• Skiplagged.com helps people book cheaper fares through a practice airlines hate.
• The website finds cheaper fares through a hack known as 'hidden-city' ticketing.
• Its CEO says there is a low risk of getting caught and offers tips to avoid detection.

Young people are increasingly turning to a popular travel hack to fly cheaper this year, and the chances of you getting caught are practically nil — assuming you follow some simple rules.

That's according to the CEO of Skiplagged.com, a website that helps travellers find "hidden city" tickets. The practice usually involves buying a ticket with a layover, but instead using that stopover city as your destination without boarding the connecting flight.

It's often cheaper than a nonstop flight, comes with serious caveats, and makes airlines absolutely furious.

CEO Aktarer Zaman says the risk of your airline finding out is actually very low, even though some have threatened to ban passengers who are caught purposely skipping the second legs of their trips.

And as fears of an economic downturn grow, he says more Gen Zers and younger millennials are turning to the travel hack to save money.

Zaman told Business Insider in an interview that Skiplagged has seen hidden-city tickets increase 30% in March and April compared to February.

"I think it's due to the economic issues where money is uncertain," he said, noting that the average Skiplagged savings are $180. "People still want to travel, and some have to for reasons they can't avoid, so they're inclined to find discounts."

Despite at least three lawsuits from airlines accusing the company of facilitating what they consider a prohibited practice and copyright infringement for using their logos without permission, Zaman said there's little a carrier can do about his website's actual business and vowed to keep at it.

For future skiplaggers, he offered tips on how to stay incognito, like only taking a backpack, booking one-way, and paying attention to visa requirements for international itineraries.

Why airlines hate skiplagging so much

Airline websites aren't designed to show you every possible flight from A to B. They want to sell you a ticket at a price you're willing to pay that also works for their operation. They see skiplagging as lost revenue and disrupting their schedules.

Sure, you could use a guess-and-check method on an airline's website to find a cheaper hidden-city fare, but Skiplagged says it aggregates flights from various sources to generate options that specifically indicate a hidden-city itinerary and the related fare savings.

For example, Skiplagged shows a nonstop one-way Delta Air Lines flight from Los Angeles to Atlanta in July for $299. A hidden-city ticket to Baltimore with a layover in Atlanta costs just $139, saving $160. You would simply not get on the second flight to Baltimore.

Zaman said most of Skiplagged's 10 million monthly users are between the ages of 18 and 34. Most use the website as a search engine and then book their desired flight via the airline directly or a third party like Kayak.

Only 30% of those customers who book through Skiplagged are actually buying hidden-city tickets, he said, or about 300,000 people in 2024.

Data shared with BI shows Atlanta, Los Angeles, New York, Chicago, and Dallas are the top five destination cities booked via Skiplagged.

"It's controversial, but it's a reason we are as big of a success as we are today because consumers have realized how much value [Skiplagged] provides to them," Zaman. He added that the site brings in more than $20 million in annual revenue from user fees and vendor kickbacks.

The company is currently fighting a lawsuit from American Airlines, which has had particularly harsh words about the practice of skiplagging.

In 2023, the carrier alleged copyright infringement, trademark infringement, breach of contract, and tortious interference. The latter means intentionally damaging another party's contract and causing harm.

Skiplagged lost the copyright infringement case and was ordered to pay $4.7 million in damages and another $4.7 million for repayment of "ill-gotten" revenue in October. However, Skiplagged can continue to display hidden-city fares on its website.

Zaman said American revealed in trial that it does not maintain a blacklist of passengers caught skiplagging. American did not respond to a request for comment.

United and Southwest have also previously sued the company for deceptive practices and violating their terms of service. United's suit was dismissed for jurisdictional reasons, and the other settled outside court. Skiplagged declined to reveal the terms of the settlement.

Getting caught is rare, but pay attention to the rules

Airlines like Alaska and United specifically say they can punish travelers for skiplagging, including taking legal action or revoking miles or elite status.

However, Zaman said skiplagging is actually "not that risky" overall, with 99.7% of hidden-city bookings through Skiplagged going off without a hitch in 2024.

"Miles being revoked, and people being banned by airlines, it's so rare, and no one last year reported to us that that happened to them," he said.

He said the tiny percentage of people who do get caught typically did something that revealed their plans. Skiplagged outlines some tips on the website to help people know the dos and don'ts before flying.

For example, Zaman said some people have booked a skiplag fare with an international destination but a domestic layover and can't fly because they didn't bring a passport. The same goes for people who forget about visa requirements.

Other practices to reduce the risk of getting caught skiplagging or ending up somewhere you don't intend to include:

• Don't skiplag often because it will create a pattern, and an airline may flag you
• Only bring a backpack. A checked bag will go to your final destination, and a carry-on may be gate-checked
• Book one-way because if you skiplag on the outbound, the return will likely be canceled
• Don't associate your frequent flyer account to avoid the risk of miles being revoked
• Be vigilant of itinerary changes to ensure your layover city hasn't changed before flying
• Have proof of return travel already booked if you skiplag internationally; make it refundable if you don't plan to actually use it

These tips are not 100% foolproof (though they're close), and you could still face repercussions from the airline if they find you breached their contract of carriage.

"There are certain airlines where you're free to skiplag all you want; it's not against the rules to miss a flight on purpose," he said. "But, for some airlines, missing on purpose is against their policy, but the numbers show how rare it is to actually get in trouble."

• Newark airport is facing delays due to ATC staffing and runway construction issues.
• Business Insider reporter Emma Cosgrove feared delays for an upcoming trip.
• So she hit up BI's aviation expert, Taylor Rains to find out how much she should really worry.

In a couple weeks I have a long-planned vacation to an idyllic European destination — and I'm flying out of and then back into Newark airport.

I'm mostly excited for a break and some sun. I'm less excited about flying out of an airport that's been in the headlines for the last several weeks.

The airport is facing ongoing travel chaos amid Air Traffic Control issues, runway construction, and even a couple instances of equipment outages that have prevented controllers from talking to aircraft. The problems intensified last month when air traffic issues first forced dozens of delays and more than 100 cancellations. Increasingly, travelers are finding themselves stranded in Newark.

I'm not a nervous flyer most of the time, but given the news I'd be lying if I said I wasn't questioning whether I should change my flight as it gets closer.

So I did what journalists do. I consulted an expert. In this case, that's Taylor Rains, Business Insider's intrepid aviation reporter. Spoiler alert: she made me feel a lot better. Here's what she said.

Emma Cosgrove: I'm flying out of Newark airport in the next two weeks and the news is making me nervous. Should I be nervous?

Taylor Rains: Safety wise, no, even despite ATC staffing and equipment issues sounding like a scary thing. The controllers and pilots are professionals and can maintain extremely high levels of safety. Lower staffing will mean slower air traffic arrivals and departures rates, as to specifically not overload any controllers — so that's the main issue creating the disruptions regarding ATC. I'm not personally nervous about safety in Newark. The concern travelers should have is if you're connecting to or from Newark with a short layover. You could get delayed and miss that onward flight.

Should I think about changing my flight at considerable expense?

It depends on how important your travel is. People have missed out on nonrefundable hotel nights or train tickets because of delays or cancelations. Right now, I recommend avoiding Newark if your travel is flexible. Because most Newark travelers are United or its partners, that largely means your options are flying from LaGuardia, or switching your Newark layover to another United hub. United doesn't fly from JFK. You'd have to reroute via DC, Houston, Chicago, or Denver.

Say, for example, you're flying some regional city to Europe via Newark. Call United and ask to be rerouted via one of the other hubs. They have loads of international flying from up and down the East Coast and the middle of the country. Right now, their policy is scheduled flights between May 6 and May 23 (booked before May 4) can change their flight for free (no change fee or fare difference).

The flight must be between the same two cities (or from either LaGuardia or Philadelphia), be the same cabin, and be 2 days before or after the original flight, their policy says. If you're flying Spirit or another non-United airline, you'll need to call to see your options about changing.

If you're looking to a book a future flight, I'd recommend going through a different airport altogether, or making sure your Newark layover is long because the delays are not just out of Newark but into Newark, too.

To make your life easier if you are flying through Newark, only bring a carry-on if possible. It makes last-minute changes more flexible because you don't have a checked bag to worry about.

Also, please do not take your frustrations out on airport employees! They are just as stressed as the customers and are bound by the rules of the airline, and they cannot in any way change the weather or speed up controllers. Give everyone grace and pack your patience.

Is there any difference between flying in and out of Newark in terms of safety?

Nope! There's a series of different control facilities going in and out and they all work together. If that center that has had two outages already goes down, pilots are trained to stay the course or their last known clearance. They won't go rogue or panic because they don't hear back from ATC, they're trained for situations like this and can guide themselves if necessary.

Is the situation at Newark really all that unique?

Yes and no. Newark has had years of ATC staffing issues that have created similar problems, it's just compounded right now by the construction of its main runway. That's closed until at least mid-June, so people can expect delays relating to that until then, on top of any other ATC problems and weather. Days of bad summer weather would create a trifecta of issues that will leave people sitting at their gates for likely several hours.

What should I monitor in the days leading up to my flight to have the best info about safety and delays?

People should be checking their airline for updates, so sign up for email and text alerts about delays, cancellations, and gate changes. Check the boards, and honestly, just go in expecting delays so you don't have surprises or disappointments. You can also check the FAA Advisories website. EWR is the airport code for Newark. If you check today, May 9, you'll see 262 average minutes delay for weather and 75 average minutes delay for runway construction. If you're flying on a sunny day, then you'll want to look for the runway construction note and a volume note. The one that says "volume" at the end is referring to overcapacity or staffing issues causing air traffic delays.

• Radar screens went dark early Friday at an air traffic facility that guides planes around Newark.
• The outage, which lasted 90 seconds, is the second since April.
• Newark has faced a host of problems in recent weeks, from operational issues to bad weather.

The problems keep piling up at Newark Liberty International Airport.

The Federal Aviation Administration said that an air traffic control equipment outage at the Philadelphia approach control facility, which guides aircraft in and out of Newark, occurred around 3:55 a.m. on Friday morning.

The agency said it affected communications and radar displays for "approximately 90 seconds."

It's the facility's second outage since April 28, when screens went dark for 60 to 90 seconds and prevented controllers from talking to aircraft.

Operational issues, coupled with bad weather and runway construction, have caused hundreds of delays and cancellations at the airport over nearly two weeks.

United CEO Scott Kirby has called on the government to designate Newark as a "level 3" airport, meaning it would run on a slot system that limits the number of planes that could take off and land at certain times to manage capacity.

What is going on at Newark?

In July, some controllers were moved from an approach control facility in New York to one in Philadelphia to address understaffing issues, but the facility is still facing shortages.

