Airlines Post Huge Profits Despite Squeezing Passengers

Los Angeles Times   |  Peter Pae   |   October 19, 2007 12:12 PM


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The nation's airlines were late more often this summer, lost more baggage and bumped more passengers off flights than in any summer this decade. They also made more money.

Despite the worst summer ever for air travelers, major airlines posted huge profits as they packed more passengers into fewer and smaller planes.

Profit at American Airlines, the nation's largest carrier, jumped more than tenfold to $175 million in the third quarter while Delta Air Lines, the third-largest, said net income quadrupled to $220 million compared with the year-earlier period. Profit would have been higher if not for rising fuel costs.

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- Sargoth See Profile I'm a Fan of Sargoth permalink

The airlines suck these days. I used to get a free can of pepsi when I flew, now they give me a half-cup full of ice with a drop of water. Gee... thanks a lot. I can hardly move in my seat without smashing the person next to me. There is no space for your feet. God-forbid you might want to get something out of a bag. And yet... how else are you supposed to travel from Detroit to Las Vegas?

There needs to be a consumer revolt! The consumer needs to demand better service. The consumer needs to strike alongside the unions. When we stop giving them out money they will decide to listen. But then there's that problem of how else are you supposed to travel from Detroit to Las Vegas?

    Favorite    Flag as abusive Posted 02:45 PM on 10/22/2007
- sparkandy See Profile I'm a Fan of sparkandy permalink

Don't forget the airlines are in business to line the pockets of the fat cats at the top. They are NOT in it for the benefit of the passengers, who are nothing more than numbers, or for the benefit of the employees, who are nothing more than a drain on profits. I work for a BIG airline and they make this very clear to us every day.

    Favorite    Flag as abusive Posted 05:56 AM on 10/22/2007
- AurigaRa See Profile I'm a Fan of AurigaRa permalink

so they squeezed us in, lost our luggage, made us wait and wait and mostly treated us like shit. But they made lots of money.

Ok can we say that the airline crisis is OVER now - at least for them? I am so tired of their whining when they consistently give poorer service.

    Favorite    Flag as abusive Posted 10:05 PM on 10/21/2007
- nomoredead See Profile I'm a Fan of nomoredead permalink

I must be one of the few travelers that consider air travel an unbelievable event. They will take me from the US to Asia and back for about $900 or from CA to Hawaii for about $300 c'mon people stop and think for a minute about it and for them to try and prepare and serve at hot meal at 35000 feet in those cramped conditions.....I can't do that in my own kitchen. I travel a lot and have never had a negative time. As far as service... they look at my ticket, I board and say hello, I chose a meal and say thank you, I leave and say good-bye....what the hell do you want? Sure their are certain things you should do to insure a smoother trip but most people are so stuck in their own spoiled little world they make it a miserable time. I love air travel.

    Favorite    Flag as abusive Posted 08:01 PM on 10/21/2007
- zannamar See Profile I'm a Fan of zannamar permalink

Flew Delta last week. We actually arrived early. We were asked to participate in a survey. I said sure, when they make the same offer when my flight is delayed(which is 80% of the time), of course then they won't want my opinion.

    Favorite    Flag as abusive Posted 04:47 PM on 10/21/2007
- askmeificare See Profile I'm a Fan of askmeificare permalink

Okay, sow we know their profit. What was the profit margin?

    Favorite    Flag as abusive Posted 11:55 AM on 10/21/2007
- sculptor See Profile I'm a Fan of sculptor permalink

I'd like to see the FAA adopt consumer friendly service standards for the airline industry. I say put an end to exorbitant rates for reasonable service.

1) Food service on all flights over a thousand miles and food that doesn't suck! I've got food allergies and I avoid airline food like the plague.

2) Seats that don't screwup your back and knees. This has to have safety implications because how are people in agony supposed to rapidly exit a plane in an emergency?

3) Fat fines, paid directly to the passenger affected, for things like plugged-up toilets or getting stuck on the runway for ten hours.

