Sky Talk

Monday Midday Must-Reads

-United Airlines delayed flights on Sunday night due to a computer outage, reports USA Today. A ground stop was put in place for several hours on Sunday as United worked to solve the problem.

-Business travelers are feeling squeezed by new basic economy fares introduced by American Airlines and United Airlines this month. According to this article in the New York Times, the new fares, which often charge extra for leg room and use of overhead bins, are pushing business travelers to pay for more expensive premium economy or business class seats. “While travel managers can, and often do, choose not to include low-fare carriers like Spirit in their booking engines - because of contractual relationships with full-service carriers, for instance - that is not an option when the cut-rate tickets are being offered by full-service airlines,” the article says.

-The Los Angeles Times says airlines are facing a turbulent 2017 as rising labor costs could lead to higher airfares for consumers. The article says “although U.S. airlines are expected to remain profitable in the near future, industry watchers say 2017 could mark the end of the industry’s financial nirvana. An expected increase in fuel and labor costs is likely to be the biggest source of turbulence, along with uncertainty about the effect that the incoming Trump administration might have on travel from Mexico and the Middle East to the U.S.”

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