiar to you, largely because the largest airlines are most likely to generate the most revenue from cancellation fees.

Delta wins this fee race, as it did baggage fees, with more than $530 million in cancellation fees, followed by American Airlines ($353 million), United Airlines ($243 million), US Airways ($192 million) and Continental Airlines ($181 million). JetBlue takes a distant sixth with $85 million, and the numbers only get (much) smaller from there.

Which airline made the most money on baggage fees?

Last year, baggage fees were used by airlines to make up for lost fare revenue, as the recession kept people on the ground. This year, it’s just been a great source of extra revenue, as passenger traffic and fares are up – and the fees haven’t gone away. Almost all airlines are getting in on the action, some more egregious than others.

Well, data for the third quarter of 2010 is in, and we can finally take a look at who’s hitting us hardest … and for how much. The numbers will probably shock you. The top baggage fee-grabber owned close to 30 percent of the total baggage fees charged in the United States, a market that has reached $2.6 billion for the first three quarters of the year, and the top five dominate with approximately 80 percent of the total fees charged for bags, according to data from the Department of Transportation.

Let’s take a look at the top five airlines for baggage fee snatching (and then the rest):1. Delta Air Lines, $733 million: in fairness, Delta is the largest airline in the United States, so it’s to be expected that it will generate the most revenue.

2. American Airlines, $431 million: the third-largest airline hits the #2 spot for baggage fees, implying an aptitude for prying open customer wallets yet to be recognized by its competitors.

3. US Airways, $388 million: again, this is an impressive take, as evidenced by the distance between US Airways and Continental, in the #4 spot.

4. Continental Airlines, $258 million: this almost makes the airline look downright reasonable, especially when it’s year-to-date baggage fees aren’t even as substantial as what Delta raked in during the third quarter alone!

5. United Airlines, $239 million:

And, the rest:

6. AirTran Airways: $112 million

7. Alaska Airlines: $81 million

8. Spirit Air Lines: $56 million

9. Frontier Airlines: $44 million

10. JetBlue Airways: $43 million

11. Allegiant Air: $43 million

12. Hawaiian Airlines: $40 million

13. Virgin America: $27 million

14. Southwest Airlines: $23 million

15. Republic Airlines: $18 million

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16. Horizon Air: $13 million

17. Sun Country airlines: $9 million

18. Mesa Airlines: $2 million

19. Continental Micronesia: $2 million

20. USA 3000 Airlines: $2 million

[photo by The Story Lady via Flickr]

Gadling’s favorite airlines for 2011

Even with airlines falling over themselves in an effort to generate profits out of new fees and charges, flying retains some glamour and excitement. No? Not working for you? Well there are mileage programs to exploit and perks to chase. And even in the direst landscape for customers, there are always new routes to sample, smiling flight attendants to befriend, and reliable pilots to thank for safe landings.

Going into 2011, it appears that Virgin America is Gadling’s favorite airline. Virgin America sails above the competition with their standard of service, their appealing overall product, and their general freshness.

Other airlines we especially like or tolerate for one or another reason include easyJet, Qantas, VAustralia, Air France, Philippine Airlines, Turkish Airlines, Air New Zealand, Cathay Pacific, Jet Airways, Continental, Alaska Airlines, and Porter.

We begin with the observations of Kent Wien, Gadling’s resident pilot-contributor and the motor behind two Gadling features, namely, Cockpit Chronicles and Plane Answers.

Kent Wien. Air New Zealand. I don’t know if I was more impressed with their new line of coach sleeper seats or the friendliness of their flight attendants. Either way, Air New Zealand has managed to capture much of the recent jump in tourism traffic to New Zealand by offering an innovative cabin design and enhanced service which includes an in-flight concierge for the entire airplane. They’ve changed the look and feel of their galleys by hiding them away during boarding, since the first thing passengers see when stepping on to an airplane is the in-flight kitchen. And most of these changes were accomplished even after they were named by Air Transport World as the airline of the year for 2010.

Mike Barish. I continue to love Virgin America. They’re willing to show personality. They have a sense of humor and their use of social media is phenomenal. They have really embraced customer service and care about humanizing their brand.

Annie Scott. Air France has the best coach class of any airline I’ve flown this year, but Philippine Airlines gets ten points for calling their economy class “Fiesta Class.”

