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Boeing's terrible, horrible, no good, very bad year

Boeing sign
Boeing has faced a near-constant string of hurdles in 2024.

PATRICK T. FALLON/Getty Images

  • Boeing is having a rough year.
  • The company has faced mechanical problems, lawsuits, a leadership shake-up, and layoffs.
  • Here's a breakdown of how Boeing's year has gone from bad to worse.

Boeing has been going through it this year.

From losing a door plug on an Alaska Airlines flight, causing a side panel to blow out in midair, to an exodus of corporate executives, the company has faced a litany of crises in 2024. The company's stock has fallen about 35% this year.

In a message to employees during the company's third-quarter earnings call, Boeing CEO Kely Ortberg said the company was at a "crossroads."

"My mission here is pretty straightforward," she said. "Turn this big ship in the right direction and restore Boeing to the leadership position that we all know and want."

Here's how Boeing's year went from bad to worse.

Emergency on Alaska Airlines Flight 1282
The fuselage plug area of Alaska Airlines Flight 1282 Boeing 737-9 MAX, which was forced to make an emergency landing with a gap in the fuselage, is seen during its investigation by the National Transportation Safety Board (NTSB) in Portland, Oregon
The fuselage plug section of Alaska Airlines Flight 1282.

NTSB via Reuters

The problems began almost immediately this year when, on January 5, Alaska Airlines Flight 1282 lost a door plug midair, blowing a hole in the side of the plane. While no one died in the incident, several passengers were injured, and the pilots were forced to make an emergency landing in Portland, Oregon.

In the aftermath of the incident, the FAA temporarily grounded over 170 of Boeing's 737 Max 9 planes until they could complete safety inspections.

The Justice Department opened an investigation into Boeing shortly after, and the FBI told passengers aboard the flight that they might have been victims of a crime.

Ongoing litigation
Boeing building set against the clouds.
Shareholders filed a lawsuit against Boeing following the Alaska Airlines incident.

Richard Baker/ Getty Images

Boeing was hit with multiple lawsuits this year.

Passengers from the Alaska Airlines flight filed a class action suit against the company just days after the incident.

"Passengers were shocked and confused, thrust into a waking nightmare unsure if these were their last seconds alive," the lawsuit said.

Boeing's shareholders filed a separate class action suit against the company in January, stating that it had prioritized profit over safety, Reuters reported.

Separately, in July, Boeing struck a plea deal related to two 737 Max crashes in 2018 and 2019 that killed 346 people. If a judge had approved the deal, it would have allowed Boeing to plead guilty to conspiracy to commit fraud, avoid a trial, pay a fine of about $244 million, and invest at least $455 million in safety and compliance measures.

Boeing agreed to pay $2.5 billion in 2021 in a deal with the federal government to avoid prosecution for the crashes, but Justice Department officials said in May that Boeing had violated portions of the deal, putting a trial back on the table. Relatives of the deceased passengers asked a Texas judge in October to throw out the agreement, which they called a "sweetheart" deal. The families have previously called for the company to pay a fine amounting to nearly $25 billion.

In December, the judge rejected the deal. A lawyer representing families who lost people in the 2019 crash told BI that they "anticipate a significant renegotiation of the plea deal that incorporates terms truly commensurate with the gravity of Boeing's crimes."

FAA audit of Boeing's safety procedures
A Boeing factory
A Boeing factory based in Washington, DC.

China News Service/Getty Images

The Federal Aviation Administration commissioned a report into Boeing following the fatal 2018 and 2019 crashes β€”Β and the results published in February weren't good news for the company.

The FAA report found 27 insufficient areas in Boeing's safety procedures, including no clear system for employees to report safety concerns, confusing management structures, and poor communication with employees about safety procedures.

The latest statement from the FAA about Boeing's compliance to remedy the safety issues was published in August. It said the agency continues "actively monitoring Boeing's progress in a variety of ways," including regular reviews by FAA experts of Boeing's safety procedures and issuing airworthiness certificates for every newly produced Boeing 737 Max.β€―

The FAA itself has faced scrutiny for its oversight of Boeing. A report from the Department of Transportation's Office of the Inspector General in October found the agency's checks were insufficient.

Exodus of Boeing executives
Dave Calhoun surrounded by reporters.
Former Boeing CEO Dave Calhoun.

Anna Moneymaker/Getty Images

In March, Boeing announced a leadership shake-up.

CEO Dan Calhoun said he would step down. Stan Deal, the CEO of the company's commercial airplanes division, said he would retire. In the same announcement, board chair Larry Kellner announced his plan not to seek reelection.

Stephanie Pope, the company's COO, was promoted to replace Deal shortly after his departure. At the end of July, Kelly OrtbergΒ was named the company's new CEO.

Ted Colbert, who headed Boeing's defense, space, and security division, became the first prominent executive to leave the company after Ortberg took over. Colbert's departure was announced in September.

Stranded astronauts
smiling butch wilmore and suni williams floating laying in a white circular tunnel around a port in the space station
NASA astronauts Butch Wilmore and Suni Williams flew to space on Boeing's Starliner spacecraft.

NASA

The aerospace company faced another high-profile problem in June when NASA astronauts Butch Wilmore and Suni Williams traveled to the International Space Station on Boeing's CST-100 Starliner spaceship. It marked the first time Boeing flew astronauts to space.

The astronauts left Earth on June 5 and were supposed to return after eight days, but issues with Starliner's thrusters and helium leaks caused delays. NASA and Boeing began troubleshooting the problems to bring Wilmore and Williams back home. However, in late July, the two astronauts were still stuck at the International Space Station.

NASA's Commercial Crew Program manager, Steve Stich, said in a press briefing that month that Elon Musk's SpaceX could bring home the astronauts if needed. After working with Boeing to determine whether the two astronauts could safely return to Earth on Starliner, NASA announced in August that it chose SpaceX to do the job instead.

"Spaceflight is risky," NASA Administrator Bill Nelson said during a press conference. "Even at its safest. Even at its most routine. A test flight, by nature, is neither safe nor routine. So, the decision to keep Butch and Suni aboard the International Space Station, and bring the Boeing Starliner home un-crewed, is a result of a commitment to safety."

The decision was a major blow to Boeing, which spent $4.2 billion developing Starliner. Wilmore and Williams' flight was the final step Boeing needed to clear for NASA to certify Starliner for human spaceflight. It highlighted just how far Boeing lags behind its competitor, SpaceX.

Wilmore and Williams are now expected to return to Earth in 2025 on SpaceX's Crew Dragon spaceship, which launched for the International Space Station in September. The astronauts were initially set to return home in February, but NASA announced they would be delayed until March as SpaceX readies its spaceship.

Union strike
A worker holding up two signs that say "Machinists union on strike against Boeing."
Thousands of Boeing union members have been on strike since September 13.

Stephen Brashear/Getty Images

Thousands of unionized Boeing employees walked out in September after contract negotiations broke down.

The strike began despite a promising pay package proposal, which would have raised wages by more than 25% over the contract period for more than 32,000 employees in the Pacific Northwest.

Ultimately, union workers denied the proposal and voted to initiate a strike, which is costing the company about $50 million a day.

Negotiations stalled, with both sides filing National Labor Relations Board violations accusing the other of negotiating in bad faith.

Boeing and union leaders reached a tentative deal on October 19 that included a 35% general wage increase spread over four years and a one-time ratification bonus of $7,000.

However, striking Boeing employees rejected the deal on October 24.

"After 10 years of sacrifice, we still have ground to make up. We hope to resume negotiations promptly," the International Association of Machinists and Aerospace Workers said on X.

The 53-day strike ended in early November when workers approved a new contract.

Layoffs
Boeing employees install a cargo door on a 777 aircraft under production in June 2024.
Boeing cut 10% of its staff in October.

Jennifer Buchanan/POOL/AFP/Getty Images

Boeing began furloughs of white-collar workers in mid-September after the strike began. Select employees were required to take one week off every four weeks on a rolling basis.

Ortberg, in a staff memo, also announced that executive leadership would take a "commensurate pay reduction for the duration of the strike," though details of the pay reduction remain unclear.

Layoffs began several weeks later. In mid-October, Boeing announced plans to lay off about 10% of its 170,000-member workforce.

In a memo to employees, Ortberg said Boeing was in a "difficult position" and that "restoring our company requires tough decisions."

The company also delayed production of its 777X twin-engine jet and discontinued production of its 767 cargo plane, the memo noted.

Production delays with the Boeing 777X plane
A Boeing 777-X aircraft flies during the 2023 Dubai Airshow at Dubai World Central - Al-Maktoum International Airport in Dubai on November 13, 2023.
A Boeing 777X in flight.

GIUSEPPE CACACE/AFP via Getty Images

The experimental 777X is Boeing's newest widebody plane, banking 481 orders from more than a dozen global carriers even though regulators have not yet approved it to fly passengers.

But the aircraft has been riddled with production problems β€” like supply chain issues, design troubles, and now the ongoing strike β€”Β which have already put it five years behind schedule and set Boeing back $1.5 billion.

That hole will likely deepen with the latest entry delay to 2026, further eroding the industry's trust in Boeing's 777X program. It could also push carriers to choose Boeing's European rival Airbus and its already-in-service Airbus A350.

The aircraft is still uncertified but started certification flight testing in July. Testing was halted in August due to a problem with a key part that connects the engine to the aircraft, CNBC reported.

Production troubles with Boeing's 737 MAX aircraft
A Boeing 737 tail fin and a Boeing 737 Max winglet.
Boeing is struggling with 737 MAX production.

JULIEN DE ROSA/Getty Images

The FAA announced in January that it would not grant any production expansions of Boeing's MAX aircraft, including the 737 MAX 9, following the emergency on Alaska Airlines Flight 1282.

"The Jan. 5 Boeing 737-9 MAX incident must never happen again," the FAA said in a press release said.

FAA Administrator Mike Whitaker said Boeing would not be cleared to expand production or add additional production lines for the 737 MAX "until we are satisfied that the quality control issues uncovered during this process are resolved," according to the press release.

Boeing held a three-hour meeting with the FAA in June to address safety and quality concerns. Afterward, Whitaker spoke at a press conference, where he told a reporter that expanding production of 737 MAX planes was still up in the air.

The FAA told Business Insider, "This is about systemic change, and there's a lot of work to be done. Boeing must meet milestones, and the timing of our decisions will be driven by their ability to do so."

The agency added: "Boeing has delivered a roadmap toΒ changeΒ its safety culture, and theΒ FAAΒ will make sure Boeing implements theΒ changesΒ they have outlined. We will not approve production increases beyond the current cap until we're satisfied they've followed through on implementing corrective actions and transforming their safety culture."

Boeing restarted production of the 737 Max in December following the strike's conclusion.

Whistleblowers report problems at Boeing
Boeing Employees Renton Washington
Whistleblowers have called out Boeing in 2024.

Stephen Brashear/Getty Images

Sam Salehpour, a Boeing engineer, testified at an April Senate hearing that the company ignored his reports on safety concerns, that his boss retaliated against him, and that he received threats against his physical safety.

The Senate subcommittee investigating Boeing's safety and quality practices released a 204-page report in June. The report included accounts from several whistleblowers.

Sam Mohawk, a Boeing quality assurance inspector, said the company lost track of hundreds of bad 737 parts and instructed employees to conceal improperly stored plane parts from FAA inspectors.

Another whistleblower, Richard Cuevas, wrote in a June complaint to the FAA that holes were being incorrectly drilled on Boeing's 787 Dreamliner planes.

Money woes
Asia-aerospace-Singapore-aviation,ADVANCER by Martin Abbugao A Boeing 787 dreamliner is seen on the tarmac at the Singapore Airshow in Singapore on February 12, 2012
A Boeing 787 Dreamliner.

ROSLAN RAHMAN/AFP via Getty Images

In a sign of how Boeing's problems have hurt its bottom line, the company said in a regulatory filing to the SEC in October that it had entered a $10 billion credit agreement with four major banks: JPMorgan Chase, Goldman Sachs, Bank of America, and Citibank.

The company also filed a prospectus saying it might sell up to $25 billion in securities.

"These are two prudent steps to support the company's access to liquidity," Boeing said in a statement.

While workers were on strike, Bank of America analysts estimated that the work stoppage cost Boeing $50 million a day.

To save money, Ortberg, the company's CEO, instructed top executives to stop flying private jets and instead fly economy on commercial flights.

Read the original article on Business Insider

Airbus's A321XLR nabs another airline — and adds 2 new routes to the US. It's changing how people fly long-haul.

20 December 2024 at 04:57
Aer Lingus A321XLR.
An Airbus A321XLR.

Airbus

  • Ireland's Aer Lingus is the second airline to receive the new Airbus A321XLR.
  • The plane opens new long-haul opportunities, including Dublin to Indianapolis and Nashville.
  • Other airlines, including Iberia, United, Qantas, and American are also planning new routes.

