For now, airlines to absorb fuel costs
If prices remain high, however, travelers will eventually pay more, experts say.
Fuel prices have shot up 40% to 50% over last year, but airline passengers in the U.S. don’t need to worry about airfares following that trend — yet.
Two of the nation’s largest airlines warned last week that rising fuel prices are cutting into their profits but suggested that travelers probably will not feel the pinch of higher ticket prices for several months, and that would happen only if fuel costs remain high.
At a meeting in Australia of an international airline trade group, American Airlines Chief Executive Doug Parker told reporters that fuel prices have jumped 40% for his carrier but for now the airline will continue to absorb the higher cost.
“If it becomes clear that this is the new normal, you would see over time less capacity growth in the industry, therefore higher prices,” he said.
“I don’t think it’s going to happen in the very near term,” Parker said.
Meanwhile, Delta Air Lines told federal regulators that revised earnings of the three months beginning in June probably would be $1.75 per share instead of $2, as it previously predicted. The airline cited fuel costs that have jumped 50% since last year. The airline said the higher revenue needed to make up for the rising fuel costs would probably lag six to 12 months.
In other words, airlines may absorb the higher cost for several months before they pass it along to air travelers, according to industry experts.
In addition to raising airfares, airlines may try to boost passenger fees such as seat assignment charges or add a fuel surcharge to pass along the higher fuel cost. This will make it appear on travel booking sites that airfares have not increased, said Henry Harteveldt, an airline analyst with Atmosphere Research Group.
“Airlines know that it is a very competitive market and consumers are very price-sensitive,” he said.
An alternative way to raise revenue — as suggested by Parker — is for airlines to cut back on the number of seats for sale, which will gradually push airfares higher, said Seth Kaplan, managing partner at Airline Weekly.
“Eventually it will impact airfares, but there is a lag time,” he said. JetBlue Airways joins the pony pack
JetBlue Airways has joined several other U.S. air carriers in adopting new restrictions on passengers who want to travel with emotional support animals by limiting the accepted animals to dogs, cats and — yes — miniature horses.
Like other carriers, JetBlue attributed the need for tighter rules to an increase in the number of onboard incidents involving untrained emotional support animals. Such incidents include biting, defecating, urinating and lunging at passengers. Delta Air Lines said it has seen an 84% increase in such animal incidents since 2016.
“With these new policies, we’ve developed a thoughtful and collaborative approach to balance the needs of customers requiring assistance while responding to the extensive feedback we’ve received from customers and crew members concerned about their health and safety,” said John Allen, JetBlue’s vice president for safety.
The new policy doesn’t affect rules for service animals, which are trained to provide specific services for people with physical disabilities, such as blindness.
To fly with emotional support animals, JetBlue passengers must provide a signed document from the mental health professional who prescribed traveling with an animal and a letter from a veterinarian attesting to the animal’s vaccinations and fitness to fly. Passengers must sign a document affirming that the animal is trained to behave appropriately in a plane and accepting all liabilities if the creature causes injuries or damage to the plane.
The documents must be submitted to JetBlue at least 48 hours before a flight, for all travel taken beginning July 1. JetBlue will allow only one animal per passenger.
American Airlines started the ball rolling last month when it announced that it would ban several types of critters, including hedgehogs, goats, ferrets, chickens, birds of prey and snakes.
Airlines are required by the Air Carrier Access Act to allow passengers with disabilities to travel with animals that provide emotional support, and airlines aren’t allowed to charge for the service. But airline representatives have said they believe many people are taking advantage of the law to avoid paying animal transport fees.
Last month, the U.S. Department of Transportation said it wouldn’t take action against airlines if they refused to let passengers take aboard more than one support animal, demanded assurance that a passenger has a disability or required proof of an animal’s vaccination and training.
The agency also will allow airlines to impose “reasonable restrictions” on the movement of emotional support animals in a plane’s cabin. The Department of Transportation is also seeking public comment on possible additional regulations to further restrict the animals.
Alaska Airlines’ boarding ABCs
Alaska Airlines has announced that starting July 18 its boarding procedure will be updated to reduce passenger confusion and align with the procedures used by other carriers.
If you have ever been bewildered by the boarding process at Alaska Airlines, you’ll be happy to learn that the new procedure for the Seattle-based carriers is as easy as A, B, C — and D.
Airlines tweak their boarding processes regularly, trying to find the most efficient and easy-to-understand system for loading passengers as quickly as possible. In February, United Airlines began testing a new boarding process at Los Angeles International Airport, among other airports.
Alaska Airlines currently boards passengers first by classification and then by row number.
In other words, after passengers with disabilities, families with kids and active members of the military, the crew calls out for first-class passengers and elite status members of the airline’s frequent flier rewards program. Once those groups are seated, the gate crew calls out passengers by their row number, such as passengers in rows 20 to 25.
Under the new procedure, gate agents will first call for the preboarding passengers — those with disabilities, families with kids and members of the military — and then call out Group A, Group B, Group C and Group D. A screen at the gate will show which group has been called to board.
Group A will include the premier elite frequent flier members, such as “Million Milers.” Group B will include the second-tier frequent flier members and premium-class passengers. The last two groups are the remaining passengers in the cabin.
The group letter will be printed in a large font — along with the departure gate number and the boarding time — on each boarding pass.