What Was Large Is Small (and Vice Versa)

While profitability remains a distant hope, at least for the legacy airlines, planes continue flying full.

As we've reported periodically, load factors (the percentage of seats occupied) for most carriers were at or above 80% throughout the summer. Since load factors are systemwide averages, including an airline's most and least popular flights, carriers consider themselves running full when occupancy rates exceed 80%.

The results for September are now being reported by many airlines, and although they are predictably lower than the mid-summer loads, they are only slightly lower. And in most cases, they are higher than last September's loads.

A sampling:

• AirTran September's load factor increased to 71.2% from 59.8% in September 2004.
• Alaska Air's load factor rose to 72.4% from 68.6%.
• American flew 76.2% full in September, up from 73.4% in 2004.
• Continental's load factor was 77%, up from 74.5%.
• Independence Air's September's load factor, or occupancy, was 65.2 percent, up from 44.4 percent a year earlier.
• Northwest reported a load factor of 81%, up from 79.2% a year ago.
• Occupancy at Southwest rose 4.2 percentage points to 67.4%.
• And United reported a record-high 80.2% for the month, versus 77.5% a year ago.

Notwithstanding airline executives' repeated allegations that the industry's problems -- their problems -- stem from too many seats chasing too few customers, supply and demand appear to be nicely balanced. The problem, acknowledged in the airlines' cost-cutting if not in their public pronouncements, is that discount carriers are setting the standard for ticket prices, and those prices are too low to allow higher-cost operators to fly profitably.

While they grapple with their costs, the mainline carriers are shrinking. Delta's restructuring plan calls for shedding 15% - 20% of its domestic flights; Northwest will slim down by 20%.

And as the majors jettison capacity, the likes of Southwest, JetBlue and AirTran happily pick up the abandoned routes and gates, proving that "unprofitable route" is a relative concept.

The future belongs to the discounters. Which may leave travelers wishing they'd wished for (and been willing to pay for) something better.

FrequentFlier Forum Topics

As always, there's plenty of activity on the FrequentFlier Forum.

In the "Airline Programs" Forum, Gary Steiger points out that generous bonuses are currently on offer through most of the airlines' miles-for-dining programs. Check your program for specifics, which vary, and chow down.

In the "Hotel Programs" Forum, ronald shares details and a link to a sweepstakes with a grand prize of one million GoldPoints. Plus, earn 500 points for entering.

And much more. Questions, answers? Post them to the Forum!

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American Bonus for First/Biz-Class U.K. Flights

Through Dec. 31, AAdvantage members will earn 42,000 bonus miles for every American roundtrip flight to the U.K. (London/Manchester) in first or business class (booked in F, J, A or D).

Registration is required.

This promotion is American's response to a similar offer from British Airways reported in last week's Crier.

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Amex Will Insure Frequent Flyer Miles

American Express cardholders in 38 states can now sign up for Air Miles Protection, an insurance policy for frequent flyer miles. (Among the states not yet included: New York, California and Georgia. Amex is waiting for approval to offer the policies in those and other states.)

For $5.40 per month, members can protect up to 60,000 miles in the programs of American, America West, Continental, Delta, Northwest, United and US Airways. So in the unlikely event that a traveler had 60,000 or more miles in each of the seven programs, the protection would cover 420,000 miles. For $9.00 monthly, the coverage increases to 100,000 miles per program. There are also rates available for annual coverage and for joint coverage.

Should one of the covered airlines liquidate, or for any other reason terminate its program, and the miles are not transferred to another airline's program, Amex will credit the policyholder's Amex card account at the rate of $50 for every 3,500 miles lost, up to the maximum number of covered miles, when an airline ticket is charged to the card.

Certainly, this is clever on the part of American Express, leveraging their ability to credit their own cardholders and the current high level of anxiety about losing airline miles to insolvent programs. Does it make financial sense for consumers?

Based on Amex's formula, the reimbursal rate for 60,000 lost miles would be $857; for 100,000 miles, it's $1,429. In either case, it amounts to 1.43¢ per lost mile. Given the current value of frequent flyer miles, that's fair.

The more important question is whether it makes sense to pay a premium to insure miles at all. Based on history, the odds of any major program shutting down and leaving members without their miles are microscopically small. So it's highly unlikely policyholders would ever recoup their premium payments. But for program members who are losing sleep over their miles' prospects for survival, the peace of mind might be worth the modest monthly payment.

There's nothing on the Amex website yet, but further information is available by calling 1-877-294-6103.

AmWest Bonus for US Air Flights

Between Oct. 4 and Dec. 31, America West FlightFund members will earn 500 bonus miles for each US Airways or US Airways Express flight to destinations not served by America West or America West Express. And for every five qualifying cities visited under this offer, FlightFund members will earn an additional 5,000 miles.

Bonus can be earned once for each eligible destination, with a maximum of 15,000 bonus miles awarded during the promotion period.

Registration is required.

This is the mirror image of the US Airways promo described in last week's Crier, which rewards Dividend Miles members with 500 bonus miles for America West flights on routes not served by US Air.

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Continental Discounts China Awards

Through Mar. 31, 2006, OnePass members can redeem 50% fewer miles for coach-class award travel to Beijing. With the discount, an award ticket can be had for 30,000 miles.