The Airbus A321XLR is the European planemaker's latest narrow-body jet, and it's already changing how people fly long-haul.

On Thursday, Ireland's Aer Lingus became the second airline to receive the A321XLR, with Airbus delivering two of the carrier's six that are on order.

Spanish flag carrier Iberia became the plane's first operator in November.

The jet's extra-long-haul capabilities mean Aer Lingus can now operate flights deeper into the US. Two new routes are already scheduled: Flights between Dublin and Nashville will begin in April, and flights between Dublin and Indianapolis will launch in May.

Iberia and Aer Lingus are just the beginning for Airbus's new plane, which has tallied up more than 550 global orders.

American Airlines, Australian flag carrier Qantas, and Hungarian budget carrier Wizz Air all expect to receive the jet next year, followed by United Airlines in early 2026.

And all are expected to launch never-before-flown narrow-body routes across oceans and continents.

Airbus' new A321XLR jet is set to open new route options

The A321XLR is uniquely equipped for long-haul flying, thanks to an extra rear center fuel tank that helps the narrow-body aircraft fly up to 5,400 miles, or 11 hours, nonstop.

That's about 800 miles farther than its Airbus A321LR predecessor. That opens new routes to places previously unreachable with older narrowbodies β€” or that were unprofitable with a widebody.

Iberia plans to begin a new service using the A321XLR between Madrid and Washington Dulles on January 15. Wizz Air also plans to launch A321XLR routes between London and Saudi Arabia and Milan and Abu Dhabi in 2025.

Iberia A321XLR on the ramp in Boston.
The A321XLR boasts a 30% reduced fuel burn compared with competing previous-generation aircraft.

Taylor Rains/Business Insider

In March, American Airlines' managing director of global network planning, Jason Reisinger, said the A321XLR was desirable because it would let the airline serve "routes that cannot support a 787 but where we still have a nice onboard product."

American has since said it plans to launch the A321XLRs on transcontinental routes now served by its A321T.

And the airline's senior vice president of network planning, Brian Znotins, told The Points Guy in November that it plans to also fly its A321XLR fleet to Europe and possibly South America.

Qantas plans to use the A321XLR to fly farther into Asia and the Pacific.

Potential A321XLR routes for Qantas.
Potential A321XLR routes for Qantas. The airline has not made any official route announcements.

Qantas

United Airlines previously told Business Insider that the A321XLR would replace its aging Boeing 757s and open new routes to places like Northern Italy and West Africa.

Icelandair is also using the A321XLR to replace the 757 and fly farther into North America and Europe from 2029. Boeing never built another version of the popular narrow-body, which ceased production in 2004.

The A321XLR will have varying cabin experiences

Customers can expect varying cabin experiences on board these new versatile single-aisle planes.

Iberia offers lie-flat business class on its A321XLRs, which is typical of what customers find on long-haul widebody flights.

Iberia's A321XLR.
Iberia's A321XLR has no sliding doors in business class.

Taylor Rains/Business Insider

Aer Lingus will also have lie-flat business class seats similar to what it already flies on its A321LRs, but some rows won't have direct aisle access.

American plans to install its new Flagship suites on its A321XLRs, while United is also planning a lie-flat business cabin. Qantas will have large reclining loungers in business class.

Wizz will have the least posh cabin. Its no-frills A321XLRs will have cramped seats, no in-flight entertainment, and no freebies like snacks and water.

Its CEO said the experience is something passengers will have to "suffer" through for seven hours for the cheap ticket.

Read the original article on Business Insider

FAA bans drone flights in much of New Jersey

19 December 2024 at 08:59
A United Airlines plane lands at Newark Liberty International Airport in front of the New York skyline on September 17, 2023 in Newark, New Jersey.
United Airlines planes at Newark Liberty International Airport.

Justin Sullivan/Getty Images

  • The FAA banned drone flights across wide swaths of New Jersey.
  • Thousands of reports of drone sightings have sparked concerns among residents and local officials.
  • Federal officials have repeatedly said most of the sightings were crewed aircraft operating legally.

The Federal Aviation Administration has temporarily banned drones from flying over most of New Jersey.

The restrictions, which are in effect until January 17, affect more than 22 communities across the Garden State and prevent drones from flying within 1 nautical mile of the restricted areas.

"At the request of federal security partners, the FAA published 22 Temporary Flight Restrictions (TFRs) prohibiting drone flights over critical New Jersey infrastructure," the agency told Business Insider.

The news comes after thousands of reports of "mystery drones" over the US East Coast for the past month have sparked concern from locals and lawmakers.

Officials have repeatedly said most of the drone sightings are lawfully operated crewed aircraft.

Incidents of lasers being pointed at aircraft have also increased. The FAA said the number of lasers pointed at planes over New Jersey increased 269% in December compared with the same month last year.

"Misidentification often occurs when UAS are mistaken for more familiar objects such as manned aircraft, low-orbit satellites, or celestial bodies like planets or stars," the FBI said Monday in a statement, referring to unmanned aircraft systems.

There are over 1 million legally registered drones in the US. Federal regulations already prohibit drones from operating too close to an airport or flying higher than 400 feet without authorization.

Read the original article on Business Insider

Boeing secured a new customer for its most important plane as it finally restarts production

19 December 2024 at 08:46
A China Airlines Boeing 777-300ER.
China Airlines ordered the delayed 777X in a deal worth nearly $7.4 billion to Boeing at list prices.

AaronP/Bauer-Griffin/GC Images

  • China Airlines ordered nearly $12 billion worth of Boeing and Airbus widebody aircraft.
  • The deal is worth about $7.4 billion to Boeing, with China Airlines as its newest 777X customer.
  • Boeing is still trying to certify the now at least six year delayed 777X.

Boeing has added another customer to its 777X backlog as the planemaker continues to work toward certification of the long-delayed widebody.

Taiwanese carrier China Airlines announced a nearly $12 billion order for 10 Boeing 777Xs, 10 Airbus A350-1000s, and four 777X freighters on Friday.

This is the first order Boeing has secured for the 777X since Korean Air and Qatar Airways announced deals for the jet in July.

According to a filing, the order is worth about $7.4 billion to Boeing at list prices and is likely a sign of relief for the struggling planemaker and its delayed 777X β€” a setback that has already put Boeing at least $1 billion in the hole.

The yet-to-be-certified 777X, which will come in two passenger variants, was already five years behind schedule when a labor strike halted production for over seven weeks this fall and further pushed the timeline back to at least 2026.

Quality control and 777X design issues haven't helped. Boeing finally restarted production of its 767 and 777 models on Wednesday.

The 777X is designed as a more fuel-efficient replacement for the classic 777. Thanks to its longer wings, more powerful engines, and revolutionary folding wingtips, the 777-9 variant China Airlines bought is designed to fly up to 426 people across nearly 8,400 miles.

Along with the 787 Dreamliner, the potentially lucrative 777X is key to Boeing's reputational and financial recovery.

However, the 777X's delays have forced airlines to fly older jets for longer. It has also opened the door for Airbus to sell its readily available rival A350.

"Emirates has had to make significant and highly expensive amendments to our fleet programs as a result of Boeing's multiple contractual shortfalls," Emirates president Tim Clark told Business Insider in October after the latest 777X delay.

Emirates received its first A350 in November. It was initially supposed to follow the 777X but will now lead the airline's long-haul expansion.

China Airlines joins a dozen other global buyers, like Emirates, Qatar Airways, and British Airways. No US airline has ordered the 777X because its size and range don't fit into the business models.

Data from the manufacturers shows about 1,350 global orders for the A350 and about 500 for the 777X.

Read the original article on Business Insider

Frontier's all-you-can-fly pass is on sale again. I tested it out and found the spontaneity isn't for everyone.

17 December 2024 at 14:06
A selfie of the author on a Frontier flight with pink headphones and a black sweatshirt on.
I think GoWild is a fun concept and worth the money if you have the flexibility and spontaneity to use it.

Taylor Rains/Business Insider

  • Frontier Airlines' annual all-you-can-fly flight pass called "GoWild!" costs $299 through Wednesday.
  • I bought the seasonal subscription in 2023 and used it to crisscross the US.
  • While it has limitations, I think GoWild is good for flexible travelers with a spontaneous spirit.

Frontier Airlines' all-you-can-fly pass is an interesting concept that comes with a major catch.

Called "GoWild!," the subscription-based program gives members exclusive access to heavily discounted flights β€” $0.01, plus taxes and fees.

On Tuesday, Frontier announced the annual pass option for just $299, valid for travel between May 1, 2025, and April 30, 2026. This is GoWild's lowest price yet, which goes up to $499 after December 18.

Frontier also sells seasonal and monthly passes. Be aware that GoWild will automatically renew unless you cancel.

Bookings can be made the day before for domestic flights or up to 10 days in advance for international flights, with the option to pay an early booking fee for dates beyond that.

Luggage, reserved seats, snacks, and drinks still cost extra. New this year is the ability to earn Frontier Miles when booking seats and bags with a GoWild ticket.

Hypothetically, GoWild means one could wake up one morning and, on a whim, go hop across Frontier's route map for as low as $15 per leg with just a personal item.

It sounds too good to be true, so I decided to test it out using Frontier's $299 unlimited fall and winter pass in 2023.

I visited three cities over five days, spending $60 total on last-minute flights. There were early mornings and late nights, some moments of uncertainty, and hours of flying on Frontier's uncomfortable planes.

After using the pass, I found that GoWild can be extremely frustrating to use if you aren't flexible or willing to get creative. But for others, it may be a golden ticket.

Over 4,000 miles in five days for $60

Frontier's GoWild pass offers unlimited flights across its entire network, which touches the US, Mexico, and the Caribbean.

I started my 2023 trip in Austin after a friend's wedding. Then, I flew to Las Vegas and Orlando. I took the Brightline train to Miami to catch a flight to Philadelphia, where I then headed home to Connecticut via Amtrak.

Boarding the gate at Las Vegas airport with screens that say the destination is Orlando.
I was happy to see old friends I hadn't seen in a while during my GoWild adventure.

Taylor Rains/Business Insider

Thanks to the early booking option, I booked my first leg to Vegas about a week in advance to ensure I'd at least get out of Texas. It was an extra fee, but it was worth the peace of mind.

The other two legs were booked at the lowest rate, so I paid $15 to Orlando and Philadelphia and $30 to Vegas for a total of $60 on three flights. Without the pass, the flights would have cost about $260.

I personally enjoyed piecing together the trip and having various options to work with, but I also loved that I could potentially switch up plans on a whim.

But I realized the too-good-to-be-true pass has a few pain points that make it only really useful for certain lifestyles.

The "unlimited" flight pass has its limitations

One of the biggest concerns about GoWild is actually getting anywhere at all.

Not only are there blackout dates, but it's not uncommon for Frontier to have nonstop flights listed but no GoWild seats available for purchase.

A screenshot of the GoWild flights from Hartford to Orlando.
This screenshot taken on Thursday, October 26, 2023, shows the Frontier nonstop from Hartford to Orlando on Friday, October 27, was full. The same was true for LaGuardia.

Frontier Airlines

This could force people to ditch paradise destinations like Cancun for a completely different city in a random place, like Ohama, for example. Not that a spontaneous trip to Nebraska can't be fun, but it's not the beach getaway one may have expected.

Plus, last-minute GoWild seats to the Caribbean are difficult to snag, as a Wall Street Journal reporter who tested the pass in June 2023 found.

Travelers also have to consider last-minute hotels and activities may be more expensive or sold out.

Frontier doesn't have the best flight schedule

I didn't have many options for leaving Austin except a 10 p.m. flight to Las Vegas. I wasn't thrilled about the late departure, but that's part of the experience.

After a full day of touring around Las Vegas, I was hoping to sleep in the next morning and then take a red-eye flight to Florida that night.

Top down view of the author in the seat with beats headphones and laptop in seatback pocket.
My randomly assigned seat ended up being the last row in the back corner of the Frontier A321neo jet. It was cramped and didn't have a window.

Taylor Rains/Business Insider

Surprisingly, on the one day that I wanted to fly to Orlando, Frontier had only a 6:15 a.m. flight β€” nothing later. I sucked it up and trudged through another sleepless night after leaving Vegas' famous Sphere at 11:30 p.m.

After a full day exploring Miami with a friend, I switched my next day's Philadelphia flight from 6:10 a.m. to 1:11 p.m. to get more sleep.

There was no cancellation fee, but I also lost a day of exploring Philadelphia.

I restricted myself to a personal item

Because I was trying to book the cheapest GoWild flights possible, I forwent a carry-on bag, which cost over $60 for each leg.

I brought a regular-sized backpack with a laptop pocket in the back. I packed it so that nothing bulged out, and it fit perfectly inside Frontier's size checker.

