Up, Up and Away

Have you flown recently?  If so, you are likely a superhero, a drug taker, an airline passenger or perhaps any combination of the three.  As just a plain, old airline passenger and wannabe superhero I had a hard time swallowing the mass of charges included in a recent air travel ticket purchase.  The total cost of a trip ends up nowhere near the price quoted on an initial search of an airline website.  So, today's story in the Wall Street Journal, Airline Profits Taking Off, came as no shock to this customer.  The essence of the article was to report the record profits that U.S. airlines have reported this quarter.  The reasons for these gains should be fairly obvious.  The increase began when airlines permanently raised their prices in response to the skyrocketing oil prices of 2008.  Likewise, they tacked on a slew of charges including those for luggage.  The recent mergers of several big airlines have created a practical oligopoly in the U.S. market.  This might normally be good for consumers, as a price war could erupt between competitors.  However, as the WSJ article reports, the airlines are now concerning themselves more with returns, rather than market share.  Translation: They care more about profit than growth.  If this mentality continues across the industry, we should not expect to see prices fall anytime soon.  I guess I should thank Southwest for not charging me for my bags.  Those rebels.  Bold Prediction for 2011: Quarter- operated bathrooms and $1 charge for hitting the flight attendant call button.