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Entries in Revenue (6)

Friday
Jul152011

Airlines to Report More Detailed Revenue Data

Medioimages/Photodisc/Thinkstock(WASHINGTON) -- Uncle Sam wants to know exactly how much many airlines are making from those baggage and reservation change fees.  The U.S. Department of Transportation is proposing new rules that would require airlines to break down exactly how much money they are making from the sale of food, drinks, movies, and other in-flight fees.  

The Transportation Department already collects quarterly reports from airlines showing just revenue made from baggage and reservation change fees.  A recent report said that airlines made $3.4 billion from baggage fees and another $2.3 billion from reservation change charges in 2010. The new rules will require a more itemized report.  In the future, airline revenue summaries will report on 16 additional categories.

The Department of Transportation hopes to provide more useful information to passengers to determine the impact of these increased use of fees by airlines.  The new rules are also part of DOT's effort to strengthen passenger rights.

Copyright 2011 ABC News Radio

Tuesday
May312011

Added Fees Garnered $22 Billion for Airlines, Report Says

John Foxx/Thinkstock(NEW YORK) -- Airlines banked an extra $22 billion last year from fees tacked onto ticket sales, according to a new study cited in the Wall Street Journal.

The study, conducted by Amadeus IT Group SA and IdeaWorks Co. and set to be released Tuesday, found that 47 of the biggest carriers in the world -- which collectively make up about half of all airline revenue -- reported ancillary sales of 15.11 billion euros in 2010.  This latest figure is a 38 percent increase from the previous year, the Journal reported.

The added revenue stems from services, like food and baggage, that were once included when passengers purchased tickets, and newer services like in-flight Internet connections, according to the Journal.  Carriers have been forced to charge travelers with these fees due to the rising price of fuel.

Copyright 2011 ABC News Radio

Friday
May202011

Airlines See 16 Consecutive Months of Revenue Growth

PRNewsFoto/Continental Airlines(WASHINGTON) -- Airline revenue grew 12 percent in April 2011 compared to the same month last year, according to the Air Transport Association of America (ATA).  This marks the 16th month of continuous growth based on data from a sample group of domestic carriers.

"Growth in air travel spending at the start of the second quarter bodes well for U.S. economic recovery," ATA Vice President and Chief Economist John Heimlich said in a release Friday.  "ATA forecasts 1.5 percent more passengers will help offset volatile fuel costs."

The industry trade organization also reports that average price to fly one mile, or yield, rose nine percent in April.  The 8.8 percent yield increase urged U.S. domestic revenue to grow 8.6 percent.

Trans-Atlantic revenue increased 27 percent from last year, while Trans-Pacific revenue saw an increase of 5.5 percent.

Copyright 2011 ABC News Radio

Sunday
Feb272011

Groupon 'Out Innovated?' Not If They Can Help It

Photo Courtesy - Getty Images(CHICAGO) -- An internal memo sent to staffers at Chicago-based coupon giant Groupon Inc. revealed that the company's profits skyrocketed in 2010 to $760 million, up from $33 million the year before, according to the Wall Street Journal.

The email, sent by Groupon chief executive Andrew Mason, also gives a glimpse into the aspirations of a company whose first coupon offered half-price pizzas at the joint on the first floor of its Chicago headquarters.

"By this time next year, we will either be on our way to becoming one of the great technology brands that define our generation, or a cool idea by people who were out executed and out innovated by others that were smarter and harder working," Mason wrote in the message.

Mason added that the company, which offers daily deals and discounts, may be on track to reach revenues in the billions of dollars in 2011. And much of that may come from beyond our borders.

According to the memo, overseas sales accounted for more than a third of total revenue last year, or about $285 million. Fitting, then, that the company is poised to expand operations.

According to published reports, the company is teaming up with one of China’s largest internet companies, Tencent, to launch a discounted goods website based in Beijing.

Copyright 2011 ABC News Radio

Tuesday
Oct192010

Trade Group Reports Passenger Revenue Growth for Airlines

Photo Courtesy - US Airways(WASHINGTON) -- Airlines continue to make money and are charging you more to fly, according to the Air Transport Association.  The industry trade group announced that passenger revenue was up 19 percent in September 2010 compared to the same month last year.  Meanwhile, the average price to fly one mile rose 11 percent.

"Once again, the global economy is driving spending on air travel, with passenger revenue exceeding last year's depressed levels," said ATA President and CEO James C. May.  "The industry remains hopeful that the nation's economic recovery will progress in the months ahead."

Carriers began cutting capacity in 2008 in the face of a down economy and sky-high fuel prices.  They have held the line on adding flights back, which is one reason they are making money and charging more for tickets.

Airlines are expected to begin releasing their third quarter financial data Wednesday.  Some analysts have already predicted that this will be a very strong quarter for the airlines.

FareCompare CEO Rick Seaney told ABC News that he does not expect to see these kind of profits going forward, however. 

"Summer was a very special thing where a lot of people didn't take their trips last summer. ... Airlines are not putting back seats into their system because they're afraid of what's going to happen in the economy," Seaney says.

Copyright 2010 ABC News Radio

Monday
Oct182010

Apple Announces Record Revenue in Fourth Quarter Earnings Report, But Shares Still Drop

Photo Courtesy - Apple Inc.(CUPERTINO, Calif.) -- Apple Inc. on Monday announced record revenue and net income totals for the fiscal fourth quarter.  According to its fourth quarter earnings report, the electronics company's net income increased 70 percent compared to the same time period last year, and its revenue improved by 67 percent.

"We are blown away to report over $20 billion in revenue and over $4 billion in after-tax earnings -- both all-time records for Apple," said Apple CEO Steve Jobs.  "iPhone sales of 14.1 million were up 91 percent year-over-year, handily beating the 12.1-million phone RIM sold in their most recent quarter," Jobs continued.  "We still have a few surprises left for the remainder of this calendar year."

Despite Jobs' optimism, Apple shares dropped nearly six percent after the report was released Monday due to iPad sales falling short of expectations. The company sold 4.2 million iPads during the fourth quarter, falling short of the five million mark predicted by analysts.

Apple CFO Peter Oppenheimer said that Apple Inc. expects revenue of "about $23 billion" in the first fiscal quarter of 2011.

Copyright 2010 ABC News Radio







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