Top five reasons you’ll pay more for flights

by Tom Johansmeyer on

It looks like flight deals are a thing of the past. The airline sector is starting to recover, as evidenced by an aggregate $1.3 billion in earnings for the six largest U.S. carriers last quarter, and more profits are said to be on the horizon. Of course, we’re still in the early stages, and those earnings do pale in comparison to the $22.7 billion in losses sustained in 2008 and 2009. So, the airlines are making up for lost time and taking advantage of a swing in the economy … that means you’re going to pay for it.

Good news for the airlines, of course, translates to a thinner wallet for you, but it indicates that you’re at least willing to handle the higher cost, since airlines tend to be price-takers rather than price setters.

Why are you going to pay more for flights? Here are the top five reasons:

1. Extra fees no longer “extra”: they’re part of the package now. Airlines raked in $13.5 billion from fees in 2009, a 43 percent spike year over year. They aren’t going away. As the industry recovers, this will help keep fares higher.

According to the Associated Press:

United and American led the way on “ancillary revenue,” including fees, at about $1.8 billion apiece last year, according to IdeaWorks. United Airlines President John Tague calls fees “an unequivocal success,” and suggests his airline could still double the amount it’s bringing in with baggage fees.

2. The market supports higher prices: airlines charge what they can get, as it is a consumer-driven market. So far, consumers are responding favorably to price increases, with fares up an average of 18 percent this summer.

3. Airlines to hold the line this fall: demand is expected to decline through the end of summer, and the airline will try to keep from offering deep discounts. In fact, many are offering deals to get passengers interested but are able to convert into higher-priced seats.

4. Shared armrests the norm: the planes are full. Delta filled close to 90 percent of its seats last month, with Continental at 87 percent and American at 86 percent. This means there are more fares covering the cost of the flight, which delivers favorable financial results.

5. Temptation to add flights resisted: rather than bring more planes out to handle this increase in demand, the airlines seem to be fighting the urge, because bookings are sluggish and the economic recovery is tenuous.

[photo by Ma1974 via Flickr]

Alitalia joins Air France, Delta and KLM to form trans-Atlantic joint venture

by Scott Carmichael on

Several of the largest airlines in the world have teamed up to combine routes, creating the world’s largest trans-Atlantic flight network. Alitalia signed an agreement to join Air France, Delta and KLM and share revenue and costs. The new combination will operate 26% of all trans-Atlantic flights, with almost 55,000 seats on 250 flights. The total revenue from this trans-Atlantic capacity is estimated to be more than $10 billion.

Unlike some airline collaborations, this new alliance actually appears to help air passengers by allowing airlines to create new routes they normally may not have considered. The network also allows for seamless ticketing and baggage handling between the U.S. and European gateway airport. Examples of new routes include Delta non-stop flights from Atlanta to London Heathrow and Portland to Amsterdam.

The hub cities for the network are Amsterdam, Atlanta, Detroit, Minneapolis, New York JFK and Paris CDG. Part of the joint venture will include codeshare flights (when allowed). The trans-Atlantic alliance is separate from the already existing Skyteam alliance.

[Image credit: AFP/Getty Images]

White Collar Travel: Stupid things business travelers have done

by Tom Johansmeyer on

Sometimes you lose your mind when you’re on the road. You either develop a highly inappropriate sense of entitlement (this is my seat on my plane) or decide that nothing matters, giving you a blank check to behave like an asshole. The combination of professional pressures – in my day, it was the collapse of the dotcom bubble … a bump in the road compared to the 2008 financial crisis – personal travails and frustration of being perpetually in transit sometimes make you snap.

Nobody is impervious to the factors that drive business travelers to idiocy, and those who think they are tend to be the worst afflicted. I remember running into my boss at LaGuardia‘s Marine Air Terminal – I was on a Boston-to-New York run for a few months and flew the Delta Shuttle several times a week . We were delayed, not an unusual occurrence at the time. He spotted me in the lone dining facility in the terminal, walked over and sat down, took a call on his cell and proceeded to help himself to my fries without even giving it a second thought.

But, that’s mild.I encountered plenty of business traveler stupidity when I flew with the white collar set … some of it I saw in the mirror. When you find yourself behaving in this manner, it’s usually time to get a new gig. Some of what I saw remains unshakably glue to my memory.

I’ll never forget one run down south.

One of the joys of extended-stay hotels was the so-called “General Manager’s Reception.” At least, I was told it was. Since I was on a project that closely resembled hell, I could never get back to the hotel (which was across the parking lot) in time to down some free beer.

How did I learn of this phenomenon? I ran into my boss’s boss in the hallway, just outside our client’s offices. He was in town for a meeting and was not a part of our weekly grind. In his hand, he held a plastic cup with piss-colored liquid, the cheap beer that even a hotel can see isn’t worth marking up.

Me: “Uh, maybe you’ll want to throw that out before going inside?”

Him, chuckling: “Yeah, probably not a bad idea.”

In another part of the country, I saw first-hand what poor mixological decision-making can do. If you’re unsure of whether to have alcohol, always err on the side of caution. Always. Your client will understand … especially if medicine is involved. I will never forget being on one project where my boss mused aloud about her boss’s insecurities and the reasons for them. Apparently, mixing her cold medicine with red wine had two side effects: (1) saying really stupid stuff about her boss and (2) doing it loudly.

Moral of the story: If you’re on meds, exhausted or inches from not giving a damn about your career, drink club soda. It looks like alcohol and is often mixed with alcohol … but it won’t lead to the same results.

So, I’ve kicked in two, and I’m sure I’m not the only one who’ seen idiocy on the road. Any other white collar travelers want to chime in? I’d love to hear what you’ve seen (or done!).

Click here for more White Collar Travel

Flight attendant: Packing heat was a mistake

by Tom Johansmeyer on

Let’s be clear: Amber Robillard said she didn’t mean to put a loaded handgun into her carry-on bag. The flight attendant – keeper of order, safety and beverage cart service … not to mention explainer of the rules – says she accidentally packed heat, without a license, when she went to Indianapolis International Airport.

It’s all a big mistake.

On June 4, Robillard was charged with carrying a handgun without a license, in addition to “entering a controlled area in an airport with a weapon,” according to the Associated Press. The AP further explains:

Court records say the 39-year-old told police she mistakenly picked up a bag containing her gun during a trip to Indianapolis. Inspectors found the gun in her bag when she arrived at the city’s airport to work on a Delta Air Lines flight to Atlanta.

Yeah, she took her gun to work – with an airline. Genius. Next time this flight attendant tells you to turn off your Kindle or BlackBerry, how much credibility will she have?

Delta tops list of “most complained about” U.S. airlines

by Scott Carmichael on

Travel + Leisure just released a survey that compiled airline complaint information from the Department of Transportation. In it, the number of complaints per 100,000 passengers were collected. The results are not much of a surprise – the legacy airlines take up the top spots, followed by low cost airlines and regional feeders.

Here are the top 5 airlines from the list:

  1. Delta Airlines – 1.96 per 100,000 passengers
  2. United Airlines – 1.34 per 100,000 passengers
  3. US Airways – 1.31 per 100,000 passengers
  4. Northwest Airlines – 1.21 per 100,000 passengers
  5. American Airlines – 1.07 per 100,000 passengers

The list is based on data from the previous year, so Delta and Northwest are still listed separately. As usual, the low cost carriers score very well – JetBlue made tenth place and Southwest Airlines doesn’t show up till the 19th spot – with a mere .21 complaints per 100,000 passengers. Click here for the complete list, along with responses from the airlines and some background information on how they may have reached their spot.

(Photo credit: AP)