My backpack fit perfectly inside the personal item size checker.
Personal items on Frontier must be 8Γ—18Γ—14 or smaller.

Taylor Rains/Business Insider

I'll admit that I had to pack and repack several times, and I had to ditch a lot of outfits that I wanted to bring with me.

Bringing only a personal item ended up being extremely challenging, so I recommend just paying for the carry-on if you think you'll need it.

If you do opt for the free option, be warned: an agent visually checked every personal item during boarding during all three flights.

They forced those that looked too big into the size box and charged extra for the bags that didn't fit β€” likely part of Frontier's controversial bag incentive program.

Finding GoWild seats is a lot of tedious guess-and-check

The process of searching and booking GoWild seats is a cumbersome task. The flights can only be bought on Frontier's website, not its app, and customers have to check each one by one.

A view of the Frontier's A321neo cabin facing forward.
GoWild has the drawback of being on cramped Frontier planes.

Taylor Rains/Business Insider

Fortunately, some computer-savvy individuals independent of Frontier launched "The 1491 Club," which has a monthly fee but lists every single GoWild seat available.

It saved me a lot of effort when trying to Tetris together my GoWild itinerary.

Getting home proved tricky once I realized that using Frontier isn't ideal for those of us living in no-man's land Connecticut.

When I bought the pass, I initially planned to use Stewart International Airport in New York, 40 minutes away, but Frontier has sadly since shut down operations there.

I ended up taking a two-hour Amtrak home from Philadelphia for $40 and Ubering home from the station.

A man in a green jacket sitting on the Amtrak.
The Amtrak was a lot more comfortable than Frontier's slim and hard seats.

Taylor Rains/Business Insider

I could save time by driving to a New York City airport, but then I'd be locked into returning to the same airport, which would make using GoWild even tougher.

My advice is that if you don't live near a Frontier hub or focus city, GoWild will be nearly impossible to use unless you're willing to add drive time, parking fees, rideshare trips, or train fares.

GoWild is most realistic for those with remote or flexible jobs

Despite the less-than-favorable flight times, I managed to check off my list of cities to hit and things to do.

While I had a good experience, there are still a lot of limitations to the "unlimited" flight pass, and the costs can add up.

Personal items that bulge just a little too much may be subject to Frontier's hefty carry-on fee. You also have to pay extra for more luggage or legroom.

There's also no guarantee you'll get to your desired destination until the day before unless you fork out even more money for an early booking fee. This uncertainty can be stressful.

But for those who love to travel on a whim, the concept of not knowing your next move could be a dream adventure.

The views over Miami beach right after takeoff.
Frontier's GoWild is best for people with a job that allows for spontaneous travel.

Taylor Rains/Business Insider

Spontaneous digital nomads or freelancers would likely get the most out of the pass. I have a remote job, so I could make it work.

I'm sure there are a lot of people who could make weekend getaways via GoWild work, too. But it'd come with risks like getting stuck somewhere and missing work β€” at that point, I don't think it'd be worth the hassle.

Read the original article on Business Insider

Is that a drone or an airplane? How to check what's flying overhead.

16 December 2024 at 13:05
A united plane taking off from LaGuardia.
The mystery object flying overhead might be an airplane, not a mystery drone. In New Jersey's case, many airplanes pass overhead on their journeys to and from the New York City region.

Nicolas Economou/NurPhoto via Getty Images

  • Mysterious drones over the US East Coast have sparked concern and skepticism among locals.
  • Officials said many of the reported sightings are "actually manned aircraft, operating lawfully."
  • You can use websites like FlightRadar24 and ADS-B Exchange to check some of the aircraft overhead.

Mysterious drones flying over the US East Coast have sparked concern and skepticism among locals and government representatives.

Officials from the Federal Bureau of Investigation and the Department of Homeland Security told reporters over the weekend that they were still investigating the events but had no evidence the aircraft posed a threat to the public or was connected to a foreign adversary.

A mystery drone seen at night over New York on December 12.
A mystery drone seen at night over New York on December 12.

Grant Parpan/Newsday RM via Getty Images

The uncertainty and contradictions, plus a social media rumor mill, have prompted some people to point to every moving object in the sky as a possible drone sighting.

But not everything flying overhead is an anomaly. National security officials have repeatedly stressed that many of the reported drone sightings are "actually manned aircraft, operating lawfully."

This points to commercial, military, or general aviation aircraft, and there are free, public ways to check for yourself.

Many airplanes can be spotted using FAA data

The Federal Aviation Administration handles 45,000 flights every day, with some 5,400 commercial planes flying in the sky at once during peak travel times.

Most commercial planes can be tracked via free websites like FlightAware and Flightradar24 because they use FAA data. With these tools, you can confidently say the Boeing and Airbus planes that take off from the highly congested New York City airports every day aren't more mystery drones.

For example, on the FlightAware or Flightradar24 website or app, you can search for New Jersey's Newark Liberty International Airport, airport code "EWR," to see all of the planes overhead.

The websites also provide data like aircraft type, location, speed, altitude, and operator.

A screenshot showing Flightradar24 data of an American flight that took off from Newark on Monday.
A screenshot showing Flightradar24 data of an American Airlines flight that took off from Newark on Monday.

Flightradar24

You can also spot a commercial plane based on where it's flying, as airliners use specific flight paths when heading into and out of NYC.

A large number of them fly along the New Jersey coast, so if you see low-altitude flashing lights in the night sky heading northbound, for example, it's quite likely a passenger airplane landing.

Flight paths can differ depending on the route and winds, but flight-tracking websites can give you the best idea of what's flying overhead.

Federal regulations prevent commercial and recreational drones from operating too close to an airport or flying higher than 400 feet unless authorized.

The FAA will sometimes provide waivers, but its unlikely an aircraft operating within these parameters is a drone. In some cases, drone activity has forced a handful of airports, including an air force base, to close entirely for short periods of time.

Some hidden aircraft can be tracked via ADS-B Exchange

Using flight paths and tracking websites doesn't eliminate all of the potential aircraft that could be flying overhead β€” it simply identifies an aircraft as an airliner.

However, people can use a free website called ADS-B Exchange to filter for military and private aircraft that are blocked from websites that use FAA data.

A screenshot of ADS-B Exchange LADD and PIA aircraft flying over the US.
A screenshot of the ADS-B Exchange website showing aircraft using FAA programs to block their data from FlightAware and Flightradar24.

ADS-B Exchange

These operators use specific federal programs called "LADD" and "PIA" to avoid flight tracking because they don't want their location data easily available to the public. Elon Musk and Taylor Swift are famous examples.

Still, military aircraft, including drones, can turn off their ADS-B software to maintain stealth or secrecy, meaning they can't be seen using free and public websites. Drones with sinister motives β€” the kinds officials have said they aren't concerned about with these sightings β€” assumably also would not use public transponders.

Many general aviation aircraft used for personal use β€” some of which are smaller, fly much slower, and could be mistaken for a drone or unidentified aircraft β€” are also not equipped with ADS-B and could be another unidentifiable object in the night sky.

Drones are quieter, with similar but different lighting

Nearly 800,000 commercial and recreational drones are registered with the FAA. There are a few easy ways to visually distinguish a drone from an airplane.

Most drones and airplanes both have four lights β€” though lighting on a drone will usually be in a square pattern, while an airplane has lights on both wings, the nose, and the tail.

The aircraft lights on a Frontier Airbus aircraft.
The aircraft lights on a Frontier Airbus aircraft flying at night.

Nicolas Economou/NurPhoto via Getty Images

Most drones will also have red or white anti-collision lights for use at night, though many will be red and green for easier operation. The wing lights on airplanes are also red and green.

Observers can use sound and movement as indicators if lighting doesn't help identify an airplane.

Drones commonly hover or whip quickly in different directions, which are not characteristics of airplanes. Drones also usually emit a buzz or hum noise from their rotors, while passenger aircraft engines have a distinctively louder sound.

Former FBI supervisory special agent Tom Adams told CNN on Friday that some of these reported drones could be people flying their own drones to hype up coverage. He added the sightings may have a simple answer.

"I can tell you from my firsthand experience conducting operations for the FBI, as well as investigations into the suspected sighting of drones at critical infrastructure, it was fairly common for planets, crewed aircraft, and even low Earth orbit satellites to be misidentified as drones at night," Adams said.

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See how a budget, no-frills Airbus jet that flyers will 'suffer' through compares to the same plane flown by a major airline

15 December 2024 at 02:57
Wizz Air Airbus A321neo β€” Dubai Airshow Trip 2021
A Wizz Air Airbus A321neo.

Thomas Pallini/Insider

  • The Airbus A321XLR is revolutionizing long-haul travel with its 11-hour range.
  • The versatile jet can reach far-away places and fit into mainline and budget business models.
  • Launch customer Iberia and soon-to-be A321XLR operator Wizz Air have very different cabin approaches.

The Airbus A321XLR is the European manufacturer's latest long-haul, narrow-body plane.

With its 11-hour range and smaller size, the jet is set to revolutionize how people travel.

Airlines can now more easily fly to lower-demand markets previously unprofitable with a widebody or to far-away places previously unreachable with other single-aisle planes.

The A321XLR first entered service with Spanish flag carrier Iberia in November. The airline flew seven hours from Madrid to Boston, equipping the plane with lie-flat business class and economy.

With 550 orders, the plane has garnered interest from both mainline and budget carriers β€” but not all experiences will be equal.

European budget carrier Wizz Air is not far behind Iberia, with its first A321XLR expected to trek seven hours from London to Jeddah, Saudi Arabia, starting in March β€” but it won't be close to high-end.

The two carrier's plans for their new planes showcase the model's versatility.

Iberia will offer business class.
The first row of Iberia's A321XLR business class.
Iberia's A312XLR has 182 seats: 14 in business and 168 in economy.

Taylor Rains/Business Insider

Iberia wanted to provide luxury onboard its long-haul A321XLR with business class. It's similar to JetBlue Airways' Mint cabin but without popular sliding doors.

The high-dollar cabin, which can cost $5,000 or more roundtrip, comes with a large Bluetooth-capable television, linens, hot meals, alcohol, and a lie-flat recliner.

Other A321XLR buyers, including United Airlines and American Airlines, also plan to offer lie-flat business class to target premium travelers. American's will have a door.

Economy will offer decent space and amenities.
The economy cabin with grey seats and a red headrest on Iberia's A321XLR.
Iberia sports a standard mainline economy cabin.

Taylor Rains/Business Insider

Iberia's economy cabin has comforts like an adjustable headrest, deep recline, a Bluetooth-capable screen, charging ports, extra storage slots in the seatback pocket, and 30-31 inches of seat pitch.

The legroom is on par with other mainline carriers, but taller travelers can choose a bulkhead or exit row with 40 inches of pitch.

Iberia's Bluetooth feature is rare on airlines and it allows Iberia flyers to connect their own wireless headphones to the screen.

Hot meals and linens are included on Iberia.
The exit row on Iberia A321XLR with extra legroom.
The extra legroom seats in the exit row.

Taylor Rains/Business Insider

Iberia offers what is typical on a mainline, long-haul flight. This means travelers will get linens and hot meals included in their fare.

The airline also offers free messaging via WiFi, with internet browsing and streaming available for a fee.

Wizz's A321XLR approach is very different.
Wizz Air Airbus A321neo β€” Dubai Airshow Trip 2021
Wizz will only offer economy on its Airbus A321XLRs.

Thomas Pallini/Business Insider

Wizz is a low-cost carrier that built its business on offering cheap fares at the expense of onboard comforts β€” and the airline continues to push the limits of flyer tolerance.

"Fifteen, 20 years ago, I thought three hours would test passenger tolerance, and then we pushed it to six hours, and we are still fine," Wizz CEO JΓ³zsef VΓ‘radi said during a September press conference in London. "You kind of suffer the pain, if you wish, for the economic benefits that you are deriving from the transaction."

Iberia's A321XLR has 182 seats. Wizz's will cram in 239.

The all-economy cabin will offer minimal space.
Wizz Air Airbus A321neo β€” Dubai Airshow Trip 2021
The airline offers a few rows of extra legroom seats for a fee. Customers can also pay extra for the front row for quicker boarding and deplaning.

Thomas Pallini/Business Insider

Wizz said its A321XLR cabin will resemble that of its A321neo, which already flies across Europe, Africa, Asia, and the Middle East.

The plane doesn't come with business class seats or Iberia's amenity-heavy economy cabin. Instead, travelers can expect slim, cramped coach seats with no headrest, no television, and a tiny tray table.

The seat pitch is only 28 inches, and there is no recline. It'd be like flying on Spirit or Frontier, but for seven hours.

The cramped, all-economy cabin will be cheap, but it's an experience Wizz's CEO described as something customers must "suffer" through to save money.

