Airline fees never going away, $1.2 billion in first half

by Tom Johansmeyer on

In the first six months of 2010, U.S. airlines raked in $1.2 billion – and that’s just from change and cancellation fees. The industry is on track to see $2 billion in revenue just on ticket-related fees this year.

According to the Bureau of Transportation Statistics, here’s where the money’s going:

  1. Delta had the most at $347.1 million in the first half of 2010
  2. American Airlines was a distant second at $235.3 million in ticket related change fees
  3. United Airlines pulled in $158.3 million
  4. US Airways generated $128.3 million from ticket fees
  5. Continental Airlines picked up $120 million

JetBlue didn’t hit the top five (finishing sixth), but it did lead the low-cost category in change and cancellation fees, with $55.7 million.

[photo by cliff1066 via Flickr]

New Continental – United combination already leading on-time performance charts

by Scott Carmichael on

The new combination of Continental Airlines and United Airlines is already off to a good start – the two just took the top spots in on-time performance for domestic scheduled flights among the leading carriers in the country.

The Department of Transportation measures the on-time performance, and the information is published in the Air Travel Consumer Report. Continental ended the month with 87.1% of their flights arriving within 14 minutes of the scheduled arrival time, and United followed with 85.1% of their flights.

Yes – there is plenty to complain about in the world of aviation, but I’m sure we can all agree that having flights arrive on time is a great piece of news. Full press release is after the jump.

[Photo: AP/Michael Stravato]


CONTINENTAL AND UNITED LEAD IN ON-TIME PERFORMANCE FOR AUGUST 2010

CHICAGO, Oct. 12, 2010 – United Continental Holdings, Inc. today announced that Continental Airlines was first and United Airlines was second in on-time performance for domestic scheduled flights among America’s five largest global carriers* for August 2010, as measured by the U.S. Department of Transportation (DOT) and published in the Air Travel Consumer Report released today.

Continental ended the month with 87.1 percent of flights arriving at their destinations within 14 minutes of the scheduled arrival time, according to data published by the DOT. United was second in August with 85.1 percent of flights arriving at their destinations within 14 minutes of the scheduled arrival time, according to monthly data from the same report, when comparing Continental and United with Delta, American and US Airways – the five largest U.S. global carriers by revenue, available seat miles or passengers flown.

“These results demonstrate our commitment to get customers to their destinations safely and on-time,” said Pete McDonald, executive vice president and chief operations officer of United. “Ranking highest in on-time performance among our peers reflects the combined efforts of our teams at both airlines.”

About United Continental Holdings, Inc.

United Continental Holdings, Inc. (NYSE: UAL) is the holding company for both United Airlines and Continental Airlines. Together with United Express, Continental Express and Continental Connection, these airlines operate a total of approximately 5,800 flights a day to 371 airports throughout the Americas, Europe, Asia and Africa from their hubs in Chicago, Cleveland, Denver, Guam, Houston, Los Angeles, New York/Newark Liberty, San Francisco, Tokyo and Washington, D.C. United and Continental are members of Star Alliance, which offers more than 21,200 daily flights to 1,172 airports in 181 countries worldwide through its 28 member airlines. United’s and Continental’s more than 80,000 employees reside in every U.S. state and in many countries around the world. For more information about United Continental Holdings, Inc., go to UnitedContinentalHoldings.com. For more information about the airlines, see united.com and continental.com, and follow each company on Twitter and Facebook.

*According to arrival data published today in the U.S. Department of Transportation Air Travel Consumer Report, Continental was first and United was second in on-time performance for domestic scheduled flights as measured by the U.S. Department of Transportation (i.e., flights arriving within 14 minutes of scheduled arrival time) for the month of August 2010, when compared to the largest U.S. global carriers based on available seat miles, enplaned passengers or passenger revenue, which includes American, Continental, Delta, United and US Airways.

