San Jose Norman Y Mineta International

Alaska, Delta and JetBlue zero in on managing seasonality in an attempt to preserve profitability

US carriers are fine-tuning their revenue management mechanisms to better manage seasonally weak periods and avoid climbing out of losses recorded during those times. By shifting their networks into higher revenue generating markets during slow travel periods they are starting to challenge the historical status quo of losing money during low demand periods. Both low cost and legacy carriers alike are changing their strategies for managing down periods to flatten out the peak and trough patterns that have wreaked havoc on their attempts to remain profitable during the more challenging off-peak times of the year.

Alaska Airlines, Delta Air Lines and JetBlue Airways are three such carriers making specific changes during off-peak periods to increase profitability. Alaska Airlines has shifted away from west coast routes to focus on Hawaii, Delta has bucked industry trends to decrease trans-Atlantic capacity while JetBlue has focussed on its Boston hub to drive corporate traffic.

Houston airport operator envisions Hobby offering international flights in 12 markets

Studies carried out on behalf of the Houston Airport System (HAS) to examine the viability of international flights from Houston Hobby airport contemplate a two-phased introduction of 12 markets to Mexico and Central America. Southwest Airlines is pushing for facilities at Hobby to support international flights, but research conducted shows that Mexican low cost carriers VivaAerobus and Volaris would also have an interest to operate international service from Hobby. It is not surprising United has mounted vehement opposition to Southwest’s campaign, as it enjoys majority carrier status in most of those markets with its service offerings from Houston Intercontinental Airport.

Earlier this year Southwest asked Houston Airport System (HAS) to conduct a feasibility study for the addition of a five-gate terminal at Houston Hobby Airport to support international flights. Houston is Southwest’s sixth largest city based on daily departures, and the city’s geographical location makes it an ideal destination for short-haul international flights to Mexico and Central and South America. Data in the study conducted on behalf of HAS show that Houston was the point of entry for 64% of Mexican visitors travelling by air to the US in 2010. Through its acquisition of AirTran, previously domestic-only Southwest is gaining knowledge of international operations now that it is managing AirTran’s network, which includes flights to the Caribbean and Central America.

Raleigh-Durham, San Jose and Portland airports: Colourful pasts and hope for the future

Pittsburgh, Cincinnati and St Louis airports were developed and then partly abandoned. In this review, we look at three smaller cities that had hopes raised and then dashed; but to quite different outcomes, and each with some hope for the future. The three are Raleigh-Durham, North Carolina (RDU), San Jose, California (SJC) and Portland, Oregon (PDX).

JetBlue passenger traffic assisted by “All-You-Can-Jet-Pass!” in Sep-2009

JetBlue reported a 12.3% year-on-year increase in passenger numbers in Sep-2009, to 1.6 million. RPMs rose 9.8% (suggesting shorter average sector flying by passengers), while capacity (ASMs) increased by 8.6%, leading to a 0.9 ppts rise in load factor, to 77.6%.