A Senate investigation revealed the extent of the airline industry’s proliferation of fees. The CEO of Frontier Airlines accused some of his company’s customers of being thieves. Spirit Airlines revealed how bad things got in the quarter before it declared bankruptcy. Plus: United Airlines is working on a huge new airport lounge.
Take a moment to catch up on what’s been happening in the world of airlines and aviation.
Though the idea of air travel frequently conjures hours-long flights between coasts or continents, many flights are actually quite short. Be it a lack of comparable alternatives or a customer need for speed, jaunts under 750 miles are a major part of U.S. carriers’ business. The Department of Transportation tracks which of America’s short-haul routes are the most expensive, along with which airlines have the biggest market share along those routes (hint: it’s Delta Air Lines (DAL) and American Airlines (AAL)).
Boeing’s (BA) long, difficult year kicked off with a 737 Max door plug blowout, and now a new part is drawing scrutiny from federal investigators. Reuters reports that the Federal Aviation Administration is looking into problems with the planes’ engines after a pair of bird strikes last year aboard two Southwest Airlines (LUV) flights.
If you’ve been annoyed over the last few years that you had to pay to get an assigned seat on a flight, so is the government. The Senate Permanent Subcommittee on Investigations, in one of its last acts before a more business-friendly Republican majority takes over next year, has issued a report criticizing the airline industry’s growing reliance on ancillary fees like seat fees and baggage fees.
Spirit Airlines has just given the world a peek into how bad things got at the end before it filed for bankruptcy.
Flying was long thought of as a luxury beyond the reach of the average American. That changed as the industry matured and a greater number of airlines emerged to service budget-conscious travelers, which brought about a welcome drop in prices.
Boeing’s ongoing struggles have disrupted airlines racing to replace aging fleets worldwide, but easyJet has avoided both those troubles and the engine issues plaguing some Airbus operators. In an interview with Bloomberg Television, Chief Executive Johan Lundgren expressed thanks that he had Airbus planes with CFM International engines.
The airline industry spent much of the summer worrying about its so-called “capacity crisis,” where executives worried that too many available seats were making flying too cheap to sustain business growth. But falling fares are corporate problems, not yours. In some cases, according to the Department of Transportation, flights have gotten cheaper by more than 25%.
Southwest Airlines (LUV) is making another change in a year when so many have already come. USA Today reports that the carrier recently made a policy shift that will end cabin service and prepare passengers for landing earlier in flights.
Airbus (AIR) might yet find a way to meet the lowered expectations it set for itself this year. Reuters, citing sources within the aerospace industry, reports that the French aircraft maker delivered 80 planes to its customers in November, which would put a 2024 year-end delivery target within reach.
United Airlines (UAL) is making a major investment to build out the experience of its high-end flyers. As part of a renovation to its terminal at Washington Dulles International Airport, the company announced Tuesday that it would be expanding its United Club passenger lounge there to a whopping 40,000 square feet — a number that is sure to raise eyebrows at rival Delta Air Lines (DAL).
JetBlue Airways (JBLU) delivered an early Christmas present to its investors. In a securities filing, the company raised its guidance for the year on the back of what is shaping up to be a better-than-expected close to the fourth quarter.
The CEO of Frontier Airlines is upset that the government accused his company of gouging customers for bag fees. In an interview with Reuters, Barry Biffle compared flyers who try not to pay for checked bags to thieves.
After the Senate dropped a report last week criticizing the airline industry for the proliferation of fees into every part of the flying experience, top executives came to Washington, D.C., to defend themselves. In the face of questioning about whether they’d tamp down efforts to find new ways to squeeze revenue from consumers, they declined to say what their plans are.
JetBlue is trimming more than Christmas trees as it positions itself for 2025. CNBC reports that the company is shedding routes throughout the U.S. in order to increase its profits from passenger travel.
A day after JetBlue Airways (JBLU) told investors that the end of the year was looking rather ascendant, a pair of its peers are doing the same. Stocks across the airline industry are leading the S&P 500 as American Airlines and Southwest Airlines both announced Thursday that they are raising their guidance for the end of 2024.
