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Financial News USA
May 22


Bin space & the airline boarding debacle and Airline profit forecast slashed for 2011 PDF Print E-mail
(CNN) -- People like to complain about all aspects of the flying experience today, but there's a particular part of it that seems to draw anger from just about everyone: boarding.It may be surprising, but airlines put a lot of thought into this process, and American and United have both recently made changes to try and tweak their systems. The reaction to the changes? United saw so much anger that the airline has already reversed a part of its move.Now, you would think that with so many people unhappy about the state of flying, they wouldn't want to board until the last possible minute. Of course, that's not the case. Go to any gate area and you see people hovering, waiting for their chance to race on to that airplane and ... sit there for several hours.For those in coach, there's really only one reason to get on board quickly. To use my father's mantra, it's all about bin space. [Read the full article]

(CNN) -- Airline industry profits will fall worldwide in 2011, according to the International Air Transport Association (IATA), thanks to rising fuel prices, political unrest and natural disasters."Natural disasters in Japan, unrest in the Middle East and North Africa, plus the sharp rise in oil prices have slashed industry profit expectations to $4 billion this year," the association's Director General and CEO Giovanni Bisignani said in a statement released Monday. "That we are making any money at all in a year with this combination of unprecedented shocks is a result of a very fragile balance."The main cause of reduced profitability is the high cost of fuel. Airlines pay an additional $1.6 billion in costs for ever dollar increase in the average yearly price of oil, the association said. The industry's fuel bill is expected to rise to $176 billion in 2011, an estimated 30% of airline costs. [Read the full article]

(BudgetTravel.com) -- From missing your flight to losing your passport, flying can be full of nasty surprises. Check out Budget Travel's insider tips for coping with, and avoiding, these headaches.YOU FACE A SURPRISE LAYOVER Airlines can cancel your nonstop flight without much warning and rebook you on a flight with connections.Why it matters: Nonstop flights usually cost top dollar, but an airline can make such a change without reimbursing you for the premium you paid. That means a financial loss -- not to mention an inconvenience.How to deal: When you learn about the change (usually via text or e-mail notification from the airline), check online to see if there's another nonstop flight available. If there is, call the airline and politely ask to be put on that flight at no additional cost. If your airline has no nonstop flights (even though it sold you one), ask for a refund. [Read the full article]

(CNN) -- Billing it as a way to end the one-size-fits-all approach to airport security, the International Air Transport Association on Tuesday unveiled a mock-up of what it called the "Checkpoint of the Future."Instead of a single screening procedure applied to all fliers, the group envisions that passengers would be divided into risk categories based on the information available about them.They would then be directed to one of three lanes: "Known Traveler," "Normal" and "Enhanced Security."The first -- and quickest -- lane would only be available to fliers who have registered and undergone background checks with their governments.Normal screening in the second lane would apply to the majority of travelers. New technology would allow them to walk through without having to take off their clothes or shoes, or unpack their bags. [Read the full article]
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