Wednesday, June 18, 2008

Travel Luggage & Airline Economics

From SFGate.com:

Here's a travel tip for the summer season: You may want to stay home.
Soaring jet fuel will cost the industry an extra $24 billion, and passengers will be feeling the pain as airlines impose a wave of extra costs to meet their bills. The red ink is also flowing due to an aging fleet, far-flung and unprofitable flight schedules, and low-cost competitors.
Consider shrinking your height (so you won't be charged extra for more legroom). Don't carry any luggage, surfboards or golf bags (all of them, even the first bag, will likely cost extra). Prices will continue climbing while travel options shrink. Bankruptcy looms for operations that can't tap into cash reserves, borrow against jets or slash employee rolls. The difference this time is oil prices. Filling a 20-gallon tank with $4 per gallon gas for a family trip is one thing. But consider the thousands of gallons of jet fuel needed for a cross-country flight. Airline travel definitely isn't going away. Officials are confident that air travel will rebound.

No comments: