December 27th, 2011Posted by admin
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dykstranetDue to the pressure and the repercussions absorbed by discount airlines, it can be noted that the supposed-to-be large fare increase pursued by big-time American airlines has been slashed in half.
During the last week of February 2011, major network carriers pushed through a fair hike that made domestic fares up by $20 for every round trip ticket. Despite the sudden increase, the cost had been slashed in half by the afternoon of February 28. With the $10 fare implemented by Delta, Continental, American, and United, the gap between the offers of the traditional carriers and the discount airlines have been reduced, albeit still wide.
After insistent attempts to increase the broad-based fare every now and then, five rounds of increase attempt have already been made but this one has made a strong impact to the industry.
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September 20th, 2011Posted by admin
Southwest Airlines recently reported carrying more passengers than it did during the same month last year. According to reports, the revenue passenger miles for Dallas-based Southwest airline saw an increase of 8.7 percent since last year.
The airline also reported of a 7.5% increase in the available seat miles i.e. increase from 8.2 billion to 8.8 billion. It said that its load factor in April '10 was 79.7% as compared to 78.8% in April 2010.
The airline also stated that it had flown 26.2 billion revenue passenger miles in the first four months of 2011, which is an 11% increase over the 23.6 billion revenue passenger miles during the same period in 2010.
Also, the available seat miles rose from 30.8 billion during the same four months in 1020 to 33.3 billion. As of now the airline's load factor has been reported to be 78.7% as compared to 76.7% for the same period of months last year.
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Dhaval Jani
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September 11th, 2011Posted by admin
The airline industry has made tremendous strides recently, after surging fuel prices, highly restrictive credit markets, and a debilitating recession pushed all carriers to the brink just three years ago.
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cliff1066™Subsequently, the airline industry smartly adopted an aggressive pricing scheme, and the reassuring upturn led the sector to impressive profitability during 2010.
Current share prices indicate investors may now have a more constructive view toward both the airline industry's attractiveness, and the larger airlines' ability to compete more effectively going forward.
The labor-intensive nature of the industry combined with high union participation has caused payroll-related expenses to remain the largest expense item for the airline industry.
However, while labor costs have consistently fallen in nominal terms as the airline industry has removed pensions and seen its labor forces contract, fuel expenses have been extremely volatile due to geopolitical shocks.
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