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Southwest Tragedy May Hurt Revenue and 9 Other Aviation Trends This Week

  • Skift Take
    This week in aviation, we had our eye on earnings from American, JetBlue, Alaska, and Southwest, whose tragedy fallout continues. Also, if you’ve been stealing the blankets from business class: shame on you.

    >>Last week’s engine failure was scary, and Southwest is seeing fewer bookings than usual. But you can be sure of one thing: The passengers will return. And probably soon: Southwest Airlines Says Last Week’s Tragedy Will Hurt Revenues

    >>The Southwest accident shows how bold passengers have become in using social media. For now, the FAA isn’t taking steps to curb their activities: Southwest Flight Social Feeds Remind Airlines Tragedies Are Public in Real Time Now

    >>Look for airline ticket prices to increase if fuel prices don’t fall soon. Passengers may not like it, but what other business doesn’t try to recoup increased production costs from consumers? American Airlines Lowers Profit Projections as Fuel Prices Rise

    >>Why can’t business class passengers have nice things? Here’s one problem — When airlines upgrade their amenities, passengers often steal them: Airline Upgrades Lead to a Purloined Pillow Problem

    >>Alaska Airlines is turning to basic economy fares to help drive additional revenue. But, hey, at least flyers will be assigned a seat when they book one of these fares, easing some of the stress that usually comes with taking the risk of flying for cheap: Alaska Airlines Will Enter Basic Economy Market Later This Year

    >>JetBlue’s move to sell seats on a tiny airline with scheduled service to smaller airports is a really smart idea that may help popularize private aviation: JetBlue to Help Sell a Private Jet-Style Experience to the Masses

    >>For a small, all-coach, low-cost startup based in New York, a Long Beach, California, focus city made sense. But times change, and Long Beach hasn’t worked out as well as expected. It’s no surprise JetBlue is ready to shrink there: JetBlue Tweaks Its West Coast Route Map as It Focuses on Profit Margins

    >>What? You thought investment analysts would grill Allegiant Air executives on safety lapses detailed last week on U.S. television news? Clearly you don’t know analysts well. Allegiant is solidly profitable, and given its unique model, it should stay that way. That’s important to investors: Allegiant Air Expects No Long-Term Hit to Earnings After 60 Minutes Report

    >>On the one hand, airlines are improving the flying experience — at least for business class — so much that passengers want to take a piece home with them. On the other, blanket theft is bad for the bottom line. We’re pretty sure carriers don’t have this problem in coach: Airlines Would Prefer Passengers Stop Stealing Their Bedding

    >>In a nearly repeat performance from 2017, Marriott and Starwood once more emerged on top of the heap this year when it comes to loyalty programs and consumer sentiment: Southwest and Marriott Dominate Annual Loyalty Program Awards

    Photo Credit: A Southwest plane in Las Vegas on January 7, 2018. Southwest is still handling fallout from its recent fatal accident, which may affect revenue. Tomás Del Coro / Flickr
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