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[giga]

Helped by falling oil prices, airlines are reporting record profits, but for many passengers this sudden bonanza has meant little more than extra bags of free peanuts and pretzels.

The four biggest domestic carriers — American Airlines, Southwest Airlines, Delta Air Lines and United Airlines — together earned about $22 billion in profits last year, a stunning turnaround after a decade of losses, bankruptcies and cutbacks. A big reason for this is the plunging price of jet fuel, which now costs only a third of what it did just two years ago.

But that windfall is only slowly finding its way down the aisles. Days after reporting record profits, for instance, two of the nation’s biggest airlines brought back free snacks in coach.

United said it would begin serving complimentary stroopwafels, which it described as “Dutch-made toasted waffle treats,” and American said it would offer free meals in economy class on flights between Dallas and Hawaii, and free snacks on all domestic flights.

Airfares, however, have remained stubbornly high.

Rick Seaney, co-founder of FareCompare.com, says airfares have been essentially stable for the last two years except on some routes where airlines have faced competition from low-cost carriers like Spirit Airlines.

Analysts say there is little mystery why. A decade of consolidation has reduced the number of airlines competing in many markets, making it easier for dominant carriers to charge more for flights. At Newark Liberty International Airport, for example — where United, which merged with Continental Airlines in 2010, accounts for 70 percent of flights — airfares are the highest among the nation’s top airports, according to government figures.

At the same time, demand is rising, meaning flights are full and airlines have few incentives to discount fares.

As a result, airlines have placed extraordinary emphasis on what industry insiders call “capacity discipline” — not adding seats faster than demand. The Justice Department, though, is investigating whether this industry practice amounts to possible collusion among the big airlines.

In addition, airlines are finding more creative ways to wring more money from passengers, including charging for aisle and window seats, shrinking legroom to pack in more seats on each plane, and offering priority boarding for a fee.

And in a twist baffling to many passengers, the airlines have kept some of the surcharges that were introduced a few years ago when oil prices were rising, according to George Hobica, the founder of Airfarewatchdog.com. These fuel fees can still be found on many international flights — just under a different name.

“They simply folded them into the fares,” Mr. Hobica said. “They call them carrier surcharges and fees. They just don’t call them fuel surcharges.”

http://www.nytimes.com/2016/02/07/b...ecord-profits-and-passengers-get-peanuts.html

 

[Wilsongt]

I am shocked! Shocked! It's as if no one actually saw this coming!

 

[Zhengi]

I thought I read about the federal government was investigating the airlines for colluding to keep prices high. Whatever happened to that?

 

[TemplaerDude]

Every day we inch closer and closer to that corporate dystopia. I can't wait.

 

[Dishwalla]

Airlines are the worst, cost me less money to drive across country than it did to fly.

 

[WickedCobra03]

I am not sure what the increase in demand of flying is? I thought people were starting to trend to planting their roots back close to their original homes after completing training/college/ect?

I personally think flying is great, but it seems like something has to change. The quality of the process seems to be getting worse, cutting features, and still jacking up the prices.

 

[Jarmel]

I would be happy with just $50 off my airplane tickets.

 

[Africanus]

I thought I read about the federal government was investigating the airlines for colluding to keep prices high. Whatever happened to that?

A bit of money changed hands presumably, even though it's quite obvious it is occurring.

 

[Jenov]

Bag fees really are a racket. I've even been seeing some airlines demand fees for carry on!

 

[gamz]

Airlines are the worst, cost me less money to drive across country than it did to fly.

Perhaps, but it's the time spent driving is the problem. I'd rather pay more to get there earlier.

 

[dabig2]

They'll keep ticket prices artificially high until the time oil starts creeping back up, after which they'll raise prices instantly.

Airline CEOs and stock investors gotta eat after all.

 

[Wilsongt]

Bag fees really are a racket. I've even been seeing some airlines demand fees for carry on!

Yep. Pay outrageous prices to fly someone, pay outrageous prices to actually take any luggage with you, all the while they make seats smaller and pack more people onto each flight.

 

[perfectchaos007]

You would think the airline industry as a whole is a monopoly.

 

[BennyBlanco]

Are they really high tho?

Anecdotally my parents just got tix from Newark ---> Tampa Bay for like $100 round trip on Southwest.

 

[giga]

You would think the airline industry as a whole is a monopoly.

Closer to an oligopoly.

 

[Nostremitus]

Yeah, the rate hikes following the surge in oil prices never went away despite fuel costs dropping rapidly. That's all profit for last year.

 

[Muppet of a Man]

You would think the airline industry as a whole is a monopoly.

Antitrust laws in this country are a joke; capitalism cannot function properly for the long term benefit of society at large without them unless the market is literally starting from scratch (i.e., a blank canvas).

 

[GoldenEye 007]

Yeah it's easy to see how full of shit these airlines are. Oil prices are dirt cheap (and have been for awhile) but fares and fees are still high and in place. Hope they get slapped hard. They deserve every bit of it.

 

[G.ZZZ]

Bu-but government is corrupt! The invisible hand of the market! Remove regulations the market will arrive at the optimal configuration!

Grey Face no space.

 

[Azure Dream]

Last few times I flew, I didn't even get peanuts. If I got anything, it was something miserable like "Ranch-flavored (overcooked) Pretzel Sticks." Like you were designed to be turned away from it so they'd have to give out less bags.

 

[Hero_of_the_Day]

They'll keep ticket prices artificially high until the time oil starts creeping back up, after which they'll raise prices instantly.

Yep.

 

[Pamplemousse]

This isn't just a trend with airlines; this has been happening across the board in the US. Companies provide less and less, and we pay more and more.

 

[BigJonsson]

Wait, do we even get peanuts? Or do we have to pay for them now?

 

[Joezie]

Don't worry guys! Just you wait! Those savings will trickle down any moment now!

 

[GoldenEye 007]

Wait, do we even get peanuts? Or do we have to pay for them now?

Southwest is good about it. Plus no baggage fees. The rest, meh. You generally have to pay.

Although I do remember on a Southwest flight, they were like no peanut service because someone was allergic. And I guess so allergic any sort of particle is an issue.I kind of understand, but goddamn. Those honey roasted peanuts are great!

 

[Wilsongt]

Wait, do we even get peanuts? Or do we have to pay for them now?

Just be glad you get a drink. Or else you'd have to pay $20 for a bottle of water post security.