Suffice it to say fellow travelers, the days of excusing the airlines for nickle and diming us every step of the way because, “They need to make a profit,” is over. Airline profits are rolling in.
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•Alaska Airlines reported third quarter 2010 net income was a record $118.1 million
•AMR Corporation, the parent company of American Airlines, Inc., reported a net profit of $143 million for the third quarter of 2010
•Continental reported third quarter 2010 net income of $367 million
•Delta reported third quarter 2010 net income of $363 million
•Hawaiian Airlines reported third quarter 2010 net income was $30.5 million
•JetBlue reported third quarter 2010 net income of $59 million
•Southwest Airlines reported third quarter 2010 net income of $205 million
•United reported third quarter 2010 net income of $473 million
•US Airways reported third quarter 2010 net income was $240 million
Not an airline, but part of the economic mix, Boeing is also reporting good financial results with net quarterly income at $837 million.
Of course these profits come at the same time DOT announces a dramatic increase in consumer complaints and a heated controversy over hidden airline fees. It seems that airlines (except Southwest and JetBlue) have not figured out how to make money and make their passengers happy.
Part of the move toward profits has been the reduction in capacity by the airlines. Now even with increasing demand, the airlines are not planning on increasing the size of their fleets. Many of the airliners than have been mothballed in the desert are staying put for the moment as airlines keep packing more passengers into their currently scheduled flights and raising prices.
According to the Transportation Department, the airlines during this last quarter have slowed the rate of bumping passengers that after the months of the year was threatening to become the worst since 2001. And lost baggage rates are going down compared to last year at this time. So, maybe the airlines are doing something right.
But with rising load factors, increasing fees, and baggage problems even after paying $25 and $35 per bag per flight passengers feel like they are getting the short end of the stick.
Charlie Leocha is the President of Travelers United. He has been working in Washington, DC, for the past 14 years with Congress, the Department of Transportation, and industry stakeholders on travel issues. He was the first consumer representative to the Advisory Committee for Aviation Consumer Protections appointed by the Secretary of Transportation from 2012 through 2018.
