Tag Archives: Low Cost Airlines

Getting Results—and Money—When Airlines Cancel Flights

Canceled or delayed flights can cost travelers money. Getting an airline to pay you back for expenses like hotel stays and rental cars isn’t impossible, but it can involve lots of legwork.

Southwest pledged to provide refunds to passengers on canceled or significantly delayed flights between Dec. 24 and Jan. 2, but the airline is also providing reimbursement for additional expenses including the cost of staying at a hotel or renting a car. Passengers were also given 25,000 frequent-flier points in a move by Southwest executives to win them back.

Airline passengers “have very few rights,” said

Paul Hudson,

president of FlyersRights, a consumer advocacy organization. Getting the remuneration that passengers believe they are entitled to can come down to perseverance and communicating extensively with the airline over an extended period.

Here’s what travelers need to know about their rights on domestic flights in the U.S. and how to get reimbursed.

My flight was canceled. Can I get a refund?

Airline customers are entitled to a refund if a flight is canceled for any reason or “significantly delayed” and they opt not to travel, according to rules from the Transportation Department. This policy extends to nonrefundable tickets. The DOT determines on a case-by-case basis whether passengers are entitled to a refund for a delayed flight.

While airlines are required to provide refunds in these circumstances if requested, they aren’t barred from offering other forms of redress first. Carriers will often offer a passenger the opportunity to rebook on another flight or a voucher or credit that could be used for future travel.

In these situations, customers will need to speak with an airline representative and request an “involuntary refund,” Mr. Hudson said. Not all customer-service staff will be familiar with this phrase, he warned, but he described it as “the magic words” to use to get a refund quickly.

I had to stay in a hotel because of a flight delay. Am I entitled to reimbursement?

Additional compensation beyond a refund of airfare and other fees isn’t required by the DOT. Still, most airlines have policies on what they will cover.

If a plane has a technical issue or the flight isn’t properly staffed, an airline’s compensation policy typically will kick in. If the delay or cancellation is due to weather, passengers may be out of luck getting assistance.

The DOT maintains a dashboard spelling out what is covered under the customer-service policies at the 10 largest domestic airlines in the U.S. in cases where cancellations or delays were under the carrier’s control. Each of these major airlines has put these policies in writing, making the commitments enforceable, a DOT spokeswoman said in an email.

My checked luggage went missing. What does the airline owe me?

If a checked bag is delayed, missing or damaged, the airline is liable and must reimburse the traveler. For domestic flights, airlines are only required to cover up to $3,800.

Apart from being required to reimburse passengers for the value of items that were lost or damaged, carriers must also compensate people for incidental expenses such as purchasing replacement clothing or medications. Airlines cannot set an arbitrary daily limit for those expenses, though they can require receipts or other proof for valuable items that were lost, according to the DOT.

I can’t rebook with my airline. Are they required to book me on another airline?

Before the airline industry was deregulated in the U.S. in the 1970s, carriers were required to rebook passengers with other airlines in instances where flights were canceled or delayed. “Now, it’s strictly voluntary,” said Mr. Hudson.

Some carriers have formal relationships with other airlines that allow them to rebook reservations at no additional cost, whereas others may buy tickets from competitors for stranded passengers. Southwest said it bought tickets on other airlines during its meltdown, and

Spirit

did the same during its 2021 meltdown.

I was bumped from my flight by my airline. Is that allowed?

Airlines have come under fire in recent years for the practice of overselling flights and then bumping passengers. The practice is allowed, as long as you haven’t boarded the plane. If you’ve already boarded, the airline can remove you from the flight for safety, security or health reasons.

If a passenger is involuntarily bumped, the carrier must provide a written statement of the flier’s rights and how the company decides who is bumped. They may be provided a refund, but they aren’t guaranteed additional compensation.

To be eligible for compensation, the traveler must have a confirmed reservation, have checked in on time and have arrived at the departure gate on time, the DOT states on its website.  

