More Airline Consumer Protection Laws to Kick In
As of January 24, you’ll have 24 hours to change your mind—for free—even on nonrefundable airfares as long as you make that reservation at least a week before you leave. Its part of new Department of Transportation airline consumer protection rules going into effect Jan. 24. Airlines also will have to promptly notify you via their websites and phone reservations of delays of more than 30 minutes or flight cancellations. And they have to include all government and taxes and fees in advertised fares (they’ve got until Jan. 26 on this one). They’ve got to show all baggage fees during booking and on e-tickets. Finally, once you’ve bought a ticket, they can’t raise the fare unless it’s due to a government tax and you agree to pay the increase. (Source: DOT)
EU’s Carbon Emission Controls Will Show Up in Increased Airfares
The European Union’s Emissions Trading Scheme, which the aviation industry and other governments oppose, means higher ticket prices for consumers. The EU is charging airlines for their carbon emissions on flights to and from Europe. Lufthansa estimates that this will cost it an extra 130 million Euros this year and Delta Air Lines is adding a $3 surcharge on tickets sold in the U.S. for flights to and from Europe. Aviation groups estimate that ETS will cost the U.S. airlines $3.1 billion through 2020. They argue that these emissions should be regulated on a global basis. (Source: press releases and industry interviews)
TSA Expands Pre-Screening to New Airports
Sick of that security check rigmarole of taking off your shoes and belt and pulling out your laptop and those three-ounce bottles of shampoo? The Transportation Security Administration is adding airports using the TSA Pre✓ program. If you qualify for TSA Pre✓, you volunteer information about yourself that is embedded in the bar code of your ticket. You can then go through the expedited screening lane, which means you might not have to take off your shoes or pull out your laptop. Pre✓ is now available at Las Vegas’ McCarran International. Next up: Minneapolis-St. Paul and LAX. United Airlines is joining the program; some of American Airlines and Delta Air Lines’ frequent travelers are also eligible as well as participants in Trusted Traveler programs, including Global Entry, SENTRI, and NEXUS, who are U.S. citizens and are flying on participating airlines. (Source: TSA)
Airline Share Prices Might Be Down, but Profits Are Good
Airline share prices are falling to levels not seen since 2009, but their profits are good, according to the International Air Transport Association’s November-December Airline Financial Monitor. What has helped is the fact that despite weak passenger travel in November, planes are flying fairly full. That’s because airlines, especially American carriers, are managing their capacity well. Average international fares are up, too, by about eight percent over last year, and that’s helping profits, too. (Source: IATA)
Fees Generate Estimated $50 Million a Year for Spirit
What do all those fees we pay airlines do for them? For Spirit Airlines, which uses them aggressively (it charges for stowing bags in overhead compartments), they translate into an estimated $50 million a year. Twenty percent of passengers use the services Spirit pays for, estimates IdeaWorks, a consulting company, and the carrier has flown 24.5 percent more passengers in the 12 months since it introduced the fee. (Source: IdeaWorks)
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