For years, it's been evident that smaller airlines have had an operating advantage, particularly when they use less expensive airports. They've been able to post better numbers as a result, and in the current travel slump, they've outperformed the larger carriers. Well, they've also picked up a considerable amount of market share.

According to a report by USA Today, low cost carriers now have 30% of the market in the United States. Price-sensitive consumers are turning to cheaper alternatives, even if it means (for fliers with elite status) giving up the perks they've earned through years of customer loyalty.

Continue reading Low cost carriers own 30% of domestic airline biz, growing fast

Low cost carriers own 30% of domestic airline biz, growing fast originally appeared on BloggingStocks on Tue, 10 Nov 2009 16:15:00 EST. Please see our terms for use of feeds.

The US Airways (NYSE: LCC) ticker symbol says it all: LCC = Low Cost Carrier. With its latest announcement, the airline may want to change it to LEC -- Low Expense Carrier. In an attempt to keep pace with the plunging travel market, US Airways is cutting 1,000 jobs next year, shoving almost all its flying to its three hubs (Philadelphia, Phoenix and Charlotte) and Washington. Several international routes are being cut.

The airline reports that routes from its hubs have been profitable. Currently, US Airways pushes 93% of its flights through these airports, a rate it seeks to push up to 99% in 2010.

Continue reading US Airways to cut 1,000 jobs, reduce some routes

US Airways to cut 1,000 jobs, reduce some routes originally appeared on BloggingStocks on Thu, 29 Oct 2009 10:50:00 EST. Please see our terms for use of feeds.

Passenger annoyance has been on the rise over the past year, as airlines have found new and unusual fees to charge passengers. European low-cost carrier Ryanair (NASDAQ: RYAAY) has been at the tip of the spear, at one point considering a charge for access to the lavatory. The hidden secret in all this is that it works.

Ryanair's latest fee is nothing short of brilliant. The airline is now slapping customers with a €10 ($14) charge for printing boarding passes at home ... and €40 ($55) to do so at the airport. Since there's no other way to get your boarding pass, this translates to a minimum fee of $14 per flight (with a few small exceptions). Given the company's price advantage in the short-haul European space, the move is unlikely to drive passengers to competitors.

Continue reading Ryanair annoyance fees could be top-line advantage

Ryanair annoyance fees could be top-line advantage originally appeared on BloggingStocks on Mon, 25 May 2009 16:30:00 EST. Please see our terms for use of feeds.

Continue reading JetBlue Airways (JBLU) earnings gaining altitude

JetBlue Airways (JBLU) earnings gaining altitude originally appeared on BloggingStocks on Tue, 23 Oct 2007 11:08:00 EST. Please see our terms for use of feeds.