Airline Meltdown

Stories

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June 2009
- British Airways Asks Staff to Work for Free
  
  CNN | Jun 17, 09 4:17 AM CDT
  
  (Newser) - Thousands of British Airways staff have been asked to help boost the airline's battered bottom line by working for free for up to a month, CNN reports. Chief executive Willie Walsh emailed workers urging them to help the company survive by taking several weeks of unpaid leave and considering doing some work during the time off. Walsh promised to lead by example and forgo pay for a month. More »
- More Cuts Await Slumping Airlines
  
  Wall Street Journal | Jun 12, 09 9:09 AM CDT
  
  (Newser) - As rising oil prices and sluggish demand continued to hammer the airline industry, Delta, American, and several other carriers forecast further cuts to service yesterday, reports the Wall Street Journal . Despite massive reductions in service, CEOs said at an industry meeting that they still aren't covering costs. "Earnings are going to be severely stressed until the economy changes," said Southwest's head honcho. More »
- Airlines Need Steeper Prices, a Shakeout, to See Profits
  
  Wall Street Journal | Jun 8, 09 10:00 AM CDT
  
  (Newser) - The airline industry, an old hand at crisis aversion, is holding its own in the recession by cutting costs, along with fares, the Wall Street Journal reports. But higher prices to consumers—and a major shakeout—would be needed to get even close to profitability. The industry expects to lose $9 billion this year, the AP reports, and international passenger traffic dropped 9.1% in the first 3 months of this year compared to 2008. More »
- Huge United Order Sparks Jet Builder Face-Off
  
  Wall Street Journal | Jun 4, 09 8:58 AM CDT
  
  (Newser) - Hoping to score a good deal by exploiting the recession, United Airlines has called on Boeing and Airbus to bid on an order for up to 150 new jets, the Wall Street Journal reports. The plan could bring in $10 billion for one of the manufacturers, both of whom face cancellations and deferrals on orders. With aircraft makers often willing to go to great lengths to secure deals, the timing may prove a boon to United. More »
May 2009
- New Budget Airline Launches With 1 Plane, $9 Seats
  
  Chicago Tribune | May 27, 09 9:44 AM CDT
  
  (Newser) - The founder of the short-lived discount airline Skybus thinks conditions are right for a second attempt at adding service to less-used regional airports, the Chicago Tribune reports. JetAmerica will follow the model of European budget carriers like Ryanair, offering a handful of seats for $9 and charging for services like food, checked bags, and in-flight TV. More »
March 2009
- '09 Airline Losses Likely Worse Than Post-9/11
  
  Associated Press | Mar 24, 09 11:50 AM CDT
  
  (Newser) - World airlines will lose $4.7 billion this year, and revenues will plummet $62 billion—worse than after 9/11, a top industry association said. The grim estimate is almost twice what it was in December and reflects “the rapid deterioration of the global economic conditions,” said the International Air Transport Association. But things look better in North America, the AP reports. More »
- Airlines Panic as Recession Grounds Passengers
  
  Wall Street Journal | Mar 10, 09 7:04 AM CDT
  
  (Newser) - A steep slide in passengers has airline execs reaching for the panic button, reports the Wall Street Journal . Airlines had banked on the drastic drop in oil prices more than making up for falling demand caused by the recession, but the decline—especially in first and business class—has been much steeper than expected, trashing airline revenue plans for the year. More »
- Plunging Airfares Hit 2-Year Low
  
  Wall Street Journal | Mar 4, 09 10:24 AM CST
  
  (Newser) - The recession is causing a drop-off in ticket sales, which in turn is causing the airlines to make deep fare cuts, reports the Wall Street Journal . According to Travelocity, airfares for the 100 most popular routes have hit a 2-year low, and are priced 40% lower than last June's peak. Good news for travelers, but not so for airlines, who hoped their operations—streamlined when oil prices hit $140 a barrel—would reap big bucks once those prices fell. More »
- Carry On! Fewer Checked Bags Cut Lost Luggage
  
  Chicago Tribune | Mar 2, 09 2:05 AM CST
  
  (Newser) - Through their relentless fees, airlines have managed to put the task of transporting often-lost luggage in much safer hands. Last year—as passengers carried aboard the baggage they previously checked for free—airlines lost 1.3 million fewer bags than in 2007, the Chicago Tribune reports. The 33% improvement was most noticeable in the fall, when most of the recession-hit carriers adopted service fees. More »
February 2009
- Airline Eyes Charging for Toilets
  
  Times (UK) | Feb 27, 09 9:15 AM CST
  
  (Newser) - Just when you thought the airlines had figured out how to wring every penny out of flyers, budget carrier Ryanair announced it was mulling a new fee: a $1.50 charge to use the toilets. The Irish airline's CEO said today he was considering "putting a coin slot on the toilet door," similar to facilities at train stations. The comments sparked immediate outrage, and the airline appeared to be backtracking. More »
January 2009
- After Turbulent Year, Airlines See Smoother 2009
  