    Favorite    Flag as abusive Posted 04:38 PM on 10/20/2007
- themodernleader See Profile I'm a Fan of themodernleader permalink

Monopolistic functions--energy (electricity, coal, petroleum, telecommunications telephone, radio, television) water, transportation (trucks, trains, shipping, air lines)-- must by their basic nature be placed under public control. It is critical to society that naturally monopolistic enterprises be both efficient, that is, running one full airplane from point A to point B rather than three competing airplanes running the same routes, each a third full. Society must also assure that airplanes are run effectively through strict regulation and enforcement. A monopolistic enterprise must provide fares that are in line with a fair, but not usurious, return on investment, assuming competent management. Incompetent airlines must be replaced with the able and willing.
Under FDR through Nixon, we had licensed monopolies of naturally occurring monopolies. With the TVA and rural cooperatives, we had and have models of non-profit production and delivery of electricity that has contributed mightily to the standard of living of lucky Americans within their jurisdictions.
We would be wise to return to regulated monopoly administration of these entities. Then we may again be provided economic efficiency and effectiveness with fair rates for producer and consumer alike.
In some functions of human need, there is justification in both theory and practice to modify the free enterprise system.

    Favorite    Flag as abusive Posted 06:51 AM on 10/20/2007
- WigWamWag See Profile I'm a Fan of WigWamWag permalink

The Hillery Billery Bop wants you to pay the piper.

To Lady Hillary, I say, "Tomorrow, and tomorrow, and tomorrow,
Creeps in this petty pace from day to day,
To the last syllable of recorded time;
And all our yesterdays have lighted fools
The way to dusty death. Out, out, brief candle!
[Hillary's] but a walking shadow; a poor player,
That struts and frets [her] hour upon the stage,
And then is heard no more: [she] is a tale
Told by an idiot, full of sound and fury,
Signifying nothing."

America deserves better and we are not getting it from the front-runners in the GOP or DNC.

    Favorite    Flag as abusive Posted 05:57 PM on 10/19/2007
- speakingtruth2power See Profile I'm a Fan of speakingtruth2power permalink

CNN just did a piece on wasted millions going for small airports so the elite and moneyed interests can avoid the crowding of the profit centers.

There is no two party system in the USA. It's only the rich verses we the people and we have no representation.

    Favorite    Flag as abusive Posted 03:39 PM on 10/19/2007
- LiberalIncarnate See Profile I'm a Fan of LiberalIncarnate permalink

I believe that deregulation of the airline industry began in the Carter Administration (1979), not in the Reagan Administration actually.

I used to fly for American and it still has a special place in my heart. I left just before they started charging for domestic meals. Many things changed after 9/11. Once the door was opened to less service there will be little that will close it again.

On the west coast, the train is not a good option for most of us. I like Alaska Airlines, myself. They are no longer the "Nordstrom's" of the airline industry anymore, but they have, along with Horizon, a smart business plan.

    Favorite    Flag as abusive Posted 03:02 PM on 10/19/2007
- georgiaguy See Profile I'm a Fan of georgiaguy permalink

I traveled this summer and flew some portions on Asian airlines. The level of service was much higher and I prefer them to using the American airlines. International routes are helping prop up bottom line, but discounters will soon enter this market also. The high cost of airfares and huge drop in the dollar are making Europe unaffordable for a social studies teachers who likes to share his experiences with his students.

    Favorite    Flag as abusive Posted 02:46 PM on 10/19/2007
- GladysKnightsPIP See Profile I'm a Fan of GladysKnightsPIP permalink

I live in Europe and most Europeans are shunning vacations to the USA because who wants to visit a country where you are treated like a criminal by FAT,STUPID people.

Even with the weak dollar you couldn't PAY me to go there anymore.

    Favorite    Flag as abusive Posted 03:11 PM on 10/19/2007
- lovesickbilly See Profile I'm a Fan of lovesickbilly permalink

Now, now, now. Reign it in there, Pippy. Should we go making generalizations about SMELLY, ARROGANT Europeans, based on just a few? Obviously, if you're reading Huffington Post, you know that we're not all STUPID, and you probably aren't either. What are you doing making such an obtuse statement?

    Favorite    Flag as abusive Posted 03:30 PM on 10/19/2007
- UtahLiberal435 See Profile I'm a Fan of UtahLiberal435 permalink

Ah, remember that Reagan-era airline 'deregulation' that was supposed to free the magic of the market, provide for more competition, and benefit consumers?

And remember the United bailout post 9-11? The possible impending Delta bailout?

Remember how airlines needed to cut costs by reducing maintenance schedules?

And now, with oversold flights, airports at capacity, overpriced food and services for travelers held hostage at ever larger, more expensive airports, it's a profit-maker's paradise for both airlines, airport authorities, and the monopolistic traveler 'services' that captive commuters need just to eat.

You can't complain about non-fulfillment of your ticket contract, even diplomatically, for fear of being labeled a security threat and hauled off to prison.

