Regional carriers winning in US, majors losing

Major airlines are losing money as regional airlines stay profitable

Despite adding millions to revenues in recent years in the form of fees and surcharges, major US airlines are struggling to compete against regional and low-cost carriers. This trend is outlined in a quarterly report released this week by the US Department of Transportation, which states that nine major airlines had raised fees for reservation changes, for example Delta taking $191 million during the first three months of 2011, 15% more than in the same period last year. Revenues raked in throughout the industry just by charging fees for changing flights came to $598 million, 8% up on Q1 2010.
Yet overall the major airlines are continuing to lose money while the regionals such as Southwest Airlines are gaining.


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