Travel Week in Review – July 19, 2024

United Airlines reported that its profit margin shrunk in the second quarter because industrywide domestic overcapacity drove down fares and led to more empty seats on aircraft. However, United executives confidently said the situation will start to improve in mid-August when airlines begin reducing their rate of capacity growth. Moreover, United expects the capacity adjustment to be long-lasting, in large part due to the financial challenges faced by discount U.S. carriers.  Read More…

Amid soaring room rates, J.D. Power’s 2024 North America Hotel Guest Satisfaction Index found that higher-end hotels have managed to garner high guest satisfaction scores. Meanwhile, satisfaction scored have fallen at midscale and economy properties. According to the study, the average daily rate for a U.S. hotel room reached $158.45 in May, which was just shy of the all-time high of $159.01 recorded last October. Despite this elevated pricing, luxury and upper-upscale brands have successfully met or exceeded guest expectations, resulting in steady or improved satisfaction scores. Read More..

In a letter sent Monday to Southwest Airlines’ board of directors, Elliott Investment Management again called for new leadership at the carrier and suggested it could initiate a proxy fight. The investment company in June purchased $1.9 billion in Southwest stock, about 11 percent of outstanding shares. The company “indicated that it is open to collaborating with the board on a path forward, but absent alignment, Elliott intends to move expeditiously to give shareholders a direct say on the necessary leadership changes,” it wrote in a press statement. Read More…

Etihad will expand services to North America this October with plans to increase flight frequencies on its Abu Dhabi-Boston route. The carrier will also begin operating its new Airbus A350 aircraft on daily flights to Toronto in the upcoming winter season. The Middle Eastern airline will begin daily services to Boston Logan International Airport on 27 October, increasing frequencies from four weekly flights as per the current schedule. Read More…

U.S. carriers in April operated nearly 615,700 flights, about 5.1 percent more than were operated in April 2023. The month-over-month total, however, was down 1.2 percent, according to the latest U.S. Department of Transportation Air Travel Consumer Report. The April cancellation rate for U.S. carriers was 0.7 percent, lower than the 1.7 percent cancellation rate for April 2023 as well as the 2.4 percent rate for April 2019, according to DOT.  Read More…