Fallen American Airlines could be next to merge … with JetBlue?

by Tom Johansmeyer on

American Airlines used to be the largest airline in the industry – now it’s third. Merger activity has narrowed the field, with Southwest–AirTran and United-Continental the latest deals that hit the sector. So, all eyes are on who will succumb to the urge to merge next, and American is being eyed as the next player.

According to a Forbes blog post, analysts from Morningstar believe that American Airlines “needs to make a big splash” to remain a player in an increasingly competitive market. The post continues:

“Once the industry’s largest carrier, [American Airlines] is now the third-largest…and any scale advantage it may have garnered is gone,” the Morningstar analysts write. “Ironically, AMR is at a substantial disadvantage, given that it steered clear of bankruptcy during the recession,” [Basili] Alukos and [Adam] Fleck say, pointing out that American’s labor rate is the industry’s highest on an equivalent basis.

So, who’s the right partner for American? The analysts at Morningstar are looking at JetBlue, especially given the latter’s “lighter cost structure.” Notes founder of Training the Street and former M&A investment banker Scott Rostan, “Three dominoes have fallen – Delta/Northwest, UAL/Continental and Southwest/AirTran.” He sees Alaska, Frontier and JetBlue as likely to make some noise.

[photo by Andrew Morrell Photography via Flickr]

Five reasons airline fees up 50% year-over-year

by Tom Johansmeyer on

Does your wallet feel a little bit lighter? A new USA Today analysis reveals that airline fees are on the rise, with some up more than 50 percent relative to a year ago. The study compares the extra fees (not to be confused with fares) of 13 airlines and shows just how important this revenue source is to the airline sector.

According to USA Today, “The numerous fees are a sore subject for many fliers, but their dissatisfaction hasn’t deterred airlines from bringing in record revenue from additional fees.”

The fees were good for $2.1 billion last quarter, with $893 million of it coming from checked bags and $600 million from changed reservations.

So, where did all this money come from? Here are five ways airlines have turned those extra charges into a big business:

1. First checked bag: most airlines in the United States hit you for up to $25 for the first bag you check, with only Southwest and JetBlue abstaining. Most charged $15 a year ago, according to USA Today, with four not playing this aspect of the fee game.

2. Change fee spikes: a year ago, the most expensive coach change fee was $250, charged by Continental, Delta, United Airlines and US Airways. This year, it surged to $300, an increase of 20 percent, charged by American Airlines for some international flights.

3. Pay to call: still resisting the internet? Booking by phone costs an extra $35 on US Airways, while Allegiant Air hits you for a $29.98 round-trip booking fee and another $14.99 for “convenience.”

4. Preferred seating: United asks for up to $159 for preferred seating, which can give you up to five more inches of leg room. A year ago, it would have set you back only $119.

5. Get a receipt: Continental (for which this isn’t new) – along with American, Hawaiian and US Airways – have an extra fee for passengers who want a receipt after they have taken their flights.

[photo by Deanster1983 via Flickr]

British man passes through U.S. TSA security checkpoint with bag full of fireworks

by Scott Carmichael on

When 29 year old Paul Jones celebrated the 4th of July in Kansas, he ended up with a large bag of unused fireworks. Instead of discarding them, he kept them in a bag and brought them home back to the United Kingdom. In doing so, he was able to keep them in his carry-on luggage, and even passed the bag of explosives through the Kansas airport x-ray machine, in plain sight of officers.

It wasn’t until he arrived back home that a customs official spotted the fireworks and questioned him. To make matters worse, he was even able to carry a lighter though the checkpoint, which would have obviously aided in setting them off on his flight.

The BBC contacted Continental Airlines, who pointed their fingers at the TSA, who were obviously “not available for comments.” According to Continental Airlines, “We warn customers on our website about hazardous materials which are prohibited on aircraft under federal law, and the list includes fireworks.” Well, I’m sure terrorists will read those warnings and leave their bombs at home next time they fly.

Without hand screening every single bag, the TSA will of course never catch 100% of hazardous materials passing the checkpoint, but to miss a bag filled with 200 firecrackers shows an amazing level of incompetence.

[Image from BBC News]