Survey of Frequent Fliers, U.S. Airlines Get Thumbs Down From Frequent Fliers
The annual survey of frequent fliers by Seatguru.com, the popular online guide to airline seating, doesn’t have a lot of highlights for U.S.-based airlines.
U.S. carriers serve the worst food — if they serve food at all, that is — and have the least comfortable seats, the survey of 1,600 fliers found.
Meals on American Airlines, United Airlines and US Airways were considered the worst of the bunch.
The best? Singapore Airlines, followed by British Airways, Houston-based Continental Airlines and Air France. Many U.S. carriers have eliminated meal service on domestic flights.
One domestic carrier, JetBlue Airways, did come out on top for the most comfortable economy-class seats, according to the survey, while Singapore Airlines led the field for business class. The least comfortable: American, United and US Airways.
The survey also asked which airline had the rudest flight attendants, and again United, American and US Airways topped the list. Singapore and Southwest airlines were voted as having the most polite attendants.
“Domestic airlines have been making strides in recent years to better compete with international airlines, but it is clear that they still have a ways to go in the eyes of fliers,” said Matthew Daimler, founder of Seatguru.com.
Most of the people surveyed flew at least eight times last year.
A timely upside to the downturn
Travel experts insist that there has never been a better time to fly, and they may well be right. The latest air travel data show that the recession-induced travel slump is not only lowering fares but also causing fewer flight delays.
With fewer planes in the air and even fewer passengers flying, U.S. carriers are posting some of the best on-time performance numbers in 15 years. The industry’s performance for the first three months of 2009 was the third-best since the U.S. Department of Transportation’s Bureau of Transportation Statistics began keeping track.
Hawaiian Airlines had the best on-time performance, with 91% of its flights arriving within 15 minutes of schedule. Comair, a subsidiary of Delta Air Lines, had the worst at 68%.
Among the nation’s largest carriers, Southwest Airlines was on time most often, and Continental Airlines had one of the worst records.
Among major airports, Los Angeles International jumped from 11th to fourth in the nation, with 86% of the flights taking off within 15 minutes of scheduled departure, while Newark, N.J., fell to last place. Salt Lake City again topped the list.
Northwest Airlines Flight 803 from Atlanta to Honolulu was the most frequently delayed, being late a whopping 96% of the time.
Love is in the air in New Zealand
Air New Zealand is launching what it says is the world’s first matchmaking flight.
It will fly American singles from Los Angeles to Auckland on Oct. 13 to find a partner there. Included in the flight package, which starts at $795 for a round trip, is a preflight gate party at LAX and then themed food, drink and entertainment during the flight.
Waiting at Auckland will be a singles-only party at a convention center, along with accommodations at the Skycity Grand Hotel.
To increase chances of a match, ticket holders can upload an online dating profile and start connecting before the flight.
“Air New Zealand is always looking for fun ways to improve our customers’ experience,” said Roger Poulton, Air New Zealand’s vice president for the Americas. “And let’s not forget our charming Kiwi accents. What more could an American want?”
More than a quarter of the New Zealand adult population is unmarried, according to the airline.
The quirky airline is known for some unusual marketing campaigns, including an all-gay “Pink Flight” last year in which flight attendants dressed up as drag queens accompanied passengers from San Francisco to Australia for Sydney’s annual Gay and Lesbian Mardi Gras.
It recently began a television ad campaign featuring employees, including its chief executive, wearing only body paint to make the point that the airline has no hidden fees in its fares.
Carry-ons
United Airlines is moving up the start of its nonstop flights between LAX and Pittsburgh to Aug. 18, the same day that US Airways drops its service. . . . Russian carrier S7, formerly Sibir Airlines, joins American Airlines and British Airways in the Oneworld alliance, making it easier for U.S. travelers to fly to Eastern European countries such as Armenia, Kazakhstan and Moldova. . . . Bucking industry trends, Korean Air is spending $200 million to upgrade business-class cabins with larger video monitors and roomier seats that can fold out to become fully flat beds.