If all those conditions apply—and the airline cannot rebook the passenger on a flight that gets them to their destination within one hour of their original scheduled arrival—compensation is calculated based on the price of the original ticket, the length of the delay and whether the flight is domestic or international. Compensation ranges from up to $775 for short delays to no more than $1,550 for longer delays.

Write to Jacob Passy at jacob.passy@wsj.com

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Southwest Airlines Shows Progress in Push to Restore Flights

Southwest Airlines Co.

LUV 0.87%

showed progress Saturday in its push to regain credibility with regulators and travelers, especially those whose holidays were disrupted by the company’s meltdown over the past week, but cancellations increased late in the day.

The Dallas-based carrier had 30 Saturday flight cancellations as of Saturday evening, according to FlightAware. Overall, more than 250 flights among all airlines flying to, from or within the U.S. had been canceled. Southwest’s total compared with 15 for United Airlines and 11 for

Delta Air Lines.

A Southwest spokeswoman said earlier in the day that the airline was operating a normal Saturday schedule of about 3,400 flights. Meanwhile, the carrier was seeking volunteers among its employees to help the customer-service staff catch up with requests for refunds and reunite customers with missing bags.

In a video distributed to staff members Friday, Southwest executives were upbeat about the near-term outlook. “I’m just very pleased to share that things are going very, very well,” said

Bob Jordan,

the airline’s chief executive. 

Andrew Watterson,

chief operating officer, said that lines had grown shorter and that the airline expected to provide normal service during the New Year holiday period and beyond. In another update Saturday, he said Southwest had deployed “an army” of people to ship bags back to customers, in some cases using

UPS

and

FedEx

to transport lost luggage. 

Southwest has ramped up its service after a meltdown that resulted in nearly 16,000 canceled flights between Dec. 22 and Dec. 29. Those cancellations, stemming from the recent winter storm, left thousands of holiday travelers stranded, furious and in many cases separated by hundreds of miles from their luggage.

Though the storm created problems for all airlines, Southwest canceled far more flights and was much slower than others to recover. Executives of the airline have said the scheduling system used to revise crew schedules after storms was overwhelmed by the volume of changes required. Airline staff members fumbled with makeshift manual methods to match up available crew and planes.

Southwest Airlines travelers waited for luggage in Minneapolis on Friday.



Photo:

Abbie Parr/Associated Press

To get back on track, the airline shrank itself for much of this week, operating roughly a third of its typical schedule on Tuesday, Wednesday and Thursday as it worked to get crews and planes back in place. The airline resumed operating its full schedule Friday. 

Southwest’s problems are far from over. Regulators, lawmakers and union leaders have said they are monitoring the airline’s response to the crisis. Southwest has apologized repeatedly and promised to reimburse affected travelers.

“As SWA turns the corner operationally, focus must remain on promptly compensating passengers caught in last week’s breakdown,” Transportation Secretary Pete Buttigieg said in a tweet Saturday.

One regular Southwest customer who still needs more reassurance is Allison Whitney, a professor of film and media studies at Texas Tech University. She was due to fly home to Lubbock, Texas, from Minnesota on Wednesday, but her Southwest flight was canceled. Facing the risk of being stranded until early in the new year, she booked an American Airlines flight Friday and made it home. 

Ms. Whitney likes Southwest’s luggage and easy-rebooking policies and finds that it can be the only good choice for some of her trips. But she said that after this week, she might hesitate to rely on Southwest for longer trips until she is convinced that the airline’s computer systems are up-to-date.

Write to James R. Hagerty at bob.hagerty@wsj.com and Alison Sider at alison.sider@wsj.com

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Southwest Airlines Gears Up for a Normal Flight Schedule on Friday After Mass Cancellations

Southwest Airlines Co.

LUV 3.70%

executives said the airline is gearing up to resume its full flying schedule on Friday, removing limits on ticket sales and rebuilding crew schedules after an operational meltdown led it to cancel thousands of flights over the past week. 

Executives also pledged to continue work to update technology systems that company and labor officials have blamed for exacerbating Southwest’s troubles, leaving scheduling systems jammed and crews dispersed as the airline struggled to rebound from a winter storm.

