Sky Talk

Delta carried the most passengers in 2012, BTS says

Delta Airlines carried the most passengers last year of any U.S. airline, according to a new report released on Tuesday.

However, Southwest Airlines had the most domestic passengers, more than any other carrier, the Bureau of Transportation Statistics said.

As an industry, U.S. airlines carried 0.8 percent more passengers in 2012 for a total of 736.6 million. Airlines carried 642.2 million passengers domestically, up 0.6 percent from the previous year while they carried 94.4 million passengers internationally, up 2.0 percent from 2011.

According to the BTS numbers, Fort Worth-based American Airlines ranked fourth. Third-place United Continental, which had several operational problems with its merger integration last spring, carried 3.4 percent fewer passengers in 2012.

The top three airports all increased their enplaned passenger numbers including third-ranked Dallas/Fort Worth Airport which had 1.6 percent more passengers for 27.5 million. Atlanta retained the top spot with 45.1 million passengers, up 3.2 percent while Chicago O'Hare had 29.9 million enplaned passengers.

Rank	Carrier	2012 Enplaned Passengers	2011 Enplaned Passengers	Pct. Change
1	Delta	116.445	113.485	2.6
2	Southwest**	112.234	110.587	1.5
3	UA/CO Combined***	92.367	95.611	-3.4
	United***	92.367	50.474	NA
	Continental	-	45.138	NA
4	American	86.335	86.042	0.3
5	US Airways	54.238	52.921	2.5
6	EV/XE Combined****	32.376	30.412	6.5
	ExpressJet****	32.376	16.194	NA
	Atlantic Southeast	-	14.218	NA
7	JetBlue	28.934	26.353	9.8
8	SkyWest	26.163	24.408	7.2
9	AirTran	21.745	24.596	-11.6
10	American Eagle	18.731	17.348	8.0

 

-Andrea Ahles

Delta earnings hit by Hurricane Sandy

Its earnings season for the airlines and while American announced last week, everyone else appears to be posting results this week.

First up, Delta Air Lines.

Delta eked out a $7 million profit for the fourth quarter as the airline took a $100 million hit from Hurricane Sandy.

Despite cancelling 20,000 flights because of the storm, Delta's full-year 2012 results were the best on record, as it posted a $1 billion profit for the year.

"We enter 2013 as a stronger airline, and are looking forward to building on the success we achieved in 2012," Delta CFO Paul Jacobson told employees in a letter on Tuesday.

Click here to read more about Delta's earnings in the Atlanta Journal-Constitution.

Wednesday, we'll be watching for US Airways' results and then United Airlines and Southwest Airlines on Thursday.

-Andrea Ahles

Delta buys 49 percent stake in Virgin Atlantic

Delta Air Lines announced Tuesday it is purchasing a 49 percent stake in Virgin Atlantic and will invest $360 million in the British carrier.

The Atlanta-based carrier said it is buying the stake that is currently owned by Singapore Airlines. Virgin founder Sir Richard Branson will retain control of Virgin Atlantic with a 51 percent stake in the airline.

Delta and Virgin Atlantic will also ask U.S. and European Union regulators for anti-trust immunity to operate trans-Atlantic flights. American Airlines and British Airways already have a joint-business agreement that allows them to jointly operate and market trans-Atlantic flights.

"By combining the strengths of our two companies in a joint venture, we can provide customers with a seamless network between North America and the U.K., and continue building a better airline for our customers, employees and shareholders," said Delta chief executive Richard Anderson.

With the deal, the airlines will operate a combined nine daily round-trips between London-Heathrow and New York's JFK airport and Newark airport. Passengers will also receive reciprocal frequent flyer benefits, the two airlines said.

"We have always been known for our innovation and service and have punched above our weight for 28 years. That is why our customers love us so much," Branson said. "We will retain that independent spirit but move forward in a strengthened partnership with Delta."

-Andrea Ahles

 

DFW Airport becomes parking lot for airlines wanting to keep planes away from Sandy

Photo courtesy of David Magaña, DFW Airport

With its expansive tarmac and runways, Dallas/Fort Worth Airport is the ideal place for airlines to park their planes out of Hurricane Sandy's wrath.

On Monday, DFW Airport had about 30 planes from American Airlines, United Airlines and Delta Airlines, sitting on various runway aprons and near terminals that were parked by the carriers, said airport spokesman David Magaña.

Airlines typically will move airplanes out of the path of a severe storm, such as a hurricane or snow storm, so the aircraft are not damaged while on the ground. With the weather sunny and clear at DFW, plus its ample tarmac space, aircraft avoiding Sandy have a perfect parking place.

American spokeswoman Andrea Huguely said the carrier had at least ten aircraft parked around DFW on Tuesday morning.

-Andrea Ahles

Blog: The sad, "downward spiral of American Airlines"

A strong blog post this morning at Leeham, the site of longtime airline industry observer Scott Hamilton, on the dismal state of affairs at American Airlines.

We’ve been watching with dismay the downward spiral of American Airlines.

This once-great carrier is hardly recognizable any more. It is perplexing to us how a management team that got its training under Robert Crandall and helped create such a great carrier could have gone so wrong.

It's a well written, point-by-point critique of American's strategic errors under Crandall's successors. And it closes with a vote of no confidence in CEO Tom Horton's leadership.

Horton is firm that American won’t merge while in Chapter 11 and it’s pretty clear he doesn’t want to merge at all.

We have no confidence in Horton at the helm, nor in American’s management. If American is to survive, they have to go.

- Bob Cox

 

 

 

 

 

U.S. carriers collected $1.6 billion in bag and reservation change fees in the second quarter, BTS says

U.S. airlines continue to rake in the fees as the industry took in $1.6 billion in baggage and reservation change fees in the second quarter, up 6.2 percent from the same period in 2011, a new government report says.

