How the Airlines are screaming back to profitiblity...

[liberal N proud]

Continental posts 2Q profit on big jump in revenue

DALLAS — Continental Airlines Inc. is adding to the evidence that U.S. airlines are making a strong recovery from the recession.

Continental said Thursday it earned $233 million in the second quarter, nearly a mirror image of its $213 million loss a year ago, and its per-share earnings beat analysts' expectations. Revenue jumped by nearly one-fifth compared with a year ago.

Continental, which is combining with United's UAL Corp. to form the world's biggest airline, also raised doubts about what will happen once the summer vacation-travel season is over. It said advanced bookings are running 1 to 2 percentage points behind last year's pace.

Houston-based Continental said there has been "modest improvement" in demand from lucrative business travelers and rising profit on vacation travelers.

U.S. airlines are reporting their strongest quarterly results in three years. After huge losses during the recession, Delta, United and US Airways combined to post $1 billion in earnings for the second quarter.

The rebound came with brutal cost-cutting that included the elimination of hundreds of flights each day by the major carriers. That reduced the supply of seats, helping to drive up fares. Continental said it would keep its supply of seats flat to up slightly in the third quarter. Airlines are also making money by charging extra fees for checking bags and other services.


http://www.msnbc.msn.com/id/38357322/ns/business/

Looks like this will support keeping the baggage handling and premium seat fees.

[SeattleGirl]

1. I'm taking a flight on Friday.

I think that by the time I pay all the assorted fees at the airport, I'll be luck to have two cents to my name to spend on my vacation. :-(

[liberal N proud]

2. That is why most of my vacations in the US are driving trips

I have been looking for months for affordable air fare, even thinking last minute would be cheaper. But I leave tomorrow and was unable to find anything, I would call cheap before you start adding on fees.

[SeattleGirl]

3. I wouldn't mind doing that, but my vacation is 9 days abd

I'm going to Detroit from Seattle, so I don't have tons of time.

Unfortunately, flying is the best option for me right now.

[unhappycamper]

4. It cost me $150 to send my two granddaughters back to Georgia.

$25 per bag (1 each) and $100 for the 'Unaccompanied Minors' fee.

[ThatsMyBarack]

11. Nickel Dime Nickel Dime Nickel Dime.....

:grr:

[dkf]

5. They are making huge amounts on the stupid baggage fees

And they make everyone suffer with excess carryons. No consideration for traveler comfort. And I have ridden my last airbus...the odd position of the headrests were the most uncomfortable things I have ever been in. Never again.

[Sherman A1]

6. Good for Them

I glad they are making a profit. I however, will drive on my vacations.

[paparush]

7. No meal on an evening, international flight.

Just got back from 18 days in Nicaragua.
Flew Delta out of Atlanta to Managua.
The three hour flight left Atlanta at 5:45 pm.

So, we're flying internationally, through the dinner hour, and we were given a pack of crackers. I guess I should feel lucky that we were not charged extra for them.

[trotsky]

8. That's odd.

Last September my wife & I flew Delta to Europe and the meals on the two trans-Atlantic flights were easily the two best airline meals I've ever had. In coach!

[JCMach1]

13. 3hr flight... International, but short haul

but still a bit shocked some food wasn't involved.

[paparush]

14. I'm guessing that's the key..trans-Atlantic.

Our flight was just trans-Gulf.

[Orsino]

9. "[B]rutal cost-cutting that included the elimination of hundreds of flights each day..."

The words "jobs" and "wages" are missing from that paragraph. Very sterile.

[liberal N proud]

10. And you won't see them hire those people back

Those jobs are gone, they are figuring out how to fly without those people.

Profits and less employees seem to be going hand in hand these days.

[JCMach1]

12. United/Continental deeply discounted prices this Summer

They were able to undercut many carriers in (especially) the long-haul markets.


I always take the cheapest flight back to the U.S. which was United by a mile this year.