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Delta Miles for Hurricane Relief

In the weeks following Hurricane Katrina, SkyMiles members donated 46 million miles to the American Red Cross and the Salvation Army through the airline's SkyWish program. Additionally, Delta donated one million miles to each organization.

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Priority Club Offers Online Booking Bonus

Between Oct. 4 and Dec. 31, Priority Club members will earn a 1,000-point bonus for every qualifying stay at InterContinental, Crowne Plaza, Hotel Indigo, Holiday Inn, Holiday Inn Express, Staybridge Suites and Candlewood Suites hotel booked online at an InterContinental Hotels Group website.

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Points.com Adds Amazon Awards

Points.com members can now redeem miles and points from participating programs for Amazon.com gift certificates worth $10 - $100. Example: 1,836 AAdvantage miles can be redeemed for a $10 Amazon certificate, and 18,358 miles for a $100 certificate.

For context on this and other recent partner additions, Points.com is in the midst of reinventing itself, building on its original currency-exchange service to offer a suite of tools for managing and using miles and points.

According to the company's chief marketing officer, Grad Conn, Points.com has moved beyond swapping to include buying, gifting and earning. The Balance Tracker allows members to monitor their progress toward awards. And slated for 2006 is a "suggestion engine" which will offer personalized buy/earn/swap recommendations based on members' individual program portfolios and goals.

For mileage mavens who had written Points.com off as an overpriced conversion service, this might be a good time to reassess their offerings.

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Southwest Links Up with InterCon Hotels

Effective Oct. 1, Rapid Rewards members who are also Priority Club members can earn .5 credits for eligible stays at InterContinental, Crowne Plaza, Hotel Indigo, Holiday Inn, Holiday Inn Express, Staybridge Suites, and Candlewood Suites hotels.

To earn Rapid Rewards credits, hotel guests must have chosen Southwest as the designated airline program in their Priority Club profile.

Priority Club members can also redeem 10,000 Priority Club points for two Rapid Rewards credits.

Even though this is a new tie-up, Rapid Rewards members can receive retro credit for Priority Club stays as long as six months ago.

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United Booking Bonus

Through Dec. 31, Mileage Plus members will earn a 1,000-mile bonus for every United or United Express roundtrip flight booked on united.com.

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Double US Air Miles for Avis Rentals

Through Dec. 31, 2006, Dividend Miles members will earn double miles for qualifying Avis rentals of three or more days, including a Saturday-night stay.

Also through Dec. 31, 2006, Avis is offering a one-car upgrade on an Intermediate (Group C) through a Full Size four-door (Group E) car on weekend, weekly and monthly rentals.

The offers are not combinable.

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Avoiding Excuses
Provided by Healthy Travel Network

You leave home with good intentions, packing your workout clothes and shoes. After an early morning flight and all day meetings, however, your resolve quickly weakens and instead of exercising, you find yourself ordering pizza, dessert, and a high-calorie beverage from room service. You can regain your motivation and overcome your excuses for not exercising.

• Listen to your body. If you really have had an 18-hour day, skip the workout. Instead, eat a healthy meal, get to bed by 9 p.m. (turn off that TV!) and set your alarm for an early morning workout. You'll feel better, perform better, and as a result, be more motivated to workout again during your trip.
• Practice saying no to peers, bosses, and clients who encourage you to skip your workout. Your health is more important than happy hour.
• If you're using lack of time as an excuse, ask yourself, "How much of a priority is my health to me?" Practice what you preach!
• If the lack of quality equipment in the hotel is a barrier, design your own no-equipment-required exercise program.

With a little objectivity and common sense, you can put excuses aside and maintain your fitness level on the road. Sign up at Healthy Travel Network to receive an upcoming article including sample programs to maximize your next workout.

Deal Alert from SmarterTravel.com

1) Europe and Asia Fares on Singapore Airlines from $409

Singapore Airlines' current offer features flights to Europe starting at $409 roundtrip, and flights to Asia starting at $463 roundtrip. Departures are available from Los Angeles, New York, and San Francisco.

Departures are valid through Nov. 20. Travel must be completed by Nov. 30. Book tickets by Oct. 14.

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2) U.S. and Canada Fares on United from $118

U.S. and Canada flights are on sale from United for travel this fall. Prices start at $118 roundtrip, and destinations include Las Vegas, Honolulu, and Toronto.

Travel at the lowest prices is valid on Tuesdays, Wednesdays, and Saturdays from Oct. 10 through Nov. 17. Book tickets at least seven days in advance. United has not listed a booking deadline.

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Win a Trip for Four to Alaska from Qwest

Enter the Qwest "Great American Getaway" sweepstakes by Oct. 9 for a chance to win a four-day/three-night trip for four to Alaska's Denali National Park, including a guided tour and $1,000 spending cash. Second prize: a trip for two to the Grand Canyon.

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Feedback from the Frontlines of Travel

"Can you combine the frequent flyer miles earned on American West and US Air?" [Stuart S.]

[FrequentFlier replies - For the time being, no, miles from the two programs cannot be combined.

But sometime in 2006 (no firm date has yet been announced), the programs will be merged into a single one. At that point, miles from the America West and US Air programs will be combined into one account in the new program.

Until then, you can earn miles in either program with the understanding that they will all eventually end up in the same account. Details are here.]

Until next week...