delta Archives - Page 12 of 42

Articles tagged “delta”

Five airline amenities making a comeback … and the one we want

by Tom Johansmeyer on Dec 21, 2010

Wow, there’s a headline I never thought I’d write! Though I suspect it has little to do with actual customer demand – after all, the airlines don’t even call us customers – several are starting to bring small, small perks back into the cabin. Two factors help, of course: (1) they aren’t expensive and (2) airlines have shown solid profits this year (at least in the United States).

So, despite having to pay for extra bags and invoking ire at the mere request for orange juice, we’re finally going to get something back! What that is depends on where you are in the world, and some of these amenities are downright bizarre. But, the average passenger is probably at a point where even the slightest indication of humanity is incredible. We’re like hungry dogs, after all, and with these in-cabin perks, it feels like the airlines are waving a steak.

What are the airlines offering? Let’s take a look at five amenities, according to MSNBC:1. The “stretch bar”: SAS is installing a bar on some of its flights – and not the drinking kind. It’s an exercise rod that passengers can use to stretch out while on long flights. In continuing to cater to the vain, SAS is also adding mirrors to some seats, so you can make sure you look your hottest without having to leave your seat for a trip to the lavatory.

2. Lighting and sound effects: All Nippon Airways is using these tools to create “a calm cabin atmosphere that invites passengers to relax and rest,” MSNBC reports. The goal is to make flights more comfortable for passengers with late-night departures. The new “Relax” cards go with this – press a button and enjoy the lavender aroma.

3. Happy Moms: Asiana Airlines, based in South Korea, offers a “Happy Mom Service” at many airports, according to MSNBC, with a dedicated check-in line for families with small children. Nursing blankets, baby slings and baby seats are available on board the planes.

4. Locally-sourced booze: Horizon Airlines is kicking in free local wines and microbrews from the Pacific Northwest on its flights – even in coach!

5. In-flight wifi: since a relatively small number of passengers has been using this service, some airlines are seeking out sponsors and offering it up free to passengers. On Delta, AirTran and Virgin America, Google Chrome is ponying up the cash for free passenger use through January 2, 2011.

So, what’s the one amenity not being offered that would make flights so much more comfortable? How about an alternative to the lav for mile-high club membership? It’s not easy to pull off, and there has to be a better way than this.

[photo by PhillipC]

Airlines have best quarter ever … thanks baggage fees!

by Tom Johansmeyer on Dec 20, 2010

Every time you pay to check an extra bag you’re making someone’s life better. The latest data from the U.S. Department of Transportation reveals that the third quarter of 2010 was the most profitable for the U.S. airline industry since the department began keeping score in 2002. The industry’s operating profit margin hit 10.5 percent in aggregate. Low-cost carriers, as a class, had an operating profit margin of 11 percent, its best performance since hitting 11.2 percent in the third quarter of 2006.

How did the airline industry pull this off? Recovering economic conditions helped, of course, but so did the stuff that passengers have gotten comfortable complaining about. More than $900 million in third-quarter revenue came from baggage fees, with another $590 million from reservation change fees. Then, there was another $646 million in ancillary fees. It all adds up to more than $2 billion for a single quarter.

So, while we’re all complaining about these extra fees, it looks like many of us are paying them, too.Spirit picks up the highest percentage of its revenue from ancillary fees at 26.9 percent, up from 24.2 percent in the second quarter of 2010 and 20.6 percent in the third quarter of 2009. Allegiant was next at 9.7 percent. Delta and US Airways derived 7.7 percent of their revenues from ancillary fees, with Southwest at 6.7 percent.

Of course, the money isn’t just going into the pockets of airline employees and executives. The six network airlines spent 25 percent of their operating expenses in the third quarter on fuel. United Airlines spent the most on fuel among network carriers – 25.7 percent of total revenue – with Allegiant leading low-cost carriers at 44.1 percent.

Before you feel too sorry for airlines when it comes to fuel costs, remember those profits. Four network airlines had double-digit operating margins, along with four low-cost carriers.

[photo by Tracy O via Flickr]

Delta: single large airline looking for Virgin partner

by Tom Johansmeyer on Dec 16, 2010

I hope you haven’t become too attached to Virgin Atlantic. The airline has gotten its share of calls lately about potential mergers, but they are qualified with expressions like “early stages” and “far too early” to say anything about. This isn’t all that surprising, given the strength of its brand and the fact that the airline hired Deutsche Bank to help it evaluate its available growth opportunities.

Word on the street is that Delta is sniffing around, but neither Delta nor Virgin Atlantic would say anything about it.

The notion of a merger with an airline of Delta’s size is interesting, as majority owner of Virgin Atlantic, Sir Richard Branson, didn’t have much in the way of positive commentary for the British Airways/Iberia deal, which he believed would lead to higher prices and lower competition.

But, the aviation business is feeling the urge to merge, and analysts are saying that Virgin Atlantic needs a big buddy in order to compete effectively, the BBC reports.

[photo by eisenbahner via Flickr]

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

by Tom Johansmeyer on Dec 14, 2010

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?

by Tom Johansmeyer on Dec 13, 2010

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