general

US airlines forecast busy summer travel

Summer travel on US airlines is expected to reach an all-time high this year, trade group Airlines for America said, adding to concern that passengers could face even longer waits at security checks. About 231m passengers will fly on US airlines between June and Aug, up 4% from the same period last year, the group said. That estimate amounts to an extra 95,500 passengers per day, on average. The group called on the US Transportation Security Administration to hire and train new staff to cut waiting times at airports. Security wait times have stretched to longer than two hours at some US airports this spring. US airlines have encouraged customers to signup in pre-screening known as TSA PreCheck to help expedite security checks. <br/>

US bans e-cigarettes from checked bags

The US DoT is to permanently ban passengers and crew members from carrying e-cigarettes in checked baggage or charging the devices onboard aircraft. Transportation secretary Anthony Foxx cited a number of recent incidents that show the devices can catch fire during transport. Passengers may continue to carry e-cigarettes for personal use in carry-on baggage or on their person, but may not use them on flights. "Fire hazards in flight are particularly dangerous," Foxx said. "Banning e-cigarettes from checked bags is a prudent and important safety measure." The rule covers battery-powered portable electronic smoking devices including e-cigarettes, e-cigars and e-pipes, but does not prohibit passengers from transporting other devices containing batteries for personal use such as laptop computers or cell phones. The rule makes a temporary ban instituted in November permanent. <br/>

US airlines earn $4.8b Q1 pre-tax profit; revenue flat

The 10 publicly traded mainline US airlines reported a collective Q1 pre-tax profit of US$4.8b, according to Airlines for America (A4A). The earnings gave the industry a 13.2% pre-tax profit margin for the quarter, up two points from 11.2% in the prior-year quarter. Q1 operating revenue was flat year-over-year “as 6.7% lower fares offset 6.2% traffic growth,” according to A4A’s chief economist, noting that Q1 operating expenses fell 1.5% year-over-year as lower fuel costs offset higher employee wages and benefits. Fuel was the only expense category that saw a year-over-year decline in the quarter. Airfares, which fell in 2015 compared to 2014, are down so far in 2016 compared to 2015 and are at their lowest point in at least six years. “That is true whether you include ancillary fees or not,” he noted. <br/>