Protests in airports have been occurring all across America as pilots are fighting for better working conditions with quality of life issues taking center stage of their requests.
Eric Mastrota is a Contributing Editor at The National Digest based in New York. A graduate of SUNY New Paltz, he reports on world news, culture, and lifestyle. You can reach him at eric.mastrota@thenationaldigest.com.
According to data collected by travel booking site Kayak, Australians looking to travel to Europe are seeing fares around 50% higher than what they cost last year, despite the fact that there’s also been an increase in available seats this summer and fuel prices improving within the past few months.
Kayak used data from early January, up until this month, to conclude that the average price for return economy airfare from Australian cities to Europe would be around $2,500. This marks a 46% increase on average airfares for 2022, as well as a 63% increase when compared to pre-pandemic pricing.
In general, this summer travel season is already gearing up to be increasingly expensive as well as busy for many major destinations around the world, but especially in Europe.
David Beirman, an adjunct fellow professor at the University of Technology in Sydney, Australia who also specializes in tourism, stated that this increase, while jarring, isn’t exactly surprising.
“Airlines for a long time were making next to no money on international flights, especially for economy passengers. Most carriers were still working to financially recover from the steep losses of Covid, even if some such as Qantas have been posting record profits of late. Those two years of lost revenue is what consumers are paying for now,” Beirman explained.
“Covid was an extreme lesson in what could happen when things go wrong. So they have been forced to be more realistic about their pricing now, as irritating as it is to the traveling public,” he continued.
“Sadly what has happened since Covid is that travel has gone from being something very democratic that just about anyone earning even a modest salary could afford to being a plaything of the elite or for people paying huge amounts of money just to see loved ones.”
“They’ve had to recruit staff and pay them much more money than they used to get. Maybe by 2024 or 2025 people will be a bit more choosy, less eager to travel, and prices will come down but at the moment it’s very much a sellers market and airlines are, rightfully or wrongfully, taking advantage of that,” Beirman said.
Simon Elsegood, head of research at the Center for Aviation, said “while fuel prices have come back down substantially [and] we’ve seen a portion of the leisure market move up to premium economy and other classes, it’s not been enough to compensate airlines from lost business travel.”
“Air fares are a sore point because they are so much more expensive than 12 months ago but I don’t feel like people are getting a raw deal. It’s very difficult to price gouge between Europe and Australia because there are so many route options.”
“It’s just the way the market has to be at the moment. Yes, they’re making money now but they also lost billions during the pandemic. They’re not a charity and they have to make sure their shareholders are also taken care of,” he concluded.
Eric Mastrota is a Contributing Editor at The National Digest based in New York. A graduate of SUNY New Paltz, he reports on world news, culture, and lifestyle. You can reach him at eric.mastrota@thenationaldigest.com.
The United States Department of Justice has filed a lawsuit to halt JetBlue’s $3.8 billion bid to acquire Spirit Airlines. It has been over 20 years since the government last intervened to prevent a merger between US airlines.
Attorney General Merrick Garland announced the lawsuit on Tuesday. President Joe Biden’s administration has long advocated for increased competition among businesses, particularly in the airline industry, to protect consumers and reduce prices
Spirit Airlines is well-known for providing customers with affordable flight options and is the country’s largest ultra-low-cost competitor to major carriers. Garland is concerned that the merger will negatively impact customers who rely on the company’s affordable fares.
“If not blocked, the merger of JetBlue and Spirit would result in higher fares and fewer choices for tens of millions of travelers across the country. The Justice Department is suing to prevent that from happening. Companies in every industry should understand by now that this Justice Department will not hesitate to enforce antitrust laws and protect American consumers.”
Within the last 22 years, five airline mergers have been allowed by the Justice Department, resulting in the consolidation of nine major airlines into four national carriers in the United States (American Airlines, Delta Airlines, United Airlines and Southwest Airlines). Currently, around 80% of all domestic flights in the U.S. are serviced by just four airlines.
JetBlue argues that the new merger would create a stronger competitor to those four major airlines, causing fares to fall rather than rise. According to JetBlue, due to the four airlines dominating the U.S. market, JetBlue and Spirit can only compete with each other rather than larger carriers.
However, according to the lawsuit, average fares on routes have fallen by 17% once Spirit began to serve them.
