Delta Air Lines and United Airlines were ordered by a federal judge to face a consumer antitrust class action accusing major U.S. carriers of conspiring to drive up domestic airfares by reducing the number of available seats.
25.08.2023 - 14:36 / skift.com / Delta Air Lines / Edward Russell / Rashaad Jorden / Seth Borko / Matthew Parsons
Good morning from Skift. It’s Tuesday, December 6. Here’s what you need to know about the business of travel today.
Apple Podcasts | Spotify | Overcast | Google Podcasts
Delta Air Lines recently reached a $7 billion agreement with its pilots, a deal that put an end to tense negotiations. But it’s also putting more pressure on airlines struggling with costs, reports Edward Russell, editor of Airline Weekly, a Skift brand.
The deal includes a 34 percent pay jump for Delta pilots over four years. In addition, Delta will raise pilot pay up to 1 percent more than those at rivals American Airlines and United Airlines if they surpass Delta’s. The Air Line Pilots Association, the union that represents Delta’s pilots, said there are no concessions in the agreement.
However, Russell writes that the pay increases, while expected, will only add to the cost pressures airlines are facing. Industry trade group Airlines for America projects the cost of flying a seat a mile will jump 19 percent this year compared to 2019. Meanwhile, one analyst said the new agreement will create at least $900 million in additional labor expenses for Delta next year.
Next, travel prices in Europe are dropping after months of rising airfares and hotel rates. But with travel costs expected to be volatile for several years due to a market correction, travel buyers are being urged to negotiate discounts quickly, reports Corporate Travel Editor Matthew Parsons.
New data from Spanish corporate travel agency TravelPerk, covering the fourth quarter so far, reveals that travel costs have decreased for the first time in 2022. The price of accommodation across Europe has dropped on average 7 percent from the third quarter while airfares on the continent have decreased 11 percent.
Steve Reynolds, CEO and founder of auditing and re-booking platform Tripbam, acknowledged seeing similar trends. He noted that rates and fares drop at the end of the year as business travel declines. So Reynolds said now is the best time for corporate travel managers to negotiate discounts, stating it’s easier to get static rates when prices are dropping. He predicted that travel prices will start rising in January.
Finally, online travel rivals Expedia Group and Booking Holdings have each made significant recoveries from the pandemic. But big changes are afoot at both companies, writes Research Analyst Seth Borko in Skift Research’s latest report.
The report takes a look at how Expedia and Booking are responding to shifts in the online travel business model, including initiatives they’re investing in for next year and beyond. Borko notes that Expedia is focused on launching loyalty and business-to-business partnerships while Booking is developing new technology,
Delta Air Lines and United Airlines were ordered by a federal judge to face a consumer antitrust class action accusing major U.S. carriers of conspiring to drive up domestic airfares by reducing the number of available seats.
The idea of an airport lounge elicits glamorous images of jet setting and flying first class. The reality is far more mundane: Airport lounges are increasingly common for anyone flying with a credit card, and increasingly crowded, rundown, and, well, not that exclusive.
There is a shortage of a critical skilled labor group needed to keep America’s airlines flying: Pilots, particularly captains, are in short supply and that’s resulting in fewer flights to some of the smallest cities across the country.
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.
Airbnb was the top-spending travel brand on U.S. national TV during the first 11 months of 2022 at an estimated $86.5 million, but it was merely the ninth most-seen among travel websites, hotels and motels, resorts and theme parks, cruise lines and airlines.
Delta Air Lines has offered a 34% cumulative pay increase to its pilots over three years in a new contract, demonstrating the bargaining power aviators are enjoying in a short-staffed industry with booming travel demand.
Good morning from Skift. It’s Monday, November 21. Here’s what you need to know about the business of travel today.
It’s not often that travelers have something to look forward to at Newark Liberty International Airport. The new $2.7 billion Terminal A will open in December, the latest in a series of major airport projects opening around the U.S. this year.
United Airlines, Alcohol Wipes and Finding New Customer Touch Points: Some passengers want to talk to people. Some do not. United Airlines wants make sure they all have a choice.
Good morning from Skift. It’s Friday, January 6, and here’s what you need to know about the business of travel today.
In-person events and conferences are set to drive corporate travel’s recovery throughout 2023, as employees look for more human connections.
In hindsight, we should have known the mess that was air travel in 2022 was coming. Airlines kicked off the year canceling tens of thousands of flights amid the surge in Omicron variant cases that kept crews at home, and travelers — unfortunately — on the ground.