Your average airport is a Bushian Korporat model for how society should be run. Citizens must stand in line, disrobe on command, submit to inspection, sit quietly and without complaint, watching ad TV, until their number is called. In the meantime, you purchase food at the company store. You pay full price whether you get the agreed upon service or not.
Your seat is sold twice, just in case every plane's not 100% filled.

This just goes to show the entire fallacy of the 'libertarian' model when applied to big business. It's time for re-regulation, criminal liabilities, and enforced responsibility. It's either government by government, or government by amoral corporate warlords - assuming that there's currently much difference.

    Favorite    Flag as abusive Posted 02:43 PM on 10/19/2007
- WhiteSoxNation See Profile I'm a Fan of WhiteSoxNation permalink

utahliberal,

Please learn the FACTS regarding deregulation of the airline industry.

Sen. Edward Kennedy was the lynchpin of getting the ball rolling in this. Stephen Bryer, yes that one on the Supreme Court, also assisted the Senator in "deregulating" the industry.

United got NO bailout post 9/11. They begged and pleaded the ATSB for the money but were denied.

As far as "libertarian" model, far from it. The government BAILS OUT failed legacy carriers, who incidentally were built on old mail contracts. The CAB simply funneled contracts to these carriers and kept them safe in their regulated environment. The deregulated environment sees more of the same with the PBGC and ATSB simply allowing airlines to dump liabilities on the taxpayers of this country.

I know facts sometimes cloud the issues, but please read Hard Landings by Thomas Petzinger for a history of deregulation.

Better yet, work for an airline. You won't find a cheaper group of individuals on the planet.

    Favorite    Flag as abusive Posted 10:46 PM on 10/19/2007
- JohnPaulJones See Profile I'm a Fan of JohnPaulJones permalink

there is nothing "libertarian" about what is going on with the airlines. there is no deregulation of the market, by the way, Virgin has been pushing for domestic service here in the states and has meet consistent resistance, ditto for RyanAir.

Wake Up!

    Favorite    Flag as abusive Posted 03:08 PM on 10/19/2007
- WhiteSoxNation See Profile I'm a Fan of WhiteSoxNation permalink

As they should meet resistance. Foreign air carriers flying domestic routes (aka cabotage) is enemy #1 of the AFL-CIO backed ALPA (Air Line Pilots Association). The cargo airline industry has been allowed to give this up (DHL is a prime example).

Why should I give up my job to some third world trained pilot who will do it for much less than what I make? Our benefits and wages have been put together through a lot of years of hard work, strikes, and fighting corporate enemies (like Frank Lorenzo). 9/11 was simply the airlines excuse to slash payrolls and erode our hard fought contractual rights.

But it's ok since the "talent" (those they have to retain with millions in bonuses even though it was their leadership that lead to bankruptcy) is still running the place.

    Favorite    Flag as abusive Posted 10:55 PM on 10/19/2007
- speakingtruth2power See Profile I'm a Fan of speakingtruth2power permalink

Excellent post!!!!

POPULISM is the cure for the cancer of BCBCB corporatism.

    Favorite    Flag as abusive Posted 03:01 PM on 10/19/2007
- MikeDu See Profile I'm a Fan of MikeDu permalink

I would sooooooo like to blame all this on Reagan's mania for 'free market' reform but if VERY distant memory serves Jimmy Carter can take the blame for airline deregulation back in 77. Even back then I thought "Uh oh. There's a REASON regulations needed to be imposed on these clowns. Now the fox is guarding the henhouse!"

    Favorite    Flag as abusive Posted 03:12 PM on 10/19/2007
- vippy See Profile I'm a Fan of vippy permalink

Watch for the outsourcing of maintenance. Now that is scary. Proper maintenance is required.
I hope they don't start to cut there, all in the name of profit!

    Favorite    Flag as abusive Posted 02:37 PM on 10/19/2007
- WigWamWag See Profile I'm a Fan of WigWamWag permalink

Outsourcing of repairs is already in play. Per a Sixty Minutes Program, some US commercial carrier planes are flown to China for major maintenance changes. How safe do you feel now?

    Favorite    Flag as abusive Posted 06:21 PM on 10/19/2007
- Meanwhile See Profile I'm a Fan of Meanwhile permalink

The oil companies have been doing it for years, so why not the airlines?

    Favorite    Flag as abusive Posted 02:36 PM on 10/19/2007
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