“I can’t imagine that it doesn’t boost the focus in certain areas, maybe shift priorities based on what we learned,” Chief Executive

Bob Jordan

told reporters Thursday. “This has been an incredible disruption, and we can’t have this again.”

Southwest canceled nearly two-thirds of its flights Tuesday, Wednesday and Thursday, as part of an effort to dig out from a cascading meltdown after last week’s severe winter storm threw operations into disarray. While other airlines were able to recover from the brutal weather within a few days, Southwest continued to spiral.

Southwest has canceled nearly 16,000 flights in the past week, according to FlightAware. The airline scrubbed 39 flights scheduled for Friday that Chief Operating Officer

Andrew Watterson

said it was unable to staff, but executives said they believe they are ready for a smooth operation Friday.

Mr. Jordan told employees Thursday morning in a video message that shrinking Southwest’s operations had helped, with 95% of its flights on time on Wednesday. “Together we did what we needed to do to set ourselves up to operate our regular schedule tomorrow,” he said.

As it works to resume normal operations, Southwest faces heightened scrutiny from regulators and lawmakers, who have said they are closely monitoring the airline’s response to the crisis.

Transportation Secretary Pete Buttigieg on Thursday wrote to Mr. Jordan, describing the disruption as “unacceptable.” He reiterated his expectation that the airline will assist stranded passengers, honor commitments to cover passengers’ expenses, issue prompt refunds and ensure passengers are reunited with their bags. The airline has said it is providing those accommodations now.

Union leaders who represent Southwest pilots, flight attendants and other workers have faulted what they said was the airline’s lack of investment in technology over the years for many of its problems. Executives have acknowledged the need to upgrade inadequate platforms, such as the SkySolver system that it uses to redo crew schedules during disruptions and that was overwhelmed by the magnitude of the problems over the weekend.

Baggage Stuck in Southwest Airlines Cancellation Fiasco

Mr. Watterson said Thursday in a call with reporters that the upgrading process had already been under way. Southwest has made crew-scheduling its own department, hired more staff and made what he described as incremental improvements to current systems as it began to look for replacements. He said the “modest work” that had been done had started to pay off this fall, but that the winter storm created unique challenges.

While the airline has started to contemplate the broader questions of what it could have done differently, executives said their more immediate task this week has been to piece the airline back together—making sure that pilots and flight attendants are where they need to be, reuniting bags with their owners and ensuring that planes are tuned up and ready to go.

In an effort to make sure the airline is ready for Friday, Southwest added some flights for passengers on Thursday and ferried planes and crew to position them, Mr. Watterson said.

Ticket sales resumed, executives said, after the airline had limited bookings on remaining flights for much of this week, hoping to avoid a scenario where customers bought seats on flights that would ultimately be canceled. The airline also wanted to make sure seats would be available to take pilots and flight attendants where they had to be on Friday, Mr. Watterson said.

Southwest Airlines was ferrying planes and crew to make sure the company was ready for a full flying schedule.



Photo:

Matt York/Associated Press

To get to this point, Southwest sought volunteers to help work through a deluge of tasks to repair schedules for pilots and flight attendants.

At the height of the disruption, the airline’s crew schedulers had to revert to manually assigning pilots and flight attendants to flights when automated software couldn’t keep pace with the volume of changes. Even with the smaller schedule, the group was overwhelmed by the remaining workload, Mr. Watterson told employees this week.

Former crew schedulers working in other areas of the business stepped in to triage inbound phone calls, according to an internal memo Wednesday from

Lee Kinnebrew,

Southwest’s vice president of flight operations, and

Brendan Conlon,

vice president of crew scheduling. Other employee groups were being trained to support overwhelmed schedulers.

Mr. Watterson said the “volunteer army” has been trained on systems and could be called on to pitch in again if the airline begins to see signs that current technology is becoming overwhelmed, as it works on broader fixes. Airline executives said they are confident that existing technology systems can handle the airline’s normal operations while it works on a plan to update them.

