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Airlines Have Collected $1.2 Billion in Cancellation Fees YTD
Airlines Collect $1.2 Billion in Cancellation Fees in 2009
Published on: September 25, 2009
Airlines have collected a total of $1.187 billion in cancellation fees so far this year, according to the U.S. Department of Transportation’s Bureau of Transportation Statistics (BTS). American Airlines collected $115.8 million in the first quarter and $109.6 million in the second quarter for a total of $225.5 million for the first half of the year. Northwest Airlines collected $101.2 million in the first quarter and $105 million in the second quarter for a total of $206 million. Delta Air Lines collected $86.8 million in the first quarter and $100.7 million in the second quarter for a total of $187.6 million. United Airlines collected $78.1 million in the first quarter and $81.1 in the second quarter for a total of $159.2 million. For more information, visit www.dot.gov.
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Quote:
Originally Posted by Kalboz
what a racket!!! guess what? my business is going to CONT
CO has similar fees. I'm not sure that switching your business to them is going to make such a difference.
Of course the release neglects to point out just how many billions of dollars were saved by passengers purchasing APEX fares, so we're only getting one side of the story. Go figure.
AA started this crap back in 1985. I've never forgiven them.
I don't have a problem with non-refundable fares as long as they are transferable to a new flight. Once upon a time, I suppose the argument could have been made that calling to change/cancel a reservation took time from agents who could be selling new reservations.
But most travelers are now doing all the work themselves. The airlines say these fees are revenue recovery for "spoiled inventory". BS. Anything more than a minimal $10 change/cancel fee is theft.
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Quote:
Originally Posted by 6P&E
I don't have a problem with non-refundable fares as long as they are transferable to a new flight.
What about a no-refundable, non-changeable flight? Because that is what you're buying. You could just buy from European carriers where the APEX fares are actually fixed and you're completely screwed if you want to change. Zero residual value at all. Sure, they don't collect as much in change fees but they collect more in fares. Same effect with a different reporting/accounting effect.
As for the idea of it being "theft," I'm not really sure how that applies when you enter into an agreement knowing the terms.
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Quote:
Originally Posted by Lonely Flyer
I cannot see why so many people cannot get their travel right and then for those emergencies there is travel insurance.
Is there a travel insurance that will cover me if I simply don't want to go on my weekend vacation anymore because work send me away for six weeks and I just want to stay at home?
Will a travel insurance cover me if something at a customer site goes wrong and I have to stay two days longer?
what a racket!!! guess what? my business is going to CONT
The UA, AA, DL, and NW fees total about $778M. There is over $400M not accounted for in the article. I'd guess US and CO make up probably two thirds (give or take) of the outstanding total.
Most of my life I have been into sports and have bought tickets and attended many games. I grew up with the idea that if you bought a ticket and did not make the game, you lost it. While not exactly the same, I have no problems with what the airlines do. In fact, I find it very fair.
Remember when you change your plane ticket it cost you more for that plane ticket.
Quote:
Originally Posted by ktremor
Airlines Collect $1.2 Billion in Cancellation Fees in 2009
Published on: September 25, 2009
Airlines have collected a total of $1.187 billion in cancellation fees so far this year, according to the U.S. Department of Transportation’s Bureau of Transportation Statistics (BTS). American Airlines collected $115.8 million in the first quarter and $109.6 million in the second quarter for a total of $225.5 million for the first half of the year. Northwest Airlines collected $101.2 million in the first quarter and $105 million in the second quarter for a total of $206 million. Delta Air Lines collected $86.8 million in the first quarter and $100.7 million in the second quarter for a total of $187.6 million. United Airlines collected $78.1 million in the first quarter and $81.1 in the second quarter for a total of $159.2 million. For more information, visit www.dot.gov.
I guess we should be thankful that the airlines allow us to reschedual our plane tickets. They could come up with a policy that states if you change your plane ticket you loose it and they pocket all the money. Remember there is a cost to the airlines for changing your plane ticket, so what money they are collecting from us seems reasonable and it is not all profit to them.
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Quote:
Originally Posted by u2fan
Most of my life I have been into sports and have bought tickets and attended many games. I grew up with the idea that if you bought a ticket and did not make the game, you lost it. While not exactly the same, I have no problems with what the airlines do. In fact, I find it very fair.
Of course, sports tickets are transferable. If you change your mind, you can sell it to someone else. The airlines don't allow that.
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Quote:
Originally Posted by Lonely Flyer
I cannot see why so many people cannot get their travel right and then for those emergencies there is travel insurance.
The best insurance for most situations is self-insurance. I almost never have to cancel/change an APEX ticket. If I do, I'm still ahead of the game because the change fee and new fare is far less than the cumulative cost of purchasing refundable/changeable tix all the time.
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guess what? my business is going to CONT
Why does it seem so hard to figure out that without the cancellation fees, those deep discount tix would be a whole lot more expensive ? 
