Orlando Flights Getting Ugly

[Shelly F - Ohio]

Air Tran and Spirit still have good rates for non stop flights from Michigan during Sept. when we are going.

Air Tran from Flint $94 each way.
Air Tran from Detroit $87 Return $94

Spirit from Detroit $87 Return $99

We have not booked any flights since we are still thinking about driving.

Northwest has fares for $85 each way with tax for Sept fares out of DTW to MCO

 

[kristytru]

Wow! All this is just fueling my interest in buying an RV and driving to FL next year. Sure, we'll still have to deal with soaring gas prices, but at least I won't be charged for baggage and drinks and I don't THINK my family would "bump" me!

 

[manning]

What do you get out of one of those?? 7MPG???

 

[kristytru]

Between 7 & 13...but when we factored in $15-1800 in airfare for a family of 4 (& that was LAST YEAR's price), baggage fees, and car rentals, (not to mention the cuts in flights, delays & possibility of getting "bumped"),it has begun to look more cost-effective for us. As a kid, we always vacationed via motorhome and it is something my husband has wanted to do for a long time. Just can't stomach the rise in airfare and decline in service. Would rather put the money into my own tank than theirs.

 

[crazy4wdw]

Get used to it: Fewer flights, higher fares

6 leading airlines cut capacity. New price increases are announced. 'The question is how high they'll go,' expert says.

NEW YORK (CNNMoney.com) -- As oil prices continue to break records, the nation's six leading airlines have announced capacity cuts for 2008, trimming flights in major hubs and cutting off service to dozens of discount destinations.

All told, the industry will cut capacity by 9% in 2008, according to James Higgins, analyst for Soleil-Solebury Research.

Experts are also expecting more fare increases. Tom Parsons, travel pricing expert at BestFares.com, said airlines have imposed about a dozen fare increases or fuel surcharges since the end of last year.

"I think we'll continue to see fare increases," said Philip Baggaley, fixed income analyst at Standard & Poor's. "The question is how high they'll go."

On Friday, Delta Air Lines, United Airlines and Southwest Airlines all added fare increases, ranging from $5 to $40.

"The goal is to get just the right mix of capacity cuts and higher prices and fees to keep planes packed this fall and winter," Farecompare.com Chief Executive Rick Seaney wrote on his site.

In addition, the industry has added numerous fees for services that were once provided for free, such as American Airlines' newly-imposed $15 charge for travelers' first checked bags.

The skyrocketing cost of fuel is the biggest culprit to the money-losing airline industry. Oil prices broke a new record on Friday, rising above $142 a barrel. Fuel expenses are expected to rise to $61.2 billion in 2008, compared to $41.2 billion last year, according to the Air Transport Association. Meanwhile, the Amex Airline Index has plunged more than 50% this year.

Florida gets fried in capacity cuts

In cutting capacity, airlines are targeting their most financially-inefficient flights, and filling their remaining flights to maximum capacity.

In June, the airlines with the most annual sales - including AMR Corp.'s (AMR, Fortune 500) American Airlines, Delta Air Lines (DAL, Fortune 500), UAL Corp.'s (UAUA, Fortune 500) United Airlines, Continental Airlines (CAL, Fortune 500), Northwest Airlines (NWA, Fortune 500) and US Airways (LCC, Fortune 500) - each announced capacity reductions. With the exception of Northwest, all of these airlines provided details of which hubs will be affected and which flights will disappear.

American Airlines was the most recent to detail its cuts. On Wednesday, the carrier said it would eliminate 189 additional flights by the fourth quarter, with up to a 12% reduction in domestic capacity. American will no longer fly into Oakland, Calif., London's Stansted airport, and Barranquilla, Colombia. American Eagle, the carrier's shuttle service, is discontinuing service to Albany, N.Y., Harrisburg, Penn., Providence, R.I., and other cities. American is also trimming flights at major hubs, including Chicago, St. Louis and Dallas/Fort Worth.