Kirby said in a letter to customers in May that the Philadelphia center has been "chronically understaffed for years" and that Newark "cannot handle the number of planes that are scheduled to operate there in the weeks and months ahead."

The airline, which holds the largest market share at Newark, has since axed 35 daily flights, or about 10% of its schedule at the airport, to deal with overcapacity and compounding air traffic problems.

The airport is also grappling with the closure of its main runway, which won't be operational until at least mid-June.

An FAA advisory said that as of 12 p.m. ET on Friday, Newark is facing arrival and departure delays of up to four hours because of overcapacity, runway construction, and bad weather.

United does not fly out of New York's John F. Kennedy International Airport, which has not been affected by the Philadelphia control problems, meaning rivals Delta and American have not experienced the same disruptions to flights and customers.

The US has a major ATC problem

Recent air traffic control issues have highlighted the US's ongoing battle to update aging equipment and hire more controllers at facilities around the country.

The FAA said in May 2024 that it was short about 3,000 controllers but was meeting its hiring goals to catch up.

Still, the entire infrastructure needs work, an issue made clear by the recent problems in Newark and the January midair collision over Washington, DC. A preliminary investigation found that the DC airport tower was understaffed at the time of the crash.

The Trump administration announced a "supercharge" program in February to accelerate hiring. This program includes offering bonuses to new hires, reducing the hiring process by months, and creating new opportunities for veteran controllers.

In March, Transportation Secretary Sean Duffy announced a plan to upgrade the national airspace system with modernized technology and infrastructure.

While it's ubiquitous, air travel remains one of the wildest technical achievements in human history. Beyond the scientific feat that goes into achieving takeoff, airlines must coordinate tens of thousands of bags, employees, and travelers to make sure everyone gets to where they're going. Despite the sheer effort involved, moving people through the sky from point A to point B isn't what makes the bottom line soar in the airline business these days. Instead, the major players rake in billions of dollars thanks to a feat of financial engineering: loyalty and credit card spending.

First developed in the 1980s, airline loyalty perks revolutionized the industry, creating a base of passionate customers eager to fly a specific carrier or use its credit card in exchange for things like free checked luggage, seat upgrades, early boarding, ever-popular airport lounge access, and "free" flights. A 2024 OAG analysis found that 82% of travelers worldwide were enrolled in at least one airline loyalty program. Delta SkyMiles is the world's largest, with over 120 million members. As of 2023, 31 million airline credit cards had been issued in the US, according to the trade association Airlines for America, and 57% of points were accumulated through cardholder spending.

The combination of people flying and swiping their credit cards has ballooned airline loyalty into a juggernaut and a primary source of airlines' income — so much so that carriers would struggle to profit without it. Federal airline filings show loyalty represents over $25 billion in yearly revenue. Among the Big Four in 2024, Southwest earned about $2.2 billion from its loyalty program, or about 8% of its total revenue, United $2.9 billion (5%), American $6.1 billion (11.3%), and Delta $7.4 billion (12%).

Airlines enjoy myriad benefits beyond a loyal customer base, a strong brand, and free marketing whenever someone swipes their card around town. Frequent flyer programs increase a carrier's valuation and generate consistent revenue streams. Played correctly, these programs can also be good for customers looking to optimize their points for vacations. But there are some risks to loyalty from a customer perspective. Carriers can, and will, adjust the value of their points on a whim, boosting their bottom lines at the expense of customers.

The business has morphed airlines into miniature central banks, printing points as currency and often profiting more from selling them than from actually flying airplanes, or as TJ Dunn, a points guru and editor in chief at the Prince of Travel, told me: "A lot of people call airlines credit card companies with wings."

American Airlines launched the first modern major airline loyalty program, AAdvantage, in 1981. United's MileagePlus and Delta Air Lines' SkyMiles programs followed that same year, while Southwest Airlines' Rapid Rewards program began in 1987. In the same decade, airlines decided to go beyond simply rewarding frequent flyers and began building what has become one of their biggest cash cows: co-branded credit cards. By partnering with banks, airlines can monetize these loyalty miles and points, creating a source of cash to supplement the basic flying business.

Airline points are, in essence, an IOU created out of thin air. Carriers turn around and sell these points and miles to banks in exchange for US dollars to fund their operations, like buying planes and paying pilots. Banks then distribute those to holders of the co-branded cards when they make everyday purchases — including on nonflying items and activities. Customers then redeem those IOUs for airline services. Put another way, you're turning the money you spent on groceries, gas, clothes, and that $500 VR headset you barely use into jet fuel for your next flight.

Banks like this agreement because it drives high spending and brand loyalty. Airlines love it because it generates repeat customers and a constant loop of revenue as people shop. The more a cardholder spends, the more points they earn, and the more a bank pays the airline. Consumers love it because it feels like they're getting free money when redeeming points. On paper, everyone wins.

Even if everyone comes off happy, the setup is an especially good deal for the airlines. A March report from the travel company Point.me said each airline point is generally valued at about 1 cent, in terms of how much value customers receive when they redeem them, but banks buy them for anywhere from 1.5 to 2.5 cents before any bulk discounts. The margins for selling points range from 39% to 53%. Airlines regularly lure new cardholders with enticing sign-on bonuses and other built-in perks, like travel credits and free checked luggage. Southwest and United partner with JPMorgan Chase, American works with Citibank, and Delta partners with American Express. Each airline has different tiers, and the annual fees — from which airlines receive a kickback — can range from $0 to $695 a year.

There are some ways savvy travelers can gain the upper hand. Customers can book reward itineraries via airline websites, paying only taxes and fees, often at steep discounts compared with the cash cost of the same flight. For example, a one-way United business class flight from Los Angeles to Sydney on June 4 costs 100,000 points (plus $33). The average redemption value of United points is 1.3 cents per point, meaning the points needed to book the flight equal roughly $1,300 — but the ticket paid for outside the loyalty program costs $4,988.

"I've gotten so many good redemptions," said Dunn, who largely flies business class using points instead of paying the multithousand-dollar cash price. "One was a last-minute United Polaris from San Francisco to French Polynesia for 85,000 points. Another was American from Los Angeles to Sydney for 65,000 points."

Offering cheaper or almost free flights, upgraded seats, or complimentary checked luggage seems like a self-own by the airlines — why give money away? But all the special offers are offset by several factors. One, the cost to airlines of letting you redeem points is often far lower than the money they earned up front from selling those points to the banks, especially during off-peak times. So you may feel like you're getting a deal, but the bank already covered your redemption for that "free" seat. Two, spending to earn enough points or status for a flight or upgrade means the airline has already secured thousands of dollars' worth of your business many times over, whether you booked a flight with them instead of a competitor (whose standard cost may have been lower) or used its credit card.

"Having an airline credit card tends to make you a stickier customer," Savanthi Syth, a Raymond James analyst, told me.

Three, the complimentary or points-bought upgrades are typically business- or first-class seats that would go unoccupied anyway or be used for last-minute bumps on the day of travel.

The fourth and final way that airlines end up winning the points game is perhaps the biggest and simplest: They're relying on people never using those points. The McKinsey consulting group estimated in 2018 that 30 trillion airline points went unused globally. That's billions of dollars' worth of unredeemed flights. Unredeemed points are listed as a liability on an airline's balance sheet to account for potential redemptions, but the ones that go unused are essentially "free money" because airlines keep the revenue from issuing the points without having to offer any actual reward in return. And the cost to keep unredeemed points in the system is virtually zero. A 2024 federal filing said Southwest had $4.8 billion worth of unused points on its balance sheet; Delta has about $9 billion.

Many people are so price-sensitive that they fly whichever airline has the lowest cost and never earn enough points from flying on a single carrier to redeem anything meaningful. Some people don't travel as much as they think they will when they sign up for a co-branded credit card — especially younger people like students. This same group may not have the cash funds to pay for a vacation beyond the points flight redemption. And even when people do end up using them, airlines can mitigate the hit by manipulating the number of seats available for redemptions and how many points they cost based on factors like demand and capacity. This type of price increase pushes frequent flyers away from using rewards to offset an expensive cash ticket.

Any good loyalty program comes with the risk of people milking too much out of it, at least from the airline's point of view. This has prompted carriers to periodically — and unexpectedly — change the level of points, spending, or eligibility required to earn status, freebies, and benefits. The goal is to maximize loyalty revenue, reduce flight redemptions, and elevate brand exclusivity by making people pay more for what was previously offered at lower rates. But it also runs the risk of running people off.

The latest example of this switcheroo is when United increased virtually all of its co-branded credit card annual fees in March by between $55 and $245. Delta similarly upped the yearly cost for its Amex cards in 2024. The buck didn't stop there, with both airlines also overhauling parts of their loyalty programs. Delta added limitations on its Sky Club lounge access and made earning status more costly by basing it on spending rather than miles flown. Delta said the changes addressed a need to manage overcrowding at airport lounges and how many people earn elite status.

United's loyalty changes were tamer, such as upping the price for its lounge access, though they still frustrated members. Even the new credit card "perks" — which the company said would enhance their value by targeting different consumer travel styles — have some noticeable drawbacks. Sally French, a NerdWallet analyst, told me that United's new benefits have "coupon book energy to the max." Customers can use travel credits on things like hotels, ride-hailing services, rental cars, Instacart, and flights with the semiprivate charter company JSX. These may seem useful in theory, but the problem is that the $60 to $150 annual credit for Uber and Lyft is allotted at $5 to $18 a month, depending on the card. The same goes for Instacart. French said the up to $200 annual JSX credit may not put a huge dent in the company's pricier airfare, which starts at about $200 one way for short hops but can reach $1,000 or more on longer flights. And the up to $200 hotel credit? That has to be put toward bookings at Renowned Hotels and Resorts — it can't be used on your preferred brand, which might be Hyatt or Marriott. Given the limited value and scope, many customers are leaving these deals on the table — but the airline already cashed in on the sign-up with the bank.

"Most consumers are using few to none of these benefits," French told me.

Still, French said there are some, albeit few, positives to airline loyalty changes, like less crowded lounges and more membership exclusivity. And many cardholders will likely stay loyal despite the changes. Delta's president, Glen Hauenstein, said in the airline's January earnings call that about 1 million people signed up for its Amex card in 2024. In its full-year earnings call, United also said it saw 1 million new credit card acquisitions last year — though it's unclear how its 2025 changes will affect sign-ups.

Airlines are facing a grim outlook right now. Economic uncertainty and President Donald Trump's tariff war have sent airline stocks tumbling and threaten profit outlooks. Recession worries are testing travelers' willingness to fly, and a reduction in domestic government travel following federal layoffs hasn't helped. Still, loyalty may be a saving grace because, regardless of a recession, credit card spending and subsequent earnings aren't going away — a buffer that helped airlines' financials during the pandemic and could again if there's a downturn this year.

