Filed under: Bad news, Consumer experience, Southwest Airlines (LUV), Contl Airlines’B’ (CAL), UAL Corp (UAUA), Oil, Delta Air Lines (DAL)

There has been plenty of buzz lately about merger activity among the major airlines. The latest thought is that Delta Airlines, Inc. (NYSE: DAL) and Northwest Airlines Corporation (NYSE: NWA) will join forces in a battle against record-high fuel and other challenges to the industry. But despite the positive effect some feel consolidation may have on the airline sector, passengers are still facing stressful travel.

Crowded gates and cramped airplane seats. Delayed flights. The struggle to reduce one’s toiletry kit to a series of 3-ounce portions. And it is only getting worse. A report in today’s New York Times reported that big airlines are cutting down on domestic capacity in 2008 and raising ticket prices while they are at it. For every $10 increase in a barrel of oil, airlines are forced to lift round-trip fares by an average of $18 (and who can blame them?). Black gold is currently hovering close to the $100 level; about a year ago, it was close to $50. In sum, air travel will be more expensive, and just as crowded (if not more so). In 2007, jets were already more crowded than they’d ever been… and posted the highest-ever percentage of late arrivals.

Continue reading Industry mergers may not help a bad year for air travelers

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This entry was posted on Thursday, January 10th, 2008 at 11:50 pm and is filed under Stocks Money News. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.