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Airlines profitable, but customer service is circling the drain

June 25, 2007

The Bureau of Transportation Statistics has finally confirmed what industry soothsayers have been predicting for a while: Airlines had the first profitable January-to-March quarter in seven years.

It’s ironic that even as the airline business pulls out if its earnings tailspin, customer service is circling the drain. I pointed that out months ago and the mainstream media has now also noted it.

So here are a few numbers to chew on. The seven closely-watched network carriers reported a combined operating profit of $559 million in the first quarter. That compares to an operating loss of $711 million in the first quarter of 2006. The top passenger revenue yields were reported by regional carriers American Eagle, Comair and Atlantic Southeast, while the lowest passenger revenue yields belonged to low-cost carriers JetBlue, Spirit and Frontier.

Check out the numbers for yourself. And while you’re there, ponder this question: How can a business that’s doing this well be rated so poorly by its own customers?

Christopher Elliott is the author of Scammed: How to Save Your Money and Find Better Service in a World of Schemes, Swindles, and Shady Deals. Critics have called it “eye-opening” and “inspiring” — it’ll “grab your attention and won’t let go.” Order your copy now on Amazon, Barnes & Noble or iTunes.

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