Thanksgiving air travel is expected to break record
The demand for air travel continues to surge, with U.S. carriers expected to transport a record 28.5 million passengers during the Thanksgiving holiday, a 3% increase from the previous year.
Despite the continued growth in passengers, the nation’s airlines are starting to report a drop in profits.
Industry trade group Airlines for America predicted the increase in passengers for the Thanksgiving period, from Nov. 17 to Nov. 28.
The same group said rising expenses — in particular an 8.1% increase in labor costs and 17% rise in fuel costs — are cutting into profit margins.
During the first nine months of the year, the nine biggest carriers reported a pretax profit of $14.7 billion, which is a margin of 12%. That’s down from $18.4 billion, or a margin of 15.5%, in the same period last year, the group reported.
NAACP, airline talk about race warning
Leaders of the NAACP and American Airlines have met to discuss the civil rights group’s travel warning alleging discriminatory practices by the airline, but no resolution appears imminent.
The NAACP issued a travel advisory late last month, warning African Americans that flying on American Airlines could subject them to “disrespectful, discriminatory or unsafe conditions.”
The NAACP cited four incidents in which African American passengers were either removed from a flight or forced to give up a firstclass seat on the carrier’s planes.
According to the annual air travel consumer report compiled by the U.S. Department of Transportation, American Airlines had 18 complaints last year that alleged discrimination based on race, more than any other carrier.
On Tuesday, NAACP President Derrick Johnson, NAACP general counsel Brad Berry and several activists met in Washington with American Airlines Chief Executive Doug Parker and the carrier’s vice president for customer experience, Kerry Philipovitch.
“We welcomed the opportunity to meet, and had a positive and productive dialogue,” airline spokeswoman Shannon Gilson said of the meeting. “We look forward to continuing the conversation and working together.”
The NAACP issued a statement, saying the two sides had “a full and frank dialogue, but words are no substitute for action.”
Both sides said they will continue to meet to discuss the allegations.
Marriott CEO cites Trump policy effect
Another travel industry leader is criticizing President Trump, saying his policies and speeches may be pushing organizers of business meetings and conferences to consider going to Canada over the U.S.
Marriott International Chief Executive Arne Sorenson told Bloomberg News that organizers of large meetings and conferences are changing reservations to Canadian cities they perceive as friendlier, such as Toronto, over U.S. cities.
“You’re going to have people coming in from everywhere, and they’re going to be looking at ‘Can we get our people in? Are they going to want to go to that place?’ ” Sorenson said. “At the moment there’s a perception around the world that the U.S. is a little less welcoming than it was in the past.”
He cited Trump’s efforts to ban travelers from several Muslim-majority countries and speeches that emphasize nationalism.
After Trump took office in January, several others in the travel industry expressed similar worries. Studies have shown that foreign visitation numbers to the U.S. have weakened since January while domestic travel remains strong.
Marriott International, the largest hotel company in the world, is taking over a 65story luxury tower in Toronto, replacing a Trump brand hotel with Marriott’s St. Regis brand.