U.S. Merger Not Expected to Impact Air Canada Or Westjet
The proposed merger between United and Continental airlines is unlikely to have any impact on Canada’s two dominant carriers, industry observers said Monday.
Since both U.S. airlines are members in the Star Alliance along with Air Canada, the union creating the world’s largest airline shouldn’t have any material operational impact on the Canadian carrier, said Cameron Doerksen of Versant Partners.
The U.S. carriers says there isn’t much overlap in their networks.
So there shouldn’t be any significant impact on Air Canada’s schedule since the partner are already co-ordinating their activities.
Doerksen also doesn’t see how the merger would affect Calgary-based WestJet in any way.
Air Canada said Monday that it would be premature to comment on the merger since it still requires various approvals.
WestJet said none of its plans is altered by the merger.
But Hugh Dunleavy, vice-president strategy and planning, said the airline will monitor the consolidation and update its business plans if any opportunities arise.
Airline Loss Estimate Cut by 50% as Demand Rebounds
Airlines worldwide will lose a collective $2.8 billion in 2010, half the previous forecast, as emerging markets lead a rebound in traffic, the International Air Transport Association said.
The loss estimate was cut from $5.6 billion after a “much stronger recovery in demand” at the end of 2009 that continued into the first months of this year, the Geneva, Switzerland- based association said in a statement today.
Losses last year probably amounted to $9.4 billion rather than the $11 billion previously estimated, IATA said. Traffic will increase about 5.6 percent in 2010, with the recovery in western markets lagging behind growth in emerging economies.
“It’s going slowly, but it’s improving and at least we are starting to have some positive remarks” from airlines, IATA Chief Executive Officer Giovanni Bisignani said today in a Bloomberg Television interview. “Things are moving quite well” in a positive direction.
Earnings are picking up after the industry reined in capacity, allowing airlines to lift average fares and boost revenue as demand increases, Bisignani said. Yields — a measure of ticket prices — should gain 2 percent this year following a 14 percent decline in 2009, he said.
Investor Optimism
Investors in the U.S. industry, which includes Delta Air Lines Inc. and AMR Corp.’s American Airlines, the world’s largest carriers, are betting that the worst is past. The Bloomberg U.S. Airlines Index rose 18 percent this year through yesterday, compared with gains of 7.1 percent and 1 percent for gauges of Asia-Pacific and European carriers.
By region, European carriers probably will suffer the biggest loss, at $2.2 billion, followed by North American airlines at $1.8 billion on concern that job losses will be a drag on consumer spending, IATA said.
Asia-Pacific carriers are projected to post a $900 million profit as China drives growth, reversing a $2.7 billion loss in 2009. Latin American operators may earn $800 million, matching last year’s performance, according to the trade group.
IATA said airlines’ cuts in seating capacity helped them fly fuller planes, with the average load factor on international flights reaching 75.9 percent in January.
Revenue Shortfall
Global industry revenue is likely to be $552 billion this year, $43 billion more than in 2009, Bisignani said on a conference call. That’s still $42 billion less than the peak in 2008.
“We can be optimistic, but with due caution,” he said. “Important risks remain. Oil is a wild-card, over-capacity is still a danger, and costs must be kept under control throughout the value chain and with labor.”
IATA raised its forecast for the average price of oil this year to $79 a barrel from $75 and now estimates fuel will make up 26 percent of operating costs, versus 24 percent in 2009.
Crude prices may outpace economic growth, making it tough for airlines to pass the cost to passengers through surcharges, Bisignani said. A surge in fuel prices two years ago began a crisis that deepened as demand for travel tumbled in the credit crisis and global recession, resulting in the collapse of 34 airlines since 2008.
The industry has lost $50 billion in the past 10 years, with last year’s drop in passenger demand the worst since World War II, IATA said on Jan. 27. The slump pushed carriers including British Airways Plc and Singapore Airlines Ltd. into losses and forced Japan Airlines Corp. to file for bankruptcy.
Cargo demand is expected to increase 12 percent worldwide, IATA said, better than the 7 percent previously forecast. Asian air-freight markets are particularly strong, with shipments originating there experiencing a capacity shortage.