Not even water is free.
A food menu with soups, risotto, and pasta.
Business Insider's Pete Syme flew on Wizz April.

Pete Syme/Business Insider

Like its ultra-low-cost counterparts in the US, Wizz flights come with nothing included, except a personal item. This means any food or drinks β€” including water β€” costs extra.

"When you take a legacy carrier and you get a coffee for free, that is probably the most expensive cappuccino in your life," Varadi said. "We don't want to do that."

According to Wizz's online menus, food bundles start at Β£11.50, or about $12, and include a sandwich, drink, and snack. Soups start at Β£3.70, while a water bottle costs Β£3.20. Alcohol, chips, and coffee, among other items, are also on sale.

Don't expect any internet or entertainment.
Wizz Air Airbus A321neo β€” Dubai Airshow Trip 2021
Flyers can use the small tray table to prop their phone or tablet.

Thomas Pallini/Business Insider

Wizz keeps its fares low because it does not carry the extra weight many mainline carriers do, like seatback screens or WiFi. Flyers can pre-download content to a phone or tablet to watch during the flight.

"If you want to have more fun, you have to create the fun for yourself," VΓ‘radi told Bloomberg in September. "It's not going to be us who create it."

Some Wizz planes have a messaging platform, but it doesn't connect to the internet. It's uncertain if this will be on the A321XLRs.

Bags cost extra and unprepared flyers risk other fees.
The check-in and bag measuring stands for Wizz Air.
The bag prices can vary depending on route, weight, and when they're purchased.

Pete Syme/Business Insider

Wizz flyers who want a carry-on or checked bag must pay extra. For the London to Jeddah flight in April, a 10-kilogram checked bag costs Β£95, or $120, and a carry-on costs Β£66, or $83, roundtrip at the time of booking.

The bags must also meet specific size and weight requirements or flyers risk even more fees at the airport.

Another fee is for assigned seats, which cost between Β£18 and Β£42 on the same flight. Flyers also need to check in online at least three hours before the flight or pay Β£40 at the airport per ticket.

Wizz customers willing to 'suffer' can save hundreds of dollars.
A first-person perspective from a World Traveller economy window seat on a British Airways Boeing 787 Dreamliner
The economy seat on British Airways' Boeing 787 it flies between London and Jeddah.

Pete Syme/Business Insider

Major airlines British Airways and Saudia are the only other carriers that fly nonstop between London and Jeddah.

According to Google Flights, Wizz's basic fare is regularly a few hundred dollars cheaper than both mainline options.

That's without any add-ons like bags and seats, so customers should be sure to do the math for all options before booking.

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JetBlue will fly to Spain for the first time. See how its Airbus A321neo compares to the country's flag carrier Iberia.

12 December 2024 at 12:32
A JetBlue A321neo on the tarmac in Amsterdam.
JetBlue just expanded its international network and will go toe-to-toe with Spanish carrier Iberia to Madrid.

Nicolas Economou/NurPhoto via Getty Images

  • JetBlue will launch new international flights from Boston to Edinburgh and Madrid in May 2025.
  • The new routes are part of a major network restructuring to boost revenue.
  • JetBlue will compete with Iberia on the Madrid route, with both using A321neo family jets.

JetBlue Airways is redrawing its route network β€” and there is some good news for Europe-bound flyers.

JetBlue announced plans to launch two new transatlantic flights from Boston to Edinburgh and Madrid in May 2025. It will be the airline's first flight to Spain β€” bringing its total European destinations to five.

The struggling carrier will compete with just one airline to Madrid: Spanish flag carrier Iberia. Both will fly an Airbus A321neo family jet on the route, meaning travelers can expect a smaller plane across the Atlantic.

The new routes are part of a larger restructuring plan to bolster revenue. JetBlue has not turned a profit since 2019, largely due to high costs and failed deals with American Airlines and Spirit Airlines that hampered its expansion.

The airline announced over 50 route cuts in 2024 and ended service to 15 underperforming airports. It's nowΒ refocusingΒ on the Northeast US and Florida, with additional flights to Europe and the Caribbean.

It's also deploying high-dollar Mint-business-class equipped planes to more high-demand markets, including the new Spain route.

Here's how JetBlue and Iberia's business and coach cabins compare on the seven-hour trek to Madrid.

JetBlue has more premium seating on its Airbus A321neos.
Mint business class onboard JetBlue Airways' new Airbus A321neoLR β€” JetBlue Airways Airbus A321neoLR Tour
According to JetBlue's website, it flies both Mint-equipped A321neo variants across the Atlantic, but most use the A321LR.

Thomas Pallini/Business Insider

JetBlue flies its A321neo and A321LR variants across the Atlantic, the latter is a lower-ranged predecessor to Iberia's A321XLR and is more premium-heavy. They host 160 and 114 seats, respectively.

Each is equipped with lie-flat Mint seats, front-row Studios, and extra-legroom economy seats β€” the remaining are regular coach seats. Half of the A321LR cabin is premium seating.

Iberia has a higher-capacity A321XLR with 182 seats: 14 in business class and 168 in economy.

Iberia's smaller business class doesn't have doors.
The Iberia business class cabin.
Iberia is launching its second A321XLR flight to Washington, DC, in January.

Taylor Rains/Business Insider

JetBlue and Iberia chose the same seatmaker for their A321neo business class cabins, but Iberia did not install a sliding door. Mint has doors.

This goes against an industry-wide trend, with many global carriers, such as Korean Air, Air India, and Turkish Airlines, adding the popular feature.

Business Insider toured Iberia's A321XLR business class in November and found the angled seats and large wings offered more than enough privacy. Iberia likely wanted to save on costly weight and best optimize the cabin's already limited space.

The Spanish carrier also lacks a designated 'Studio.'
JetBlue Airways Airbus A321neo
JetBlue Airways' A321LR Mint Studio.

Thomas Pallini/Business Insider

To cater to more business travelers, JetBlue installed a front-row "Mint Studio" on its A321neos, complete with a companion seat and extra storage. The seat is an upcharge.

Iberia did not include the extra-revenue option, meaning travelers have less choice in business class.

You'll otherwise get the usual business-class perks on both.
JetBlue and Iberia business class collage.
JetBlue (left) and Iberia (right). Both business class cabins are in a 1Γ—1 layout with direct aisle access.

Taylor Rains, Thomas Pallini/Business Insider

Because the seats are otherwise exactly the same design, travelers can expect similar comforts. This includes a lie-flat recliner, storage, and an inflight television. Both also include meals, linens, and an amenity kit.

Iberia's 18.5-inch screen is bigger than JetBlue's 17-inch one in regular Mint, though the Mint Studio hosts the largest overall at 22 inches.

However, JetBlue does not offer Bluetooth connectivity. Customers on Iberia can connect their own wireless headphones to the business-class screens β€” and that goes for the economy cabin, too.

Both have nice economy cabins.
JetBlue and Iberia's coach collage.
The JetBlue (left) and Iberia (right) seat designs are different, but they offer largely the same perks.

Taylor Rains, Thomas Pallini/Business Insider

The 3Γ—3 economy cabins offer adjustable headrests, an inflight screen, extra storage slots in the seatback pocket, and linens.

JetBlue's 10.1-inch screen is smaller than Iberia's 12-inch Bluetooth one, but JetBlue travelers can connect their phone as a remote. JetBlue also offers free WiFi, while Iberia's is only free for messaging.

Iberia's seats recline up to four inches, while JetBlue's recline three inches. Thanks to Airbus' wider narrowbody cabin design, both coach options offer 18 inches of width.

Iberia has less legroom and fewer extra space seats in coach.
JetBlue and Iberia economy cabin collage showing legroom and extra legroom seats.
JetBlue (left) and Iberia's (right) regular legroom and extra legroom seats.

Taylor Rains, Thomas Pallini/Business Insider

JetBlue has several rows of "Even More Space" seats to target flyers willing to pay extra for more legroom. The US carrier also offers an industry-leading 32 inches of legroom β€” beating out rivals like Delta and United.

Iberia's 40-inch-pitch extra legroom seats are only in the bulkhead and exit rows, meaning taller travelers have limited options for more space. The legroom is 30-31 inches, putting Iberia on par with US mainlines.

Avoid certain rows if you want a window.
Economy class onboard JetBlue Airways' new Airbus A321neoLR β€” JetBlue Airways Airbus A321neoLR Tour
One of the misaligned windows on JetBlue.

Thomas Pallini/Business Insider

Iberia does not have a window in row 39. The windows in rows 22 and 23 on JetBlue's A321LR and rows 23 and 24 on its A321neos are missing or misaligned.

If you pay extra for a window seat with hopes of a view, it's best to avoid these rows.

JetBlue doesn't offer hot meals in economy anymore.
Flying JetBlue Airways from New York to London β€” JetBlue Airways London Inaugural Flight
One of the hot meals JetBlue used to serve on its flights. Don't expect this grandeur anymore.

Thomas Pallini/Business Insider

In October, JetBlue stopped serving hot meals in economy on transatlantic flights in an effort to cut costs. Cold meals are now served, like a crepe for breakfast, a chicken grain bowl for lunch, or a pesto pasta salad for dinner.

Still, the meals come included in the fare β€” something that distinguishes JetBlue from other low-cost options like Norse Atlantic Airways where food costs extra.

Iberia customers can expect hot meals in coach, which is in line with what mainline carriers offer across the Atlantic.

Don't miss the hidden lavatory on Iberia.
The lavatory at the aft of Iberia's A321XLR covered by a grey flight attendant jumpseat.
One of Iberia's three aft lavatories is hidden behind a flight attendant jumpseat.

Taylor Rains/Business Insider

Coach travelers on Iberia share three lavatories in the aft cabin, but the high-capacity cabin means the queue can get long and crowded β€” especially if the third one is overlooked, as can be the case.

It's located behind the flight attendant jump seat.

The A321neo narrowbodies offer convenience that widebodies don't.
JetBlue Airways Airbus A321neo
JetBlue Airways' first Airbus A321neoLR.

Thomas Pallini/Insider

Airbus' new long-ranged jets are changing the way people fly to Europe. Some people may worry about the smaller plane, but it has its benefits.

The tinier cabin may be cozier, plus deplaning and boarding are much quicker thanks to fewer people β€” and may be a saving grace during tight layovers.

Read the original article on Business Insider

I've flown on the Airbus jet Alaska will fly to Tokyo. It was a comfortable ride and I'm excited about the airline's new long-haul flights.

10 December 2024 at 14:21
Alaska Hawaiian
Alaska is banking on Hawaiian's widebody planes to expand into Asia.

Tayfun Coskun/Anadolu Agency via Getty Images

  • Alaska Airlines' merger with Hawaiian Airlines gives it access to long-haul Airbus and Boeing planes.
  • The airline is pressuring mainline competition in Seattle with new nonstops to Asia in 2025.
  • Japan's tourism boom makes it a strategic destination and I'm excited about the expansion.

Fresh off a $1.9 merger with Hawaiian Airlines, Alaska Airlines has big plans for using its new widebody planes with new routes to Asia.

The airline announced Tuesday plans to fly former Hawaiian Airbus A330 planes to Tokyo and Seoul from Seattle in 2025, utilizing operations infrastructure already in place under the newly acquired airline.

Seattle is a huge hub for Alaska, where it holds 55% of the domestic market β€” but its prior lack of overseas reach makes the Asia expansion a no-brainer.

Alaska chief commercial officer Andrew Harrison told The Points Guy that demand is stronger from Seattle than from Honolulu, where Hawaiian previously served Tokyo. Alaska can also take advantage of strong cargo and corporate demand from Seattle.

Leaving Seattle will also mean shorter flight times than from cities like San Francisco and Los Angeles, where United Airlines and American Airlines operate.

The blue pair of seats on Hawaiian.
The author's economy seats on Hawaiian Airlines' A330 in November 2023.

Taylor Rains/Business Insider

The expansion will also put pressure on competing Delta Air Lines, which already flies nonstop from Seattle to both cities.

Delta has been investing in its Seattle hub for years as it tries to take advantage of the city's West Coast location and poach business.

But Alaska's new routes, which Harrison said will grow to 12 by 2030, are likely to maintain and grow Seattle locals' loyalty to Alaska β€” and those across the country who need more one-stop options to Asia.

Alaska's incoming A330s are nice but lack premium economy

I'm thrilled about Alaska's international expansion.

Seattle may be far from my local New York airports, but flyers now have more choice across the Pacific β€” and likely beyond, depending on where Alaska's next 10 routes will lead.

Alaska said the merger wouldn't lead to immediate changes on board Hawaiian's aircraft, meaning the A330 I flew on in economy to Honolulu in November 2023 will offer a similar experience to those flying to Japan in 2025.

Seat 42H viewed from the window seat.
The screens do not flip up when the seat is reclined, impacting the viewing angle.