To foster healthy competition, the company has proposed forfeiting landing and takeoff slots and gates at overcrowded airports to other low-cost airlines.
“The combination of JetBlue and Spirit plus the rapid growth of ultra-low-cost carriers will assure increased competition and low fares,” JetBlue said in a statement.
“JetBlue’s combination with Spirit allows it to create a compelling national challenger to these dominant airlines while also ensuring ultra-low-cost carrier options remain available in overlap markets. While JetBlue, with its highly unique combination of low fares and great service, will be able to expand with new national breadth as a result of the transaction, it will remain a significantly smaller player than each of the Big Four airlines. According to the data, a combined JetBlue and Spirit will have only about 9% market share, compared to about 16-24% for each of the four largest airlines, but the added scale and ability to further grow will result in meaningful competition on more routes to more destinations and greater opportunities for Crewmembers and Team Members of both airlines.”
JetBlue plans to close its deal with Spirit by the year’s end and hopes to get the lawsuit dismissed by then. The merger would form the fifth-largest airline in the U.S.. JetBlue has also spent the past 18 months defending itself against a separate lawsuit brought forward by the Justice Department alleging its Northeast alliance with American Airlines is predatory.
The Justice Department claims that the two airlines conspired to increase prices and limit options for travelers flying to and from major Northeastern cities in the United States. The companies traded information on flight schedules, pilot rosters, and aircraft sizes to use for each flight. They also shared revenues earned at these airports and pooled their gates and takeoff/landing authorizations.
“Approximately 75% of JetBlue’s total capacity is tied up in the Northeast Alliance,” the Justice Department stated in the recent lawsuit.
“That means JetBlue today coordinates its capacity decisions and shares its revenues with American Airlines on the vast majority of its flights. In other words, JetBlue no longer competes with American Airlines on those flights — and if this acquisition happens, Spirit won’t either.”
Initially, Spirit Airlines was opposed to the merger with JetBlue on the grounds that it would increase fares and therefore present too many obstacles for regulatory approval. Instead, it planned to merge with Frontier Airlines—another ultra-low-cost airline carrier. However, it has now abandoned that plan since JetBlue outbid Frontier Airlines.
In his statement, Garland referenced the Spirit Airlines board’s statement back when they opposed the merger with JetBlue.
“A court will be very concerned that a JetBlue-Spirit combination will result in a higher cost, higher fare airline that would eliminate a lower cost, lower fare airline and eliminate about half of lower cost capacity in the United States.”
“We agree,” Garland added after reading the quote.
Principal Deputy Assistant Attorney General Doha Mekki of the Justice Department’s Antitrust Division stated, “This transaction occurs against the backdrop of years of airline consolidation in the United States.”
“JetBlue’s proposed acquisition of Spirit eliminates a disruptive, low-cost option for millions of Americans. Whether they fly Spirit or not, travelers throughout the United States benefit from an independent Spirit because where Spirit competes, other airlines – including JetBlue – are forced to compete more vigorously by lowering fares, offering greater innovations and delivering more consumer choice.”
The Justice Department and two other federal agencies—the Department of Transportation and the Federal Communications Commission—will need to approve the deal before it can be finalized. However, the decision ultimately rests with the federal courts that will hear the case.
Moumita Basuroychowdhury is a Contributing Reporter at The National Digest. After earning an economics degree at Cornell University, she moved to NYC to pursue her MFA in creative writing. She enjoys reporting on science, business and culture news. You can reach her at moumita.b@thenationaldigest.com.
Pete Buttigieg, the U.S. Secretary of Transportation, put pressure on major airlines to improve their customer service policies when passengers face flight disruptions.
In a letter to the CEOs of major airlines, Buttigieg requested they provide meals if there is a flight delay for more than three hours and hotel accommodations for overnight cancellations within the airline’s control.
“When passengers do experience cancellations and delays, they deserve clear and transparent information on the services that your airline will provide, to address the expenses and inconveniences resulting from these disruptions.”
The Department of Transportation also revealed an online dashboard last week which gives passengers information on which airlines provide accommodations in case of a cancellation or delay. Buttigieg notified airline executives that the department would unveil the dashboard by Sept. 2.