Delta's April earnings showed loyalty revenue increased by 7% year over year, including the $2 billion made from its Amex partnership. This was down from the 12% loyalty revenue increase the airline posted between the first quarters of 2023 and 2024 but still high enough to keep overall growth in the green. Similarly, United's earnings revealed a 9.4% increase in loyalty revenue year over year, a slide from the 15% bump in the first quarter of 2024 but still a strong number.

American's 5% increase in loyalty revenue, driven by credit card swipes, was the lowest of the three mainline carriers. Southwest did not disclose its year-over-year loyalty performance. Neither airline reported a quarterly profit but said loyalty padded their bottom lines: "We had a record first-quarter spend in our co-branded credit card," Southwest's chief operating officer, Andrew Watterson, said during the airlines' earnings call.

The golden goose, however, is under threat. The Department of Transportation in September began investigating the programs at American, Delta, Southwest, and United to determine whether they were engaging in "unfair, deceptive, or anticompetitive practices." Then-Transportation Secretary Pete Buttigieg said the airlines' ability to devalue their points is hurting Americans and their families. It's unclear how the Trump administration will carry out the investigation.

Even with the potential for regulatory and economic roadblocks, loyalty ecosystems are imperative to an airline's success. As the people-moving business has gotten more cutthroat and margins have been squeezed, the major carriers are relying more than ever on revenue from nonticket sources. While bag and seat-selection fees draw customers' ire, loyalty points and credit card tie-ins almost feel like a game. That's pushing airlines away from their core flying business and making them into mini financial institutions. In Gen Z talk, it's giving less Wright brothers and more JPMorgan.

Taylor Rains is a senior aviation reporter on the transportation team focused on all things aircraft and airlines.

• Real ID rules took effect Wednesday after more than 20 years.
• Ahead of the deadline, thousands of Americans still had not upgraded their state IDs.
• At airports in New York City and Atlanta, wait times were low and compliance was high.

Amid warnings of long lines, confusion, and last-minute scrambles, the nationwide Real ID rollout arrived with an unexpected twist: calm.

Leading up to the deadline, some 81% of flyers were presenting adequate ID, the Transportation Security Administration said, leaving hundreds of thousands still in need of an upgrade.

Business Insider reporters were on the ground at two of the US's busiest airports — New York City's LaGuardia Airport and Hartsfield-Jackson Atlanta International Airport — to see how the new rules would play out. We weren't the only ones eager to capture the possible chaos; news crews also littered the terminals, cameras ready.

As the first few hours passed, things appeared surprisingly organized. There were no snaking security lines, travelers largely came prepared with the right documentation, and the TSA ran a two-line strategy to keep things moving.

Wait times were low, and there was a separate system for people without a Real ID

Wednesday is generally a low travel day, and posted wait times for the regular checkpoint at both airports — including across all of their respective terminals — were less than 10 minutes during the morning rush. Even less for TSA PreCheck.

Jayden Martinez, an airport employee in LaGuardia's Terminal B, told BI that travelers without a Real ID are put in a separate security line but that it's "not really affecting the TSA wait times."

Everyone with an acceptable ID, including Real IDs and passports, is given a slip of paper indicating they're good to fly. Another employee said there had been far more compliant than noncompliant travelers.

Martinez said crowds could change on a busier travel day. Two employees in Terminal C said the same. New York's Real ID compliance is only about 45%.

Across the river in New Jersey, where compliance is among the lowest in the country at about 19%, government-posted TSA wait times at Newark Liberty International Airport were between two and 18 minutes.

In Atlanta, many rows of rope lines were out in apparent anticipation of crowds. But with Georgia reporting nearly 100% compliance, security lines were similarly empty on Wednesday morning.

"We've had low Real ID noncompliance, even lower than expected," Alexis Pickeral, the Atlanta airport's lead TSA officer, told BI. People without a Real ID were given a red noncompliance card and faced more thorough screening of their bags and persons. "It doesn't take very long," Pickeral said.

Travelers were budgeting for extra security time

Ahead of the deadline, which was in the works for nearly 20 years, the government and airlines warned about long security queues and encouraged people to arrive earlier than normal. Most appeared to have heeded their advice.

Scott Adkins and Erin Courtney were flying from New York to Illinois, and both knew about the Real ID deadline. They said they arrived an extra 45 minutes early.

Adkins said he got his Real ID years ago without even realizing it, but Courtney wasn't able to get an appointment and instead brought her passport (halfway through her conversation with BI, she double-checked that her passport wasn't expired).

"As soon as they started announcing it, that's when I started thinking about it, but I didn't do anything or try to make an appointment until like a month ago," Courtney said. She added that her local Department of Motor Vehicles was telling people who had passports not to get their Real ID.

Two women from Birmingham, Alabama, who were leading a college trip, said they arrived early at LaGuardia. Both had their Real IDs and knew it was the first day of implementation.

Getting the updated license, however, wasn't so easy — one of them had to return to the DMV three times and got it only five days ago, they said. For about four months leading up to the trip, they told students they would need to have a Real ID or a passport.

Hayden B, who has a Real ID and was alerted about the enforcement deadline a few weeks before her flight by both Delta Air Lines and the government, said she had no issues at the checkpoint when flying from Las Vegas to Atlanta on Wednesday.

"This was my first time flying. Security took five minutes," she said.

• Newark airport faces ongoing travel chaos amid ATC issues and runway construction.
• It's unlikely the problems will subside anytime soon, with United forced to axe 35 daily flights.
• Experts advise considering alternative airports or other United hubs to avoid disruptions.

A week of compounding crises at New Jersey's Newark Liberty International Airport has some travelers questioning if they should change their travel plans to avoid the airport altogether.

Travel chaos has been ongoing at Newark since April 28, when air traffic issues first forced dozens of delays and more than 100 cancellations. Those delays have now stretched into their second week, disrupting thousands more flights and leaving plane loads of passengers stranded at one of the busiest US airports.

This has ultimately forced United, the airport's biggest airline, to pull 35 daily flights, or about 10% of its Newark schedule, until further notice.

The airport has long dealt with delays caused by a shortage of air traffic control staff. But now, its main runway is closed for construction until at least June, and classic April rain showers have only made things worse.

As of Tuesday afternoon, the trifecta of staffing, construction, and weather had flights inbound to Newark delayed an average of more than four hours — the airport's 9th straight day of issues.

Atmosphere Research Group travel analyst Henry Harteveldt told Business Insider that those stuck in chaos should keep their wits, and those traveling in the near future may want to consider the New York City area's other airports or another United hub.

Avoid Newark or brace for inevitable disruptions

New York's John F. Kennedy International Airport and LaGuardia Airport are the most obvious alternatives to Newark, but Harteveldt said there's also Long Island MacArthur Airport and Westchester Airport in White Plains.

These suburban options are further from the city, and they won't have the same plethora of flight connections. The same goes for LaGuardia, which has a perimeter rule that only allows flights longer than 1,500 miles, like United's flight to Denver, on Saturdays.

NerdWallet travel analyst Sally French told BI to allow plenty of extra time for your connection if Newark is your only option. She added that customers should avoid checking a bag as carry-on only allows for more flexibility to switch flights or airports.

If you want to stick with United but still avoid Newark as a layover, you could travel via United's hubs in Houston, Washington, DC, Denver, and Chicago instead. You could also use these hubs as a connection to LaGuardia if you still need to get to the New York City area, but without the added risk of flying to Newark.

The airline says fees and fare differences are waived for flight changes from May 6 to May 17 for tickets purchased before May 4, so long as the origin and destination cities remain the same, or one of LaGuardia or Philadelphia.

If you need a long-haul international connection, however, Newark may be your only choice, as United doesn't fly to New York-JFK.

Some loyalty customers may prefer to deal with Newark, and Harteveldt said customers should ask to be booked on one of United's partner airlines if their original flight is disrupted.

"If Newark is your only option, gird your loins and pack your patience," Harteveldt said, adding that customers should not vent their frustrations at the airline's employees.

How things got so bad at Newark

It's not uncommon for major airports to experience days of disruptions due to weather and equipment, like the January winter storms or the CrowdStrike fiasco in 2024. When a combination of factors coexist, things can get extra chaotic.

In July 2024, the Federal Aviation Administration moved the ATC arrivals operation that handles Newark from New York to Philadelphia to address staffing issues, though the same problem has appeared regardless of where the traffic flows. Equipment failures at the facility have only added to the backups.

The closure of the airport's busiest runway is expected to last until at least June as planes wait to use alternates.

United CEO Scott Kirby said in a letter to customers on Friday that the compounding problems were exacerbated by 20% of controllers "walking off the job." He added that the facility has been "chronically understaffed for years." It's unlikely things will change anytime soon until capacity is under control.

Kirby urged the government to reclassify Newark as a "Level 3" airport, meaning it would use a slot system to manage capacity by limiting the number of planes that can take off and land at certain times. Both New York-JFK and LaGuardia are slot-controlled.

The Port Authority of New York and New Jersey also blamed the FAA for the chaos, telling BI it has invested billions of dollars to modernize Newark but that those improvements rely on a "fully-staffed and modern federal air traffic system."

"We continue to urge the FAA to address ongoing staffing shortages and accelerate long-overdue technology upgrades that continue to cause delays in the nation's busiest air corridor," a spokesperson said.

The federal government has long tried to get a grip on air traffic control staffing. The FAA said in May 2024 that it was about 3,000 controllers short.

The Trump Administration in February announced an effort to "supercharge" ATC hiring. This includes upping trainee pay, offering up to $15,000 in incentives to new hires, reducing the hiring process by five months, and providing new opportunities to veteran controllers.

• The long-awaited Real ID deadline takes effect on Wednesday, May 7.
• As of April, 81% of flyers were already prepared for the new requirements, the TSA said.
• It's still possible to fly if you don't have a Real ID yet. Here's what airlines are saying.

Are you one of the many Americans still without a Real ID? You can likely still fly, but you should probably plan for security delays, and don't count on your airline for much help.

Business Insider has reached out to 12 of the biggest US airlines about how they plan to manage long waits at security checkpoints or confusion at check-in counters. While they can't help you get around federal ID rules, your ticket may offer free changes if you need to delay your trip.

As of April 11, 81% of flyers were already presenting compliant IDs, the Transportation Security Administration said. That means hundreds of thousands more have not yet upgraded their state driver's license or obtained another form of acceptable federal identification.

No airlines have announced across-the-board flexibility for those who cannot fly or miss their flights due to security delays or Real ID issues. Long DMV lines have been reported in some large cities around the country, but they may shorten after the deadline passes.

Depending on the airline, you can opt to move your flight until after you've secured a new state ID. Luckily, many tickets are now cancellable for credit or changeable with no added fees.