Baggage fees grew 5.2 percent to $932 million while airlines received $661 million from reservation change fees, an increase of 7.8 percent over the second quarter of 2011, according to the Bureau of Transportation Statistics. The agency does not collect information on all ancillary fees charged by airlines such as seat assignment or early boarding fees.

Delta Air lines collected the most bag and reservation change fees, $231 million and $201 million respectively.

Dallas-based Southwest Airlines made the top 10 baggage fees list for the first time as this was the first quarter where it reported combined figures with its subsidiary AirTran Airways. While "bags fly free" on Southwest, AirTran charges $20 for the first checked bag.

Baggage fees for top 10 airlines

Rank	Airline	2Q 2012  (in millions)
1	Delta	231,351
2	United	194,587
3	American	149,194
4	US Airways	136,230
5	Southwest	50,523
6	Spirit	44,036
7	Alaska	38,452
8	Allegiant	20,751
9	Frontier	17,908
10	JetBlue	17,132

Reservation change fees for top 10 airlines

Rank	Airline	2Q 2012   (in millions)
1	Delta	201,025
2	United	174,977
3	American	133,647
4	US Airways	76,503
5	JetBlue	33,404
6	Southwest	11,439
7	Virgin America	7,078
8	Spirit	6,848
9	Alaska	6,171
10	Hawaiian	4,350

-Andrea Ahles

American to end New York-JFK to Brussels service in November

USA Today reports that Ameircan Airlines plans to drop its JFK to Brussels, Belgium service this fall, which would leave American's OneWorld alliance with no direct non-stop New York to Brussels flights.

Brussels would still be served from New York by Delta and India's Jet Airwaysout of JFK and United and Jet from Newark.

- Bob Cox

Delta to add nonstop service between Love Field and Atlanta

Delta Air Lines is upping the competition between itself and Southwest Airlines.

Earlier this year, Southwest launched service in Delta's headquarters hub, Atlanta and now Delta is launching new service at Southwest's headquarters hub at Dallas Love Field.

On September 5, Delta will begin flying five non-stop daily flights between Love and Atlanta using 50-seat regional jets. Since Delta is using smaller jets, the Wright Amendment restrictions do not apply.

"For our customers in Dallas who prefer to fly from Love Field, this gives them a nonstop flight to Atlanta and from there they can access our hub," said Delta spokesman Trebor Banstetter. "We feel like it is a real  enhancement over our service at Love Field."

Currently, Delta flies two flights a day to Memphis from Love Field. Those flights will disappear when the new service to Atlanta starts. Banstetter added that this does not affect its service at Dallas/Fort Worth Airport where the carrier flies about 40 daily flights to 8 cities.

-Andrea Ahles

Southwest subleases 717s to Delta, says June traffic flat

Southwest Airlines announced Monday that it has finalized an agreement to sublease its Boeing 717 fleet to Delta Air Lines.

The company, which had previously announced the deal, said it will transition about three 717 aircraft per month to Delta beginning August 2013. Southwest will lease all 88 aircraft in its 717 fleet.

"Replacing 717 flying with 737s is expected to significantly benefit our financial results once the transition is complete, and better supports our strategic and financial goals," said Southwest chief executive Gary Kelly. Southwest gained the 717 fleet when it purchase AirTran Airways last year.

Southwest said it expects the integration costs of its merger with AirTran will increase about $50 million as a result of the deal. After all of the 717s are transitioned to Delta, Southwest expects a $200 million benefit to its annual pre-tax results.

Delta said it will use the 717s to replace its smaller 50-seat regional jets. The 717s will have 110 seats with 12 first class seats and 15 "economy comfort" seats. The Atlanta-based carrier said it will upgrade the interiors and provide in-flight Wi-Fi on each plane.

"Adding the Boeing 717 to our fleet will give customers, particularly business travelers, more mainline aircraft service that features their preferred amenities," said Delta chief executive Richard Anderson in a statement. "The 717s also provide Delta with a significant improvement in economic efficiency relative to the aircraft they are replacing."

The Dallas-based carrier also announced that its passenger traffic in June was flat compared to the same month last year as it cut capacity by 0.7 percent.

Planes were fuller though as Southwest said its load factor grew 0.5 percentage points to 84.4 percent for June 2012. The company added that it estimates that passenger revenue per available seat mile increased 6 percent compared to June 2011.

-Andrea Ahles

JetBlue beats out Southwest for top spot in ACSI survey

After 18 years of leading the American Customer Satisfaction Index, Southwest Airlines relinquished its title to JetBlue Airways this year.

JetBlue had a score of 81 out of 100 for customer satisfaction compared to Southwest's score of 77. The index, which is compiled by the University of Michigan, said Southwest's merger with AirTran affected their passengers' satisfaction.

"Airline mergers tend to create significant passenger dissatisfaction in the short term as operations are combined and consolidated," said ACSI founder Claes Fornell. "Southwest's share value has declined 20 percent over the past year while the rest of the market stayed largely unscathed with most major airlines flat or improving.

Fort Worth-based American Airlines came in sixth with a score of 64, up 1.6 percent from last year while United Airlines ranked the worst with a score of 62.

Airlines continue to remain in the bottom 3 of the 47 industries that the ACSI studies. Airlines average score of 67 is the third worst, followed by subscription TV service, 66, and the newspaper industry, 64.

Here is the full list from ACSI:

1. JetBlue, 81

2. Southwest, 77

3. All other carriers, 74

4. Delta Air Lines, 65

4. US Airways, 65

6. American, 64

7. United, 62

-Andrea Ahles