Southwest’s ground-operations staff worked to scan thousands of missing bags to figure out where they had ended up. The airline set up new call centers to investigate lost items and update customers, Mr. Kinnebrew and Mr. Conlon wrote. The final step was to coordinate with FedEx Corp. and other delivery companies to truck bags between airports and reduce the strain on Southwest’s remaining flights this week, they wrote.

Running a smaller schedule introduced some new technical challenges, executives said. Planes can’t stay parked for long before they need to be put into short- or long-term storage, so the airline had to rotate through its fleet to ensure that aircraft weren’t sitting idle too long. Maintenance workers had to fan out to different locations to perform checks and regular work on planes that weren’t in their usual locations,

Kurt Kinder,

vice president of maintenance operations, wrote to employees Wednesday.

Southwest Airlines has canceled nearly 16,000 flights since Dec. 22, as customers have struggled to reach their destinations and find lost luggage. The airline said its reduced schedule would extend at least until Thursday. Photo: Albuquerque Journal/Zuma Press

Write to Alison Sider at alison.sider@wsj.com

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Apple, Amazon, McDonald’s Headline Busy Earnings Week

Amazon.

com Inc.,

Apple Inc.

and

Meta Platforms Inc.

are among the tech heavyweights featured in a packed week of earnings that investors will probe for indicators about the broader economy.

Other tech companies scheduled to report their latest quarterly reports include Google parent company

Alphabet Inc.

and

Microsoft Corp.

Investors also will hear from airlines such as

Southwest Airlines Co.

and

JetBlue Airways Corp.

, automotive companies

General Motors Co.

and

Ford Motor Co.

, and energy giants

Chevron Corp.

and

Exxon

Mobil Corp.

Nearly a third of the S&P 500, or 161 companies, are slated to report earnings in the coming week, according to FactSet. Twelve bellwethers from the Dow Jones Industrial Average, including

Boeing Co.

and

McDonald’s

Corp., are expected to report as well.

The flurry of results from a broad set of companies will give a sense of how businesses are faring as they deal with inflation denting consumer spending, ongoing supply-chain challenges and a stronger dollar.

People awaited the release of Apple’s latest iPhones in New York last month. The company will report quarterly results on Thursday afternoon.



Photo:

ANDREW KELLY/REUTERS

One area holding up to the challenges has been travel. Several airline companies have reported that consumers still have an appetite to spend on trips and vacations. On Friday,

American Express Co.

raised its outlook for the year in part because of a surge in travel spending.

“We expected the recovery in travel spending to be a tailwind for us, but the strength of the rebound has exceeded our expectations throughout the year,” American Express Chief Executive

Stephen Squeri

said.

In addition to airlines reporting, companies such as car-rental company

Hertz Global Holdings Inc.

and lodging companies

Hilton Worldwide Holdings Inc.

and

Wyndham Hotels & Resorts Inc.

will offer reads into leisure spending.

Overall, earnings for the S&P 500 companies are on track to rise 1.5% this period compared with a year ago, while revenue is projected to grow 8.5%, FactSet said.

Other companies will serve as a gauge for how consumers have responded to higher prices and whether they have altered their spending as a result.

Coca-Cola Co.

and

Kimberly-Clark Corp.

on Tuesday and

Kraft Heinz Co.

on Wednesday will show how consumers are digesting higher prices.

Mattel Inc.,

set to report on Tuesday, will highlight whether demand for toys remains resilient. Rival

Hasbro Inc.

issued a warning ahead of the holiday season.

United Parcel Service Inc.

will release its results on Tuesday and provide an opportunity to show how it is faring ahead of the busy shipping season. The Atlanta-based carrier’s earnings come weeks after rival

FedEx Corp.

warned of a looming global recession and outlined plans to raise shipping rates across most of its services in January to contend with a global slowdown in business.

Results from credit-card companies

Visa Inc.

and

Mastercard Inc.

will offer insights into whether inflation has finally put a dent in consumer spending after both companies reported resilient numbers last quarter.

Wireless carrier

T-Mobile US Inc.’s

numbers on Thursday will give more context to mixed results from competitors

Verizon Communications Inc.

and

AT&T Inc.

