The Airlines are Losing Money

[uva185]

There were a couple posts I read over the past few days where some people thought the airlines are gouging passengers and charging too many fees. Well here are some of the financial reportings made by some of the airlines.....they are still losing money!!

Now I am no fan of a nickel and diming price structure but the airlines need to bring in additional revenue to survive. The airlines quickly realized a passenger is much more likely to pay a $15 baggage fee over a $15 fare increase so the fees are a more effective way to bring in additional revenue. Fuel will go back up and one must remember even before the fuel spike over the summer the airlines were losing money.

US Airways
Quarter 4: $541 million loss
Entire Year: $2.2 billion loss
http://biz.yahoo.com/bw/090129/20090129005295.html?.v=1

Delta
Quarter 4: $1.4 billion loss
Entire Year: $8.9 billion loss
http://biz.yahoo.com/pz/090127/158397.html

Continental
Quarter 4: $266 million loss
Entire Year: $585 million loss
http://www.continental.com/web/en-US/content/company/investor/audio.aspx

American
Quarter 4: $340 million loss
Entire Year: $2.1 billion loss
http://www.aa.com/content/amrcorp/pressReleases/2009_01/21_4q08.jhtml

 

[ExPirateShopGirl]

I'll be setting up a Paypal account for any of you who'd like to make contributions to my income.

 

[dudspizza]

I'll be setting up a Paypal account for any of you who'd like to make contributions to my income.

You are so funny! Our school district has to cut $18 million dollars..... I am just hoping I have a job!

Duds

 

[CarolA]

While some of us realize this, the overall view on this board is that there is some kind of "guranteed" right to a cheap airfare to MCO.

Sadly, until Airline managment across the board wises up I am not sure I see a solution. My last flight cost $59!!!!!!! Since I am an elite flyer on the airline I paid no extra fees and even got upgraded to First Class. Yes, I cost the airline a FORTUNE LOL! Airfares and fees have got to go up to a sustainable level.

 

[ssawka]

Well, I guess we should all buy full price fares then to make sure the airlines survive.

 

[Lewisc]

Well, I guess we should all buy full price fares then to make sure the airlines survive.

I'd settle for posters not falsely claiming airlines are making money. I'd settle for people accepting the fact that airlines have found passengers seem more willing to accept "nickle and dime" charges then fare increases. I'd accept people accepting the possibility that at some time in the future passengers that don't pay for seat assignments may get middle seats.

 

[crashbb]

I'd settle for posters not falsely claiming airlines are making money. I'd settle for people accepting the fact that airlines have found passengers seem more willing to accept "nickle and dime" charges then fare increases. I'd accept people accepting the possibility that at some time in the future passengers that don't pay for seat assignments may get middle seats.

I wouldn't hold your breath.

 

[rosiep]

There were a couple posts I read over the past few days where some people thought the airlines are gouging passengers and charging too many fees. Well here are some of the financial reportings made by some of the airlines.....they are still losing money!!

Now I am no fan of a nickel and diming price structure but the airlines need to bring in additional revenue to survive. The airlines quickly realized a passenger is much more likely to pay a $15 baggage fee over a $15 fare increase so the fees are a more effective way to bring in additional revenue. Fuel will go back up and one must remember even before the fuel spike over the summer the airlines were losing money.

US Airways
Quarter 4: $541 million loss
Entire Year: $2.2 billion loss
http://biz.yahoo.com/bw/090129/20090129005295.html?.v=1

Delta
Quarter 4: $1.4 billion loss
Entire Year: $8.9 billion loss
http://biz.yahoo.com/pz/090127/158397.html

Continental
Quarter 4: $266 million loss
Entire Year: $585 million loss
http://www.continental.com/web/en-US/content/company/investor/audio.aspx

American
Quarter 4: $340 million loss
Entire Year: $2.1 billion loss
http://www.aa.com/content/amrcorp/pressReleases/2009_01/21_4q08.jhtml

Fair enough...but how are the CEO's of the airlines fairing?

