Airlines Bring in Record Profits
Jennifer Billock May 08, 2018
Even with controversies over flight attendants, dead animals, shrinking seats, and unruly passengers, almost all the largest airlines reported a huge profit for the fifth year in a row – including $4.6 billion in bag fees, which sets a new high record for the air travel industry.
The top 23 airlines in the country are basking in the glow of another banner year, bringing in a combined $15.5 billion in profits after taxes – including $4.6 billion from the much-despised bag fees. This is the fifth consecutive year of growth for the industry. Many of the airlines credit the boost in revenue to the tax overhaul introduced in 2017, even though labor and fuel costs increased by about $7 billion.
Airlines for America, a trade group representing the largest airlines in the U.S., says this is a good thing for travelers.
“Airline profitability benefits customers as airlines are strong, able to compete and reinvest in their business with new planes, products and destinations, including expanded service to small communities and internationally, which in turn creates jobs,” Alison McAfee, a spokesperson for Airlines for America, told the Los Angeles Times.
In addition to the bag fees, airlines collected $2.9 billion in fees to change reservations and added 450 new planes across the industry.
But as the airline industry continues to bring in record profits, studies show that travelers are becoming more frustrated and less satisfied with the service provided. The annual American Customer Satisfaction Index polled 12,000 travelers and results show that airline satisfaction decreased by 2.7 percent – which completely negates last year’s increase in satisfaction.
[Photo: Shutterstock]
There's one reason, and only one reason for this: Greed. When I can fly from LAX to SIN or MCO to LGW for less than what it costs to fly from MCO to SAT, AVP, or PDX, it's obvious to me where this extra profit is coming from.
Strong airline profits are essential so that people can look forward to rewarding careers working for airlines and having airlines keep whatever pension promises they make. If a company can't take good care of its employees it can't take good care of its customers. For a long time there was wide spread sentiment among many people that sitting in coach was perfectly fine, not as comfortable, of course, as first, but still a respectable compromise for economy. As people are getting bigger and bigger and coach seating space is getting smaller and smaller there is going to be more complaining, especially among people who must fly for a business that will only put them in coach. Regular economy seating on most airlines is simply a very uncomfortable product for larger people, or even for smaller people wedged between larger people. Unfortunately, real premium economy meaning more legroom and a wider seat, because of its larger footprint, costs a lot more and isn't even offered on many airlines.
You also forgot to note that some of the fees are not waived for elites as well.