What you can use instead of a Real ID, according to the TSA:

• US passport
• US passport card
• A US Department of Defense ID, including those issued to dependents
• DHS trusted traveler cards (Global Entry, NEXUS, SENTRI, FAST)
• State-issued Enhanced Driver's License or Enhanced ID
• Border crossing card
• Permanent resident card
• An acceptable photo ID issued by a federally recognized Tribal Nation/Indian Tribe, including Enhanced Tribal Cards (ETCs)
• HSPD-12 PIV card
• Foreign government-issued passport
• Canadian provincial driver's license or Indian and Northern Affairs Canada card
• Transportation worker identification credential
• US Citizenship and Immigration Services Employment Authorization Card (I-766)
• US Merchant Mariner Credential
• Veteran Health Identification Card (VHIC)

The TSA said a temporary driver's license is not accepted. It also warned that this list can change at any time and said travelers should check the agency's website before traveling to verify that their form of ID is still accepted.

You can also get through security without an updated ID, but you will need to answer questions like your name and current address to verify your identity. If your identity is confirmed, you can enter the checkpoint, but you could be subject to extra screening.

This has always been the case (as people who have forgotten their wallets have learned the hard way), but the TSA said this will likely cause delays as more passengers require the alternative method.

Here's what airlines have told us so far about what they're doing in anticipation of Wednesday:

Delta Air Lines

"As we do today, Delta people will work on a case-by-case basis to rebook customers who miss flights due to extenuating circumstances once at the airport," the airline told Business Insider.

Avelo Airlines

Budget carrier Avelo Airlines told BI that it cannot offer a waiver for missed flights due to Real ID requirements, as the new rule has been communicated to customers via email for "a while now."

Customers can pay a fare difference to change or cancel their flights for a travel credit.

Southwest Airlines

Southwest referred BI to Airlines for America or the TSA because Real ID is a government-mandated program.

"We have REAL ID reminders on southwest.com, the app, and throughout the booking process," a spokesperson said.

Sun Country Airlines

A Sun Country spokesperson told BI it would not offer flight waivers if travelers arrive without a Real ID and that its standard change and cancellation policies would apply.

Depending on how far out a flight is, changing your Sun Country booking can cost up to $99 per direction, and customers are responsible for any fare difference.

Flights can be canceled for a fee, and balances from qualified changed or canceled bookings will be issued as a future travel credit.

• The FAA is offering at least $10,000 in incentives to new air traffic controllers.
• Other new initiatives include faster hiring, new learning tools, and increased pay for trainees.
• The "supercharge" effort comes amid a national shortage hampering US airport operations.

Want to become an air traffic controller? You could now get a nice chunk of cash if you get hired.

Transportation Secretary Sean Duffy announced on Thursday the next step of the Trump Administration's efforts to "supercharge" hiring and retention of controllers amid a national shortage.

It includes a limited-time offer of $5,000 each for new hires and Oklahoma academy graduates who pass initial training milestones. Another $10,000 per person will be offered to new controllers assigned to one of the 13 "harder-to-staff" air traffic facilities in places like West Texas and Alaska, the Federal Aviation Administration said.

The agency said new hires and graduates are two different pools of potential controllers, so the maximum possible incentive payout would be $15,000.

There's also an incentive to retain staff. According to the Department of Transportation, controllers eligible to retire but are still under the mandatory retirement age of 56 can earn an extra 20% of their base pay for every year they continue to work.

Other initiatives to hasten the hiring process announced Thursday include new opportunities for veteran military controllers and accelerating medical and security clearances for candidates.

The DoT is also opening a new learning center to offer extra help to academy students. It said only an average of 57% to 73% of trainees graduate, but those who do can earn an average salary of $160,000.

A national air traffic controller shortage

The FAA has been battling a controller shortage for years. The agency said in May 2024 that it was about 3,000 controllers short. Later that year, it said it had met its hiring goal of 1,800.

The shortage was thrust into the spotlight after a January midair collision over Washington, DC. A preliminary investigation found that the airport tower was understaffed at the time of the crash.

The problem has continued in other busy airspaces. On Monday, Newark Liberty International Airport in New Jersey experienced a breakdown in airline operations due to air traffic constraints, including too few controllers and an equipment outage, causing delays and cancellations.

The FAA aims to upgrade antiquated systems and hire 2,000 new controllers in 2025, the latter sped up by reducing the previous 8-step hiring process to five and boosting academy trainee pay by 30%.

Aspiring controllers don't need a college degree but must be under the age of 31 and meet certain education, physical, and mental fitness requirements.

Since then, the agency said it has cut five months off the hiring timeline and sent more than 8,300 candidates to take the air traffic skills aptitude test to determine their admission to the academy.

"Less than 45 days after the announcement closed, one of the first applicants already has an Academy start date in early June," acting FAA Administrator Chris Rocheleau said in a press release.

• Cruise lines are seeing resilient demand despite economic uncertainty shaking the travel industry.
• Cruise companies benefit from a diverse customer base and exposure to international demand.
• By comparison, US airlines have pulled 2025 guidance and cut flying due to a drop in travel demand.

The cruise industry is proving uniquely resilient as the travel industry navigates rocky economic waters and airlines prepare to trim their schedules as demand sinks.

Cruise giants Carnival and Royal Caribbean reported strong first-quarter earnings and said they'll boost capacity this year amid ever-growing demand for vacations at sea — many of which can be budget-friendly getaways.

The same can't be said for airlines. Only one, United, has provided any financial guidance for the rest of 2025, warning a recession could dent profits by a third.

Across the board, US air carriers plan to slash their flight schedules as demand for domestic tickets weakens, international visitors avoid the United States, and government travel evaporates.

Travel analyst Henry Hardevelt of Atmosphere Research Group told Business Insider that cruise lines' saving grace is their diversified customer base, large exposure to international markets, and far-out bookings.

"Cruises are so extensive in the assortment of brands and itineraries and the variety of cabins available on these ships," he said. "They can appeal to a very broad mix of travelers."

The all-inclusive nature of cruises can help customers manage their budgets, and people can board from all corners of the world — not just in the US.

Huge bets initiated years ago on amenities, like massive new ships and private resorts that keep the cruise-ship experience (and dollars) flowing on land, have also helped the cruise industry guard against what airlines have experienced this year.

Cruises attract a broad array of customers

Cruise lines' diverse fleet and itineraries help give them an edge.

Some boats are small and quaint, with luxury spas and sushi restaurants. Others are so massive, with rollercoasters and go-kart tracks, that you can't possibly do everything in one week.

Companies like Virgin offer adult-only sailings, Norwegian Cruise Lines offers solo cabins, and Viking Ocean Cruises forgoes casinos.

Pricing varies, too. Celebrity Cruises focuses on luxury with expensive cabins to match, for example. Carnival and MSC offer sailings for a few hundred dollars, including a stop at a private island.

Hardevelt said this diversification can help cruisers control their budgets without sacrificing the fun. For example, they could ditch the drink package or excursions to save money and stick to the included accommodations, shows, and food.

This can make cruising more affordable, a main draw for people feeling more cash-strapped. The costs for flights, hotels, and everything in between for an à la carte vacation to places like Orlando or Las Vegas can quickly add up.

"Cruising is truly an example of an industry where there is something for almost everyone available," Hardevelt said. "This is why I think people prioritize it."

That's not to say airlines aren't diversified to cushion against a downturn. American, Delta, and United reported strong premium cabin demand through the summer, especially for long-haul flights.

Cruises have a larger global footprint

Cruise lines like Carnival and Royal Caribbean operate worldwide in Europe, Australia, Asia, and beyond, opening vast market opportunities across geographically different itineraries.

Royal Caribbean CEO Jason Liberty said on Tuesday that the company's "nimble and flexible sourcing model" can attract "quality demand from all over the globe."

In contrast, US airlines largely pull demand from the Americas. In recent earnings, American Airlines, Delta Air Lines, and United Airlines said that 75% to 80% of their international revenue originates in the US.

Decreased bookings from Canada and Europe have forced airlines to reduce capacity this year. Hardevelt said cruise lines aren't as vulnerable to these changing habits.

"There may be Canadians who don't want to sail out of a US port, so they may fly to Mexico, for example, if there is a cruise they like that is available to board there," he said.

He added that airlines may still benefit from booming cruise demand, as many cruisers travel by air to their embarkation port.

However, airplanes are just the vessel to get there: "Few people get on a plane for the sake of getting on a plane; cruising is the vacation."

People can book cruise itineraries years out

Airlines typically only allow bookings about 11 months out, with most people buying tickets 90 days before the flight, making flying a relative short-term decision.

Cruises, on the other hand, can generally be booked 18 to 24 months in advance, allowing some flexibility to cancel if a recession hits.

For example, if someone today decides to book a cruise for mid-2026 and puts a deposit down, it may be months or longer before they fully pay for it.

They may choose to wait out the uncertainty period of 2025 before canceling, and they may even be able to get their deposit refunded if they do decide to.

Hardevelt noted, however, that people keeping their cruises on the books for now amid a potential recession could skew forecasts.

"As cruise companies look at their forward bookings, they can certainly say activity looks good," he said. "But if the economy is substantially derailed, some of those bookings could very well disappear."

• Airlines are adding hours of flight time to reroute around Pakistan amid rising tensions.
• Air India has added a fuel stop in Europe on treks to and from North America.
• IndiGo has suspended some flights to Central Asia because its planes now can't make the trek.

Flights by Indian carriers, including Air India, IndiGo, and SpiceJet, are spending hours of extra time circumventing closed Pakistan airspace amid rising tensions between the two nations.

The carriers could previously fly west across neighboring Pakistan to connect to countries in Europe, North America, the Middle East, and Central Asia.

Now, they must reroute around Pakistan's borders after the government closed its airspace to Indian airlines following India's response to an attack in Indian-administered Kashmir on Tuesday.

Air India's Delhi hub is most impacted, as planes must detour south around Pakistan and across the Arabian Sea before returning north. With more miles to cover, some flights to North America must stop in Europe to fuel up before finishing their trek across the Atlantic, adding up to four hours to their passengers' journeys.

An Air India spokesperson confirmed to Business Insider that treks to North America will stop in Vienna or Copenhagen for fuel, adding up to four hours of travel time. He added that other flights to Europe and the Middle East will see "extended" routes.

Another airline, IndiGo, is suspending some routes due to the closure.

India-based CNBC affiliate CNBC-TV18 reported the budget carrier has temporarily cut flights to Tashkent, Uzbekistan, and Almaty, Kazakhstan, through at least May 7 because the now longer westward treks are too far for its narrow-body Airbus planes to reach.

Fuel stops add hours to US-bound flights

Take Sunday's flight from Delhi to Chicago, for example. The plane flew about eight hours to Vienna, spent about an hour and a half on the ground, and then flew another nine hours to the US.

Sunday's flight to New York, which stopped in Copenhagen, spent about the same time in the air and a similar 90 minutes on the ground.