With other airlines, many of the service cuts are in Florida, a popular destination for discount flyers. These low-cost flights are no longer considered worthwhile for the money-losing carriers. United said it would no longer service Fort Lauderdale and West Palm Beach. Delta is also cutting service to Fort Lauderdale, as well as Orlando, Tampa and Key West. Continental is ending service in Sarasota and Tallahassee.

Las Vegas, another popular discount destination, is also getting squeezed. Delta and U.S. Airways are both ending service to the gambling hub.

"I think Florida is at the top of the list [of cuts and potential cuts], and I wouldn't be surprised if we saw more cuts in Las Vegas," said Higgins.

Parsons of Farecompare.com said that Hawaii is no longer considered a discount destination for West Coast flyers, and that fares have doubled since last year. Also, American Airlines eliminated its Chicago-Honolulu flight, and two of the airlines that used to service Hawaii - Aloha Airlines and ATA - have gone out of business.

"Hawaii is probably taking the biggest beating," said Parsons. "Hawaii is almost being treated like an international destination."

Southwest fills the vacuum
Meanwhile, Southwest Airlines - the only profitable U.S.-based major airline - has increased service, albeit by a small margin. Southwest, which successfully hedged its fuel costs and therefore avoided the current high prices, is using its increase in flights to service areas that have been abandoned by competing carriers.

Southwest said on Thursday that it was cutting 31 flights but adding 40, for a net gain of nine. Southwest is adding flights to the Denver hub, where United Airlines announced cuts, and to Albany, where American Airlines is discontinuing service. Southwest is also adding service to Fort Lauderdale, Fort Myers and Las Vegas.

Also, Southwest is less aggressive in imposing extra fees than many of its competitors. Parsons said that this, combined with Southwest's ability to operate in airports that other airlines have abandoned, increases the airline's ability to compete.

"Southwest may end up being the biggest winner of them all," said Parsons.

The airlines will probably announce the next big wave of capacity cuts next year, said Higgins, who projects that they'll cut capacity in 2009 by the "mid-single digits."

"We're going to have to see what the economy looks like and we're going to have to see what oil prices look like," said Higgins.

But experts said that trying to estimate which hubs and flights are slated for cuts is a tricky business, partly because the airlines base these decisions on complicated hub juggling.

Said Baggaley of Standard & Poor's: "The airlines don't have perfect flexibility to slice off capacity like salami."

 

[disrailfan]

Air Tran and Spirit still have good rates for non stop flights from Michigan during Sept. when we are going.

Air Tran from Flint $94 each way.
Air Tran from Detroit $87 Return $94

Spirit from Detroit $87 Return $99

We have not booked any flights since we are still thinking about driving.

On our recent flight with AirTran, on the flight home the pilot when he was welcoming us home gave a little speech about AirTran about the fact that they will be there through the long haul, even with the oil prices. Apparently Spirit and AirTran know how to run an airline, because they appear to be making money. Maybe I am wrong.

 

[Buckleigh]

Sometimes they fly by and let you jump.

 

[rebecca06261]

I have been waiting to post until I found what I was looking for. I have my old receipt & ticket from February 21, 1988. This was my first trip to the World and my first experience on a plane. We had 3 round-trip coach seats on Delta, from Atlanta to Orlando. Total Cost per Ticket = $718.00. Of course, this included peanuts, the wings-pin, soda, and checked-luggage

 

[safetymom]

I wouldn't bet that Spirit will be around much longer.

 

[crazy4wdw]

Tough times: Improvements stall at OIA

Preparing for service cuts by airlines, Orlando International Airport postpones projects

Jason Garcia | Sentinel Staff Writer
July 29, 2008

The financial turbulence rocking the U.S. airline industry is starting to take its toll on Orlando International Airport.

Bracing for the possibility that revenue could tail off substantially this fall after airlines enact deep service cuts, airport Executive Director Steve Gardner has ordered several big-ticket construction projects postponed indefinitely.

Among them: an overhaul of the airport's main ticket lobbies. Boosters were hoping the project would give passengers more room for moving about during the often crowded check-in process.

