The plot targeting passenger jets in London is only the latest bit of bad news for airlines, but analysts say carriers will weather it – just as they have airborne diseases and past terrorist activity.
The thwarted attack reportedly targeted United, American and Continental Airlines flights from Britain to the United States. Security restrictions were imposed, prohibiting liquids and gels from carry-on bags at a time when many carriers have returned to profitability after years of losses.
Airlines have become accustomed to a steady string of challenges, from the Sept. 11, 2001, terrorist attacks through bankruptcies, rising fuel costs and changing security requirements.
“We’re weathering our way through this,” said Jim May, president of the Air Transport Association, an airline industry group. “Hopefully, we’re not going to see a drop in passenger traffic.”
Airlines will incur costs from flight disruptions, said Calyon Securities analyst Ray Neidl, but “I think it’s going to be short-lived.”
People flying now are not likely to cancel trips, said Evergreen-based aviation consultant Mike Boyd.
“But going forward, if it’s that much of a hassle to fly, a lot of short-haul flying is going to drop off. This could hurt the airline industry,” he said.
Said Neidl: “You just have to wait over the next couple of days to see the effect that it has on advance bookings. I have a feeling it’s not going to affect it that greatly, but if it does, airlines will discount (to encourage people to travel again).”
Denver International Airport was the fourth-busiest airport in the nation in June, up from No. 7 a year ago, according to the U.S. Bureau of Transportation Statistics.
On Thursday, about 11 of Denver-based Frontier Airlines’ flights had 15- to 45-minute delays, and three flights had delays of more than an hour. Frontier spokesman Joe Hodas acknowledged that some passengers would miss their flights Thursday and said the carrier would try to rebook them on other flights. But “all airlines, Frontier included, are running really heavy,” he said.
Airlines posted travelers’ alerts on their websites, explaining changes in procedure and advising people to allow extra time at the airport.
Frontier waived its penalty fee for customers who want to reschedule flights. But the airline is not offering refunds, and passengers will still pay for any difference in fare. Frontier is also allowing one extra checked bag.
United also revised its ticketing policies, offering nonpenalized changes to reservations for certain flights.
The volume of calls into Southwest Airlines’ reservations center was normal, excluding calls about concerns after the events Thursday, said spokeswoman Beth Harbin.
Airline stocks were mixed Thursday. Shares of Frontier, which does not fly to Europe, closed up 5.1 percent, or 31 cents, at $6.38, as oil prices went down. International carriers, particularly British Airways, took stock hits, and United shares closed down 1.3 percent, or 31 cents, at $23.52.
Staff writer Kelly Yamanouchi can be reached at 303-820-1488 or kyamanouchi@denverpost.com.