Lufthansa Outlook
Deutsche Lufthansa AG, Europe’s second-biggest airline, said today that operating profit should increase this year following a 112 million-euro ($153 million) net loss in 2009.
“No one can say how long it will take for us to make up for the current losses,” CEO Wolfgang Mayrhuber said in a statement. “A solid balance sheet, efficient capacity adjustments and the reduction of costs are, and will remain, the decisive factors for success.”
Like European rival British Airways, the German carrier faces a possible strike as it seeks to restrain costs. With the rebound fragile, walkouts would likely hurt earnings, IATA said.
“It’s certainly not the time for strikes,” Bisignani said. “The recovery will depend on everybody sharing the burden. We are moving in the right direction, but let’s remember the situation is still in the red.”
source :businessweek.com
British Airways Flight Service Not Recovered After Cabin Crew Strike
British Airways said Tuesday it is canceling fewer flights through an upcoming four-day cabin crew strike because more employees want to cross the picket line.
The airline is still recovering from a three-day strike that ended Monday, in which the Unite union — locked in a long-standing dispute with airline management over pay and working conditions — went ahead with a walkout after talks collapsed at the end of last week.
The airline said that during the cabin crew’s next strike from Saturday to March 30 its schedule at London’s Heathrow airport will include up to 55 percent of short-haul flights and 70 percent of long-haul flights.
That compares to 60 percent of long-haul flights and only 30 percent of short-haul flights over the previous walkout.
BA said it will run a full operation using its own aircraft at the smaller Gatwick airport, also in London, and all flights to and from London City airport will be unaffected.
“As a result of the numbers of crew wanting to work, we are increasing significantly our flying schedule,” Chief Executive Willie Walsh said in a statement.
Walsh said the airline had coped better than expected during the three-day walkout partly because many crew members ignored the strike call.
But the strike jeopardized BA’s reputation and finances, with BA saying it cost the company about 21 million pounds ($31.5 million).
The Unite union and BA both claimed victory over the first strike. BA reported that nearly 98 percent of staff reported for work at Gatwick and more than half showed up at Heathrow, allowing it to reinstate a number of canceled flights.
But Unite said that only 300 of its 2,200 cabin crew scheduled to work over the weekend turned up, and accused the airline of counting inbound crew to inflate the numbers of staff on duty.
The airline is on track for a record loss this year after reporting an operating loss of 86 million pounds for the first nine months, compared to a profit of 89 million pounds a year earlier.
JetBlue Airways Report Earning $30 million in Second-Quarter
JetBlue Airways on Thursday joined most of the nation’s largest airlines in reported earning, as more passengers returned to the sky in the second quarter.
JetBlue also issued an optimistic outlook for the rest of the year, forecasting higher revenue and more flying to the destinations it serves.
The airline earned $30 million, or 10 cents per share. That compares to JetBlue’s second quarter 2009 net income of $20 million, or 7 cents per share.
Revenue increased to $939 million from $807 million a year ago.
JetBlue ended the quarter with about $1 billion in unrestricted cash and short-term investments. That’s about the same as at the end of the first three months of the year.
The airline said demand is improving, as passenger traffic rose almost 9 percent in the second quarter.
“We are optimistic about the rest of the year,” said Chief Financial Officer Ed Barnes.
JetBlue expects passenger revenue per available seat mile, an important industry standard, to rise by 12 to 15 percent in the third quarter compared to a year ago and to increase by nine to 12 percent for the whole year. The airline plans to expand capacity by six to eight percent in the third quarter and for the full year. Airlines increase capacity — the number of seats in the air — by flying more planes and larger aircraft.
JetBlue’s expenses rose 15.5 percent in the quarter, much of that was due to higher fuel costs, which were 12.3 percent above the same quarter of 2009. The airline has been hedging fuel to manage price volatility. It lost $2 million on hedging bets that went the wrong way in the second quarter. JetBlue has hedged almost half of its projected fuel needs for the rest of the year.
In premarket trading JetBlue shares rose 35 cents, or 6 percent, to $6.23.