The more than 18-hour journeys exceeded the typical 14 to 15-hour treks pre-Pakistan closure.

San Francisco flights to and from Mumbai, previously about 17-hour flights, now exceed 20 hours of travel time with the stop.

"Air India regrets the inconvenience caused to our passengers due to this unforeseen airspace closure that is outside our control," the spokesperson said. "We would like to reiterate that at Air India, the safety of our customers and crew remains top priority."

Nonstop flights will take extra time

Even if Air India operates some westbound long-haul flights nonstop, the lengthy detour will still add hours of flight time.

Flight tracking data shows that the route from Toronto to Delhi on Friday and Saturday flew nonstop in about 15 hours, compared to the typically 13 hours previously.

Nonstop flights from India to Europe and the Middle East are less affected time-wise, but can still be a nuisance for travelers.

Air India flights from Delhi to cities like Amsterdam, Frankfurt, Paris, Milan, and London took about nine hours before Thursday; now they're reaching 10 or more.

SpiceJet and IndiGo said they're seeing a similar impact, with IndiGo announcing that 50 international routes would be longer than usual.

For example, since Thursday, Flightradar24 shows IndiGo's flight from Delhi to Tbilisi, Georgia, has taken up to an hour extra. SpiceJet's route from Amritsar, India, to Dubai is similarly longer.

All three airlines have advised customers on social media and their websites to monitor their flight status for schedule adjustments, rebooking, and refund options.

This isn't the first time geopolitical tensions have forced lengthy detours. Carriers like Finnair and United Airlines started flying extra hours to Asia after Russia closed its airspace following its attack on Ukraine in 2022.

• United Airlines is investing in a revolutionary new aircraft type.
• The head of its latest venture, a jet with one big wing, said it will be like a "living room in the sky."
• The 'blended-wing body' plane built by startup JetZero could replace United's older Boeing jets.

United Airlines is investing billions of dollars in funky new aircraft, including electric air taxis and a supersonic jet. Up next? A plane that's essentially one giant wing.

The airline on Thursday unveiled a plan to buy up to 200 of the 'blended-wing body' aircraft from California-based aerospace startup JetZero. The startup wants to compete with Airbus and Boeing by creating a plane that burns half the fuel of a similarly sized, traditional tube-and-wing plane.

The 250-passenger "Z4" aircraft is not yet certified, but the company is aiming for a 2030 commercial launch and successfully flew a subscale prototype in 2024.

Andrew Chang, the managing director of United Airlines Ventures, the division that funds these innovation-focused investments, told Business Insider the Z4's oversized wing could create a "living room in the sky."

"Everything around the customer travel experience — how they sit in the plane, board, and deplane, and how [crewmembers] serve them — can be reinvented around the new space within this new aircraft design," he said.

Chang added that the conditional purchase agreement relies on JetZero's ability to prove its revolutionary design with a full-sized demonstrator by 2027 and meet United's operational and business requirements on things like cost, fuel burn, and safety.

But he was confident JetZero, which the US Air Force has also backed, could deliver: "If you look at the management team, there's a lot of institutional experience and knowledge there from companies like Airbus and Boeing."

More wing means more cabin real estate

JetZero's futuristic plane combines the wings and fuselage into a single lifting surface. This unique airframe dramatically widens the cabin, allowing United to accommodate over a dozen seats per row.

Widebody passenger aircraft today max out at 10-abreast rows. The densest configuration ever proposed was 11 seats across on the world's largest commercial airliner, the Airbus A380 — though no carriers signed on.

The Z4 will be shorter than traditional dual-aisle planes. Chang said that instead of 20 or 30 rows of seats, there may be only 10 or 15.

There would also be more aisles for navigating the cabin, and up to four entry doors, improving boarding and deplaning efficiency.

Chang added that there would be economy and premium seats with Starlink WiFi and media to create a living-room-like vibe and likely some reimagined spaces: "Every square foot of real estate, you want to have revenue passengers on it," he said.

It's unclear what new spaces United could develop, but JetZero competitor Natilus has some ideas for its in-development 200-person blended-wing aircraft design called Horizon.

Speaking to BI in October, Natilus CEO Aleksey Matyushev said Horizon could accommodate lounge or playroom areas. He added that this could offset the possible complaint of the longer rows reducing the number of window seats.

Delta Air Lines is also working with JetZero as a partner developer. It said the cabin could accommodate accessible seats and lavatories, and dedicated overhead bin space for every passenger.

Alaska Airlines' investment, which also has the option for plane orders, said the airframe would provide a quieter flying experience.

JetZero could replace some of United's old Boeing planes

JetZero said its Z4 plane's better lift and lower drag could cut fuel burn by up to 50% per passenger mile while still flying up to about 5,750 miles nonstop. It would use conventional jet engines and run on traditional or sustainable aviation fuel.

Chang said this efficiency and subsequent cost cuts could make the new jet a replacement for midsize airplanes like the Boeing 757 and the Boeing 767. United plans to retire these older aircraft by 2026 and 2030, respectively.

For example, United said in a press release that a flight from Newark, New Jersey, to Palma de Mallorca, Spain, would use up to 45% less fuel than the twin-aisle aircraft flying the route today.

United's Boeing 767 operates that summer seasonal transatlantic trek. JetZero's new aircraft could take over, and it would fit into the existing airport infrastructure on both sides of the pond.

JetZero's expected commercialization is years away. United plans to take on next-generation aircraft like the Airbus A321XLR and the Boeing 787 Dreamliner as more immediate and reliable replacements for the 757 and 767.

If certified, JetZero's aircraft would provide United with another high-range, high-capacity, and cost-effective fleet option that could comfortably sit in between.

It would have more range and capacity than the A321XLR but less than United's 787-9 and 787-10. The Z4 could hold a handful more people than the airline's smallest Dreamliner variant, the 787-8.

"We believe [JetZero] is a game changer; this is a different way to reinvent aviation," Chang said.

• Major airlines say premium cabins and international demand are key amid economic uncertainty.
• Budget carriers have historically lacked premium seats in favor of cheaper no-frills cabins.
• Frontier, Spirit, and Southwest are all deploying new premium strategies to generate more revenue.

Major airlines continue to prove the importance of premium cabins as budget carriers play catch-up.

First-quarter earnings from American Airlines, Delta Air Lines, and United Airlines showed slowed growth and planned capacity cuts amid economic uncertainty and diminishing demand. Less government travel and fewer US-bound tourists didn't help.

Only one carrier, United, offered any financial guidance for the rest of the year, and warned a recession could cut profits by a third.

One thing all major carriers reporting results so far can agree on is that premium and international demand are helping to keep things afloat, even as share prices crater. That's something budget carriers have only recently begun to invest heavily in.

Without first-class or business seats to offer flyers, Frontier Airlines, Spirit Airlines, and Southwest Airlines have fewer ways to compensate for decreased demand and capacity cuts.

"We anticipate softness in the domestic main cabin to continue," American CFO Devon May said in the airline's Thursday earnings call. "To partially offset this, we expect long-haul, international, and premium bookings to outperform year over year."

Delta and United said economy cabin travelers tend to be more price sensitive and may delay travel plans amid the downturn, while premium economy, business class, and first-class seats are a more resilient and significant portion of their revenue.

New premium strategies announced by a slew of budget airlines last year, like plusher seats and luxury amenities, could help generate more revenue in the long run, but installing them on planes will take time.

Mainline carriers are cashing in on premium demand

All three major carriers reported year-over-year premium revenue growth in their first-quarter earnings. American saw a 3% rise, Delta's was 7%, while United increased by 9.2%.

"I don't think we've ever had premium as a larger percent of our total revenues as we do right now," Delta president Glen Hauenstein said in the airline's April earnings call. "It's sitting very resilient."

Executives attributed this to affluent travelers still willing to pay for premium seats despite the economic environment, especially long-haul flights to Europe and Asia.

They said as much as 75% to 80% of their international revenue originates in the US, and bookings remain strong through the summer compared to the comparatively lower domestic demand.

On the other hand, low-cost airlines' historically all-economy airplanes do not have swanky first or business-class cabins and do not fly long-haul to popular international markets like London and Japan.

Budget carriers' limited revenue streams and lower profit margin offerings make it harder to account for their losses as they cut thousands of flights this year. Mainline flight reductions can be more easily offset.

Budget carriers want a piece of the premium pie

Frontier, Spirit, and Southwest started bucking their historically no-frills trend in 2024. These add-ons come at a cost and would help the budget carriers collect more revenue.

For example, Spirit revamped its premium "Big Front Seat" bundle with more perks like free snacks, alcohol, Wi-Fi, and priority check-in. Frontier added a "business-class-like" cabin where the middle seat is blocked.

Southwest plans to deploy new premium extra legroom and front row seats in 2026. It will also start charging for checked bags in May for the first time in its 50-year history, though loyalty and elite status holders will still keep the perk. Those investments likely won't show up until at least the third-quarter results, analysts said.

"There was a better way to maximize the revenue per square foot in the aircraft, which is the whole game here," Southwest CEO Bob Jordan said in Thursday's earnings call on adding premium seating.

Delta earned $5.4 billion in revenue from its economy seats and $4.7 billion from its premium cabins during the first quarter. That means its premium cabin revenue was equal to 88% of the economy class revenue despite taking up much less real estate inside the plane.

Those are the types of returns the low-cost airlines and their investors hope to get a taste of.

Expected second-quarter revenue from Delta and American ranges from down 2% to up 2%, while Southwest expects flat performance or a decrease of as much as 4% year-over-year.

Frontier's stock is down about 55% year to date, and Southwest is down 21%, outpacing the broader market. Both have pulled their full-year guidance.

Spirit shares will begin trading again on April 29 after the airline emerged from Chapter 11 bankruptcy in March.

• An international agreement allows airlines to fly between two countries other than their home country.
• The strategy can boost revenue, aircraft utilization, and market connectivity.
• United Airlines is expanding this 'fifth-freedom' flying in Asia via Tokyo and Hong Kong.

A United Airlines flight from Tokyo to Mongolia? Or Emirates from Mexico City to Barcelona? These routes might seem weird, but are a unique byproduct of decades of globalization and airline evolution — and are especially popular with airline nerds.

Flying across international borders is extremely complex, but a decades-old set of agreements known as the "freedoms of the air" makes it possible. These building blocks of global aviation allow airlines to operate to and from nations other than their own.

The rights, first laid out by the International Civil Aviation Organization (ICAO) in 1944, address geopolitical issues like flying over or landing in another country. The fifth of these is the rarest and gets the most attention.

This allows an airline of one nation to carry passengers between two foreign countries, so long as the route starts or ends in the carrier's home state. Airlines can pick up and drop off passengers in all three nations along the extended route.