AT&T

issued an upbeat outlook on Thursday after its core wireless business exceeded the company’s expectations, whereas Verizon on Friday said earnings tumbled as retail customers balked at recent price increases.

Other notable companies lined up to report include

Chipotle Mexican Grill Inc.

on Tuesday, chicken giant

Pilgrim’s Pride Corp.

on Wednesday and chip maker

Intel Corp.

on Thursday.

Write to Denny Jacob at denny.jacob@wsj.com

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After Two Weeks of Flight Cancellations, Airlines Assess What Went Wrong

At JetBlue Airways Corp., executives felt confident coming into the Christmas season. The airline had flown through Thanksgiving week with hardly any hiccups.

Then Covid-19’s Omicron variant arrived. With its headquarters in New York, which leads the country in new case counts, JetBlue was quickly overwhelmed. Daily sick calls more than quadrupled. On Dec. 21, JetBlue canceled no flights. Four days later, on Christmas Day, it scrapped 12% of its schedule.

“Because of the exponential increase, you get to a point where you exhaust all your available reserves,” Chief Executive Robin Hayes said.

Airlines are struggling through one of the most severe and persistent mass-cancellation events of the past decade, according to data compiled by FlightAware. U.S. Covid-19 infections surged too quickly for carriers to manage without upending holiday travel, wreaking havoc on already-stretched airline workforces. Now carriers are assessing how to better manage what could continue to be a difficult period, at least for the next few weeks.

Airlines scrapped more than 3,000 U.S. flights and delayed more than 5,000 on Monday. The new wave of cancellations and delays comes as the surge in Covid-19 infections in the U.S. has left the airline industry stretched thin. Photo: Chandan Khanna/AFP/Getty Images

Airlines have canceled more than 1,000 daily U.S. flights for 13 straight days, including over 2,500 on Friday as another winter storm brought snow to Boston and New York.

Flights scrubbed from Christmas Eve through Jan. 6 exceeded 24,000, roughly 7% of the number airlines had planned to fly, according to flight-tracking service FlightAware.

For airlines, the upheaval of the pandemic is heading into a new phase. Unlike in early 2020, when terrified passengers canceled trips in droves, new variants dent but don’t decimate appetite for travel. But airlines are still rebuilding their operations. The twin challenges of rising numbers of employees calling out sick after being infected or exposed to Covid-19, and a series of severe winter storms that hit major hubs from Seattle to Chicago to Washington, D.C., created the perfect conditions for travel chaos.

It became clear that a problem was brewing early in the week of Christmas, said

Sara Nelson,

president of the Association of Flight Attendants-CWA.

“Thanksgiving went off without a hitch. We had two things going for us: We didn’t have Omicron, and we didn’t have any winter storms,” she said. “No one saw Omicron coming.”

The trouble spiraled as more workers became infected. “I was getting notices that entire crews were testing positive and they’re out of the country, in a location where they don’t have other crews. There’s no way to get that aircraft back,” Ms. Nelson said.

A check-in line at Seattle-Tacoma International Airport on Dec. 27.



Photo:

LINDSEY WASSON/REUTERS

Delta Air Lines Inc.

DAL 3.63%

was the first to flag the potential for disruption. Chief Executive

Ed Bastian,

along with the airline’s chief health officer and a medical adviser, asked the director of the Centers for Disease Control and Prevention on Dec. 21 to consider halving its recommended isolation period for fully vaccinated people who come down with breakthrough Covid-19 infections. They cited potential workforce shortages and new information about the Omicron variant. JetBlue followed with its own letter a day later.

Airlines had been under pressure from both travelers and lawmakers to deliver a smooth holiday season after meltdowns last summer and fall. Carriers including

Southwest Airlines Co.

LUV 3.25%

and

American Airlines Group Inc.

AAL 4.23%

at times struggled to maintain the buffer needed to quickly recover from storms or other disruptions, resulting in thousands of canceled flights.

Delta and

United Airlines Holdings Inc.