DOT officials claim that leading airlines made significant policy changes within two weeks of unveiling the dashboard. According to Buttigieg, the dashboard acts as a “tool for transparency” and is not intended to shame the airlines.
If airlines fail to keep their obligations, passengers may file a complaint.
The airlines currently listed on the dashboard include Alaska, Allegiant, American, Delta, Frontier, Hawaiian, JetBlue, Southwest, Spirit and United.
If a cancellation or delay were to occur, the dashboard checks if the airline will rebook the passenger on its airline or another airline at no cost. It also checks if the airline will provide meals or meal vouchers if flights are delayed three or more hours and pay for overnight hotel accommodations. It even lists if the airline will cover transportation from and to the hotel.
Data from the Department of Transportation shows that in the first six months of 2022, roughly 24% of domestic flights were delayed, while 3.2% were canceled. Since the start of June, more than 45,000 flights have been canceled.
The statistics became so dire that the attorneys general of 40 states banded together to write a letter to congress about the aviation industry’s inability to live up to its responsibilities to customers.
“The mistreatment of airline consumers is a bipartisan issue—one that requires immediate action from federal lawmakers. Flying is essential to millions of Americans as they go about their personal and professional lives and is critical to our local, state and national economies. Customers booking airline tickets should enjoy a reasonable expectation of being treated fairly, respectfully, and consistently under the law throughout all interactions during their experience with the airline industry.”
The upcoming holiday season will strain the current system further. Due to staff shortages, airlines have been reducing their scheduled number of flights. For their July schedules, 11 major U.S. airlines trimmed their schedules by 19,000 flights.
Buttigieg said that the department would fine airlines if they do not fulfill the obligations they claimed on the dashboard. However, it would be one small part of “a bigger framework.”
Moumita Basuroychowdhury is a Contributing Reporter at The National Digest. After earning an economics degree at Cornell University, she moved to NYC to pursue her MFA in creative writing. She enjoys reporting on science, business and culture news. You can reach her at moumita.b@thenationaldigest.com.
After a summer that saw airline prices, staffing shortages, and flight cancellations abound, domestic travelers will get some much-needed relief this fall according to a new report by Hopper, the travel booking data platform.
According to Hopper, domestic airfare will drop to $286 in August, down 25% compared to May’s airfare and over 10% from July’s. Meanwhile, September and October will see drops of about 40% ($238 for a domestic round-trip) from the peak summer months.
Though that estimated price doesn’t match September 2021’s average domestic airfare of $225, it does beat out October of last year’s $240. Hopper noted this year’s August to October drop is abnormally large because of those high prices and earlier-than-usual travel demand peaks.
International round-trip airfare, meanwhile, will decrease 19% ($179) to an average of $754 in September and October. It’s a massive drop, but unfortunately nowhere close to September ($641) and October ($706) of 2021.
Those prices are also helped by the fact that airlines are attempting to combat the slow season by offering better deals for travelers as a way to “incentivize travelers to plan one more trip before the holiday season,” Hopper explained.
“For travelers who held off on summer trips given the soaring airfares, this lower demand season can mean lower fares and less crowded tourist destinations!”
Among the most trending fall domestic destinations include Seattle ($419 average round-trip), Asheville, North Carolina ($313), Jackson, Wyoming ($460), Hilton Head, South Carolina ($315), and all cities in Hawaii ($500 and under).
As for international destinations, Sydney, Australia ($1,394), Tokyo, Japan ($1,333), Bali, Indonesia ($1,951), and Ho Chi Minh City, Vietnam ($1,085) are all trending with flyers looking to explore the world while capitalizing on a deal.
Unfortunately, flyers don’t have much time to take advantage. October and November will see slow rises before airfare takes a gigantic boost to $368 in December, with last-minute holiday bookings sitting at $390.
Travelers have had to bear the burden of airline shortcomings after the COVID-19 pandemic ravaged the air travel industry. According to the Bureau of Transportation, 88,161 flights have been canceled already this year, over 55,000 more than in 2021.
While the number won’t come close to 2020’s 263,941 canceled flights, it already ranks higher than any yearly total from 2013 to 2019. Toward late July, Hopper reported travel delays had risen to 25% of departures, equaling more than 5,000 flights a day. They aren’t likely to subside anytime soon.
