The current state of the airline industry Options

[Hartmann]

Yay, advertisements on my boarding pass:
http://www.businesswire.com/portal/site/go...amp;newsLang=en

I don't usually look at my boarding pass after I've printed it so I guess it doesn't much matter to me.

[chook]

they would be wasting my ink. i usually only travel with check in luggage (may change soon) so i just check at the gate usually except SWA.

[Mommy]

I travel really lightly, even when going somewhere for like a week. I used to LOVE only taking a carry-on bag because it was convenient, and I didn't have to wait at baggage claim to pick it up. The last year or two, though, ever since the liquids ban, I only take my purse on the plane. It's way too inconvenient to pack to get through security. It really sucks. I mean, waiting at baggage claim adds about an extra 20 minutes to travel time for me. I don't know why, but my bag is always like the last one off the plane. Maybe it has something to do with the time that I show up at the airport. I know El Paso's airport really well so I usually show up less than 45 minutes before my flight, unless it's a holiday. It really sucks that I am moving so far from my parents in August just for the simple fact that I can't chose to drive (or at least I would be insane to chose that drive...23 hours) home for the holidays. I'm forced into flying when I want to see them. Ever since Christmas, I have done nothing but drive because I hate air travel so much now.

[Mommy]

ugh... http://money.cnn.com/2008/07/15/news/econo...sion=2008071518

[Hartmann]

ugh... http://money.cnn.com/2008/07/15/news/econo...sion=2008071518

I think the airlines are hitting the nail on the head when they call out the speculators.

Do I think that airlines should be giving subsidies? No.

[Mommy]

What I don't get is how American and Continental, according to the article, are holding steady; but Southwest airlines is not. I figured Southwest would be the one everyone is running to these days since their fares tend to be a tad cheaper.

[Hartmann]

What I don't get is how American and Continental, according to the article, are holding steady; but Southwest airlines is not. I figured Southwest would be the one everyone is running to these days since their fares tend to be a tad cheaper.

Southwest has been having issues hedging fuel which in the long run will hurt them. I am not sure the exact numbers but I think they are having problems filling their planes as well. I was at LAX and took a walk by the Southwest gates, there were planes but a small amount of passengers (for what I am used to in L.A.). By nature Southwest tickets are cheaper because they are not always flying the passengers from one location to the same one you are going to. Your ticket from Houston to Lubbock stops in Dallas where it picks up passengers going to Albuquerque where they pick up passengers going to Seattle. All of those tickets have their own price points and sometimes it is profitable, sometimes it is not.

If Southwest sells a lot of the Houston to Lubbock tickets but not a lot of the Dallas to Albuquerque then they potentially lose a good chunk of money.

Continental will sell based on demand. Meaning, they will sell seats on a low a demand flight for cheap just to pay for the gas but if the demand is high, they up the prices. This happens in nearly real time. Southwest simply blocks seats at different price levels.

I am surprised that AA is considered "stable" especially since they have had issues filling their planes as well and the fact that the one model of plane that they use (MD-80) is a gas hog.

Continental has been making moves to protect themselves, including quick decisions to stop unprofitable routes and filling the schedule with routes that are profitable. Abilene, Texarkana, and San Angelo all lose Continental service Oct. 1.