Monday, November 23, 2009

Airline Revenues Keep Tanking, Despite Added Fees

Passenger revenue for U.S. airlines was down 15 percent in October compared with October 2008, despite all of those extra fees being slapped on, and despite lower costs.

The Air Transport Association reported the figures today, indicating that the plight of domestic airlines is not getting better. Something, as I keep saying here, has to give.

The ATA said the October decline was caused "primarily by the 11th consecutive month of ticket price declines." The average domestic yield was down 12.9 percent, and down 14.4 percent on transatlantic flights, where the drop-off in revenue from business-class fares has been profound. Revenues dropped 17.3 percent on Latin American flights and 17.8 percent on transpacific flights.

The trade group CEO James May said that "pressure to generate revenue will remain intense for the forseeable future."


1 comment:

richmanwisco said...

And yet the airlines can't seem to help themselves, evidenced by Continental and United announcing a $30 holiday travel fee on at least 3 dates to cover "the cost of bringing employees to work on those days".

They are just begging for Congress to step in to enact "truth in advertising" laws.

Maybe some genius will come along with the radical idea that you provide a fair service at a fair price and treat your customers like human beings.

Hey, one can dream.