Only a handful of carriers, like Singapore Airlines, Emirates, and United Airlines, operate these routes, which can help boost revenue, provide more connectivity for customers, increase aircraft utilization, and capitalize on underused markets.

United announced in April plans to expand its fifth freedom network this year with new routes in Asia to places like Mongolia and Thailand.

United's fifth-freedom routes fly from Tokyo and Hong Kong

United has a long had a presence in the Pacific region, connecting major cities to smaller markets and islands. A handful of these are fifth-freedom routes through Asia.

United flies from Los Angeles and San Francisco to Cebu, Philippines, via Tokyo Narita Airport. The shorter leg uses narrow-body Boeing 737s planes based in Tokyo.

The new route via Narita to Ulaanbaatar, Mongolia, will begin on May 1, and to Kaohsiung, Taiwan, on July 11. This means United can fly its own planes rather than relying on codeshare partners like All Nippon Airways to connect its customers deeper into Asia.

United's SVP of global network planning and alliances, Patrick Quayle, said in an April conference call that the airline is "bullish" on Tokyo expansion because its widebody planes from all over the US efficiently feed the flights that go beyond Japan.

He said this success has prompted the introduction of new fifth freedoms to Ho Chi Minh City and Bangkok starting in October, but through Hong Kong. The Department of Transportation officially authorized the routes on Friday.

They will operate on Boeing 787 widebodies, and United can sell the flights locally or as one-stop flights from the US.

The benefit of fifth-freedom routes

Unique fifth-freedom flying can be efficient for airlines trying to serve destinations that a plane can't reach nonstop, like Emirates' fifth-freedom flights between Mexico City and Dubai via Barcelona.

South American carrier Latam Airlines has a route between Sydney and Santiago, Chile, via Auckland.

Carriers often also make stops on otherwise attainable direct flights because they can capitalize on the high demand on both legs, filling more seats and making more money.

Emirates' fifth freedom from Dubai to New York via Milan, and Singapore Airlines' route from Singapore to New York via Frankfurt are examples of this one-stop strategy.

Adding routes to nearby cities can increase aircraft utilization. Dutch flag carrier KLM flies from Amsterdam to Santiago, Chile, via Buenos Aires, meaning the jet spends less time on the ground in Argentina to instead make more money on a quick hop to Chile.

Airlines may also want to capture demand in smaller or underutilized markets, like United has been doing.

It only competes with Mongolian Airlines and Aero Mongolia to Ulbaanbaatar from Tokyo and flies the sole service between the island country of Palau in Micronesia and Manila, Philippines.

• Qatar Airways enforces strict appearance standards for its cabin crew.
• Western airlines historically imposed appearance norms, but have shifted away from many rules.
• Qatar's grooming rules call for makeup training, specific hairstyles, and men covering bald spots.

Flight attendants — particularly women — were subject to strict appearance standards throughout the beginning of the jet age to the mid-1990s. Many airlines said this lured in high-paying travelers and created an elevated brand.

Stewardesses, as they were called then, couldn't be too tall or too short, too old or too young. They couldn't be heavy-set — and they had to be unmarried and childless. In the 1970s, Southwest Airlines, for example, fitted its flight attendants in hot pants and gogo boots.

Globally, the aviation industry has since shifted to focus its flight attendants more narrowly on safety and service. With that still come appearance standards like skirt and nail length, wearing a tie, and hair style rules, but they are far less demanding compared to past eras.

Some Western carriers today allow female cabin crew to wear tennis shoes instead of heels, or pants instead of skirts and dresses. Most can also choose to wear minimal or no makeup, while some airlines allow men to wear stud earrings.

However, some carriers have yet to ditch the traditional appearance expectations and maintain more conservative guidelines.

Qatar Airways is known in the industry for having strict codes of appearance and other things, likely an effort to maintain its luxury-focused brand and professionalism. The airline, with its exacting standards, has been rated the world's best, as of 2024.

Qatar says the strict rules haven't deterred cabin crew applications: A spokesperson told Business Insider that only 6% to 8% of the tens of thousands of applicants are accepted.

BI spoke with Qatar flight attendants Daina Haughton and Milan Rankovic and style specialist Kristine Odejar to learn more about the airline's appearance regime.

Makeup, skin, and nail requirements

Haughton said Qatar flight attendants learn how to do their hair and makeup in initial training.

This involves working with "grooming officers" like Odejar, who help match flight attendants' makeup to their skin tone and texture and teach them how to apply it best using different brushes and pens.

Haughton said the training wasn't "hard," but the consultants provided tips that cabin crew "can do to correct certain things that you wouldn't just know." She added that she spends two hours getting ready for flights, setting aside one hour for hair and makeup.

During a training session observed by BI, Odejar explained the rules for the basic makeup items required for female cabin crew members.

She said they need "full coverage" foundation and concealer, black mascara that isn't "too clumpy," and matte or sheen blush (no glitter).

Lipstick and nail colors can be deep pink, deep red, or burgundy, while nail polish options also include nude, clear, or French. The burgundy theme is in line with Qatar's brand color.

Odejar gives tips like using long-lasting concealer because it's "bulletproof" and won't come off the face, and using powder to set the makeup. She also said to prioritize skin health.

Qatar also does not allow visible tattoos, a common guideline across most global airlines. However, some carriers like Virgin Atlantic Airways have become more lenient and allow tattoos of various sizes.

Strict hairstyles and clean mustaches for men

Haughton said the acceptable hairstyle for women is a bun situated low enough so that the uniform hat can fit over it. She added that hair can't be too oily and must be a natural color if dyed; no rainbow.

Further, cabin crew must use hair nets to cover the bun, and they can choose to use one or two scrunchies; Haughton prefers two.

Odejar described the grooming guidelines for men's hair, which include properly styling it and using grooming wax or clay to make it look neat and smooth.

"You basically just need to apply a decent amount of product so it doesn't look over-gelled or having that kind of wet look effect," she said.

Rankovic said male cabin crew can have facial hair, but only mustaches, not beards.

He said the mustache needs to be neatly shaven, cannot grow over the upper lip or below the lip line, and must be grown out by the time a trip starts.

"Basically, you need to show up for the flights with [a] fully grown mustache," Rankovic said. "So you need to do it on your days off."

He added that the rest of the face must be clearly shaven; no 5 o'clock shadows. The beard ban helps maintain a clean and professional look.

Qatar told the Daily Telegraph in December that gray hair is also not allowed, and bald spots must be covered.

Uniforms must be neat and exact

Qatar flight attendants are provided with specific uniforms, including skirts, pants, blazers, and plain socks with no logos or designs. Women wear hats, and men wear ties.

Every crew member must carry a spare uniform in case of spills or other messes during the flight. They also have a separate winter jacket when traveling to colder climates.

A Qatar grooming instructor said the only men's accessory allowed is a watch, while women's jewelry is limited to a watch, simple stud earrings, and single-banded rings.

Married women can wear their wedding ring as long as the stone is embedded: "If the stone is protruding, it [creates] a safety issue," the instructor said. "They can injure themselves; they can injure the customers."

Women also wear stockings, but they must be matte and complement their skin color. The instructor said Qatar encourages wearing perfume, but ones with a soft or mild fragrance so as not to irritate customers.

Flight attendants wear different uniform pieces depending on the phase of the flight. For example, Haughton said she wears one jacket on the ground, such as during boarding and walking through airports. During the service, she changes into a blue "dining" jacket.

Each female flight attendant also has a black handbag that can be locked with a personal passcode. Haughton said the code is necessary because the bags are identical and it's easy to mix them up with another crewmember's.

She said the standard bag items are their crew-issued smartphone, a notepad, their passport, and any makeup they may need to reapply throughout the day.

• A tourist helicopter crashed into the Hudson River in New York City on Thursday, killing six people.
• A former military helicopter pilot told BI the helicopter's rotary system appears to have failed.
• Helicopter crashes are more common than airplane accidents, but main rotor detachment is rare.

There are a lot of questions swirling after a tourist helicopter crashed into the Hudson River in New York City on Thursday, killing Siemens Mobility executive Agustín Escobar, his wife, and three children.

The pilot, who the National Transportation Safety Board said on Friday had about 788 hours of total flight experience, also died.

The 21-year-old Bell 206 helicopter, registered N216MH and operated by New York Helicopter, plummeted into the river off the New Jersey shoreline at around 3:15 p.m.

It crashed upside down after what appears to have been a midair breakup. The aircraft was owned by Louisiana-based Meridian Helicopters, LLC, whose website says it sells, refurbishes, and leases helicopters. Meridian didn't return an email or phone message from BI.

Former military helicopter pilot Brian Alexander told Business Insider that the accident appears to have been a result of a "catastrophic mechanical failure" involving both the main and tail rotors.

He said no cause is confirmed and people should wait for the NTSB's investigation before jumping to conclusions. Alexander also is a partner at aviation accident law firm Kreindler & Kreindler.

While Thursday's helicopter crash could spark renewed fears amid a recent spat of airline accidents, the cause is unlikely to be related.

Why did the helicopter crash?

Videos posted on social media show the helicopter's rotary systems apparently detached mid-flight, falling into the water after the aircraft's main body had already crashed.

"It's hard to say which came first," Alexander said. "There appears to be spinning, which would suggest a tail rotor issue, but you can't rule out a main rotor detaching first and hitting the tail rotor."

The spinning he's referring to is the helicopter fuselage as it fell into the Hudson, which he said means the tail rotor likely failed at some point.

He explained that without a tail rotor, the helicopter would "spin like a top" due to the torque created by the main rotor as it produces lift and thrust. Either or both systems failing could lead to an accident.

"If you lose your main rotor, meaning it's detached, you have no lift, you're done," Alexander said. "There's nothing you can do at that point; you're just a falling object."

He said a helicopter that loses just a tail rotor is a severe situation, but it can still be flown — though with great difficulty.

Alexander said that losing power is typically a more surmountable issue. In a scenario where the helicopter's engine failed, and the blades were still attached, the aircraft could auto-rotate to descend to land.

NTSB Chairman Jennifer Homendy said on Friday that part of the wreckage had been pulled from the river, but dive teams are still retrieving components, including the main and tail rotors.

She said the agency "does not speculate" on probable cause and still needed to gather the sunken components, conduct witness interviews, and gather records like maintenance logs.

Why did the rotors apparently detach?

Alexander said that there are several reasons the helicopter rotors could detach, like mechanic error or a transmission issue.

He also said the mast — which connects the main rotor hub to the transmission — could have disconnected entirely.

"Someone on the maintenance side maybe didn't tighten a bolt up, or a part just failed," he said, emphasizing that any cause is still unknown. "I'm sure that's what [investigators] will be looking at."

This wouldn't be the first time a helicopter owned by Meridian and operated by New York Helicopter experienced a system malfunction.