McLean Robbins. Virgin America. Am I one of many?

Meg Nesterov. Turkish Airlines has become my default carrier of choice, which is fine given their excellent service. How many other airlines will let you cancel and rebook a flight last minute and only charges a small change fee? Their in-flight meals even in coach are reliably good and always free.

Melanie Nayer. Props to Cathay Pacific. Great in-flight crew, and any airline that makes me a grilled cheese sandwich in flight is tops in my book!

Alex Robertson Textor. Porter, hands down. I like the airline so much I found a way to write a piece for their in-flight magazine. I want two dozen regional Porters around the globe, each with limited route maps, quiet, fuel-efficient planes, friendly fight attendants, and a single class of service.Catherine Bodry. Alaska Air.

Grant Martin. Virgin America & VAustralia. All of that positive press is happening for a reason. These two airlines have the best service out there, and their hard products are equally gorgeous. Get to Australia next year while competition is still high and ticket prices are rock bottom.

Karen Walrond. I fly mostly on Continental because I live in its hub city and that’s where my airmiles are. Here in Houston, we’re nervous about the merger between Continental and United. We hope nothing will be ruined in the process!

David Farley. Jet Airways.

Sean McLachlan. easyJet. Everyone complains about them, myself included, but damn they’re cheap and convenient. And hey, at least they aren’t Ryanair!

Laurel Miller. Qantas for their consistently excellent service, staff, and on-time departures.

[Image: Flickr | LWY]

Five United Airlines non-answers about the frequent-flier future

United Airlines decided to dive into the weeds. Executives from the airline met with close to 200 members of the online forum FlyerTalkers to discuss some of the major issues they see with the carrier, according to USA Today. This may not seem like a bold move, but to put the company’s top dogs out in front of some of the highest-value customers comes with plenty of risk, especially for an airline recently named the second worst in the United States.

So, what was on the agenda? The frequent-flier program was of course top of mind, as many of the people in attendance hold elite-level memberships. Despite being pressed by customers and media, however, the United Airlines executives kept their lips sealed on future plans for the program.

Here are five key topics from the event:
1. How the merger will affect the Mileage Plus and One Pass programs: no details were provided on what will change. But, they are expected to come out in the next few weeks. Through 2011, according to USA Today, the programs will not be integrated, “though some streamlining changes will begin. Look for them to be integrated in 2010.

2. Doubling down for the end of the year: USA Today pushed to see if United would be offering any year-end double-elite-qualifying mile offers. The company was “noncommittal.”

3. A place to put your feet up: United would only say that a rebranding effort for its Untied and Continental lounges is “a possibility.” It may use one of the existing names – United’s Red Carpet or Continental’s Presidents Club – or it may not.

4. Slightly better seating: United wouldn’t reveal whether it’s premium economy section would be retained post-merger. Continental doesn’t have a similar offer.

5. Thresholds for top-tier: will it take 75,000 miles or 100,000 miles to become the top dog? Well, there’s still no answer.

So, United made itself visible and accessible, but it didn’t bring much to the table. This leads to the obvious question … why bother?

[photo by Deanster1983 via Flickr]

Continental Airlines iPhone app includes Point Inside airport maps and more

Continental Airlines has jumped on board the “make an app” bandwagon. But unlike a lot of branded travel apps, this one is amazingly well designed.

At the heart of the app are all the things you’d expect from an airline app – flight booking, flight status and links to contact information.

But in designing their app, Continental went way beyond the ordinary – for starters, the app includes airport maps from Point Inside – one of my personal favorites. Inside the app, you can also check in, pull up your mobile boarding pass, view reservations and even enable push notifications of flight status messages.

They didn’t even stop there – under the “more” button, users will find a currency converter, a DirectTV program schedule (for in-flight live TV), games, links to Presidents Club locations, a timetable, recent Continental Airlines Tweets and an overview of reservations.

I’ve seen an awful lot of travel apps, but Continental Airlines really shows people how an app should be – a huge amount of handy tools, and all the features a Continental traveler needs to access their reservations. Well done Continental!

All I can hope for is that United Airlines does something similar soon…

You’ll find the free Continental Airlines app in the App Store, or through this iTunes link.

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