The ticket-lobby overhaul was among the most expensive items included in a five-year, nearly $1 billion capital-improvement program that OIA recently negotiated with its major airline tenants. It was supposed to begin before the end of the year; now it won't begin until 2009 at the earliest, Gardner said.

More Orlando Sentinel blogs He said several other construction projects also will be deferred until at least 2009.

"I'm just going to put a hold on starting them until the time is right," Gardner said. "It is the prudent thing to do." An airport spokeswoman said Monday evening that the complete list of projects to be delayed remains flexible and could change.

The slowdown comes as OIA prepares for the fallout from flight cuts that airlines are making across the country in response to record fuel prices. Orlando, which leans heavily on low-fare leisure travel, will be hit particularly hard. The worst of the cuts will arrive this fall, after the end of the summer-travel season.

A recent Orlando Sentinel review of flight schedules found that the number of seats, flights and destinations available out of OIA all will shrink substantially this fall. The review found, for instance, that airlines have scheduled 15 percent fewer flights in October than they did one year ago. Delta Air Lines alone plans to cancel nonstop service from Orlando to about two dozen destinations.

The final cuts likely will be even deeper, as airlines have continued to pare their schedules this month.

Other airports suffer, too

Orlando International isn't alone in putting off capital projects. Airports across the country are being forced to take similar steps as airlines withdraw, said Deborah McElroy, executive vice president for policy and external affairs at the Airports Council International-North America.

Oakland International Airport canceled plans to build a third terminal. Port Columbus International Airport in Ohio pushed back a new terminal. And airlines have asked McCarran International Airport in Las Vegas to rework plans for a new terminal already under construction and to cancel a planned heliport, according to the Las Vegas Sun.

"All of the airports are taking a hard look at their budgets," said McElroy, whose organization represents 366 U.S. airports and 180 more in Canada.

McElroy said many facilities are planning for even deeper reductions in service next year. "In some cases, airports have told us, 'We're doing contingency planning for possibly even a 50 percent reduction in flight operations,' " she said.

Despite the unstable climate, OIA executives say they still must push forward with two major construction projects: $103 million worth of rental-car improvements, which will create room for more car agencies to operate on-site; and $90 million in baggage-system upgrades, which will include new luggage carousels, wider conveyor belts and other new equipment.

Gardner said those projects simply cannot wait, as both are vital to ensuring that the main terminal continues to operate smoothly.

Even the limited construction agenda has the airport scrambling to ensure it has enough cash to withstand a dip in revenue. Staffers say that if they are unable to raise enough money from their usual sources in the municipal-debt market -- which is still roiling in turmoil -- they may consider taking out a direct bank loan, much as Port Canaveral plans to do to finance some cruise-terminal improvements.

"We want to know we're on very strong financial footing before we start," said Jeff Fuqua, chairman of the Greater Orlando Aviation Authority, which runs OIA and Orlando Executive Airport.

Holding pattern $113M What: Main ticket lobbies Logistics: Would have pushed ticket counters back 12 feet, boosted number of counters from 319 to 400 and created more shared space between airlines. Means to you: Checking in for a flight will continue to require weaving through thick crowds of people and luggage on busy travel days.

Moving forward $103M What: Rental-car improvements Logistics: Create room for more rental-car companies to operate on-site. Means to you: Travelers should no longer have to take a shuttle to off-site parking lots in order to rent from some big rental-car companies, such as Hertz, Enterprise and Thrifty.

$90M What: Baggage-system upgrades Logistics: 18 new bag-claim devices, 4 new luggage carousels, wider conveyor belts. Means to you: Smoother, quicker and -- hopefully -- more accurate checking and sorting of luggage.

Other delays? Here are some other improvements that were slated for OIA terminals. It is unclear which projects will be delayed.

$25M Vertical circulation; central plant

$13M Emergency electrical system

Lease agreements uncertain The uncertainty surrounding the future of airlines also is clouding Orlando International Airport's efforts to strike a new, long-term lease with its major tenants.