Taylor Rains/Business Insider

In my experience, the coach seats were well-padded, offered enough legroom for my five-foot-three-inch self, and had an adjustable headrest β€” a must for me to sleep in economy.

I also appreciated the rows were fit with only two seats on the sides closest to the windows. There were four in the middle sections.

My only gripe was the deep recline. While I loved the comfort it offered, it meant every passenger had to recline, or the person in front would cut into your space if you were sitting upright.

If you're inclined to rest or sleep, it's great. But if you want to sit more upright to watch a movie, expect to feel a little cramped and have a slightly annoying viewing angle to the screen.

A top-down view of the author's legroom with her REI backpack under the seat in front.
The legroom on Hawaiian's A330 was enough for my husband and I. The seatback pockets don't have extra slots for better organization, though.

Taylor Rains/Business Insider

The planes do not offer premium economy, but Harrison said the aircraft would be retrofitted to add the popular cabin in the coming years.

Delta may earn business in the meantime thanks to having premium economy already installed on its A330-900neos flying from Seattle to Tokyo.

Alaska's Asia-bound planes could also change once Alaska gets more of Hawaiian's undelivered Boeing 787 aircraft.

Business class on these planes represents a significant upgrade to that of the A330s, which don't offer the same privacy or direct-aisle access.

Travel to Japan is breaking records

Japan makes sense as Alaska's first long-haul destination. The nation's fall foliage, cherry blossom season, shopping, and myriad cultural and historical sites make it a tourist hot spot.

A September report from Mastercard Economics Institute showed a 153% increase in visitors from the US to Japan in the first half of 2024 compared to the same time in 2019. Travelers from Canada increased by 148%.

CNBC reported that Japan expects 35 million total travelers by the end of 2024, representing a 10% increase from 2019.

Crowds are so high that Japan Airlines is pushing travelers to use a bag delivery service to send luggage straight from the airport to their hotel or accommodation instead of carrying them on the train.

Cherry blossoms in bloom in Tokyo, Japan, in March 2023.
Japan is expected to see a spike in tourism during Spring Break, part of which coincides with the cherry blossom season.

Taylor Rains/Business Insider

The boost is, in part, thanks to cheaper airfare β€” and Alaska's new route is likely to further lower prices out of Seattle.

Flights from the US to smaller Japanese cities have seen huge drops. Kayak data shows Sapporo fares are down 19%, Okinawa fares are down 17%, and Osaka fares are down 14% compared to 2023.

Japan Airlines' new free flight program may have helped, which comps domestic legs for many tourists who also book a roundtrip international flight to Japan on the same booking.

Read the original article on Business Insider

Icelandair CEO reveals why Airbus' A321LR is the perfect 757 replacement — and why the airline isn't ditching Boeing

10 December 2024 at 06:18
Icelandair's new A321LR economy with people in the seats.
Icelandair will launch its first A321LR on December 10 as it phases out the Boeing 757.

Icelandair

  • Icelandair received its first Airbus A321neoLR in December to begin replacing its aging Boeing 757s.
  • The airline's CEO said the move was not due to ongoing issues at Boeing.
  • Icelandair also flies the Boeing 737 Max and plans to get the A321XLR in 2029 to open new routes.

Icelandair has received its first-ever Airbus aircraft, breaking from its all-Boeing fleet for the first time in its nearly 90-year history.

The new A321neoLR planes, which can travel up to nine hours nonstop, were delivered in Reykjavik on December 3. By 2027, the 7 new planes will replace Icelandair's aging fleet of Boeing 757s.

Icelandair CEO Bogi Nils Bogason told Business Insider that the A321LR is the "best replacement" for the inefficient 757s as it is 30% more fuel efficient per seat with a similar capacity.

Icelandair's first A321LR.
Icelandair's first A321LR made its debut in Reykjavik in December.

Airbus

He also said the Airbus order has nothing to do with Boeing's ongoing production issues.

"We ran a campaign between Boeing and Airbus in 2022 and finalized that in early 2023 with Airbus," he said, meaning the deal was signed before the Alaska Airlines 737 Max blowout in January.

The 757 has been the backbone of Icelandair's operation since 1990, connecting Iceland to North America and mainland Europe. Its smaller size makes it cheaper to fly compared to widebody planes while still providing sufficient capacity to be profitable.

But Boeing never built a replacement for the 757, which was discontinued in 2004. This gave Airbus an opportunity to seize the transatlantic narrow-body market with its long-range A321neo family.

Plenty of other Boeing planes will remain in Icelandair's fleet. It currently flies 21 Boeing 737 Max aircraft, which it ordered in 2012 before the A321LR or A321XLR were available.

An Icelandair Boeing 737 Max landing.
Bogason said a mixed Boeing and Airbus fleet won't add significant fleet complexity costs. Pictured is a Boeing 737 Max.

Nicolas Economou/NurPhoto via Getty Images

Cirium data shows nearly 22,000 Max flights scheduled for 2024 across cities in Europe and the US. At least 23,000 Max flights are scheduled for 2025, including new routes to Nashville and Istanbul.

"We are operating, on our scale, a very big Boeing fleet into the future, so Boeing continues to be a very important partner of Icelandair," Bogason said.

Icelandair also flies a small fleet of Boeing 767s on routes where it can carry a lot of cargo alongside passengers. Bogason said these will continue to fly for the "near future."

Icelandair's A321LR will fly up to eight hours nonstop

Icelandair's first passenger A321LR flight took off Tuesday, flying from Reykjavik to Stockholm, with later flights scheduled to Copenhagen.

Cirium data shows that the A321LR will expand to 15 more European cities through 2025, like Rome, Helsinki, Munich, and Zurich. In North America, the jet will fly up to eight hours nonstop to cities including Seattle, Toronto, and Portland, Oregon.

None of these are new Icelandair routes and are already served with Boeing jets, but the A321LR will slowly phase out the 757 or fly alongside the Max to these cities, per Cirium.

Icelandair's A321LR plane has 187 seats in two cabins: 165 in economy and 22 in "Saga Premium."

Saga resembles premium economy, featuring large reclining seats with privacy wings, a legrest and footrest, and a 16-inch television screen. The 2Γ—2 cabin does not have lie-flat seats as seen on the A321LR planes flown by JetBlue Airways or Ireland's Aer Lingus long-haul.

Icelandair's A321LR Saga Premium seats.
Saga Premium is Icelandair's version of business class.

Icelandair

Bogason said this is due to most of its flights being shorter because they stop in Iceland rather than fully crossing the Atlantic.

He acknowledged that flights to cities like Seattle could take eight hours, but equipping and operating planes with different premium cabins would be too complicated and costly.

"We use the same planes in North America and Europe, but many of the European flights are short, so lie flat would not be in a very high demand there," Bogason said. "There is definitely revenue potential, but we believe we have the right product for our business model and for the locations that that we are in."

The seatback screen in Icelandair's A321LR Saga Premium.
Icelandair does not have lie-flat business class on its A321LR planes.

Icelandair

Bogason added that the shorter flight times may negate the need for lie-flat business class, but it helps Icelandair earn business from competitor airlines. This is thanks to its stopover program, which allows travelers to stay in Iceland for a few days before connecting beyond Reykjavik.

Bogason said this helps convince travelers to choose one-stop Icelandair over the nonstop transatlantic options.

The A321XLR will complement Icelandair's A321LR fleet

Icelandair also has 13 A321XLRs on order β€” an even longer-ranged Airbus narrowbody variant β€” that will also act as replacements, but the first is not expected to be delivered until 2029.

Bogason said the A321XLR will allow Icelandair to fly even further and open new routes.

"We could fly the new narrowbody into California, into Texas, and into the East from Iceland," he said. "This creates a lot of opportunities for the development of our network and our business model."

More than a dozen global airlines, including American Airlines, Spanish flag carrier Iberia, Hungary's Wizz Air, and United Airlines, have placed more than 550 orders for the new A321XLR.

The Iberia A321XLR cabin.
Lie-flat business class on Iberia's A321XLR. It operated the world's first A321XLR passenger flight in November.

Taylor Rains/Business Insider

Similar to Icelandair, United is planning to use the extra-long-haul jet as a replacement for a 757 and launch new nonstop flights to destinations like West Africa and Northern Italy.

Thanks to its extra fuel tank, the A321XLR can fly 800 miles further than the A321LR and open new routes previously unreachable with narrowbodies or unprofitable with widebodies.

Bogason did not reveal any details about Icelandair's expected A321XLR cabin, but the jet is versatile. American and United, for example, are equipping the plane with lie-flat business class.

Budget carrier Wizz Air will only offer a no-frills economy cabin on its A321XLRs, which its CEO says passengers will just have to "suffer" through for a cheap long-haul ticket.

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See Emirates' first-ever Airbus A350, which will launch in January as the airline waits on delayed Boeing jets

8 December 2024 at 02:57
Emirates president Tim Clark onboard the Emirates A350 in economy.
Emirates president Tim Clark bashed Boeing during a ceremony for Emirates' first Airbus A350 delivery.

Emirates

  • After months of waiting, Emirates unveiled its first of 65 Airbus A350-900 aircraft on November 27.
  • The jet has 312 seats across business, premium economy, and coach and will fly nine initial routes.
  • Emirates president Tim Clark criticized Boeing at the delivery ceremony for continued 777X delays.

Emirates receivedΒ a new jet type for the first time since 2008 with the arrival of its highly anticipated Airbus A350-900, but ill feelings about the plane's American rival were not absent from the milestone day.

Emirates revealed the 312-seat plane on November 27 at a delivery ceremony in Dubai. It features refreshed business and coach cabins including the airlines' popular premium economy.

The jet will complement the airline's other long-haul planes, like the Boeing 777 and the Airbus A380 double-decker, and should help Emirates further expand its global presence with new routes.

Five executives from Emirates, Airbus, and Rolls-Royce stand in front of the first Emirates A350.
Five executives from Emirates, Airbus, and Rolls-Royce stand in front of the first Emirates A350.

Emirates

At the ceremony, Emirates president Tim Clark once again criticized Boeing for delays to the 777X. He said 85 of Boeing's new jet should be in the Emirates fleet by now.

"We are expansionists, as you know," he told the media, Reuters reported. "And we've had our wings clipped."

Boeing's new 777X widebody was expected to fly with Emirates years ago but is now not expected until at least 2026 amid ongoing production and design problems, Boeing's 737 Max quality control issues, and a now-ended seven-week labor strike.

Emirates has 205 of Boeing's new aircraft on order, holding 40% of the world's 503 total 777X orders. It's also the largest customer of the classic Boeing 777.

Boeing 777X.
The Boeing 777X is expected to offer 10% better fuel efficiency than its predecessors, thanks, in part, to its revolutionary folding wingtips.

AP Photo/Ted S. Warren

"I fail to see how Boeing can make any meaningful forecasts of delivery dates," he told Business Insider in October. "We will be having a serious conversation with them over the next couple of months."

Emirates' A350 was also delayed on time

Emirates expected to receive its first A350 in August after being delayed from 2023 and launch nine routes by the end of 2024. Those routes will now begin next year.

"We're a frustrated entity because we need airplanes, and we need them now," he said in November, according to Bloomberg.

The plane's inaugural flight was pushed four times from September and is now scheduled from Dubai to Edinburgh, Scotland, on January 3.

In addition to its first set of A350s, Emirates expects to receive a longer-ranged variant next summer. But instead of being the modified ultra-long-range A350-900ULR flown by Singapore Airlines, FlightGlobal reported it will sport fewer seats to travel up to 16 hours.

What to expect onboard Emirates' A350-900

Emirates first A350 in Dubai.
Emirates will have two A350 variants to serve short, medium, and long-haul routes.

Emirates

Emirates A350-900 will sport 312 seats across three cabins: 32 in business, 21 in premium economy, and 259 in regular coach.

The longer-ranged variant will have 298 passenger seats instead of 312 across the same three cabins.

Emirates business class on its A350.
Business class will look familiar to those who have flown on Emirates A380 or refurbished 777s.

Emirates

Business class resembles the seats on Emirates' Airbus A380 superjumbos and its newly refurbished 777, complete with a minibar and "improved" storage. The 1Γ—2Γ—1 configuration means every passenger will have direct aisle access.

The high-dollar cabin won't have the on-board bar or fancy showers present on Emirates mammoth A380s.

The A350 business cabin also won't have the flyer-favorite doors that other airlines have been actively adding to their long-haul planes, though Emirates said the seats are still "very private."

Beige premium economy seats on Emirates A350.
The premium economy seats on Emirates new A350 sit between business and coach.

Emirates

Emirates maintained its premium economy cabin for the A350 after installing the business-economy hybrid cabin on many of its A380 and 777s. Each seat in the 2Γ—3Γ—2 cabin includes a deep recline, leg and footrests, and 13.3-inch televisions.

