Business

The US air traffic control system is like “an old clunker of a car,” airline execs tell Congress

The CEOs of airlines including American Airlines, JetBlue, and Delta Air Lines on Wednesday urged Congress to “rebuild America’s aging air traffic control system.”

In an open letter that was also signed by top execs from Southwest, United, Alaska Air, UPS, and FedEx, the group called the FAA’s current ATC system “wildly out of date,” highlighting the “corroded copper wiring, floppy disks and physical strips of paper” that impede the work of air traffic controllers.

Tech outages and staffing issues — the US is said to be short between 3,000 and 3,500 air traffic controllers — have made headlines in recent months, particularly at Newark Liberty International Airport. Earlier this month, United Airlines, which operates about 75% of flights in and out of Newark, cut its daily flights out of the airport by about 10% due to understaffing.

“Right now, it’s more expensive to continue supporting the technology and equipment from the 1980s than it is to buy a new ATC system,” reads the letter, which goes on to compare current maintenance expenses to “pour[ing] money into an old clunker of a car.”

Airlines this month have called for $31 billion in air traffic reform.

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The entrance of Allbirds seen from Hayes St. in San Francisco, Calif.

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That’s less than 1% of its peak market cap about four years ago.

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business

JetBlue is raising its bag fees as fuel costs squeeze airlines

JetBlue will reportedly hike its bag fees, as the cost of jet fuel continues to climb amid the war in Iran. It’s the latest example of carriers finding ways to push rising costs onto travelers.

Last week, United Airlines CEO Scott Kirby said that if fuel prices remain elevated, fares would need to rise another 20% for his airline to break even this year.

As CNBC reported, when one airline raises fees, others tend to follow.

Earlier this month, JetBlue hiked its first-quarter outlook for operating revenue per seat mile to between 5% and 7%, saying that strong Q1 demand helped “partially offset additional expenses realized from operational disruptions and rising fuel costs.” Now, the carrier appears to be making moves to further boost revenue to offset those costs.

Earlier on Monday, JetBlue rival Alaska Air lowered its Q1 profit forecast. The refining margins for the carrier’s cheapest fuel option — sourced from Singapore and representing about 20% of Alaska’s overall supply — have spiked 400% since February.

JetBlue did not immediately respond to a request for comment.

As CNBC reported, when one airline raises fees, others tend to follow.

Earlier this month, JetBlue hiked its first-quarter outlook for operating revenue per seat mile to between 5% and 7%, saying that strong Q1 demand helped “partially offset additional expenses realized from operational disruptions and rising fuel costs.” Now, the carrier appears to be making moves to further boost revenue to offset those costs.

Earlier on Monday, JetBlue rival Alaska Air lowered its Q1 profit forecast. The refining margins for the carrier’s cheapest fuel option — sourced from Singapore and representing about 20% of Alaska’s overall supply — have spiked 400% since February.

JetBlue did not immediately respond to a request for comment.

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