U.S. Department of Transportation just released a list of the 10 U.S. carriers collecting the highest amount in baggage fees. They racked up a total of $566.3 million in the first quarter, more than four times the $122.6 million collected in the year-ago period.
American Airlines led the pack with $108.1 million, followed by Delta Air Lines (not including its Northwest Airlines subsidiary) at $102.8 million and US Airways in third place at $94.2 million.
Even with these added fees collected, all 21 of the reporting carriers recorded a negative 2.4 percent loss margin during the period. This loss widened from negative .4 percent the previous year.
The seven legacy airlines posted a combined $867 million operating loss. The seven low cost carriers made a profit of $126 million. The seven regional carriers managed a $78 million profit.
The major carriers’ minus 4 percent margin accounted for entirety of the loss. Regional airlines reported a 4.3 percent profit margin. Low cost carriers made a profit of 2.9 percent.
Those are the results right from the government’s mouth with no spin. Bottom line — major airlines are losing money, shrinking and irritating more and more passengers; low cost carriers are profiting and expanding.
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Those are the results right from the government’s mouth with no spin. Bottom line — major airlines are losing money, shrinking and irritating more and more passengers; low cost carriers are profiting and expanding.
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Interesting, because Southwest had one of the lowest load factors, along with other low cost carriers last month: http://www.centreforaviation.com/news/2009/06/22/passenger-numbers-load-factors-and-yields-continue-to-slip-ata/page1
compared with the legacy carriers. Then why are people choosing to fly with the majors? And, I’d like to see that LIST of profitable low cost carriers, please.
I’ve heard at least a dozen people tell me this year that they only fly a legacy carrier when they have no choice—otherwise they book on Southwest without even comparing fares. This includes a lot of small business owners and freelancers who are on their own dime and avoid the fee-grabbers out of principle, even if it means giving up the possibility of an upgrade. Bottom line: people are satisfied with what they are paying Southwest, and very dissatisfied with what they are paying the USAir’s of the world because of the feeling somebody has a hand in their pocket. A business can’t stay profitable if 95% of its customers are resentful and just the 5% who get their fees waived are even vaguely satisfied.
On June 26th, 2009 at 3:55 pm Cheap traveler said I’ve heard at least a dozen people tell me this year that they only fly a legacy carrier when they have no choice—otherwise they book on Southwest without even comparing fares.
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So, what you’re saying is……………that the MILLIONS of frequent flyers, who hold status on LEGACY CARRIERS are no longer contributing to their miles with said carriers? Load factors show otherwise. So do the first/business class cabins, they’re packed with milers.