  Wall Street Journal | Jan 21, 09 9:53 AM CST
  
  (Newser) - The nation’s airlines—which scrambled to retask fleets and ground fuel-guzzling aircraft last year as energy prices rose and passenger miles dropped—are likely to have a smoother flight in 2009, reports the Wall Street Journal. Reduced capacity has allowed them to better match supply and demand, and falling oil prices have helped shore up the bottom line. More »
December 2008
- British Airways in Merger Talks with Qantas
  
  Associated Press | Dec 2, 08 10:15 AM CST
  
  (AP) - British Airways is in talks with Australia's Qantas Airways about a potential merger, the firm said today, sending its shares soaring as it fueled expectations of consolidation in the hard-hit aviation industry. Already pursuing a revenue-sharing deal with American Airlines and Spain's Iberia SA, BA said it’s exploring a "potential merger" with Qantas "via a dual-listed company structure." More »
November 2008
- Airfares Dip on Last-Minute Holiday Trips
  
  Chicago Tribune | Nov 24, 08 12:14 PM CST
  
  (Newser) - With many consumers too concerned about their wallets to make pricey trips, airlines are, for the first time in memory, lowering prices before the holidays, the Chicago Tribune reports. The reversal of convention is allowing late buyers to scrounge tickets for as much as $200 less than travelers who locked in prices over the summer, when fares reflected much higher oil prices, the San Jose Mercury News adds. More »
- Hey, at Least Travel Costs Are Plunging
  
  Los Angeles Times | Nov 10, 08 8:28 AM CST
  
  (Newser) - There’s a spot of good news for travelers amid the barrage of dire economic reports: Those looking for a flight, cruise, or hotel stay may find surprisingly good deals. As financial woes keep many Americans grounded, the travel industry is forced to drop prices to fill space, the Los Angeles Times reports. For the industry, “it’s very bad,” says a consultant. More »
October 2008
- American Airports: Shiny, New, and Empty
  
  New York Times | Oct 30, 08 7:00 AM CDT
  
  (Newser) - In the boom years of the last decade, cities across America broke ground on major airport expansions, from additional runways to new terminals. Now those projects are being completed—just as air travel has slowed and hundreds of planes are being grounded. Flights may be less congested, writes the New York Times , but travelers are paying for the new capacity through even higher fares. More »
- Airfares May Sag in '09: Report
  
  Reuters | Oct 22, 08 4:47 PM CDT
  
  (Newser) - The slumping economy may bring some good to the travel industry: Domestic airfare and hotel rates could fall next year as strapped individuals and companies think twice about globetrotting. A slash in oil prices, down to half of summer’s record high, has also brought airlines relief, Reuters reports. In its annual forecast, American Express sees declining demand as travel budgets become a “boardroom issue.” More »
- Airlines Trim Holiday Flights, Cut Off-Peak Bargains
  
  Wall Street Journal | Oct 21, 08 1:54 PM CDT
  
  (Newser) - As airlines struggle to stay competitive, scheduling changes mean that consumers will see fewer planes and higher fares, the Wall Street Journal reports. In the coming Thanksgiving season, US Airways is flying 40% fewer flights than a year ago. Delta and United have both reduced Thanksgiving flights by more than 20%. And thanks to more efficient scheduling programs, cheap off-peak flights will be harder to find. More »
- American Readies Piecemeal Pricing
  
  Associated Press | Oct 6, 08 12:18 PM CDT
  
  (AP) - American Airlines is about to accelerate the trend of breaking the cost of a trip into an airfare plus many smaller fees. Starting next year, American plans to imitate the a la carte pricing structure pioneered by Air Canada, airline officials say. There are likely to be a few basic fare plans, and travelers can pick additional services—for a fee. More »
September 2008
- Alitalia Gets Reprieve as Pilots Back Takeover Deal
  
  Bloomberg | Sep 27, 08 10:43 AM CDT
  
  (Newser) - Alitalia, the bankrupt Italian air carrier on the brink of collapse, got a reprieve today when its pilots agreed to a government-backed takeover bid by a team of business executives, Bloomberg reports. Pilots’ unions joined ground staff in approving the plan, which calls for 3,000 job cuts and longer hours for the same pay. Flight attendants’ unions are still in talks with the CAI business group. More »
- Shareholders OK Delta-Northwest Merger
  
  Atlanta Journal-Constitution | Sep 25, 08 2:45 PM CDT
  
  (Newser) - Shareholders of Delta and Northwest voted nearly unanimously today to approve the airlines' merger, the Atlanta Journal-Constitution reports. With shareholders in agreement, federal antitrust regulators must now approve the deal. A Justice Department decision is expected late this year, but labor issues remain. Dozens of workers protested today outside the Northwest shareholders’ meeting in New York, shouting, “What do we want? No merger!” More »