Albert Fong’s Post

Budget airlines in the US have cut surprise fees, copying 'hybrid' carriers like Breeze Airways with new transparent pricing models. Spirit Airlines joins the fee-free movement, eliminating change fees for all ticket fares and providing more flexibility for passengers. New Department of Transportation rules aim to save customers $500 million yearly by making airlines transparent about fees upfront. Legislative may end family seating fees. Interesting...

Ranked: Which Airlines Carried the Most Passengers in 2022? After being battered by the pandemic, the airline industry is on the upswing, with traffic growing 30% and revenue surging 50% year-on-year in 2022. And of the 3 billion passengers who took a flight last year, more than half flew on one of the big players in the industry. We use information from 2023 Allianz Partners Big Book of Travel Data by IdeaWorksCompany to visualize the largest airlines by traffic. The Top 20 Airlines By Traffic in 2022 At the top of the list, American Airlines flew nearly 200 million passengers in 2022. The airline’s most popular route was between Dallas Fort-Worth (DFW) and Los Angeles (LAX), operating more than 30 flights a day. In fact, Dallas is a “fortress hub” for American, where the airline—along with its regional partners—own more than 70% of the airport’s flights. Here’s a quick look at the other airlines and their annual passengers in 2022.

Southwest Airlines, Still a Low-Cost Carrier? #Whats_Happening: In a turbulent landscape for the #airlineindustry, #SouthwestAirlines finds itself facing scrutiny over its long-held reputation for offering #lowcost fares. As competitors intensify their efforts to lure budget-conscious #travelers, Southwest's ability to maintain its competitive edge is under question. With rising costs and shifting market dynamics, the airline is confronted with challenges that threaten to erode its status as a leader in affordable #airtravel. As passengers weigh their options, #Southwest must navigate these choppy waters with strategic decisions and innovative approaches to uphold its commitment to providing value while fending off doubts about the #sustainability of its #pricing strategy.

Attention travelers! Airlines are adjusting their baggage fees once again, and it's important to stay informed. United Airlines, American Airlines, and JetBlue Airways are among those implementing changes this year. The key takeaway? When you pay for your bag matters! By checking your bags online in advance, you can save some serious cash compared to last-minute airport transactions. American Airlines, for instance, recently introduced a two-tiered pricing system, with fees varying depending on when you book. But why the discrepancy? Airlines argue that pre-paying for baggage helps streamline the check-in process, allowing staff to focus on passengers who need extra assistance. Plus, it's a win-win for both parties: smoother operations for airlines and convenience for travelers. While some exemptions exist, such as for elite frequent flyers or certain credit card holders, the trend towards tiered pricing is clear. Frontier Airlines CEO Barry Biffle explains that it incentivizes early transactions, benefiting both travelers and airlines alike. But what's behind the fee hikes? Airlines cite rising costs, including labor and fuel expenses, as driving factors. These fees, while unpopular, are seen as necessary steps to ensure profitability and cover operational expenses. However, not all airlines are following suit. Southwest Airlines stands out by allowing customers to check two bags for free, emphasizing a customer-centric approach and operational efficiency. In a competitive industry, providing value and maintaining customer satisfaction are paramount. As travelers, staying informed about these changes empowers us to make savvy choices and ensures a smoother journey. Stay tuned for more updates and travel tips! #Travel #Airlines #BaggageFees #CustomerExperience

Flight prices are often the most baffling part of the travel industry. This article gives a brief history of U.S. Airlines and how we got to where we are today with flight prices and availability changing constantly, even by the minute. Unfortunately for us, there is no "perfect" time to buy those plane tickets because "Consumers have no way of knowing when an airline will adjust inventory, because nowadays there’s usually a computer doing a lot of the work, adjusting inventory based on sophisticated demand forecasts." Whether we like it or not, it does appear that the complex mix of fares we have for air travel nowadays does make for more affordable prices as opposed to decades ago.