The economy cabin has been redesigned with a new six-way adjustable headrest to increase passenger comfort.

It has a 3Γ—3Γ—3 layout and will sport electric window blinds, which are also present in business and premium economy.

Light blue and beige economy seats on Emirates A350.
Most Emirates passengers will be seated in economy.

Emirates

Otherwise, flyers can expect the regular coach Emirates experience. This includes a wood-like tray table, a seatback pouch with extra pockets, generous legroom of up to 32 inches, hot meals, power ports, and an inflight screen.

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Spirit executive blames other airlines for a 'manufactured' pilot shortage and says some want the carrier out of business

5 December 2024 at 13:45
Spirit chief commercial officer Matthew Klein speaking at the Wednesday Senate hearing.
Spirit executive said other airlines are "gunning" for Spirit and want it "out of business."

Roberto Schmidt/AFP via Getty Images

  • A Spirit executive blamed mainline carriers for some of its financial woes during a Senate hearing.
  • He said some airlines "manufactured" a pilot shortage and that others want Spirit "out of business."
  • Spirit recently filed for Chapter 11 bankruptcy and is revamping its business to earn more revenue.

A Spirit Airlines executive blamed competitors for some of its financial and operational woes during a congressional hearing on Wednesday, pointing to factors including pilot staffing and limited airport access.

Chief commercial officer Matthew Klein told a Senate subcommittee that Spirit hasn't been able to grow because the mainline airlines "manufactured" a pilot shortage during the pandemic and "poached" Spirit's pilots.

When flying came to a halt during the COVID-19 pandemic, carriers trimmed pilot headcounts to cut costs.

"Some of our legacy carrier competitors basically paid the most senior pilots to retire early," he said. "That, in fact, caused a pilot shortage in the industry, and then they turned around and hired a lot of our pilots."

When flying ramped back up after the pandemic, airlines found themselves without enough pilots. This prompted large pay raises across the industry to fill the gaps.

Executives from Delta Air Lines, American Airlines, United Airlines, and Frontier Airlines also appeared at the hearing to answer questions about a November report covering what the committee said are excessive charges for seats and bags.

Spirit pilots are not paid as much as mainline pilots and could have left the company for better working conditions. Spirit's publishedΒ pay scaleΒ shows thatΒ its Airbus A319 and A320 first officers and captains make between $97 and $312 per hour, depending on seniority.

Pay rates seen by Business Insider for American, Delta, and United show pilots flying the same Airbus aircraft make between $116 and about $360 per hour, depending on seniority and not including bonuses.

A Spirit spokesperson said they did not have anything to add about pay differences between airlines.

Klein also said pilots left partly because other airlines publicly said they were "gunning" for Spirit and" trying to put us out of business."

United CEO Scott Kirby said in a June podcast that carriers like Spirit and Frontier are "going out of business" because of their "fundamentally flawed" business models and poor customer service.

Spirit slams mainline 'dominance'

In his opening remarks, Klein encouraged the subcommittee to focus on the issues that he said are "by far the most impactful to consumers." He said this included mainline hub and slot and pricing "dominance" and mainline loyalty and credit card programs.

Klein pointed to how the mainline dominance has impacted Spirit.

He said Spirit struggles to secure gates at major airports, suggesting this blocks Spirit's access to routes and markets. He said when Spirit does get gates, they are often at the far end of terminals.

"This makes it difficult to provide a good guest experience and makes it difficult to operate efficiently and effectively," Klein said. "It raises our costs, which then, of course, makes it harder for us to be profitable, and without being profitable, we certainly can't grow."

Klein's subcommittee comments come after Spirit filed for Chapter 11 bankruptcy in November. The airline saved cash by furloughing pilots and selling $500 million worth of aircraft.

Budget airlines have been facing tough competition from mainline carriers amid rising costs across the industry.

Along with offering more premium seats and more inclusive fare bundles,Β Spirit and Frontier launched programs in 2022 that incentivized employees with bonuses for selling upgraded seats and catching oversized personal items.

Klein told the subcommittee that Spirit suspended the program on September 30. Instead, it has added more employees around the gate area to ensure customers comply with bag rules.

Frontier's SVP and CCO Robert Schroeder would not commit to ending its incentive program during the hearing.

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A new wrinkle in Boeing's 737 Max crash drama

5 December 2024 at 11:30
A blue and white Boeing 737 Max airplane on display.
Two of Boeing's 737 Max jets crashed in 2018 and 2019, killing 346 people.

Justin Tallis/AFP via Getty Images

  • A judge rejected Boeing's plea deal with US prosecutors over 737 Max crashes.
  • The deal involved Boeing pleading guilty to fraud and paying a $243.6 million fine.
  • Boeing previously agreed to a $2.5 billion settlement with the Department of Justice in 2021.

A federal judge on Thursday rejected a July plea deal between Boeing and US prosecutors, citing concerns with the role diversity, equity, and inclusion would play in selecting an independent monitor.

In his decision, Judge Reed O'Connor expressed doubts about Boeing's and the government's ability to select the monitor solely based on capability without consideration of race. The judge noted both groups' strong focus on DEI in their operating policies.

"In a case of this magnitude, it is in the utmost interest of justice that the public is confident this monitor selection is done based solely on competency," the judge said in his decision. "The parties' DEI efforts only serve to undermine this confidence in the Government and Boeing's ethics and anti-fraud efforts."

The Texas judge O'Connor also criticized regulators' work overseeing Boeing's progress under the deferred prosecution agreement it signed in 2021, writing in the decision: "It is fair to say the Government's attempt to ensure compliance has failed."

The case stems from two Boeing 737 Max crashes that killed 346 people, the first with Indonesia's Lion Air in October 2018 and the second with Ethiopian Airlines in March 2019. Faulty software was found to be the culprit in both crashes.

Victims' families opposed the plea agreement, voicing displeasure with the process for selecting an independent anti-fraud monitor and the fact that Boeing's compliance with the monitor's recommendations is not a required condition of its probation, court documents noted.

"This is an excellent decision by Judge O'Connor and an important victory for the victims' families," Erin Applebaum, a lawyer representing 34 families of victims lost on the Ethiopian Airlines flight, told Business Insider.

"We anticipate a significant renegotiation of the plea deal that incorporates terms truly commensurate with the gravity of Boeing's crimes," she added. "It's time for the DOJ to end its lenient treatment of Boeing and demand real accountability."

Boeing did not immediately respond to a request for comment from Business Insider.

In July, Boeing agreed to plead guilty to fraud, pay a $243.6 million fine, and allow an independent monitor to oversee safety and quality control at its factories.

However, regulators said Boeing violated that settlement after the January Alaska Airlines door plug blowout. The deal was set to expire two days after the Alaska incident.

In May, the Justice Department said Boeing had failed to "design, implement, and enforce a compliance and ethics program."

In 2021, Boeing reached a $2.5 billion settlement with the Department of Justice and families of the victims in January 2021 to settle charges of fraud conspiracy related to the fatal crashes.

Boeing's former CEO, Dennis Muilenburg, was fired in December 2019 and was replaced by Dave Calhoun. Calhoun later stepped down in March 2024 after the Alaska blowout.

New Boeing CEO Kelly Ortberg, who started in August, has been tasked with overhauling the company culture and getting Boeing back on track with safety and its production targets.

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Frontier is the latest budget airline to add 'first class' seats to target more premium flyers

3 December 2024 at 10:38
frontier airlines
Frontier is adding a new first-class seat as customers remain willing to pay more for premium amenities on board.

Rick Wilking/Reuters

  • Frontier Airlines plans to introduce "first-class" seats in 2025.
  • The move marks a shift from Frontier's no-frills model amid competition from mainline carriers.
  • Spirit Airlines has made similar changes to earn more revenue as it struggles to turn a profit.

Frontier Airlines is continuing to break from its classic budget business model as it chases more premium customers.

The airline will introduce "first-class" seats in the first two rows of the cabin starting in 2025, it said on Tuesday. These will come at an add-on fee, though Frontier did not disclose pricing.

Renderings of the new first-class show large loungers with headrests, spaced two across with larger armrests. They appear to resemble Spirit Airlines' "Big Front Seat," which is comparable to mainline domestic first class but without some amenities, like free alcohol or meals.

Rendering of Frontier's new first-class seat.
A rendering of Frontier's new first-class seat.

Frontier Airlines

Frontier also announced new perks for its status members, hoping to create more value for the airline's most loyal customers. A bonus mileage offer for new credit card applicants suggests Frontier also hopes to poach customers from competing airlines.

From early 2025, Frontier's Elite Gold members and above can receive free upgrades to the new first class and its "UpFront Plus" seats, subject to availability. The latter is Frontier's new business-class-like option that guarantees an empty middle seat β€” similar to what many mainline European carriers offer on shorter flights.

Frontier will also offer free unlimited companion travel for its highest-elite-status holders, meaning friends and family can tag along on flights. Further, starting in mid-2025, customers can buy seats, bags, and other ancillaries with miles.

"The New Frontier is our promise to deliver exceptional value with unbeatable flexibility," Frontier CEO Barry Biffle said in a press release. "As we continue to innovate and elevate the customer experience, we're proving that premium travel doesn't have to come with a premium price tag."

Shares fell about 5% following Tuesday morning's announcement.

Frontier's latest changes represent a departure from its traditional no-frills strategy. Its planes only offered economy, and everything besides an unassigned seat and a personal item cost extra.

Budget airlines like Spirit and Frontier β€” neither of which have turned a full-year profit in 2019 β€” have faced tough competition from mainline carriers that offer more premium options, like assigned seats and free carry-on bags.

Low-cost airlines have since had to adjust their business models to keep up with changing industry trends and target more premium customers who are willing to pay more for comfort and convenience.

Beyond Tuesday's changes, Frontier has also largely eliminated change and cancel fees, now allows a free checked bag when customers book with their Frontier credit card, and has restructured its fare classes to offer customers more choice and flexibility.

"Instead of just nickel and diming, airlines like Spirit and Frontier are doing more bundling, which is in line with what we at Breeze do, and we've found success," JetBlue Airways founder and current CEO of Breeze Airways, David Neeleman, told Business Insider in November.

Spirit has made similar changes to earn more revenue as it battles financial problems that led to a Chapter 11 bankruptcy filing in November.

This year, the airline has announced priority boarding for more eligible customers, seat selections with the middle seat blocked, the elimination of most change and cancel fees, and the option to book bundled fares.

Read the original article on Business Insider

How much Spirit and Frontier workers make cracking down on carry-on bags and selling seat upgrades

2 December 2024 at 05:15
Frontier and Spirit post signage at the airport that their carry-on and checked luggage must meet certain size or weight specifications.
Frontier and Spirit give bonuses to employees who charge passengers for bags and seats at the airport.

Thomas Pallini/Business Insider

  • A Senate report found that Frontier and Spirit paid staff $26 million for fees they charged to passengers for bags and seats.
  • The budget carriers say the incentives ensure customers are treated "fairly" and "equally."
  • The Senate report said airport agents could "abuse" the program to earn more in commissions. The airlines denied abuse.

A Senate subcommittee report published on Tuesday revealed publicly for the first time how budget carriers Frontier and Spirit incentivized staff to charge passengers extra fees.

The report, viewed by Business Insider, revealed that between 2022 and 2023, the two airlines paid workers $26 million in bonuses "to catch passengers allegedly not following airline bag policies, often forcing those passengers to pay a bag fee."

The incentive programs applied to premium seats and carry-on bags that exceeded the personal item size allowance. Frontier paid the most commissions: about $18.8 million, according to the congressional report.

For domestic flights, Frontier workers earned $10 for each oversize carry-on bag purchased at the gate or online within 60 minutes of the passenger's departure time, $3 for carry-ons bought at the airport ticket counter, and $3 for selling extra legroom seats.

The airline's commissions were smaller for international flights: $1 for bags charged at the gate or online, and $0.50 for those purchased at the ticket counter.

Spirit employees earned $5 for charging oversize carry-on bags at the gate. They also earned $5 for selling the Big Front Seat, $4 for charging overweight checked bags, and $2 for selling exit row seats. The report did not say whether bonus amounts varied between domestic and international flights.

Certain managers at both airlines also earned a commission if their airport or region met a specific monthly revenue goal from ancillary fees.

Frontier and Spirit employees were ineligible for the bonuses, however, if customer experience ratings declined or the airlines received a certain number of complaints.

Data from the Department of Transportation and analyzed by the subcommittee showed both Frontier and Spirit's baggage complaints increased after the incentive programs began.

According to the report, Frontier adjusted the structure of its incentive program in October 2023 to try to collect more bags while limiting the number of passenger complaints.