UAL 3.53%

were among the airlines facing the toughest problems in recent weeks. But almost no airline emerged completely unscathed.

“It has been one of the most difficult operational environments we’ve ever faced, and it forced us to cancel hundreds of flights as a result,” Delta’s chief customer experience officer,

Allison Ausband,

wrote to its frequent fliers on Jan. 5. Delta said Thursday that another round of storms headed for the Northeast would likely result in hundreds more cancellations.

Airlines aren’t alone in facing shortfalls as the Omicron variant rips through workforces. Public-transit services in New York and other cities have been disrupted. Retailers, bars and restaurants have had to temporarily close or curtail hours. School closures are at their highest point of the academic year as teachers call in sick.

Airlines operate under strict safety rules that can leave them little recourse but to cancel flights when they are short of staff in the right places. Pilots aren’t always trained to fly multiple aircraft types, for example. Regulations dictate how much rest crews must get between shifts. And employees such as flight dispatchers and mechanics can take on only so much extra work safely.

William Humphrey, 35 years old, had hoped to return on New Year’s Day from a family visit to Omaha, Neb. Citing weather, United canceled his flight and rebooked him for Jan. 2. He instead took a refund and switched to a quicker route with Delta, but that flight was canceled, too, as were two more of his Delta flights on Monday.

Dr. Humphrey, a resident physician working in Burlington, Vt., worried about finding coverage at his already short-handed office. On Tuesday, when a delay in his flight from Omaha to Detroit caused him to miss his connecting flight home to Burlington, he instead booked a flight to Albany, N.Y., rented a car, and drove the rest of the way, a three-hour trip.

“It seems like it’s getting more and more chaotic,” he said.

Waiting at Newark Liberty International Airport in Newark, N.J., on Monday.



Photo:

Christopher Occhicone/Bloomberg News

Airlines are preparing for the difficulties to last at least a few more weeks.

Alaska Air Group Inc.

ALK 2.94%

said Thursday that it will reduce Alaska Airlines departures by 10% through the end of January, citing an unprecedented rate of employee sick calls due to Omicron and the need to find a way to navigate Covid-19 as a “continued reality in our business and our world.”

“This will give us the flexibility and capacity needed to reset,” the airline said in a statement.

Southwest said that through Jan. 25 it will offer pay incentives, including up to double pay for working extra shifts, to employees such as flight attendants, customer-service representatives and mechanics. Southwest canceled over 2,500 flights this week, including more than 500 on Friday—17% of the flights it planned that day, according to FlightAware, as Omicron-related sick calls made it harder to recover from severe weather such as a major snowstorm that hit Washington, D.C., early this week.

An airline spokesman said Southwest is focusing on stabilizing its operation in the wake of winter storms while maintaining sufficient staffing as Covid-19 cases jump.

Carriers typically maintain higher staffing levels as a buffer against bad weather and other unexpected events over the busy holiday season—when demand runs high and staff callouts tend to be elevated even in the best of circumstances—said

Geoff Murray,

a partner at consulting firm Oliver Wyman. Airlines are still clamoring to hire more staff, he said, with regional carriers suffering a dearth of pilots and major carriers contending with training logjams.

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“There was not a lot of slack in the system,” Mr. Murray said. “The only alternatives the airlines had were to further cut back schedules going into the holiday. With the booking levels they were looking at, that would have been very difficult to do.”

At United, the number of pilots out sick, including those with Covid-19, those awaiting test results and those with other illnesses, climbed to about 900 this week from about 500 shortly before Christmas. And the number of pilots with active Covid-19 infections more than doubled to nearly 500 during that period, according to a spokesman for the union that represents United’s pilots.

The airline rushed to bump pay for pilots willing to take on extra trips, with negotiators working past midnight on Dec. 31 to craft an incentive agreement that offers up to triple pay for certain trips. United hasn’t shortened the 10-day quarantine period for pilots and flight attendants who become ill with Covid.