Of course, the high prices experienced just aren’t due to the multitude of airline struggles, but inflation as a whole. Airfare has suffered the second-worst 12-month price change with 27.7%, second behind gasoline (44.0%).
Even with the potential problems, taking advantage of decreased savings before they — and the tourists paying them — begin to ramp up again in the winter could be intriguing if you’ve been itching to add one more pin to your map of America or the world.
Andrew Rhoades is a Contributing Reporter at The National Digest based in New York. A Saint Joseph’s University graduate, Rhoades’ reporting includes sports, U.S., and entertainment. You can reach him at andrew.rhoades@thenationaldigest.com.
Think of all the frustrations that could occur at the airport. Check-ins. Delays. Cancellations. All are sure to give you headaches, but perhaps the worst possible scenario is arriving at your destination, only to find that your luggage is nowhere to be seen.
Not only does lost luggage turn countless valuable hours into a full-on manhunt, but in the event that baggage isn’t found, money will have to be spent on clothes and other necessities. And unfortunately, that’s becoming more of a possibility than ever.
According to data by the Department of Transportation, almost 220,000 bags were “mishandled” — either lost, damaged, delayed, or stolen — by airlines in April. That’s 0.55 mishandlings per 100 bags enplaned.
American Airlines Network led the way in mishandling with nearly 65,000 (0.72 per 100), while Alaska Airlines Network came in second with almost 16,000. Those 220,000 mishandlings are up from around 93,000 in April of 2021.
The crisis of lost luggage could be seen as the result of a number of factors. For one, travel has seen rapid increases since the reduction of COVID-19 protocols. On July 20, 2.2 million passengers were screened by the Transportation Security Administration, up from 1.9 million a year ago.
Airline and airport staffing is also lacking. Those shortages have resulted in putting the industry on track for the most cancellations in a non-pandemic year, and have an equally frustrating impact on baggage handling.
“When you hit a rough patch in your operations, the bags are going to be affected probably even more so than customers,” Delta CEO Ed Bastian said, whose airline sent a whole plane to retrieve 1,000 stranded bags at London’s Heathrow Airport last week. It’s a problem some travel analysts expect to carry into 2023.
If you find yourself in this situation, there are a number of actions to take. The first should be to immediately go to the baggage claim office, as some airlines have a certain number of hours you must file a claim within.
One of the most important tips to remember is that airlines are required to compensate you for the bag’s content: domestic flights have a maximum of $3,800 in compensation, while international flights are $1,800. Bag check fees are also refunded.
“The financial compensation is helpful, because that’s not money you’d have spent ordinarily,” NerdWallet travel expert Sara Rathner told MSNBC. However, you won’t receive the money immediately. Airlines have different timelines for when they deem a bag lost, with some taking up to two weeks.
Traveling light by simply bringing a carry-on is also an excellent strategy, though one that might only work for a brief trip instead of a longer excursion. In the event you do check your bag, make sure to pack an additional set or three of clothes in your carry-on.
If your luggage gets lost and isn’t eventually found, you’ll at least have outfits to carry you over for a bit until you can replenish your wardrobe. The same applies to medicine and toiletries that might be critical to your health and hygiene.
Additionally, ensure that nothing of value, like electronics or jewelry, is placed into your checked bag as airlines are unlikely to cover the costs.
Andrew Rhoades is a Contributing Reporter at The National Digest based in New York. A Saint Joseph’s University graduate, Rhoades’ reporting includes sports, U.S., and entertainment. You can reach him at andrew.rhoades@thenationaldigest.com.
Despite increasing inflation and prices in nearly every industry, that hasn’t stopped travel-hungry explorers from embracing a world that’s slowly moving away from the COVID-19 pandemic that’s now in its 31st month.
According to a survey from OAG that interviewed more than 1,400 North American travelers, 27% more people are traveling this summer than in the summer of 2021, while nearly 63% of travelers have booked or are planning to book international flights, a number that’s up from 49% in 2021.
The increased demand comes at a time where both airlines and countries are easing restrictions — like no longer requiring pre-departure COVID-19 tests — that have become commonplace within the last two years.
However, the survey shows some travelers remain wary of embracing remaining protocols. 30% say that COVID-19 protocols have no impact on where they travel, while 22% say those protocols have significant impacts on their bookings.
The nationwide mask mandate that was lifted in April still retains an extremely divisive reaction. 51% believe it should be in place for airplanes and airports, while 49% are happy to be able to walk around mask-free.
In regards to individual ticket prices, most passengers aren’t afraid to break out the wallet in the face of upticks. 79% of respondents said they were just as likely to buy a ticket with a price increase of $50, while 43% said they were just as likely to buy one with a $100 jump.
On the opposite side, only 4% said they were unlikely to buy a ticket with a $50 price increase, while that number was 15% for $100 increases. From $200 to $300 is where travelers start to bulk: only 4% said they’re okay with a price increase of $300, as opposed to 68% who are extremely less likely.
In the last year, the consumer price index for airline tickets rose by 25%, the highest jump since tracking began in 1989. April saw a 18.6% increase alone. The national average fare currently sits at $327.13.
Of course, COVID-19 and inflation aren’t the only concerns passengers have to worry about. Airlines have also been affected due to pilot and staff shortages, leading to the cancellation of thousands of flights throughout the packed summer months.
That kind of effect was obvious during this past Fourth of July weekend, where more than 4,900 flight delays and 500 cancellations were reported the evening of July 1. Overall, the holiday weekend saw 1,435 flights cancelled from July 1 to July 4, according to FlightAware. Additionally, one in five flights experienced disruptions.
Even with mishaps like that, 54% of respondents said staffing shortages have little to no affect on their travel effect, while only 34% said staffing shortages negatively affect their travel experience.
So why is the demand sky-high right now despite all the potential barriers and negatives? Some experts have called it a case of “revenge travel.” While not an official term, it’s the idea that because of the pandemic, travelers are wanting to make up for lost time and moments.
“It’s a proclamation of “Screw you, COVID, I can travel and I’m going to,” CIRE Travel owner Eric Hrubant told NPR. Hrubant advised that those who do want to travel might be better off waiting until the fall, where they can see lower prices, less crowds, and a wider selection of possible destinations to visit.
Andrew Rhoades is a Contributing Reporter at The National Digest based in New York. A Saint Joseph’s University graduate, Rhoades’ reporting includes sports, U.S., and entertainment. You can reach him at andrew.rhoades@thenationaldigest.com.
Unless you happen to have a Boeing in your backyard and a pilot’s license in your pocket, you may be in trouble of missing out on a flight to your next vacation destination. Across the country, airlines are cutting thousands of flights ahead of the summer travel season due to pilot shortages.
No airline has suffered more than Southwest, which has cut around 20,000 flights from June to Labor Day. It’s also pushed up its yearly hiring goal by 2,000 to 10,000. Meanwhile, Delta Airlines stated it was cancelling 100 daily flights from July 1 to Aug. 7 in the U.S. and Latin America, with 517 total flights canceled in June and 700 cut over Memorial Day weekend.
Similarly, American Airlines is also affected, with CEO Robert Isom confirming the airline had to ground 100 regional flights due to the shortage. “There is a supply and demand imbalance right now, and it really is within the regional carrier ranks,” Isom stated at an investor’s conference.
“We have probably a hundred aircraft — almost a hundred aircraft that aren’t, aren’t productive right now, that aren’t flying.”
Ironically, “reliability” was Isom’s biggest priority when he took the helm of American back on March 31. “People really need to feel like they have control of their itineraries and we give them control by making sure they get to where they want to go on time,” he said at the time. “I just can’t be any more blunt about it than that.”
The shortage has become so prevalent that some airlines are cutting down on the number of requirements potential pilots have to go through in order to fly. Delta previously announced in January it would end its requirement for pilots to have four-year degrees, while Republic Airways asked the Federal Aviation Administration (FAA) to hire pilots from its LIFT academy when they reach 750 flight hours instead of the required 1,500.
“Republic is not proposing overturning the 1500-hour rule or weakening safety; to the contrary, we are proposing a more intensive, mission-specific training pathway similar to what is permitted for military pilots under current law,” Republic CEO Bryan Bedford told Business Insider.
Reports also suggested that Senator Lindsey Graham (R-SC.) could propose a legislation that would raise the retirement age for commercial airline pilots from 65 to 67, a fix that could help to maintain the current workforce number over the short-term, however low it may be.
It’s not just U.S. airlines that are suffering, either. Germany’s flag carrier, Lufthansa — the second-largest airliner in Europe — and its subsidiary Eurowings announced they were scrapping 1,000 flights in July, while airlines like Irish’s Ryanair, Switzerland’s easyJet, and Spain’s Volotea are seeing strikes.
It’s certainly a problem that doesn’t have an easy and quick solution, and one that might not be ending anytime soon. Back in March, Republic CFO Joseph Allman forecasted the shortage reaching its worst in the second and third quarters of 2023, expecting the industry to be short 8,000 pilots next year.
Unfortunately for travelers, turning to road trips instead of dealing with flight uncertainty may not be a slam dunk either after the national gas price rose above $5 on Thursday. In California, drivers are facing prices up to an agonizing $6.40 per gallon.
Andrew Rhoades is a Contributing Reporter at The National Digest based in New York. A Saint Joseph’s University graduate, Rhoades’ reporting includes sports, U.S., and entertainment. You can reach him at andrew.rhoades@thenationaldigest.com.
David Pekoske, the nation’s TSA chief, and airport and airline leaders throughout the nation have stated that there will be inevitable “hiccups” this summer, as the agency is expecting the largest airport passenger crowds since the Covid-19 pandemic first began.
Pkoske said that labor shortages and an increased demand for travel have already begun to overwhelm airlines. The agency is gearing up to deploy as many as 1,000 TSA agents and K-9 units to the nation’s busiest airports to ideally counter any potential delays at security checkpoints.
“We expect the summer to be very, very busy. That’s not to say that there will not be some hiccups along the way — those things will happen, but we’ll do everything we can to recover quickly.”
Some expect airport crowds surpass 3 million passengers per day on the busiest travel days for the summer. The increased demand for travel has also led to pilots complaining about fatigue and flight cancellations heading into the summer at airlines including American Airlines, Southwest, Alaska, and Delta.
“Everybody is facing labor shortages; airlines and TSA are no different. At just about every level you can think of in the airline industry we can speak of we’re having labor shortages,” said Paul Doell, vice president for the National Air Carrier Association.
Airline restaurants and car rental companies have also been dealing with labor shortages. Customer service call centers for airlines and passengers who need wheelchair assistance, as well as ground airport employers, have also been struggling to maintain a steady supply of workers to deal with the demand for flights.
Airlines themselves are cutting thousands of flights from their schedules as a means of helping scheduled flights run on time. This also means that TSA agents and other airline workers will likely have to work harder to get travelers to their flights on time.
“But regional air carriers, which fly about 43% of all scheduled flights in the U.S., say they are facing labor shortages as employees such as pilots are being poached by the larger airlines. That could create issues connecting smaller destinations to larger hub airports,” said Kevin Burke, head of Airports Council International-North America.
“The pilot shortage is impacting the regionals, and we expect to see the small communities hit the hardest. We expect this to continue to be a trend, but those pain points will assert themselves at hubs as well.”
Pekoske warned that “many travelers this summer could be getting on a plane for the first time in three years, especially as masking and Covid-19 restrictions have fallen in many parts of the country and international travel restrictions are being lifted.”
“The amount of people that worked concessions prior to the pandemic are not there now, they’ve come back, but they’re nowhere near where they need to be,” Burke explained.
“So we really ask that we try to have patience and understanding when they are dealing with employees at the airport. Everybody’s trying to do the best job they can to make sure this is safe, secure and also as comfortable as it can be under normal circumstances but especially when you have those tough days where you have storms that are disrupting the system,” Doell said.
Eric Mastrota is a Contributing Editor at The National Digest based in New York. A graduate of SUNY New Paltz, he reports on world news, culture, and lifestyle. You can reach him at eric.mastrota@thenationaldigest.com.
Condor Airlines, which have caught the attention of the travel world due to it’s colorful rebranding, has announced the restoration of non-stop routes from the U.S., marking the first time this has happened since the COVID-19 pandemic began.
Andrew Rhoades is a Contributing Reporter at The National Digest based in New York. A Saint Joseph’s University graduate, Rhoades’ reporting includes sports, U.S., and entertainment. You can reach him at andrew.rhoades@thenationaldigest.com.