OIA revealed in May that it was on the verge of striking a five-year "lease-and-use" agreement with its biggest carriers. Airlines that sign the pact -- which sets the rental rates for items such as gates and check-in space -- would get favorable terms in exchange for a commitment to rent a minimum amount of space for five years.

But the final negotiations have stalled as airlines have continued to rack up even steeper financial losses. Airport chief Steve Gardner said airline executives are uncertain about how much space to commit to renting.

If a new deal isn't in place by October, OIA will have to impose new rates on the airlines. While those rates would be higher, the carriers would have the freedom to reduce the amount of space they rent -- or cancel entirely -- with only a 30-day notice.

Jeff Fuqua, the aviation authority chairman, said OIA is still hoping to avoid such a scenario. But it may have no choice.

"A lot of these carriers are reformulating their whole business models right now. And so they're probably looking at how much space they need not only in Orlando but in Seattle and Washington and Hoboken," he said. "There's a real possibility that some of the significant carriers may not respond by the deadline."

Jason Garcia can be reached at jrgarcia@orlandosentinel.com or 407-420-5414

 

[ransom]

Thank you for posting that article. Perhaps I missed it, but I didn't see any mention of the massive work going on in the arrival terminals that we saw last December. All the drop ceilings had been removed, there seemed to be electrical work going on, etc. Does anyone know if it's been completed?

 

[proteus]

It is cheaper for me to drive even with high gas prices. My round trip to Orlando is 1,732 miles which works out to about 48 gallons.

 

[doubletrouble_vb]

I have been waiting to post until I found what I was looking for. I have my old receipt & ticket from February 21, 1988. This was my first trip to the World and my first experience on a plane. We had 3 round-trip coach seats on Delta, from Atlanta to Orlando. Total Cost per Ticket = $718.00. Of course, this included peanuts, the wings-pin, soda, and checked-luggage

Wouldn'it have been cheaper to fly to a bigger city like New York, Washington or Houston then fly to Orlando? I never could figure out why ATL-MCO was so high when EWR-MCO was so cheap. Atlanta is a luxury bus route waiting to happen. If I hit the lottery I might try to pull it off. Maybe run it express to Orlando then have it go to beach destinations.

 

[Jessfrogger88]

I actually am going to write a letter to Southwest, because they are really doing us a service by not adding all those insane fees for seats, and baggage, and snacks and water etc.. and their fares are still reasonable and I find their customer service to be impecable.

 

[Justin the Hook]

I have been waiting to post until I found what I was looking for. I have my old receipt & ticket from February 21, 1988. This was my first trip to the World and my first experience on a plane. We had 3 round-trip coach seats on Delta, from Atlanta to Orlando. Total Cost per Ticket = $718.00. Of course, this included peanuts, the wings-pin, soda, and checked-luggage

Are flights more per ticket now? I only paid $180 roundtrip for our trip in september. I have never paid more than $250 round trip for any flight that I have ever taken. That includes when we went to Jamaica 4 years ago. I keep seeing people saying all these high prices and I just don't understand why?

 

[Justin the Hook]

On our recent flight with AirTran, on the flight home the pilot when he was welcoming us home gave a little speech about AirTran about the fact that they will be there through the long haul, even with the oil prices. Apparently Spirit and AirTran know how to run an airline, because they appear to be making money. Maybe I am wrong.

The deal with Airtran is when they signed their last contract they signed that their gas prices are fixed for so many years. So as the price of gas rises they continue to pay a fixed rate. They must of figured that the price of gas would increase and hurt the other carriers.

 

[safetymom]

Don't bet any money that Spirit is going to be around for the long haul. With their low fares they aren't going to last real long.

 

[matlock42373]

I dont know about all this about prices going up if you book far enough out you can steal tickets on delta. I purchased 3 round trips with one stop in cinncinatti flying out of rochester NY to MCO for 148.00 tax and everything. I dont mind stopping though.

 

[Laneychris]

Something will have to give soon if Airlines want people to continue to fly.