Have airlines gone too far in seeking ancillary revenues? This caught my eye at the weekend. Who doesn't like the sound of transparency, unbundling and choice? But when does choice become confusion and when does unbundling become punitive? The International Air Transport Association (IATA) points out that, even as ancillary revenues increased to 15% of overall airline revenue (their highest proportion ever), overall cost per mile has dropped by almost 50% in the last decade, inflation adjusted. Aileen McCormack at CarTrawler describes the bounce in ancillary revenues as "very exciting", whereas Rory Boland of Which? describes some ancillary charges as "exorbitant". My own perspective, as an airlines guy, is that unbundling is one of the factors that have made air travel increasingly price competitive and broadly positive for consumers... as long as they can clearly understand what they're buying and what they're choosing to do without. What's your view? Donna Dampier Claire Christie Peter Metzinger Drew Paterson Philip Telfer David Noone

Major Canadian airlines are reaping the rewards of a disciplined approach to responsible airline business basics; cost, fare, inventory, and revenue management. So what happened to the so called Low Cost Carriers (LCCs)? The reality is they were just an apparition, a mirage. In Canada, our user pay system with long thin markets makes it difficult to operate an airline with lower cost than the legacy incumbents. There is a distinction between low “cost” and low “fare” carriers. The characteristics of a Low “Cost” Carrier, one that can establish a beachhead against traditional air carriers, are high frequency, high utilization, maniacally focused on cost, and sustainably profitable at fares below the major airlines. High frequency and high utilization are key. LCCs have to turn their seats (inventory) as many times a day as possible to cover, with lower fares, the same fixed costs of a legacy carrier. So short haul, with fast turns, and limiting ground time to a few minutes is essential. Ground crews have to turn planes like a Formula 1 pit crew. LCCs typically use older aircraft, not new. A new carrier flying new aircraft with 2 flights a day on a long haul (4,5 or 6 hours) with low fares is a sure fire recipe for failure. LCCs maintain downward pressure on cost by unbundling fares and charging incrementally for bags, meals, refreshments, seat assignments, etc. Now, most legacy carriers do the same, with various fare categories. And finally, the basic premise of “revenue must exceed cost” has to be evident with the carrier. This requires disciplined management with an excellent understanding of the cost to operate their flights. It is easy to attract passengers with low fares, but beware of the “low fare” airline pricing their product well below their cost. They won’t be around for long, and travelers risk being stranded when the inevitable happens and the carrier closes its doors. Swoop was wisely pulled back into WestJet mainline, Sunwing was bought and also assimilated into WestJet and Lynx Air unfortunately went the way of the Dodo. The jury is still out on Flair Airlines and Canada Jetlines … what do you think, are they really LCCs or simply low fare airlines?

While low-cost airlines began the model of selling a base seat without any "extras" such as baggage or confirmed seats, this type of fare class is increasingly being picked up by mainstream airlines as a quiet way to get more money from travelers. Canada's second-largest airline WestJet recently announced a new "ultra basic" fare in which travelers can bring only a small personal item that can fit underneath the seat while United Airlines' Basic Economy fare also does not include a carry-on suitcase on flights within the U.S. While some low-cost airlines have tried to charge even for a single purse, the standard is to allow a personal item like a backpack but not a suitcase that meets carry-on dimensions for other classes. While its lowest Blue Basic fare currently requires passengers to check carry-ons for $65, JetBlue Airways just announced that it will start including it free of charge for flights taking place on or after September 6. More:

Outrage Over Fee Imposed by Budget Airline A budget airline's new fee policy has sparked outrage among customers. The airline's business model, which offers low base fares, is now facing criticism due to the additional fees being imposed. #BudgetAirline #AirlineFees #TravelOutrage

✈️🛄 Airlines like United Airlines American Airlines and JetBlue are increasing baggage fees, urging travelers to pay online in advance to streamline airport processes and expedite boarding. This shift aims to reduce congestion at check-in counters, ensuring smoother travel experiences. As carriers grapple with rising costs, these adjustments reflect a broader industry trend, emphasizing efficiency and cost coverage. #OJTravel #MarineTravel #TravelNews #BaggageFees https://lnkd.in/dNxp4XpZ