United Airlines posts staggering $537M Q1 loss, plans to cut jobs

by Grant Martin on

United Airlines posted its quarterly earnings yesterday and they weren’t pretty. The Chicago based carrier lost 537 million dollars in the first quarter, nearly a third of its market value as its stock plunged 37%. It was the company’s largest loss since it came out of bankruptcy in the first quarter of 2006.

In tandem with these numbers, the airline also announced that it would be cutting over 1,000 jobs and reducing flights in an effort to save cash.

And thus we see how a major carrier weathers the storm of high oil prices and a tight market. Fortunately for them, they had the assets and bandwidth to handle a few consecutive quarters of rough seas. Carriers like ATA and Skybus could not. The real question is thus: How many months of high oil prices can the airlines handle?

I have a feeling that this is not the end of woes for the industry — each and every domestic carrier is facing the same market influences. It will be interesting to see how other airlines cope in the new oil market, what they do to keep ticket prices low and competition high. Perhaps they will raise fees on all likes of service from checked baggage to changed tickets. Or perhaps, as Richard Anderson of Delta Airlines suggested this week, they’ll all just raise ticket prices 20%.

United Airlines secretly raises ticket change fees

by Grant Martin on

We are officially in the era of airline fees. Over the past few weeks, major carriers across the country have been implementing extra fees to check second bags on their aircraft. Now, beginning with United Airlines, they’re starting to charge higher fees to change your ticket.

The way the regular system works is as follows: when you buy a ticket you purchase your seat in a certain fare class, ranging from a full fare in first class to a deeply discounted ticket in coach. Among the tickets in your class of service, most are non-refundable tickets that you basically can’t return after you swipe your card. Most airlines allow you to change that ticket however, with various stipulations. Often times the ticket needs to be in the same fare class and in all circumstances the airlines are going to hit you with a hefty fee. This varies from 50$ upwards based on the airline, class of ticket and elite status that the passenger may have with the airline.

In this instance, United raised their fee from 100$ up to 150$ to make any changes to your ticket. And they didn’t even tell anybody when they did it last Friday night. News is just slowly seeping out now.

Often times, airlines will make these changes to affect the bottom tier of passengers, exempting many of the first class and elite customers. But not in this case. This is a unilateral 50$ increase in fees across the board, so even if you’re super a super special elite passenger you still get screwed. Cool huh?

I wouldn’t doubt if other airlines started increasing their fees to change tickets as well. Perhaps soon they will start charging for padding on our seats and the right to sit down?

Praying man kicked off United flight

by Grant Martin on

WABC out of New York is reporting that an Orthodox Jewish man who had been praying while a United Airlines flight was boarding was kicked off after he wouldn’t sit down.

As the story goes, the man boarded the flight and moved back to the lav to pray, which as doctrine dictates, can’t be interrupted. After flight attendants asked him to sit down and he repeatedly didn’t respond, they summoned a security guard to escort him off the plane.

I can see how standing up during pushback can be a security issue, but is it really necessary to kick the guy off for such a short delay? According to one of the witnesses on the flight, the ritual was only supposed to take two minutes.

But the best part about the article on ABC 7 is how they try to suggest it had something to do with religious or racial profiling. They make sure to point out that the man “wore a full beard, a black hat and a long black coat” and that he was “carrying a religious book”. Look out! Those rascals with religious books are dangerous!

What Northwest Airlines wrote to me

by Jamie Rhein on

As a person with oodles of frequent-flier miles, you can bet when I read about Northwest’s merger with Delta our miles flashed before my eyes and headed down a drain until I mentally fished them out. Should we book that flight to Copenhagen, Denmark even though we’re holding out for Asia next summer?

When I headed to my in-box, there was an e-mail from Northwest Airlines telling me not to worry about my World Perks miles and Elite status. They are safe and will not be affected by the merger. The message also pointed out that this merger will give me more options to use those miles because of the increase of the routes and the global reach. What I want is for them to fly to Vietnam.

I’m glad that Northwest sent me a warning along with the time frame of when changes could occur. It does make me feel part of Northwest’s radar–like possibly they care. Letting customers know what is going on is key in today’s uncertain world. It instills confidence and keeps customers coming back.

A few year’s ago, when we were flying Northwest to Taiwan and had to be rerouted to Honolulu due to engine failure, we were told what was going on during each step. It was clear that Northwest was prepared to make sure that we were comfortable and happy. The engine trouble resulted in a two-night stay at the Sheraton Waikiki with vouchers for breakfast and dinner–not too shabby. United Airlines lost my business because when the same thing happened on a flight from L.A. to Singapore, we were treated terribly. I have yet to forgive them.

Despite the e-mail, I’m not quite comfortable because our mile accumulation is a hefty amount that I’d hate to lose. I’m the type that hoards for a better day. That day might be now. I’ve started looking into that Denmark trip just in case. As Grant also wrote, better play it safe to not be sorry later.

Skybus’s bankruptcy affects honeymoon plans 35 years in the making

by Jamie Rhein on

Skybus is still making front page of Columbus’s newspaper. We’re still having the tail end of Skybus drama at my house. Two nights ago, my friend called telling me that he had received the e-mail from Skybus telling him his flight in May was no more and that there weren’t any refunds. My friend is out $300, I would guess, because he paid for the ticket back in September and rebooked it in October. Too bad he doesn’t have the $300 for a flight to Columbus on another airlines because those flights can be found. My husband was able to cancel the charge on our credit card for the cost of the ticket he booked for this August. Our problems are nothing compared to the folks who are out of a job without warning.

There is another Skybus story that really pulls on the old heartstrings. A Columbus couple who had been dating for 35 years and finally got married had planned to fly to California for their honeymoon. The couple are in their 70s. They haven’t flown in years because of the cost, but family bought them the Skybus tickets for a wedding present. This is a couple who decided to get married so he wouldn’t have to drive home at night. The wedding was the day after Skybus’ last flight so their honeymoon bit the dust until the groom’s sister sprung for the flight on United Airlines. The couple is now heading to San Diego next week. I hope they have good weather and a good flight.

The groom’s sister just happens to live in San Diego so they are staying with her. If United Airlines wanted to capitalize on this story, I’d think they could come up with something catchy. At least on a United Airlines flight they can get something to drink and a snack without paying extra–at least not yet.

What strange things have been found on planes?


Read more wedding horror stories from AisleDash: