Travel Industry Archive

In their quarterly earnings report, United gave us a good, deep look into their hedging activities for the fourth quarter of this year and full year 2009. How does it look? Not so good. It took a few emails to friends and some studying up for me to figure out exactly what this means, but I believe I understand it now. The bottom line is that for the 4th quarter of 2008, United will pay no...

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There are plenty of airlines that sell upgrades on the day of departure, and these are almost always sold at the ticket counter or at the gate. AirTran has decided to take this even further by offering upgrades to passengers once they’re already onboard the aircraft. This is a great move for AirTran, but it likely creates some logistical issues. To illustrate why this is a good idea, it...

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 Caesars tries to bridge old and new with Octavius – Caesars Palace will open its sixth hotel tower, a modern, 665-room luxury hotel expansion called Octavius, next summer. The middle-aged property added various segments and towers throughout the years, but the $1 billion Octavius is an attempt to attract those wanting sophisticated subtlety without the Roman kitsch. [Source: Las Vegas...

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Just a quick update on the Mokulele situation. They’re already back in the air after completing their life preserver and fire extinguisher training for cabin crews last night. It was more of a technicality than anything else, but it still shows a lack of attention to detail that is a bit concerning.

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It has now been confirmed that the rumors that Republic would be flying for Mokulele in Hawai’i are true. I wrote before about why I thought it was a good idea before, but now we can add another one to that list. FAA grounding Hawaii carrier Mokulele Sure it’s just temporary, but I can’t see something like this happening to Republic . . .

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Although average passenger revenue yield per mile increased 16.5% year-on-year to $14.70, Southwest Airlines announced its first quarterly loss in 17 years (of $120 million) — not because of negative operating income — but due to unrealized losses associated with the required mark down in the value of some derivative fuel hedges (used to protect the airline against rising jet fuel...

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American Airlines sues Yahoo! over ads – American Airlines filed a lawsuit against Yahoo! claiming that the portal would flash competitor’s ads on American Airlines-related searches and possibly divert its customers. American filed a similar lawsuit against Google last year. [Source: CNET] Atlanta hoteliers speak the language and pay the bills — Atlanta hotels looking to...

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Oil prices have come down dramatically from their highs, but despite lower costs, the airlines don’t appear to be in any hurry to revert to their old ways. In fact, many seem to be quite happy with the new way of the world . . . a la carte pricing. US Airways has been the most aggressive, and the airline remains the most clear in its message. The new revenue model is here to stay....

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No bonuses for MGM Mirage workers –  Casino giant MGM Mirage Inc. reported it probably won’t give out employee performance bonuses because of an underperforming year. The company has approximately 64,000 workers. [Source: AP/Boston Globe]  Maui Land & Pineapple Co. suing Maui County — The Maui Land & Pineapple Co. is suing Maui County, claiming the county is...

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I had the chance to attend the Qantas A380 inaugural event at LAX yesterday, and there were a handful of speakers at the event including CEO Geoff Dixon, Qantas Goodwill Ambassador John Travolta, and LA Mayor Antonio Villaraigosa. I was dismayed to hear at the press conference that Mayor Villaraigosa has decided to continue to push his misguided strategy of regionalization for the local...

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