Newsstand - Airlines' losses may become travelers' gains

The airline industry is headed for its first quarterly loss in years as business travelers revolt against last year's sharp fare increases or just stay home.

That could lead to lower fares in coming months.
http://www.usatoday.com/money/biztravel/2001-03-16-airline-losses.htm

from the article,

"Analysts expect Continental and Southwest will be the only big airlines to post quarterly profits."

Now this is amazing, those are the two airlines JRF flies as they tend not to lie and are normally cheery. I try to avoid DL, not for the price, but the service. When will they smell the coffee?

United has announced they are going to be cutting some service items to save money--hot towels, McDonald meals, Linens and some food items.

I will choose to fly Southwest over Continental (but AA remains my first choice) becuase Continental has been the most aggresive in increassing fares and service fees (not to mention they inventing the fuel surcharge http://www.flyertalk.com/forum/mad.gif ).

Many people are booking with Continental becuase they appear to be the most stable on the labor front--their time will come.

US Air in attempts to try to win approval to be bought out by UA is trying to look like another TWA.

Let's hope that OPEC doesn't throw a wrench into the mix. With their planned production cut, we may not see the fare cuts to the extent some may hope for.

I still see full flights on AS btwn SEA-OAK and SEA-LAX.

Leisure bookins still remain strong. Business and First fares are where the cuts are being felt and that is where their profits come from.

On the positive side, your chances of getting that upgrade just went up.

Tango, I'm with you!

Just say no to the airline that starts most of the fare hikes and outrageous fees: CO. I won't even let other airlines re-route me on CO in the event of a service interruption: I don't want them to make a dime even indirectly on me.

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"Sire, it is not a revolt. It is a Revolution!"

[This message has been edited by Spiff (edited 03-17-2001).]

Airline losses mount in 1Q

UAL, US Air, Delta all post larger losses than forecast; America West cuts staff
http://cnnfn.cnn.com/2001/04/18/news/airlines_earnings/

AND: UAL Corp., Delta Air Lines Inc., US Airways Group Inc., Northwest Airlines Corp. and America West Holdings Corp. -- posted hefty losses in the first quarter of 2001, suffering from reduced spending by business travelers and increased costs for labor and fuel.
http://www.nytimes.com/aponline/business/AP-Earns-Airlines.html


AND: Add AMR to the mix!

AMR Posts $43 Million First Quarter Loss as Economy Weakens
http://biz.yahoo.com/prnews/010418/daw038.html

[This message has been edited by doc (edited 04-18-2001).]

Consolidation in the US airline industry is contributing to a painful escalation in big carriers' overheads, rather than generating the cost savings that typically accompany takeovers in other sectors.

<A HREF="http://news.ft.com/ft/gx.cgi/ftc?pagename=View&c=Article&cid=FT3ST4LIPLC&live=true&useoverridetemplate=ZZZFKOXOA0C&tagid=ZZZYF7I2B0C&subheading=transport" TARGET=_blank> http://news.ft.com/ft/gx.cgi/ftc?pagename=View&c=Article&cid=FT3ST4LIPLC&live=true&useoverridetemplate=ZZZFKOXOA0C&tagid=ZZZYF7I2B0C&subheading=transport (http://news.ft.com/ft/gx.cgi/ftc?pagename=View&c=Article&cid=FT3ST4LIPLC&live=true&useoverridetemplate=ZZZFKOXOA0C&tagid=ZZZYF7I2B0C&subheading=transport</A>)[/url]

AND:

It has a firm grasp on cost control, no imminent labor disputes and has added more gates to its hubs in Houston and Newark, N.J., says Susan Donofrio, an analyst with Deutsche Banc Alex. Brown. Newark Airport now make up 43% of its revenue.

But what really made the difference between a profit or loss for the Houston-based carrier was its ability to complete 98.3% of its scheduled flights and reach a good on-time performance, even during severe winter weather, Continental (nyse: CAL - news - people) says. The company also reports high employee morale. Revenue rose nearly 8% to a record $2.3 billion in the first quarter, from $2.28 billion last year.
http://www.forbes.com/2001/04/20/0420winner.html?partner=yahoo&referrer=

[This message has been edited by doc (edited 04-20-2001).]

the lower fares are ok with me. i can fly almost anywher in the country for $200. i was planning on spending $15,000 for 52 round trips, now it will be a few thousand less.

i do ride with people that pay 10X-15X what i do and we are both in 1st. oh well.

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f

Originally posted by fparker1:
i can fly almost anywher in the country for $200. i do ride with people that pay 10X-15X what i do and we are both in 1st.


do tell -- how do you manage 1st anywhere in the country for $200 . . .

MOST PEOPLE FLYING from our nation's busiest airports wouldn't guess that something's terribly amiss in the airline industry. The planes are still cramped, the food is awful and takeoffs always seem to be delayed. In other words, business as usual.

But the nation's major carriers are suffering. On top of labor strife, high fuel prices and fewer business travelers amid a slowing economy, a hailstorm in Denver last month damaged 5% of United Airlines' fleet, resulting in widespread delays and cancellations at the UAL (NYSE:UAL - news) subsidiary. Some airline executives are starting to feel downright Jobian.

Consider that in May, domestic unit revenue — a measure of revenue per available seat mile — sank 11.8% year-over-year, the worst slide in more than two decades.

http://biz.yahoo.com/smart/010717/200107173face.html

European Airlines Face Operating Losses In 2001

European airlines face operating losses in 2001 according to the secretary-general of the 29-member Association of European Airlines Karl-Heinz Neumeister...

...On "boarding denial" where a passenger booked on a flight is refused entrance due to overbooking, Neumeister opposed the punitively high compensation fees he said the Commission wants to impose.

He said the airlines' passenger service commitments or charter aims to reduce boarding denial through an auction system similar to that existing in the US, but he denied that overbooking itself is wrong.

He said it is a response to passengers who deliberately do not turn up for booked flights or to passengers who involuntarily miss flights - either through no fault of their own or because inadequate air traffic control has caused delays to arriving connecting flights.

"The airlines are going through a period of severe economic hardship right now. They need the help of their regulators - and not the reverse," he said.


http://news.airwise.com/stories/2001/07/995399428.html