In 2015, the tail rotor driveshaft on another one of the company's Bell 206 helicopters detached, which caused a loss of control and hard landing in New Jersey, according to the NTSB.

The pilot, who was the sole occupant, was uninjured.

The driveshaft transmits power from the transmission to the tail rotor. However, the NTSB determined that the one installed was "unairworthy."

Meridian told the NTSB that the driveshaft was purchased at auction by the helicopter's previous owner after the same helicopter experienced a separate hard landing in 2010.

Inspectors found the driveshaft had been repainted, corrosion had been removed, and the serial number did not match known records — meaning they could not determine if it was the same driveshaft that was attached to the helicopter during the 2010 hard landing.

The NTSB determined that the probable cause of the 2015 crash was the "deliberate concealment and reuse" of a faulty driveshaft "by "unknown personnel."

New York Helicopter didn't answer calls from BI; its president declined to comment to The Wall Street Journal.

How often do helicopters crash?

While helicopters are generally safe so long as safety procedures are followed, they have a comparatively higher crash rate than commercial airplanes because of their riskier complex systems and operating environment.

Helicopters have more moving parts, require more adjustments, rely on auto-rotation to emergency land rather than glide, operate at lower altitudes, and commonly fly in less controlled airspace.

Transportation Secretary Sean Duffy said on X that Thursday's helicopter was flying in the Special Flight Rules Area at the time of the crash, where there is no air traffic control support.

Data from the US Helicopter Safety Team shows there were about 90 helicopter accidents in 2024, 13 of which led to 30 collective fatalities.

An Associated Press report said at least 32 people were killed in helicopter crashes in New York City between 1977 and 2019.

Five people died in 2018 when a helicopter crashed and flipped upside down in the East River. A year later, a helicopter crash-landed on the roof of a Manhattan skyscraper, killing the pilot.

The accidents have sparked restrictions on things like flight paths and landing spots to improve safety.

Alexander said that while helicopter crashes are more common, complete main rotor detachment is rare. "Everything about this is unusual," he said. "You just don't see something like what we all saw."

• Avelo Airlines will operate deportation charter flights beginning in May.
• The airline is hiring "energetic" and "highly motivated" flight attendants for the operation.
• Most immigration flights chartered by the government are on airlines without regular passenger service.

Aspiring flight attendants can apply for an opportunity with one of the US' newest budget airlines, but it won't be serving ticketed passengers like usual.

Beginning May 12, Avelo Airlines will operate deportation flights contracted by the Department of Homeland Security from Mesa Gateway Airport in Arizona, a company spokesperson told Business Insider.

The "long-term charter program" agreement will use three of Avelo's Boeing 737-800 planes and fly both domestically and internationally.

Avelo said it will open a base in Mesa for pilots, flight attendants, and mechanics to support the new operation.

A job listing listing says Avelo is "seeking energetic, highly motivated" flight attendants to staff the flights, and outlines qualifications like ensuring safety and "creating a caring customer experience."

According to Immigration and Customs Enforcement, or ICE, the flight attendant's primary role will be safety and security, with serving meals and drinks as a secondary responsibility.

They will also be joined by an inflight nurse and a "flight officer in charge," who will oversee the cabin crew and detainees.

Pay for the flight attendant roles starts at $28 an hour, the listing says.

The spokesperson told BI that Avelo's planned deportation operation is a business decision and not political. They declined to disclose the size of the contract or how much revenue the flights may bring in.

Avelo CEO Andrew Levy said in the statement that the decision was a "sensitive and complicated" topic and that it was made to provide the airline with stability amid a worsening economic outlook, to expand its regular passenger operations, and keep its crew members employed "for years to come."

• Qantas' historic "kangaroo route" is a prime example of aviation innovation over the past century.
• It dates back to 1934 when tiny biplanes began hopping 12 days between Australia and the UK.
• Project Sunrise will launch the historic trek nonstop come 2027, which will last up to 21 hours.

The business of flying people from point A to point B has evolved over the decades from small rickety prop planes to massive jetliners capable of carrying hundreds of people.

Among the most famous examples of this progress is Qantas' "Kangaroo Route" between Australia and the UK.

Early versions of the over 12,000-mile journey first operated in the mid-1930s, and the route is still going strong today — but it's about to travel even faster.

What was once a 12-day and up-to-31-stop route is set to become a 21-hour nonstop journey by 2027. The Sydney to London flight is poised to become the world's longest route thanks so a specially equipped Airbus A350.

Qantas' International and Freight CEO Cam Wallace told Business Insider the ultra-long-range plane will "unlock the ability to fly nonstop from Australia to anywhere in the world."

The unofficial Kangaroo Route started as an airmail service in 1934.

The first version of the Kangaroo Route was an airmail operation flown by Qantas Empire Airways, where both Qantas and Britain's Imperial Airways each had about half a stake.

In 1934, QEA started flying between Brisbane and Singapore via Darwin, which then connected to England. It was a precursor to today's codesharing partnerships.

Passenger transport began in 1935, and the route took 12 days.

The airmail route quickly morphed into weekly passenger flights in 1935. Qantas flew the leg to Singapore, where travelers connected to London on Imperial.

The series of snaking connections included up to 31 stops, including overnights, across Australia, Asia, the Middle East, and Europe. The trek from Brindisi in Southern Italy to Paris was via train.

The long journey — which was reserved for wealthy flyers as tickets cost £195 one-way (about $15,250, adjusted for inflation) — was still faster than the six-week option by boat.

Flying boats were introduced in 1938 to shave off time.

QAE's Short Empire flying boats were launched in 1938 and cut the flying time by several hours.

The flights were rocky and rough due to turbulence and a lack of weather radar. After the fall of Singapore in 1942, World War II halted the kangaroo service.

A truncated Kangaroo Route was revived in 1943 with the 'Double Sunrise.'

Qantas' modified route connected Australia to England via Ceylon (present-day Sri Lanka) instead of Singapore.

The nonstop Ceylon flight across the Indian Ocean lasted up to 33 hours and is still the longest commercial flight in history by time.

The route used Consolidated PBY Catalina flying boats, followed later by Liberator planes, the latter of which were the first to sport Qantas' kangaroo logo.

Converted war-era bombers took over the re-established route in 1945.

Qantas operated the portion between Australia and Karachi, Pakistan, using Avro 691 Lancastrian aircraft.

Its partner, the British Overseas Airways Corporation, or BOAC — which is an early version of British Airways — took over for the rest of the trip to London. The trek took about 70 hours.

Qantas reverted the Ceylon portion of the route back to Singapore after the war.

Qantas fully took over the route in 1947 and trademarked "Kangaroo Route."

The airline used 29-seat quad-engine Lockheed Constellations to reduce flight time to about 55 hours across seven stops and four total travel days. Tickets were £525 (about $22,600, adjusted for inflation).

"When the Kangaroo Route launched in 1947, it opened a new frontier for aviation," Wallace said.

In 1954, Qantas received its first Super Constellation. These carried more people and further reduced travel time.

Qantas introduced the Boeing 707 in 1959.

Thanks to its more powerful jet engines, Qantas' 707 aircraft could carry up to 90 people and make the trek to London in 27 hours.

It was the first Jet Age aircraft bought by Qantas.

The Boeing 747 cut flying time to less than a day in 1971.

The famous 747 jumbo jet flew from Australia to London via a single stop in Singapore.

From 1979 to 1985, Qantas operated an all-747 fleet, complete with comfortable seats and an exclusive lounge and bar.

The Airbus A380 complemented the 747 beginning in 2008.

The A380 currently flies from Sydney and Melbourne to London, with a stop in Singapore. The route previously went through Dubai.

The mammoth A380 complemented the 747 fleet for decades until the iconic "Queen of the Skies" was officially retired during the pandemic in 2020.

Qantas' Boeing 787-9 Dreamliners began flying nonstop between Perth and London in 2018.

It was the first nonstop passenger service connecting Australia with the UK, but it was only for Perth.

Key destinations in Eastern Australia, like Sydney and Brisbane, still lack nonstop service.

Deep-pocket travelers can experience the famous Kangaroo Route for $30,000 in 2026.

Tour company Captain's Choice is flying a one-off tourist trip in February 2026 to nearly mirror the Kangaroo Route as it was in 1947 — hops included.

Seats start at about $30,000. While Qantas is not pricing or selling any of the tickets, it is operating the Airbus A330 charter plane.

Project Sunrise is expected to launch in 2027 in a full-circle moment for Qantas.

The up-to-21-hour and 10,000-mile flight will officially eliminate the "hop" from the historic Kangaroo Route.

Project Sunrise will include two ultra-long-haul routes using a fleet of purpose-built A350-1000ULRs: Sydney to London and Sydney to New York.

Qantas is introducing new cabins on the A350s.

Qantas's A350 will have just 238 seats and will boast four different cabins — including economy, premium economy, and enclosed business and first-class suites.

The airline announced in late February that the plane would enter final assembly in September, followed by flight testing and delivery in the second half of 2026.

• Boeing secured a $20 billion defense contract and billions in commercial aircraft orders.
• The company is recovering from a tough 2024 with improved production and stock performance.
• Analysts see Boeing's recent wins boosting cash flow, employee morale, and talent retention.

Boeing may finally be on an upward trajectory as it claws its way back into the good graces of investors and customers.

Since January, the manufacturer has been firing on all cylinders, securing a lucrative defense contract for the US's new F-47 fighter jet and scoring billions of dollars' worth of new passenger plane orders.

Deliveries are looking good, too. Analysts estimate that post-strike 737 production is at higher-than-expected levels in the first quarter so far.

The wins in two critical business segments are set to help bring in more cash, boost employee morale, and attract and retain engineering talent as the company works to right itself after a tough 2024.

Boeing's stock price has rallied about 16% over the past six months, nearly recovering from a March low, even as the broader market has pulled back amid tariff concerns and overall economic uncertainty. Shares remain down significantly from a 2023 high.

Analysts appear optimistic, with an average future price target of $196, or about 10% above Wednesday's closing price.

Securing more aircraft orders and ramping up production

On Wednesday, Korean Air finalized its order for 20 Boeing 777X planes. The news followed respective orders by Japan Airlines and Malaysia Airlines for 17 and up to 60 new 737 Max aircraft.

Both models are incredibly important for Boeing. The 777X is at least six years behind schedule — with its launch now expected in 2026 — and 737 Max output is capped at 38 a month.

Still, the deals add to Boeing's more than 6,000-strong backlog and signal customer confidence after aircraft deliveries slowed in 2024.

In a January earnings call, CEO Kelly Ortberg, who took over in August, said Boeing could achieve a 737 Max production rate of 42 a month by the end of the year, assuming it meets federally agreed-upon quality and safety metrics.

He also outlined a plan to close the 737 "shadow factory" — where already-built jets receive fixes to quality issues — which should further boost operational efficiency as workers can fully focus on the main assembly line.

