U.S. airlines got a little fat and happy when fuel prices were at historically low levels. Passengers loved it too, because prices on competitive routes came down. But that's ending now, and travelers should get used to the new normal.
Let’s face it –– airlines aren’t known for their infrastructure innovations. But applying new, intelligent technology infrastructures can bring them into the modern world and allow them to provide their customers with the right offer, at the right time, at the right price.
You have to give Southwest Airlines CEO Gary Kelly credit. Analysts are constantly prodding him to embrace tried-and-true approaches for generating ancillary revenue. For the most part, he resists. He doesn't want to mess with the airline's secret sauce.
There's no doubt U.S. airlines are spooked by higher oil prices. By historical levels, they're not that bad. But perhaps they're catching carriers by surprise.
When Delta Air Lines launched Basic Economy, it allowed a free carry-on bag. When American Airlines subsequently launched a similar fare type, it barred free carry-ons, and that has turned out to be a poor decision because American has been losing market share to Delta.
U.S. bankruptcy law is more forgiving than in many countries, which is why many airlines have had multiple iterations. Now, eight years after filing for bankruptcy, Mesa Air Group again wants to be traded on public markets. Assuming it goes forward with an IPO, it'll be interesting to see if investors return.