While airlines are still canceling flights, they will likely get a measure of relief from the typical travel slowdown following the winter holidays. Airlines tend to operate fewer flights in January than at the end of December. Airports screened 1.5 million passengers Thursday, pulling back from daily highs of more than 2 million at the height of the holiday rush, according to the Transportation Security Administration.

“I think we’ll start seeing more people coming back to work than calling out,” said JetBlue’s Mr. Hayes. “And I think that will allow us to recover very quickly from the middle of January onwards.”

A packed Miami International Airport on Jan. 3.



Photo:

chandan khanna/Agence France-Presse/Getty Images

Write to Alison Sider at alison.sider@wsj.com

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Airline stocks near ‘max fear’ — why it may be the best time to buy

Airline stocks could be nearing an attractive entry point.

The group has fallen sharply in the past three months, with Spirit Airlines, JetBlue Airways and Hawaiian Holdings down more than 20% and other top names not far behind.

The U.S. Global Jets ETF (JETS), a basket of 52 stocks in the air travel industry, is down nearly 13% in that time frame.

“Max fear” has proven to be a good time to buy into the airlines, MKM Partners’ chief market technician JC O’Hara told CNBC’s “Trading Nation” on Wednesday.

“I will not sugarcoat it: The technical setup for the airlines is pretty bad right here,” he said, referencing a chart of JETS with arrows denoting past peaks in daily Covid-19 case counts.

“There is some support right around $21.50, but I think in this case, it’s not support that matters. It’s sentiment,” O’Hara said.

JETS climbed by nearly 1.5% Thursday morning to around $22.56.

“When there is this max fear around the virus, that has offered a great entry point into the airlines,” he said. “Sentiment is very hard to pinpoint in real time, but I’m feeling that we are getting closer to max fear, so I do think in the next days to weeks to come, we will see a very attractive entry into the airline space.”

Airline stocks could feel the heat of new mask mandates over the next several weeks or month, said Steve Chiavarone, a portfolio manager, equity strategist and vice president at Federated Hermes.

Overall, however, “the risk-reward on the airlines is to the upside,” Chiavarone said in the same interview.

He noted that the delta variant didn’t have as severe an impact as the original strain of the virus in India, where it was first identified, or the U.K., where it first spread. He added that he expected to see a peak in U.S. infections “in the coming weeks.”

New Covid cases in India and the U.K. have declined from their delta-fueled peaks. The CDC said Monday that the seven-day average of daily U.S. Covid cases topped last summer’s peak. It has also warned that the delta variant is as contagious as chickenpox and could make people sicker than the original strain.

“We think you’ve got a second opportunity here to buy the reopening trade after a three-month discount that’s occurred over the last couple of months,” and that goes beyond the airlines, Chiavarone said.

“In cyclical sectors in general, we think there’s a real positive risk-reward at current prices, understanding you could have a little bit more volatility in the coming weeks,” he said.

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Air safety site lists 20 best airlines in the world

Travelers who are on the fence about flying again may want to check out a new list of the world’s best airlines.

The airline safety website AirlineRatings.com published its list of “Top Airlines in the World,” which traditionally ranks carriers by safety, in-flight service, passenger comfort and flight routes.

But this year, new judging criteria are shaking up the rankings. For the first time, airlines are being judged in part by how they responded to the Covid-19 global pandemic.

“Covid impacted the ratings in two ways,” said AirlineRatings.com Editor-in-Chief Geoffrey Thomas. “Airlines had to be Covid-compliant to our standards to be considered, and we deleted profitability as a criterion this year.”

And the winner is…

Qatar Airways took the No. 1 spot this year, named “Airline of the Year” by the website.

The Doha-based carrier was awarded the top prize due to its cabin innovation, in-flight service and “dedication and commitment to continue to operate throughout the Covid pandemic,” according to the site’s announcement on July 20.

Doha-based Qatar Airways was launched in the mid-1990s and currently flies to more than 140 destinations.

Courtesy of Qatar Airways

Qatar Airways also introduced industry firsts, AirlineRatings.com said, such as being the first to complete the International Air Transport Association’s safety audit and among the first to trial its Covid Safe Travel Pass.