Questions over whether the programs encourage abuse

Carry-on bags are not included in basic fares for Frontier or Spirit. They must be purchased as an add-on and fit into the carriers' personal item size checkers stationed at airports.

The report said the incentives "may inappropriately encourage abuse of discretion" β€”Β meaning gate agents might be prone to unfairly categorize items as too large in order to collect higher bonuses.

Spirit Airlines bag check
Spirit and Frontier have size checkers stationed at the check-in desk and at the gates.

Eric Glenn/Shutterstock

TikTok videos that surfaced in 2022 showed customers being charged for personal items that appeared to fit into the size checker. The report discussed these instances.

When asked about the videos, Frontier's vice president of pricing and revenue management told the subcommittee that it's possible a bag fitting in the size checker was denied for reasons other than its size. It could contain a lithium battery, for example, he said.

The report said both airlines denied that the programs are being abused.

Spirit and Frontier told the subcommittee that the programs were designed to maintain compliance with baggage policies and ensure that customers who pre-paid for luggage were treated "fairly."

The Frontier executive told the subcommittee that the airline did not want customers "to take more services than they have paid for."

The report said both airlines started the programs to boost ancillary revenue. It said Frontier projected it would earn at least $40 million in fees in the first year. The report also said Spirit's ancillary revenue increased during the program.

In statements to BI, both airlines emphasized the goal of treating guests "fairly" and "equally." Spokespeople for both airlines said that the budget business model unbundles fares and increases people's access to affordable flights.

"We respectfully disagree with numerous statements and conclusions contained in the report," Spirit told BI. "With that in mind, we believe it's time to come together and discuss meaningful initiatives that would even the playing field between larger and smaller airlines to benefit all travelers."

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Why airlines are all-in on new single-aisle planes for transatlantic flights

29 November 2024 at 03:57
The inside of a JetBlue A321neoLR with blue lighting.
A JetBlue A321neoLR at the Paris Air Show in June 2023

Taylor Rains/Business Insider

  • Airlines are using more narrow-body planes across the Atlantic, opening new routes for flyers.
  • New single-aisle planes offer cost efficiency, smaller capacity, and flexible cabins.
  • The Boeing 757 used to be the main transatlantic workhorse but is losing market share to Airbus.

New narrow-body planes designed for long-haul flights are changing how people fly.

This evolution has been largely propelled by the Airbus A321neo family, smaller planes that can flyer further than previous single-aisle aircraft. Its longest-ranged variant, the newly launched A321XLR, can fly up to 11 hours nonstop and carry up to 240 people.

These planes are popular with airlines because they can connect profitable cities that previously required a high-capacity wide-body plane like the Boeing 767 or Airbus A330. Flexible cabins mean airlines can offer different cabin configurations, like all-economy or a mix of business and coach.

Airlines can also earn extended-range allowances that govern how passenger jets can safely fly over the open ocean.

In 2024, 39,000 flights between North America and Europe are scheduled on single-aisle planes made by Boeing and Airbus, according to data from Cirium, an aviation analytics company. That's a 14% increase from the previous year and 40% more than in 2019.

Airbus is pioneering this narrow-body shift

Such a focus on single-aisle planes that can tackle long flights has been a boon for Airbus.

JetBlue, for example, started flying between New York and Europe in 2021 with about 400 total flights on its A321neoLRs. In 2024, that figure is set to hit 7,200 in 2024.

The launch of Iberia's A321XLR has added at least another 1,400 flights for 2025, per Cirium, with more to come as the jet is delivered to more airlines.

Such growth has come at the expense of Boeing's 757. The jet has been a transatlantic workhorse since the 1980s but now only represents 23% of flights to and from Europe, down from 82% in 2019.

With no replacement available, airlines are turning to the A321XLR β€” paving the way for Airbus to continue dominating the growing market.

Long-haul narrowbodies are cheaper to fly

Before long-haul single-aisle operations became popular, airlines struggled to fly lower-demand city pairs with widebodies because the bigger planes weren't always full β€” meaning they weren't making money.

This effectively eliminated direct routes to smaller leisure markets, forcing flyers to make one or more stops to reach smaller cities.

New narrowbodies solve this problem thanks to their powerful engines, fuel efficiency, and lighter weight.

United Airlines, for example, uses single-aisle jets between unique city pairs that other carriers don't fly, such as those from Newark Liberty to Malaga, Spain, and Chicago to Shannon, Ireland.

United's SVP of global network planning and alliances, Patrick Quayle, told BI in August that a Boeing 787 or Boeing 767 widebody wouldn't economic make sense in these smaller markets. The carrier plans to expand its long-haul operations with the cost-effective A321XLR.

Meanwhile, Icelandic low-cost carrier Play learned from its predecessor, WOW Air, that using widebody planes in a budget transatlantic business model is difficult because the big jet requires constant high demand β€” prompting Play to use Airbus narrowbodies between the US and Europe.

Single-aisle jets offer versatile route options

One reason mainline carriers like United and Iberia are moving in the single-aisle direction is because it allows them to right-size their routes depending on demand.

Cirium data shows Iberia plans to fly two A321XLRs daily between Madrid and Boston in the summer of 2025, with each carrying up to 182 people.

This allows Iberia to capture the demand without oversizing the route with two 288-passenger A330s or losing out on potential business with just one widebody.

Flying two single-aisle planes across the Atlantic instead of one widebody, for example, could up daily frequencies from one to two and give travelers more flexible options.

Airlines like Tap Air Portugal and Ireland's Aer Lingus switch between A321neo and A330 planes throughout the year, flying the bigger jet during the summer and holiday months, per Cirium.

Single-aisle planes don't always fly long haul. Their versatility, especially the previous generation A321neos and the Boeing 757, allows airlines to efficiently deploy them on short or medium-haul routes.

Delta Air Lines has decreased its 757 transatlantic flying over the years in favor of more domestic routes, per Cirium.

Widebodies don't have the same flexibility, except on a few very high-demand cross-country treks like New York to Los Angeles.

Narrow-body planes can accommodate more flexible cabins

One of the draws of these small but powerful aircraft is their versatility because they can fit into both mainline and low-cost fleets with varying cabin layouts.

Some airlines, like JetBlue and Aer Lingus, equip their A321LRs with business and economy classes. Meanwhile, Hungarian low-cost airline Wizz Air plans to fly a no-frills, all-economy A321XLR cabin where even water costs extra, and France's La Compagnie has all-business-class A321LRs.

Some flyers may be hesitant to fly on a narrow-body long-haul, but flying on these planes across the Atlantic is not much different from riding in a one cross-country.

Boston to Madrid lasts about seven hours, while New York to Los Angeles is about six and a half hours β€” though most flyers will get more perks on flights to Europe, like hot meals and linens.

Plus, single-aisle flying allows for quicker boarding and deplaning, which may be welcome time-savings for some customers β€” especially during tight layovers.

Read the original article on Business Insider

Airbus' A321 jets are reshaping transatlantic travel. I've toured 3 airlines' business classes — here's how they compare.

23 November 2024 at 02:57
JetBlue Airways Airbus A321neo
JetBlue Airways, La Compagnie, and Iberia are among the few airlines that fly lie-flat business class on narrowbody aircraft across the Atlantic.

Thomas Pallini/Insider

  • Airlines are increasingly using Airbus A321neo family planes for transatlantic flights.
  • These single-aisle aircraft offer efficient long-haul economics for routes to Europe.
  • JetBlue, La Compagnie, and Iberia offer lie-flat business class on these narrow-body planes.

More airlines are flying single-aisle Airbus A321neo family planes across the Atlantic.

The aircraft are a popular choice because of their favorable long-haul economics. They can efficiently fly routes that may not have the demand to fill a widebody and still be profitable for airlines.

Because the planes can cross oceans β€” with the longest-range variant, the A321XLR, flying up to 11 hours nonstop β€” many airlines have equipped them with lie-flat business class to optimize comfort (and revenue).

I've seen three examples of these transatlantic premium Airbus cabins: JetBlue Airways, French boutique airline La Compagnie, and Spanish flag carrier Iberia.

Iberia is nice, but it and La Compagnie lack a flyer-favorite perk, while JetBlue offers the most amenity-heavy business experience.

All three have lie-flat seats, but prices vary.
Collage of lie-flat beds on Iberia, JetBlue, and La Compagnie.
The lie-flat narrowbody beds on Iberia (top left), JetBlue (top right), and La Compagnie (bottom).

Taylor Rains, Thomas Pallini/Business Insider

La Compagnie is a small, all-business-class airline that serves Paris, Nice, and Milan from the US with A321neoLRs. It offers many cost-friendly fares, with roundtrip tickets starting at $2,500,

Iberia's new A321XLR will cost customers up to $5,000 or more roundtrip, depending on the season.

JetBlue's A321neoLR offers some discounted Mint fares to London, but other destinations are typically at least $3,000-$4,000.

Only JetBlue offers privacy doors.
JetBlue Mint with doors vs. Iberia business class without doors.
JetBlue (top) and Iberia (bottom).

Taylor Rains/Business Insider

La Compagnie and Iberia don't sport the sliding door that is standard at every JetBlue Mint seat. The privacy perk is increasingly popular on wide-body premium seats.

The French carrier's 2Γ—2 layout would make one impossible to fit, while Iberia carefully designed its 1Γ—1 cabin to be private without one. It has angled seats, high walls, and large wings.

Forget about privacy on La Compagnie.
Flying on La Compagnie all-business class airline from Paris to New York β€” the loungers.
Half of La Compagnie's 76 business class seats do not offer direct-aisle access like JetBlue and Iberia.

Taylor Rains/Business Insider

La Compagnie has the most awkward layout of the three. The 2Γ—2 layout optimizes the space, but it means flyers could be sleeping right next to a stranger on a full flight β€” and the window seat can't freely access the aisle.

There is a small divider between seats, but it doesn't do much to block travelers from one another. The airline is largely meant for families and couples, so you may not have an unknown neighbor.

Iberia lacks extra-space seats at the front.
Mint business class onboard JetBlue Airways' new Airbus A321neoLR β€” JetBlue Airways Airbus A321neoLR Tour
JetBlue's front-row Mint Studio comes at an extra fee.

Thomas Pallini/Insider

Two of JetBlue's 24-person Mint business class seats are designated as the extra-large "Studio" with a companion seat to dine or meet with another traveler.

La Compagnie offers more legroom in its exit rows and bulkhead. This provides more ease for the window passenger if climbing over an aisle seatmate.

Iberia's smaller 14-person business class does not have any extra-large seats available.

Iberia has a Bluetooth television.
Viewing the red Iberia television from the row one business class.
Iberia and JetBlue's screens are moveable, while La Compagnie's is stationary. The Spanish carrier's TV helps with privacy.

Taylor Rains/Business Insider

Iberia's 18.5-inch television has Bluetooth built-in, allowing travelers to connect their own wireless headphones to the screen.

JetBlue provided customers on its inaugural flight from New York to Paris in June with a free AirFly Pro Bluetooth audio transmitter, but it doesn't come as the standard β€” future travelers need to bring their own.

La Compagnie's 15.6-inch screen also didn't have Bluetooth. All three did have a remote, with JetBlue's Studio having the largest screen at 22 inches. Its regular suites boast a 17-inch television.

Storage on La Compagnie is minimal.
Collage of La Compagnie, Iberia, and JetBlue business class seat storage.
La Compagnie (top) has minimal tabletop space, and it is shared by two people. Iberia (bottom left) and JetBlue (bottom right) offer more overall storage.

Taylor Rains, Thomas Pallini/Business Insider

La Compagnie had barely any storage space aside from the overhead bin that was big enough to fit bigger items, like a laptop or a small backpack.

Iberia's storage under the television and behind the screen provides more ample storage, as does JetBlue's design. And both have more tabletop space β€” something La Compagnie customers have the share.

JetBlue has a 'do not disturb' sign.
Flying JetBlue Airways from London to New York in Mint business class β€” JetBlue Airways London to New York in Mint business class flight 2021
Iberia and La Compagnie lack this perk.

Thomas Pallini/Insider

JetBlue's "do not disturb" sign tells flight attendants not to wake up passengers, even during a meal service.

It's likely a welcome perk for overnight flights. Iberia and La Compagnie don't have the same feature.

All three offer the usual business-class perks.
Collage of the wireless pad on JetBlue, the amenities on La Compagnie, the food on JetBlue, and the linens on Iberia.
The wireless pad and an example of a meal on JetBlue (top left, bottom right), an amenity kit on La Compagnie, and the linens on Iberia.

Taylor Rains, Thomas Pallini, Business Insider

All three airlines offer the same standard business-class perks, including an amenity kit, hot meals, a tray table, linens, WiFi, and power.

For power, the airlines each have a USB-A port and a universal outlet. JetBlue and Iberia both also offer a USB-C port, and the former includes a wireless charging pad that the other two don't.

