Three U.S. airlines on Wednesday warned of higher fuel costs in the third quarter due to a jump in crude prices, adding to pressures the industry faces from expensive labor contracts.
25.08.2023 - 13:54 / skift.com / Matthew Parsons / Copa Airlines / Airlines
Panama’s Copa Airlines is increasing its surcharge for tickets issued in Amadeus, Sabre and Travelport from $12 to $18 per direction.
The fee hike takes effect from April 3, 2023 — coinciding with when American Airlines removes 40 percent of its own airfares from these same retail channels.
In both cases, the airlines are pushing travel agencies and other retailers to move towards so-called New Distribution Capability. This is a technology standard developed by the International Air Transport Association, and it aims to give airlines more control over their airfares, rather than rely on global distribution systems, such as Sabre, Amadeus and Travelport.
What’s interesting is that up until now, Europe’s airlines were the ones adding expensive fees to encourage adoption. Now it seems to be catching on in the Americas region.
In March 2022, Copa Airlines said that Copa Connect would be the best way for travel agencies to access its fares, schedules, and other content. “Through Copa Connect, agencies will be able to provide their clients better offers in a more innovative and efficient way. Among the benefits are: access to better fares, exclusive sales promotions, access to ancillary products, and others,” it said.
Since September it has added a $12 Distribution Cost Recovery Surcharge. Reports on social media suggest the increase to $18 will apply April 3.
Copa Airlines’ website reflects that: “A fixed amount of $18 will be charged per direction (or each “one-way” of the trip) whenever Copa Airlines participates as the marketing carrier regardless of the operating or ticketing carrier,” says its FAQ document.
The American Society of Travel Advisors, which represents 160,000 travel agency workers, this month asked American Airlines to push back its move date to the end of the year. It argues that withholding such a substantial portion of its fares from “critical independent distribution channels” will have a negative impact on corporate travelers.
Copa Airlines recently expanded its direct connection partnership, through New Distribution Capability, with Envision Tecnologia, according to reports.
It’s currently one of the world’s most profitable carriers too, thanks in part to the location of its Panama City hub.
Three U.S. airlines on Wednesday warned of higher fuel costs in the third quarter due to a jump in crude prices, adding to pressures the industry faces from expensive labor contracts.
There are problems at two of the nation’s top five airlines. Labor problems.
The deadly wildfires on the island of Maui are likely to affect visitor — and airline — demand to the island for the “foreseeable future,” analysts at T.D. Cowen said Friday.
Good morning from Skift. It’s Monday, November 21. Here’s what you need to know about the business of travel today.
The world’s biggest airline is ready for Thanksgiving, having already battled through several hurricanes in recent months.
Agency consortium GlobalStar Travel Management is expanding in Europe, after boosting its presence across North America and Asia.
Good morning from Skift. It’s Wednesday, November 9. Here’s what you need to know about the business of travel today.
Skift kept an eye through much of 2022 on which travel tech startups raised money, documented in this weekly startup funding roundup.
The inaugural Skift Aviation Forum welcomed Robert Isom, the CEO of American Airlines, as its first speaker at the Statler Hotel in downtown Dallas. During the interview he shared how the world’s biggest airline was prepared for the upcoming Thanksgiving vacation, and already looking ahead to the future with a focus on recruiting and training pilots, and staffing the carrier back up.
American Airlines is no longer accepting new or renewal contracts for AirPass, its VIP-corporate membership scheme. However, “program functionality” will end by March 31, 2024.
Good morning from Skift. It’s Friday, January 6, and here’s what you need to know about the business of travel today.
U.S. airline profits are set to come under pressure in 2023 as they look to shell out more cash to retain pilots amid worries about the impact of a potential recession on travel demand.