There isn’t any industry shaking news right now.  4th quarter / annual financial results are coming out on a variety of airlines but the news is much what you would expect.  Lots of losses, lots of hope for 2009.  So, a few things of interest that are going on but aren’t worth a post of their own.

Airtran

Airtran, interestingly enough, posted its first annual loss since 1999.  What is remarkable to me is that in 10 horrific years in the airline industry, they made a profit until the end of 2008.  That is impressive to me given where they hub from (Atlanta) and who level of competition they experience on almost all of their routes.  You can read more HERE in a USA Today / Associated Press story.

United Airlines

United Airlines posted a rather stunning loss of $1.5 billion (with a “B”) for 2008.  Those losses are a result of both declining revenue *and* being on the wrong side of a lot of fuel hedges.  To a degree, this was already expected.  However, UAL’s unrestricted cash reserves have declined to $2 billion (with a “B”) and while that seems like a lot, it really isn’t.  Yes, the airline industry is in the dumps right now but at some point sooner than later, United needs to earn some money.  Their status quo attitude isn’t helping with that goal.

Virgin Atlantic

The Telegraph newspaper in the UK is carrying THIS rather creative complaint letter from a passenger written to Sir Richard Branson himself.  It’s funny and it points out some flaws that should be addressed.  If for no other reason than humour, it is worth the time to read it.

Southwest Airlines

Southwest Airlines has announced $49 one-way fares between Chicago and its new destination, Minneapolis / St. Paul.  Between Southwest, American Airlines, United Airlines and, most of all, Delta/Northwest Airlines, this is surely going to spark a capacity and fare war between these two cities.   There is no doubt in my mind that the legacy airlines will defend their flights on that route to the utmost.  Most particularly, Delta/Northwest will likely get downright ugly about it and while Southwest does understand the need to spend time growing a new market, they won’t necessarily try to win by wearing down Delta/Northwest with fare sale after fare sale.  If customers don’t embrace Southwest in a reasonable time, that route will get dumped.

Filed under: Airline News by ajax
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