Tuesday, September 14, 2010

Airlines Report Profits And Record Load Factors


In recent weeks most US Airlines have reported record load factors for air travel.


Picture 1593 For August 2010, Southwest Airlines reported a rise in traffic along with a 15 to 16% increase in revenue per seat mile from a year ago.







For the same period, Delta Airlines, the world's largest reported a decrease in domestic traffic but an increase for international traffic.

This overall increase in traffic and air travel demand has lead to decent quarterly profits for most airlines. However, the airline industry still has a long way to go in orders to make up for the almost decade of losing money.



For consumers, I believe this increase in traffic and air travel demand will lead to higher ticket prices. Although disappointing to many, airline ticket prices have remained depressed for too long and have stagnated the airlines returning to profitability.

Even at these increased prices air travel is still a bargain and consumers must be reconditioned to realize this. Airlines can do their part by improving their customer service and flight performance. I notice recently that some airlines are upgrading their in flight services including bringing free pillows and blankets back.

$900 round trip to Europe may not be such a bad deal if the airline provides you with a pleasant flight experience.


Spain 219 Visiting Spain in the summer, The Alps in the winter or Holland in the spring can be priceless if you are not jaded by poor airline service or ticket prices that are too high.





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