Airline profits may mean more elbow room for a little while

by Tom Johansmeyer on

The airline industry wants to thank you. Last year, it was mired in despair. The post-financial crisis recession left the carriers beleaguered and desperate for a turn of fortune. Corporate and leisure travel had fallen precipitously, and doubling down on extra fees, though prudent for profits, alienated both those considering a flight and the passengers with little choice but to hit the road. The brutality of 2009 was evident, and it seemed as though all there was for 2010 was the hope for something better.

Well, hope paid off.

Three quarters into this year, money is again beginning to flow, as a result of (finally) climbing fares, additional fees and an increase in passenger traffic. United Continental, Southwest and JetBlue have reported strong profits for the third quarter using a variety of tactics, but an increase in sales and higher prices appear to be the universal driver. And, this may translate to a bit more elbow room for you.
According to the Associated Press, airlines are beginning to bring back some of the routes they cut last year, as indicated by decisions at Delta and American Airlines to hire more flight attendants. The challenge, however, will be to increase capacity (and thus headcount) without imperiling this year’ hard-won profits.

The business of satisfying pent-up demand isn’t easy for the airline sector. After all, capacity can’t be added one seat at a time. Restoring a route to handle more passengers comes with it the obligation to fill the plane (to the extent possible) each time, in accordance with revenue per available seat mile (RASM) targets.

Nonetheless, the carriers seem ready to rise to the challenge. JetBlue is amping up fourth quarter capacity by up to 10 percent, with Delta looking at an increase of 5 percent to 10 percent. This follows even faster growth in September, according to the Associated Press:

Still, most of the airlines saw traffic rise even faster than capacity in September suggesting they have enough business to support the additional flights. The only exception was Delta, which added capacity slightly faster than traffic rose.

The moves come in anticipation of a strong 2011, according to Ray Neidl, an analyst for Maxim Group. He tells the associated press that the growth in capacity “is a little more long-term,” adding that “[d]espite the lackluster economy, it’s going to be a big year for airlines, especially as consolidation kicks in.”

So, what does this mean for the flying public?

Well, you may not have to occupy that middle seat for a little while, and the odds that someone else will be in it may be improving. The increase in capacity necessarily precedes an increase in sufficient demand to make it profitable, so enjoy it while you can! If the airlines can’t fill those new seats, a return to austerity could send you back to sharing an armrest.

[photo by Joe Shlabotnik via Flickr]

ExpressJet pilot refuses body scan, puts privacy over safety?

by Tom Johansmeyer on

ExpressJet Airlines pilot Michael Roberts wasn’t at all interested in getting a body scan, and now he’s wondering how long he’ll have his job.

Roberts was selected to be scanned at Memphis International Airport last Friday. He refused. He was offered a pat-down. He refused that, too. Then, he went home, according to an Associated Press report.

The pilot says he doesn’t want to be “harassed or molested without cause.” Meanwhile, the TSA is citing “federal security procedures,” the Associated Press reports.

How do you feel about this? Is Roberts some kind of obstinate nut? Or, does he have a real point about privacy in the workplace? Drop a comment below, and let us know.

[photo by quinn.anya via Flickr]

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]

Relief: Four airport perks coming soon

by Tom Johansmeyer on

There’s nothing fun about going to the airport, and the regulatory climate isn’t likely to change that anytime soon. Security will still be a nightmare, and you won’t be able to bring your own water with you (at least not for a while). Fortunately, there are companies out there looking for ways to make your airport experience better.

So, what can you expect to see in your local airport in the near future? Here are four amenities to whet your appetite for something to counteract the airport security gauntlet:

1. Catch some comfy shut-eye: sleeping on a plane sucks. There’s just no way to get comfortable. And, if you slip your leg alongside the seat in front of you, you do run the risk that it will get slammed by the beverage cart. Well, you’ll be able to use your layovers to rest, soon. Napping nooks, already available at the Hartsfield-Jackson Atlanta International Airport, are expected to come to San Francisco in the near future. Seven airports are in the early stages.2. Light up a cigar: okay, this one is particularly meaningful to me. A few airports still have smoking areas (I just lit up in Denver last month), but they tend to be unfortunate spaces, not designed to appeal. This is where a company like Graycliff can make a difference. The Bahamas-based cigar and hospitality company has an idea for well-ventilated lounges, featuring cigar rollers (and nothing beats a stick fresh off the bench, at least, not for me). With Graycliff involved, you can expect a stylish, upscale experience. The first is already open at the airports in Nashville and Nassau.

3. Better shopping and eating: the challenge of finding a bite or buying a tie during weird hours could become a thing of the past. From the chance to dine at a Food Network Kitchen to broader shopping options, airports are scoping out ways to enhance the experience of being trapped within their walls. If all the doomsday predictions by the airline industry about the implications of the three-hour delay rule are true, you might need to buy several changes of clothes and meals … because they believe this rule means you will never get home again.

4. Get picked up more easily: no, this has nothing to do with wearing something hot or having that extra cocktail. Rather, airports are opening their minds to parking where your ride can wait for you. You call; they drive around to get you. But, it’s not always that easy. Nature calls, and there’s always a shortage of space. So, look for larger parking lots with bathrooms flight information boards and maybe even dining options? Newark’s already headed down this road, with plans in the works for JFK airport, Cincinnati, Fort Myers and St. George (in Utah).

For more on this topic, head on over to USA Today where airport expert Harriet Baskas explores more upcoming airport amenities.

[photo by msspider66 via Flickr]

US Airways: no solo flights for the disabled

by Tom Johansmeyer on

If US Airways is looking for a motivational speaker to help it inspire employees and improve customer service, I have one in mind. In fact, he knows US Airways well, including the service areas most in need of help.

Johnnie Tuitel tried to fly the carrier recently but was told he was too disabled to go it alone.

According to the Associated Press:

“I was raised to believe I could grow up doing what I wanted to do and it didn’t lead me to any entitlement,” Johnnie Tuitel, 47, told The Grand Rapids Press for a story Saturday. “By them denying me the ability to fly, I couldn’t do my job.”

It’s not like this motivational speaker, who has cerebral palsy, isn’t accustomed to flying. He has logged 500,000 miles to give his speeches.


Tuitel actually made it onto the plane, which was going from West Palm Beach to Kansas City, when a gate agent took him and wheeled him back to the terminal.

The reason he was given was straightforward:

“He told me I could fly on U.S. Airways if I could find a companion to go with me because I was a danger to myself and others if something went wrong,” Tuitel told WZZM-TV. “Trust me, they made a mistake.”

Two days later, he flew alone, as usual.

US Airways is leaning on policy (shocking, right?):

“The airline requires that the passenger has to be physically able to assist himself or herself in the event of an emergency. If the passenger cannot, the airline requires that someone else travels with the passenger who can provide assistance in the event of an emergency,” she told the television station.