Qatar Airways also has one of the world’s youngest fleets, the announcement said.

The rest of the list

Here’s the full list, following by each airline’s position last year:

1. Qatar Airways (9)

2. Air New Zealand (1)

3. Singapore Airlines (2)

4. Qantas (4)

5. Emirates (6)

6. Cathay Pacific (5)

7. Virgin Atlantic (7)

8. United Airlines (N/A)

9. EVA Air (8)

10. British Airways (17)

11. Lufthansa (11)

12. ANA, or All Nippon Airways (3)

13. Finnair (12)

14. Japan Airlines (13)

15. KLM (14)

16. Hawaiian Airlines (16)

17. Alaska Airlines (18)

18. Virgin Australia (10)

19. Delta Air Lines (19)

20. Etihad Airways (20)

Most carriers maintained a similar position as they did in the 2020 list. Still, Qatar Airways jumped eight places to clinch the top spot, a position typically dominated by Air New Zealand.

“Air New Zealand has been our ‘Airline of the Year’ in six of the last eight years because of its outstanding innovation and cabin service,” Thomas said.

Qatar Airways’ much-lauded Qsuites, which feature double beds and privacy panels to create a private room, have earned the airline “Best Business Class” accolades for three years in a row.

Courtesy of Qatar Airways

British Airways jumped seven places in the rankings to No. 10, while United leaped to No. 8, after not making the 2020 list at all.

Only airlines with seven safety stars are considered for the annual list. That rating is based on crash history, pilot-related incidents, government audits — and now Covid protocols, such as social distancing, aircraft cleaning and masked cabin crew.

Fewer than 150 of the 350-some airlines evaluated by AirlineRatings.com have seven stars. Eight airlines have just one star, according to the website.

The company said rankings, which are judged by the website’s editors, also consider airline service, staff engagement and passenger feedback.

Excellence Awards

Individual carriers are also singled out for “Airline Excellence Awards” for superior service and products. This year’s awards went to:

Best first class: Singapore Airlines

Best business class: Qatar Airways

Best premium economy class: Air New Zealand

Best economy class: Air New Zealand

Best low-cost airline in Asia-Pacific: Jetstar

Best low-cost airline in Europe: EasyJet

Best low-cost airline in the Americas: Southwest

Best ultra-low-cost airline: Vietjet Air          

Best regional airline: Qantas

Best cabin crew: Virgin Australia

Best lounges: Qantas

In-flight catering award: Qatar

In-flight entertainment award: Emirates

Separately, AirlineRatings.com issues an annual “Top Twenty Safest Airlines” list that analyzes crash records and safety compliance. Next year, it too will factor in Covid compliance measures by the airlines, said Thomas.

That list is expected in January 2022.  

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Ticket? Passport? Add a Covid Vaccination Card to the List of Must-Have Travel Documents

LONDON—The world’s airlines are betting on vaccinations to restart international travel.

Two of Europe’s biggest airlines, British Airways and budget carrier Ryanair Holdings PLC, have started allowing fliers to provide Covid-19 vaccination and test-result details alongside personal data, like passport numbers and visa information, during bookings. The airlines say the move will eventually help passengers show they have been inoculated when landing at destinations that have started to welcome vaccinated travelers.

Across the U.S., domestic travel is picking up amid stabilizing or falling Covid-19 cases and a relatively quick vaccination drive. That rebound isn’t yet happening with international traffic, where a patchwork of travel bans, quarantine rules and testing requirements have stymied cross-border flights.

U.S. domestic carriers have increased scheduled capacity by more than 50% between September and March, according to aviation analytics firm Cirium. Global capacity across all international routes, meanwhile, has increased just a little over 7%.

British Airways, Ryanair and other airlines dependent on international travel are hoping to boost ticket sales by capitalizing on nascent optimism over vaccinations. Their move isn’t quite the sort of vaccination passport that some governments and international agencies are exploring to help unlock pandemic-stricken economies. Countries have considered documents that would allow vaccinated residents to visit bars and restaurants, or go to the office or a sporting event.

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