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Steve McIntosh Report Blog Archive

The airlines' comeback

Over the past few years the news from the major airlines has been pretty grim. They’ve had problems with delays and cancellations and generally poor customer service. Add to that the T-S-A examinations and going to the airport has become a pretty negative experience for many Americans.
Now comes word that the profit margins at the big airlines are the highest in at least a decade. Wichita State University professor Dean Headley … co-author of the annual airlines ratings report … tells me the airlines – in effect – cut their flights, creating more demand than supply. This gave them a chance to raise fares and begin charging for luggage. The charges for luggage and other services – says Headley – generated about ten billion dollars in revenue across the industry. Headley also says passenger counts are rising.
Meanwhile, Wichita Mayor Carl Brewer said in last week’s State of the City speech there will be a concentrated effort to lure Southwest Airlines to Wichita. That would be a terrific boost to local air travel.
Our thought for today is from David Rockefeller:
“Success in business requires training and discipline and hard work. But if you’re not frightened by these things, the opportunities are just as great today as they ever were.”

Tags :  
Topics : Business_Finance
Locations : Wichita
People : Carl BrewerDavid RockefellerDean Headley

02/01/2011 1:06AM
The airlines' comeback
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