JetBlue does not yet have a dedicated lounge.
Entering the JFK chase location.
JetBlue Mint travelers in Boston and New York must rely on lounge access via a credit card for now.

Taylor Rains/Business Insider

Iberia has its own branded business-class lounges in Madrid. In the US, flyers can use Oneworld partner lounges. La Compagnie offers their travelers lounge access via partnerships.

JetBlue, however, does not have a dedicated lounge. However, JetBlue plans to build airport lounges to expand its premium offerings.

For now, flyers can access airport lounges via a credit card, like American Express or Chase.

JetBlue is my preferred pick.
JetBlue Airways Airbus A321neo
The Studio with the door closed. It also has more storage space than the regular Mint seats.

Thomas Pallini/Insider

Despite JetBlue's lack of a lounge, the cabin seat is the most amenity-heavy with its door and do-not-disturb sign. Plus, its Studio offers more choice.

Iberia is a close second with good privacy and comfort, but I'd personally prefer JetBlue when flying transatlantic for price and amenities.

La Compagnie is awkward but worth splurging on.
La Compagnie's all-business class cabin with blue headrests.
La Compagnie is one of two all-business-class airlines in the world. The other, Beond, has a similar 2Γ—2 layout.

Taylor Rains/Business Insider

La Compagnie has the most awkward design, but there isn't a logical other way to configure its planes because it needs to optimize space.

Still, the prices are among the cheapest ways to cross the Atlantic in business class. I think it's a good option for leisure travelers willing to splurge but don't want to pay for more expensive airlines.

JetBlue has more routes to Europe.
Iberia A321XLR on the ramp in Boston.
JetBlue flies higher-demand routes with its A321neoLR, but the A321XLR may open new niche ones.

Taylor Rains/Business Insider

JetBlue offers the most A321neoLR routes across the Atlantic with service to London, Amsterdam, Paris, Dublin, and Edinburgh, Scotland, from New York or Boston.

Iberia flies the A321XLR to Boston and, soon, to Washington Dulles.Β JetBlue plans to eventually receive the A321XLR, which could open new European routes, such as Italy and Spain.

La Compagnie indirectly competes with JetBlue in Paris. Instead of flying from New York-JFK to Charles de Gaulle like JetBlue, it flies from nearby Newark to Paris-Orly.

The A321XLR will add narrow-body routes to Europe with lie-flat beds.
Aer Lingus lie-flat business class on its A321neoLR.
Aer Lingus is among the carriers adding more narrowbody lie-flat seat across the Atlantic in 2025.

Aer Lingus

There are a few other narrow-body, lie-flat business classes that I haven't yet seen, like Aer Lingus 'A321neoLR. Starting in 2025, the airline will also fly bed-equipped A321XLRs on routes like Nashville to Dublin.

American and United are among the other carriers planning A321XLR flights with beds in business class β€” with United replacing its lie-flat Boeing 757s with the A321XLR in 2026 and adding new routes.

Read the original article on Business Insider

I toured the world's first Airbus A321XLR business class. The lie-flat seats lack one popular feature — but are easy to love anyway.

21 November 2024 at 12:49
A selfie of the author in Iberia's A321XLR business class.
I don't think Iberia's lack of business-class doors on its new A321XLR is a big deal.

Taylor Rains/Business Insider

  • Iberia launched the first long-haul Airbus A321XLR flight from Madrid to Boston on November 14.
  • It's the world's first example of lie-flat business class on the highly anticipated new jet.
  • The seats don't have a door or an extra-large front row, but I don't think either is necessary.

Spanish flag carrier Iberia launched the first long-haul Airbus A321XLR flight on November 14, flying seven hours from Madrid to Boston.

The new Airbus narrow-body looks like itsΒ A321neoLR predecessorΒ but can fly about 800 miles further thanks to an extra fuel tank in the belly, extending the aircraft's range 11 hours nonstop.

This plane is poised to open new routes for airlines they couldn't previously reach β€” or couldn't profitably fly with a wide-body.

Because the A321XLR will likely fly long-haul, many airlines plan to fit them with lie-flat business class to optimize comfort and choice.

Business Insider toured Iberia's A321XLR in Boston after its inaugural flight to see the industry's first example of these new premium narrow-body cabins.

It almost mirrors JetBlue Airways' Mint business class, minus two key features some passengers may miss β€” but I don't think Iberia needs either of them.

Iberia's A321XLR has 14 business-class seats.
The Iberia A321XLR cabin.
Iberia's A321XLR has wood-like finishes and a calm color scheme.

Taylor Rains/Business Insider

The Thompson Aero Vantage Solo seats are configured in a 1Γ—1 layout, meaning all passengers have direct aisle access. Flyers will get the standard business-class perks, like priority boarding and hot meals.

The section takes up about one-third of the cabin, while the rest of the plane hosts 168 economy seats in a 3Γ—3 layout. There is no premium economy.

Each seat is equipped with a lie-flat bed.
Grey lie-flat business class.
The bed is narrow, but flyers can lay comfortably on their side or back.

Taylor Rains/Business Insider

The lie-flat beds are likely a welcome feature for flyers during the seven-hour trek between the US and Spain. Iberia provides plush linens for sleeping.

I thought the beds were long enough for my five-foot, three-inch tall self, but they were too narrow to comfortably sleep on my stomach. Customers should have enough room to sleep on their side or back.

The Bluetooth-enabled television is 18.5 inches.
Viewing the red Iberia television from the row one business class.
The author viewing the television from the first-row business class seat. It is full of movies, games, and other entertainment.

Taylor Rains/Business Insider

Few airlines offer Bluetooth-capable televisions so I was excited to see the option on Iberia β€” which also extends to the economy cabin.

I would prefer to connect my AirPods, but customers without Bluetooth headphones can use the headset provided by Iberia.

There is surprisingly plentiful storage space.
Red television on Iberia A321XLR and storage under it.
There is storage under and beside the seat.

Taylor Rains/Business Insider

With minimal cabin real estate for business class, Iberia got creative with storage. Beyond the tabletop space and overhead bins, flyers have nooks beside the seat and below the television.

A larger backpack likely won't fit, but chargers, books, electronics, and other small items needed during the flight can be at arm's length.

There are no privacy doors as many airlines have added in recent years.
Iberia's A321XLR.
Iberia's A321XLR has no sliding doors.

Taylor Rains/Business Insider

JetBlue Airways has the same business-class seat on its Airbus A321neoLR, but it comes complete with sliding doors β€” something that has become a flyer-favorite perk in modern business-class cabins.

Iberia has not equipped its A321XLR with doors, instead relying on the seat's angle and high wings for privacy. I think the design easily does the job, and the swing-out television helps further cacoon passengers.

A fully private space is preferred among many travelers, but I think adding a door would take up unnecessary space and add costly weight that Iberia likely didn't want to take on.

There is no extra-large front row, either.
The front row of Iberia's A321XLR.
The front row of Iberia's A321XLR.

Taylor Rains/Business Insider

Another popular trend among new business-class cabins is larger front-row seats, which typically have extra space for a bigger bed or a companion seat but come at an extra fee.

JetBlue, for example, has its "Studio," while Virgin Atlantic Airways has the "Retreat Suite." Iberia's entire A321XLR business cabin is equipped with standard seats, which was likely the best way to optimize the cabin.

Designating an extra-large front row would also likely decrease the number of Iberia's regular high-dollar seats available to sell.

Business class won't have to fight for a lavatory.
One of the aft lavatories on Iberia.
One of the three aft lavatories on Iberia. They will be difficult for travelers to access, given the tight space at the back of the plane.

Taylor Rains/Business Insider

The A321XLR is a smaller long-haul plane, so its likely more passengers will be visiting the lavatory during the flight.

The front of the cabin has one lavatory for up to 14 people, which will be fine so long as the flight attendants keep it clean and stocked.

Business class passengers will likely be happy to have their own bathroom as the 168 economy flyers have to share the three at the back β€” and there's very little room to queue.

American and United are planning A321XLRs with lie-flat business class.
American's new Flagship Suite on its A321XLR.
American's new Flagship Suite on its A321XLR.

American Airlines

Airlines like JetBlue and Ireland's Aer Lingus have flown narrow-body planes with lie-flat business class for years, and American has a lie-flat cabin on its transcontinental fleet.

American is bringing that strategy to its future A321XLR with a new and improved business class β€” and this time with sliding doors and direct-aisle access for all travelers.

United is also planning a lie-flat cabin, though details are limited.

Not every airline plans to have an A321XLR premium cabin.
Wizz Air Airbus A321neo β€” Dubai Airshow Trip 2021
A Wizz Air Airbus A321neo, which will be the same cabin as its A321XLR.

Thomas Pallini/Business Insider

The A321XLR is a versatile plane that can fit into both mainline and low-cost fleets β€” meaning some examples of the jet will not have business class.

Hungarian budget carrier Wizz Air recently announced a seven-hour A321XLR flight between London and Saudi Arabia. The flight will be all-economy with minimal legroom and no fancy amenities.

Wizz Air CEO JΓ³zsef VΓ‘radi said in September that the no-frills cabin will keep prices cheap, but customers will "have to create the fun for yourself."

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Delta takes a jab at Spirit and says it soon expects more profit from premium seats than economy

20 November 2024 at 12:07
Delta One and Sky Priority signs.
Delta is hard focused on ramping up its premium offerings to generate more revenue.

Taylor Rains/Business Insider

  • Delta Air Lines is focusing on premium cabins to boost revenue and outpace economy sales.
  • The premium demand is driven by millennials willing to spend more for an elevated experience.
  • Delta's president suggested budget carrier Spirit failed because it was too focused on low fares.

Delta Air Lines believes a premium-focused strategy is the secret sauce to success, as outlined during its Investor Day in Atlanta on Wednesday.

President Glen Hauenstein said that premium demand is soaring thanks to millennials willing to pay more for an elevated experience. As such, premium seats β€” currently about 30% of Delta's inventory β€” will be a majority focus of any added capacity next year.

By 2027, the airline expects to make more money from premium seats than those in economy.

Hauenstein said focusing on the premium market will help Delta win against budget carriers that depend on low fares to lure in customers.

"I think [post-pandemic demand] had a very different impact on the carriers that were supplying premium products and services, which had a little bit of a downdraft, versus those who were just focused on price that had an incredible cliff to fall off of," he said. "I think we've seen that manifest itself in the bankruptcy we saw filed this week."

Hauenstein is referring to Spirit Airlines' filing for Chapter 11 bankruptcy on Monday. The low-cost airline has not posted a full-year profit since 2019 and has been forced to lay off staff and sell $500 million worth of planes to stay afloat.

United Airlines CEO Scott Kirby said in a June podcast that passengers prefer experience over low fares and that budget airlines may go out of business without making quality changes.

Breeze Airways CEO David Neeleman gave Business Insider a similar take in November, saying low-cost carriers should stop nickel-and-diming their customers.

Spirit and Frontier have bent to modern flyer expectations. Both overhauled their business models this year to offer more premium perks, such as extra legroom and business-class-like seats. They've also dropped most change and cancel fees.

Delta's presentation on Wednesday set the tone for the coming months, as airlines continue to struggle with high costs driven largely by inflation and labor, which have weighed on profit margins.

While the investments may take years to show full potential, at least in the near term, Delta CEO Ed Bastian has welcomed president-elect Donald Trump as a "breath of fresh air" as opposed to what he described as government "overreach" under the Biden Administration.

Delta's stock price was down about 2% after Wednesday's Investor Day and is up about 57% year-to-date.

Delta is doubling down on premium seats

Delta's premium cabins, including premium-economy upgrades, Delta One business class, and domestic first class, have long been profit drivers. So far, adding more of the expensive seats has been a boon to its bottom line, and it's showing no signs of letting up.

Delta said its Airbus A350-1000 aircraft will be introduced with about 50% premium seats, for example, while the airline plans to add lie-flat business class to A321neo jets.

This all comes after Delta had higher-than-expected earnings in the third quarter, largely anchored by premium seats, even though it was dinged by a costly CrowdStrike outage.

From July through September, Delta generated $5.3 billion in premium revenue compared to $6.3 billion for the economy cabin despite premium taking up less cabin real estate.

Hauenstein said Delta's biggest opportunity to add premium products and services is in the international market, where he said there is short supply but high demand.

He said that increase would come from retiring Boeing 767s, adding new A350-1000s, and reconfiguring existing A350-900s with more Delta One seats.

While executives didn't further discuss the previously hinted-at "business-class-lite" product that would unbundle business class, letting flyers buy only the seat but not other perks like lounge access, Hauenstein said there's revenue opportunity in segmenting premium economy and domestic first.

"That's where a huge revenue base is, and segmentation of that revenue base would potentially drive a significant improvement to the bottom line," he said.

Read the original article on Business Insider

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