It was as if the airline had just entered a perfect storm. As always, as volumes recovered to their pre-9-11 levels, rising oil prices began to threaten the airline's profitability. In response to oil prices, some airlines have blocked tariffs, while others have taken advantage of the volatile oil market. Medium fuel costs account for 24% of the airline's executive budget and another 22% for labor. Experimental unions are strictly in charge of labor costs, and negotiations with unions have failed. In addition, security costs and stricter FAA regulations further tighten the airline's operating costs without any sign of relief. These problems affect the entire airline industry. Even low-cost carriers such as Jet Blue, Southwest and Ryanair are affected by the storm.
As competition continues to lower ticket prices, airlines are struggling to trim fat. More fat means more fuel, and airlines are looking at ways to lower their plans to reduce fuel costs. Many airlines have applied for luggage to solve their fuel cost problems. The two-bag limit and freight surcharge become the norm for most airlines. 2005 In October et al. Blue tightened their shipping policy by reducing the number and size restrictions of their checked bag. Last week Ryanair took it a step further by charging them with a contradictory decision on all checked luggage.
The airlines have taken free meals and replaced them with all the expensive wine snacks. They have automated most of their customer service with kiosk-type solutions. They have raised ticket prices to cover expensive fuel costs. Now Delta and Northwest say pay cuts are needed to survive, but pilot unions are keeping their ground. It is difficult to imagine what will happen next, but it is certain that it will affect travelers' wallets.