Airline customers appear pleased with the progress. United Airlines CFO Brian West said at a February Barclays conference that he was confident in the Max delivery schedule.

"Boeing is doing a pretty miraculous job of turning around and becoming more reliable as a supplier," he said.

A lucrative new defense contract

President Donald Trump on Friday announced that Boeing secured a $20 billion contract to produce the sixth-generation US Air Force fighter jets, designated the F-47. The fleet will replace the F-22 Raptor.

Boeing beat out its rival manufacturer Lockheed Martin, which produces the US's fifth-generation F-35 fighter. Lockheed's stock has fallen about 6.5% since the Friday announcement.

JPMorgan analysts called the F-47 contract a "shot in the arm" for the future of Boeing's struggling defense business. The company has already suffered losses from its KC-46 tanker program and delayed Air Force One aircraft.

They said the financial benefits were "clearly meaningful but not massive in the context of a recovered Boeing," noting the F-47 could bolster Boeing's position in the aerospace industry and help attract talent.

Analysts at Melius said the new program was also expected to boost Boeing's employee morale and help the company retain "top engineering talent."

This could help lift the company out of a cultural slump created by the fallout from aircraft quality issues and a nearly eight-week labor strike. Ortberg has led the charge, outlining initiatives like putting executives on the factory floor.

"Although Kelly Ortberg has been at the helm for less than a year, we believe he is the right leader to turn Boeing around," Melius analysts said in a note to clients. "He has empowered employees to provide 'brutal' feedback on the company's leadership and culture, allowing him to implement necessary improvements."

• Airbus' worst-selling A330-800neo is expanding to more routes.
• The jet is unpopular due to its higher seat cost and smaller capacity compared to the A330-900neo.
• Only three global are scheduled to fly the plane on a few dozen routes in 2025.

Airbus has a strong aircraft portfolio, and its deliveries consistently outpace Boeing's. But one of its planes has proven to be a commercial flop: the Airbus A330-800neo.

The jet flies further than its A330-900neo sister, but it has a higher per-seat fuel burn while carrying fewer people — tanking potential profits.

Only three airlines operate the plane: Air Greenland, Kuwait Airways, and Uganda Airlines. This year, it will go to one new city.

Beginning May 18, Uganda Airlines will launch four-times-weekly A330-800neo flights between Entebbe and London Gatwick Airport, bridging the two countries nonstop for the first time since 2015.

It's the first time London has welcomed the jet since September 2023. People who hope to experience the ultra-rare plane can board in about three dozen cities worldwide this year.

Data from the aviation analytics company Cirium shows only about 4,600 A330-800neo flights are scheduled for 2025, up about 450 from 2024.

Here is every route the A330-800neo is scheduled to fly this year, per Cirium data. Kuwait, the plane's launch customer in 2020, is the largest operator.

Nuuk is a new A330-800neo city as of November 2024. Air Greenland — the plane's smaller operator — inaugurated widebody flights from the country's capital after the airport built a bigger runway.

The airline's A330-800neo route to Reyjavik is also new in 2025 but will only fly two roundtrips, one in June and one in August. The route will otherwise use Boeing 737-800s and De Havilland Dash 8 turboprops.

Kuala Lumpur is a returning route for Kuwait, which last flew to the city in October 2023. Kuwait won't fly its A330-800neo to Bangkok in 2025 like it did last year, swapping the route for the larger Boeing 777-300ER.

A handful of Kuwait's routes will only fly a few roundtrips in April, including to Lahore and Islamabad in Pakistan and to Tbilisi, Georgia. Munich will run twice in June.

Kuwait's service to Ahmedabad, India, and Mashhad, Iran, were omitted from the map because they were single roundtrips that already operated in February and March.

One major market absent from the global A330-800neo network is the US.

Kuwait last flew the aircraft nonstop to New York's John F. Kennedy International Airport in October 2023 but has since swapped the jet for the Boeing 777-300ER.

Why the A330-800neo is so unpopular

The A330-800neo was built as a longer-range version of the A330-900neo, flying about 1,000 miles further than its sister aircraft. The range was supposed to be the main selling point, but it hasn't been enough to offset its less favorable size and costs.

The A330-800neo can carry up to 406 people, compared to up to 465 passengers on the A330-900neo. Both are powered by next-generation Rolls Royce Trent 7000 engines that burn 25% less fuel than older A330s.

The A330-800neo's shrunken size and complementary efficiency may seem like a sweet spot on lower-demand, far-away routes, but the per-seat cost is greater because the plane holds fewer people while still carrying the same structural components and engines as the A330-900neo.

The A330-900neo's capacity allows for more revenue potential, especially since the larger cabin can accommodate more high-dollar business or first-class seats. Plus, the A330-900neo's 8,300-mile range is already suitable for airlines' needs.

The A330-800neo's unfavorable economics have made it Airbus' worst-selling plane. Air Greenland has one, Kuwait Airways has four, and Uganda Airlines has two. One unnamed private operator bought a single unit in 2023.

However, Garuda Indonesia canceled its purchase agreement for four A330-800neos in October, bringing the plane's net orders to just eight over 11 years.

The A330-900neo has garnered nearly 400 orders during the same time and Cirium data shows it will fly about 82,000 scheduled flights in 2025.

No one has ordered the A330-800neo in nearly two years, though the plane's cheaper $260 million price tag could help recoup the higher operating costs. The sister plane is nearly $300 million.

Still, it's unclear whether Airbus will eventually abandon the project or keep it as an option, considering it invested in the plane and possibly doesn't want those efforts wasted.

• Heathrow Airport shut down due to a fire, disrupting flights for most of the day.
• The shutdown affected thousands of passengers and likely cost airlines millions in lost revenue.
• Airlines could lose $80 to $100 million rerouting passengers and any accommodation.

London Heathrow Airport closed on Friday due to a power outage, crippling flights into the region for the better part of a day. The fallout will cost airlines a pretty penny — but the timing could have been much worse.

Thousands of passengers expecting to be in London spent hours in the air only to end up back in places like Tokyo, Mumbai, and Dallas. Australia's flag carrier Qantas said its passengers who were diverted to Paris would be transported to London via bus, a nine-hour journey.

Heathrow said it would re-start flights late Friday, meaning some travelers could get back on track sooner than expected. But reorganizing an airline network is no easy task when diversions and cancellations leave planes and crew in unexpected places.

Luckily for Heathrow and the airlines that call it home, especially British Airways, the power outage was fixed in less than a day and did not occur during a crowded travel time, like the summer holidays.

Over the years, natural disasters and infrastructure problems have grounded airline and airport operations, and, depending on the severity, they left thousands to millions of people stranded. Many of these were during peak travel seasons and lasted for days.

"I think it's a good thing it's sort of pre-Easter in a bit of a March lull moment," Ronan Murphy, a director at Alton Aviation Consultancy, told Business Insider. "If this is the middle of July, it would be an absolute disaster. You could have another 300 or 400 flights."

He estimates airlines could lose $80 to $100 million as they incur the expense of rerouting passengers and providing accommodations.

Many airlines are trying to curb the ripple effect and get planes heading to and from Heathrow as it re-opens.

United Airlines said it plans to operate most of its scheduled Friday flights to London. It also offered to reroute passengers through airports like Brussels or Amsterdam.

British Airways said it was cleared to operate eight long-haul flights to places like Johannesburg and Singapore on Friday. The flights will take off 16 and a half hours after Heathrow first closed.

The timing could have been worse, but it's still going to sting

According to the aviation analytics firm Cirium, some 1,300 flights were scheduled to take off or land at Heathrow on Friday, with a capacity of 290,930 seats. Heathrow is the world's fifth-busiest airport but ranks second for passengers flying internationally.

"If you think about load factor — let's say 75% full on average — that's 220,000 people, give or take, that are affected. That could be $100 million-plus of revenue for one day," Murphy told BI.

He said airlines wouldn't lose all of that because many passengers could be rerouted or choose to rebook for a later date.

He added that Heathrow is still "hugely profitable" and a vital airport for many carriers around the world.

"This is an unprecedented situation, and we have not seen a closure of Heathrow of this scale for many years," British Airways CEO Sean Doyle said. "Unfortunately, it will have a huge impact on all of our customers flying with us over the coming days."

With a capacity of 4 million seats last year, the New York-JFK to London Heathrow corridor is poised to be among the hardest hit as it is the 10th busiest route in the world — and the busiest outside Asia, according to data from OAG.

Flights from JFK to Heathrow from Thursday night to Friday morning were canceled or diverted, but FlightAware data shows most Friday night flights are not yet disrupted.

On Friday afternoon, around 14 hours after shutting down, Heathrow announced it was "safely able to restart flights, prioritizing repatriation and relocation of aircraft."

Getting planes to Heathrow is an important step in recovering operations — clearing the backlog so future scheduled flights can take off.

Travel expert Mike Arnot told BI the cost could be hundreds of millions of dollars, but large airlines typically have spare capacity and can take advantage of their alliance partners.

"I'm hopeful this incident will turn out to be a molehill, not a mountain," he said. "These are airlines that earn billions of revenue, where diversions, be it for weather during hurricane season or wintry mix, or mechanical issues cause irregular operations as part of doing business."

Major flight disruptions have cost airlines millions of dollars in the past

The 2010 eruption of Iceland's Eyjafjallajökull volcano released ash into the atmosphere, creating widespread chaos for air travel during the busy spring break travel period.

According to the International Air Transport Association, the eruption closed hundreds of airports across much of Europe's airspace for about a week, canceled about 100,000 flights, and impacted some 10 million people.

Airlines lost about $1.7 billion in revenue. The US-UK market was a major money-loser, accounting for $25 million of revenue a day.

A handful of more recent meltdowns — which snowballed due to misplaced planes and crew and broken infrastructure — have also halted travel and bled airline cash.

A January winter storm that swept through the southeast of the US affected operations at airports like Atlanta, New Orleans, and Houston. Thousands of flights and passengers were disrupted as airports shut down.

The same month, wildfires in Los Angeles also affected several airports across Southern California. At an investor conference hosted by JPMorgan in March, Delta Air Lines CEO Ed Bastian said January's disasters cost the carrier about $100 million.

Delta also lost $500 million after a botched CrowdStrike update caused a mass meltdown in July 2024 — during the peak summer travel season.

While other airlines affected by the outage recovered relatively quickly, Delta's problems lasted five days and led to nearly 5,500 flight cancellations.

Southwest Airlines experienced a meltdown in December 2022 when its outdated scheduling software lost track of pilots and flight attendants, causing nearly 17,000 flight cancellations. The ripple effect occurred during the holiday period.

The chaos cost Southwest over $1 billion, including a civil penalty payment to the Department of Transportation and reimbursements and refunds to passengers.