We know that overall passenger numbers are, for very good reason, down massively. But airlines have relied on their loyalty programs to provide a significant, and perhaps more importantly steady, stream of revenue for the operations. So, as the airlines use those programs to collateralize billions of dollars in new financing, it is worth considering if that revenue flow is as reliable as airlines (and debt holders) hope it can be.
Southwest Airlines
Southwest Companion Pass promotion pushes winter travel
Typically reserved for its most frequent flyers, Southwest Airlines is now using its Companion Pass program in an effort to drive bookings in the near term. The carrier launched a promotion this week where a single trip in the next 60 days can earn the pass for the first two months of 2021. This is, by far, the biggest promotion the company has run with the Companion Pass.
Southwest going app-free for IFE
Watching movies and TV on Southwest Airlines is getting a little easier. The carrier’s inflight entertainment portal, powered by Global Eagle’s Airtime platform, no longer requires a dedicated mobile application for consumers to stream content on board. The DRM-protected content can instead be consumed in the web browser of the devices.
A stalled recovery: Airline traffic retreating
The commecial aviation industry as we once knew it faces a dire situation. And none of the recent data offers much of the way in optimism for the coming months.
United drops change fees. Forever.
United Airlines is ready to change. Or, perhaps more accurately, the company is ready for passengers to change their plans more often. In a major policy shift the carrier will no longer charge travelers a fee to change their booking on most domestic tickets. And, unlike the temporary waiver of this fee in place over recent months, this change is set to last forever.
Spirit offers 5x bonus miles for new bookings
Ready to earn 5x points on your next flight? Spirit Airlines is the latest carrier to use its loyalty program as an enticement to get people thinking about travel again.
But that doesn’t necessarily make it a good idea.
Masks Matter: US carriers plan more enforcement for on-board behavior
For those traveling by air today the best protection against potential COVID-19 exposure is to wear a mask during the flight. But even as some US airlines insist that passengers wear masks, enforcement has been limited and consequences for non-compliance essentially nil. This week several airlines indicated a renewed focus on enforcement of those rules, with violators potentially barred from future flights.
JetBlue offers free TrueBlue Mosaic status, plus a year extension
JetBlue waited longer than most to announce plans for its TrueBlue loyalty program in the wake of the coronavirus groundings. But it appears the carrier used that time wisely. With its announcement today JetBlue draws on similar actions from many other carriers but pulls them together in a package that might deliver outsized value to its members.
DOT further relaxes airline CARES Act obligations
The US Department of Transportation (DOT) will offer airlines increased flexibility under their CARES Act obligations. But rather than choosing individual airports that will be exempt the DOT is now going to let the airlines select which stations will see service suspended.
Fighting for the middle: A pandemic seating shift
Forget the fight over who gets the arm rests; middle seats on planes are now generating real fights over if they should be occupied at all. And airlines are fueling the flames with misleading marketing messaging.