 

[CarolA]

Since most CEOs get a large portion of thier "income" in stock options with the current market and losses like this. Income probably isn't what it was.

However, do you REALLY think that even if they don't pay the CEO that will reserve a MULTI-BILLION dollar loss????

 

[rosiep]

Since most CEOs get a large portion of thier "income" in stock options with the current market and losses like this. Income probably isn't what it was.

However, do you REALLY think that even if they don't pay the CEO that will reserve a MULTI-BILLION dollar loss????

Of course not; but if my husband ran his business as poorly his pockets would be empty and he'd need a new job.

 

[Lewisc]

If the CEOs ran the airlines better many of the money losing fares we all love to book wouldn't be offered. The present system (currently) benefits those of us who book fares on money losing leisure routes.

 

[CarolA]

If the CEOs ran the airlines better many of the money losing fares we all love to book wouldn't be offered. The present system (currently) benefits those of us who book fares on money losing leisure routes.

Yes and those posters who want the CEOs to "take the blame", are you willing to pay what it's going to cost? I rarely see posts saying "I would pay more" instead I see is "$124 too much" No, in reality it's too little and if the airlines ever get it together avg fare to MCO will be closer to $300 then $200!

I agree that something needs to change and if it was just ONE airline then I would be sceaming FIRE THE IDIOTS, but it's an entier industry and and an entire flying public that's going to have change. That's just hard to do.

 

[rosiep]

Yes and those posters who want the CEOs to "take the blame", are you willing to pay what it's going to cost? I rarely see posts saying "I would pay more" instead I see is "$124 too much" No, in reality it's too little and if the airlines ever get it together avg fare to MCO will be closer to $300 then $200!

I agree that something needs to change and if it was just ONE airline then I would be sceaming FIRE THE IDIOTS, but it's an entier industry and and an entire flying public that's going to have change. That's just hard to do.

With all due respect Carol...you yourself said you only paid $59 with no extra fees for your last trip...how can you be so hypercritical of those who want affordable prices? If you feel that strongly, reject the lower fare and pay full fare yourself...put your money where your mouth is.

 

[CarolA]

With all due respect Carol...you yourself said you only paid $59 with no extra fees for your last trip...how can you be so hypercritical of those who want affordable prices? If you feel that strongly, reject the lower fare and pay full fare yourself...put your money where your mouth is.

Boy you assume a lot don't you.

I am hypercritical of those who think that at these prices the airlines are charging too much. And those who claim "the planes are full so they are making money" (And they are ALL over this board) And just to make you feel better, my flight Sunday night... $600! The flight that took me TOO the city where I paid $59... $300!

I have on occassion bought the full fare because I needed the flexiblity. I daresay my average airfare paid by me and my employer is much higher then the average DIS member flying to Disney!

I don't blame anyone for paying what the airlines ask, but I do find it funny that folks get hysterical if thier airfare goes over some amazingly low number. And anyone who thinks more then $100 each way is too much is not facing reality.

So what's your response going to be when the average airfare goes up to where it needs to be which is MUCH closer to the $600 fare I am paying Sunday then the $59 fare I paid on my last trip? Mine is going to be "well, it was too good to last" and I will fork over the cash.

I said I was costing the airline money. Most folks on here won't admit that.. They think that Spirit can REALLY fly them to MCO for $9!!!!

 

[Mousekateer In WI]

The airfares need to increase so that the pilots and flight attendants can make a better wage. Think of the splashdown on the Hudson a few weeks ago. If you divide the amount of dollars that the two pilots and the flight attendants got paid for that flight by the number of lives they saved that day, it doesn't amount to much per life. A pilot who is responsible for 70 passengers lives might only make $80 for that flight. I would rather pay a fare price consistently then have to guess each time I fly.

 

[bavaria]

While some of us realize this, the overall view on this board is that there is some kind of "guranteed" right to a cheap airfare to MCO.

May I please correct you and point out that those of us who live outside America for the most part realise that the airfare you Americans pay is far too underpriced to be viable. Actually, save for crashbb and a few others, I will add many Canadians who live in Ontario into your generalization. Those who fly from Buffalo or other border cities also don't always seem to understand the concept of viable fares.

Well, I guess we should all buy full price fares then to make sure the airlines survive.

And you know what? Many of us do pay what is considered 'full fares'. For many of us, a 2 hour flight is $750 or more. And our airlines are not losing the money at the same rate as the US carriers.

Frankly, it gets very tiring to read over and over how people here expect $79 fares, think that American carriers are 'ripping off' the public, passengers should be allowed to carry their houses on board, they expect top level customer service, etc. Many of us 'stupid foreigners' have discussed this offline, and several no longer post as a result. I certainly don't post as much nor have as much enjoyment here anymore.

I'm not anti-American; I work there much of the year and some of my favourite people are American, but I think that many posters here have no concept of the reality of the rest of the world. Just because something was that way for so long doesn't mean that it is 'right' or viable or should continue.

Cheap underpriced airfare is not a right. Nor is taking vacations to Disney or other destinations requiring a flight. Airfare in America has not increased significantly in 20 years (I believe that it was 3% in total, and many routes have decreased in price) Yet that seems to be overlooked by so many here.

I only have room for 6 more PMs in my inbox, so for those of you who like to send me nasty anti-foreigner rants, please make it worth your time. No guarantees that I will read them, however.

 

[Starr W.]

While some of us realize this, the overall view on this board is that there is some kind of "guranteed" right to a cheap airfare to MCO.

CarolA, didn't you know Disney lobbied Congress to pass an Constitutional Amendment, no one should pay more than $180 RT to MCO.

 

[rosiep]

Boy you assume a lot don't you.

I am hypercritical of those who think that at these prices the airlines are charging too much. And those who claim "the planes are full so they are making money" (And they are ALL over this board) And just to make you feel better, my flight Sunday night... $600! The flight that took me TOO the city where I paid $59... $300!

I have on occassion bought the full fare because I needed the flexiblity. I daresay my average airfare paid by me and my employer is much higher then the average DIS member flying to Disney!

I don't blame anyone for paying what the airlines ask, but I do find it funny that folks get hysterical if thier airfare goes over some amazingly low number. And anyone who thinks more then $100 each way is too much is not facing reality.

So what's your response going to be when the average airfare goes up to where it needs to be which is MUCH closer to the $600 fare I am paying Sunday then the $59 fare I paid on my last trip? Mine is going to be "well, it was too good to last" and I will fork over the cash.

I said I was costing the airline money. Most folks on here won't admit that.. They think that Spirit can REALLY fly them to MCO for $9!!!!

I think that most people who travel regularly know that airfares are usually expensive. I, too, travel often and sometimes my fare is low and sometimes it is not. I don't ever "assume or expect" that it should be low...however, I know that when looking to travel the first thing I consider is my needs, then I look for the best price based on those needs.
Assuming that all things were equal, if you were looking for a flight and you found one for $100 and another for $300 which one would you book?

I admit..I book the cheaper fare...do you?

 

[bavaria]

I admit..I book the cheaper fare...do you?

No, very often I do NOT book the cheaper fare. With change fees the cheaper fare often does not make sense - it is not a value.

Look at how many people come here trying to find a way to cheat the airline and avoid change fees, by taking advantage of schedule changes of even 3 minutes.

The reality is that reading here one sees that much of the American (Disney-obsessed at least) public is both unwilling to accept a viable fare and is then willing to cheat the airline out of any fees possible whether it be checked baggage fee, change fees, or any other type of fee the airlines have put in place in an effort to reduce their staggering losses.

 

[kaytieeldr]

CarolA, didn't you know Disney lobbied Congress to pass an Constitutional Amendment, no one should pay more than $180 RT to MCO.

No! When? That's not fair! I paid more than $200 for my trip last fall! Never mind that it was offset by paying just over $180 ($185, exactly) to fly round trip from BOS to LAS in December).

I demand my Constitutional Right to a ridiculously low fare to Orlando!!!!