More Bad News for O-Town ... and WDW ...

[WDW1974]

From USA Today's great 'Today in the Sky' airline blog ... this also isn't good news for LA, but is likely to have far less of an impact on DL than WDW.

BTW, Delta was the Official Airline of WDW for a decade starting in 1989.

<<LAX, Orlando hard hit as Delta is latest to detail cuts
Delta has joined the parade of carriers announcing job and flight cuts as it tries to cope with the meteoric rise of fuel costs. The Wall Street Journal (subscription required) writes Delta "expects to reduce domestic capacity by 13% in the second half of this year, compared with the 10% reduction it announced in March … . International capacity is expected to grow 15% to 17% in 2008, in line with previous guidance, with Delta adding 20 international routes.' The Atlanta Journal-Constitution (free registration) adds the company "expects to generate $200 million in annual savings from the voluntary retirements and separations of more than 4,000 employees."

Delta officials also say they expect fuel costs are expected to jump by about $4 billion this year, though the Wall Street Journal says "those fuel increases will be partially offset by about $1 billion in hedging gains, with benefits expected in future years." Bloomberg News adds "Delta said it has hedged 22% of its 2009 fuel needs, and 5% for 2010." Delta also detailed some of the additional routes it will drop as it cuts capacity. The Dallas Morning News (free registration) says the carrier's cuts "would focus on routes where the flights don't start or end in one of Delta's connecting hubs.'

Of Delta's markets slated for cuts, the Orlando Sentinel notes "the ax will fall particularly heavy in Orlando." Delta says it will drop routes between Orlando and Nashville; Key West; Raleigh-Durham; Birmingham; Columbus, Ohio; Lexington, Ky.; New Orleans; Panama City, Fla.; Richmond, Va.; Louisville and Knoxville. Bob Cortelyou, Delta's senior vice president of network planning, tells the Sentinel that Orlando and Delta's other "secondary markets" have become difficult to keep viable, especially if there's a lot of service on 50-seat regional jets and a high proportion of leisure travelers.

"High fuel prices and regional jets are like oil and water -- they don't necessarily mix," Cortelyou tells the Sentinel. "You only have 50 seats to play with. If you can't get a good fare with 50 seats and if you don't get enough people to pay a high enough fare, you just can't make the plane work." But Orlando is not alone in feeling the weight of Delta's cuts. The Los Angeles Times (free registration) writes Delta "plans to slash about 13% of its flights at Los Angeles International Airport, including nonstop service to Boston, Hartford, Conn., and Columbus, Ohio, according to a national flight database."

The Times adds Delta's "latest cuts would be the deepest so far at LAX, which had managed to escape the brunt of an industrywide move to ground flights as a way to cope with escalating fuel prices. Delta is the fourth-largest carrier at the airport." The paper also says Delta's cuts "would in effect end the Atlanta-based carrier's plans to expand at LAX and make the largest airport in Southern California one of its major hubs.">>

[DisneyIPresume]

LAX is the 5th busiest airport in the world. And people flying into LAX are definitely not just going to Disneyland.

No. This won't effect the DLR that much if at all.

[Imagineerfan]

I also don't see it having much of an effect in Orlando or WDW either. What they are eliminating are direct flights beween a number of smaller markets and Orlando. It simply means that travelers will have to fly through a Delta hub to get there.

Instead of non-stop from Louiville to Orlando, folks will fly Louville to Atlanta then Atlanta to Orlando. A bit more inconvenient for the traveler, but not that much.

[TDLFAN]

As long as the airlines keep charging cheap fares... they will not impact the Disney parks as much I think.. But kiddies, do enjoy your $2 glass on Coke on board and your $20 charge for bringing that extra bag. Muhahaha...

[KevinYee]

Are fares still cheap?

Back in February I booked travel from MCO to LAX: $210 round trip included the fees. I looked at what October might cost if I booked it today: almost $400 including the fees. I think Disney execs know what they are doing when they are looking at these contingency plans right now.

[MJMcB]

I was able to grab NY to Orlando round trip tix for $160 for January

[KevinYee]

That's not bad. Did you make those reservations in the past month?

[tjcjr]

Delta says it will drop routes between Orlando and Nashville; Key West; Raleigh-Durham; Birmingham; Columbus, Ohio; Lexington, Ky.; New Orleans; Panama City, Fla.; Richmond, Va.; Louisville and Knoxville

Delta does a big business with us folks up here in the NE, so as long as the NE corridor routes are still going, the changes Delta proposed really won't affect WDW as much as you may think.

[WDW1974]

I also don't see it having much of an effect in Orlando or WDW either. What they are eliminating are direct flights beween a number of smaller markets and Orlando. It simply means that travelers will have to fly through a Delta hub to get there.

Instead of non-stop from Louiville to Orlando, folks will fly Louville to Atlanta then Atlanta to Orlando. A bit more inconvenient for the traveler, but not that much.

That is true, many cities are just losing direct service.

But overall, the problems of the airline industry (due to oil and gas and RECESSION) will surely have a negative affect on WDW. They likely already are.

Higher prices for seats, combined with far fewer seats, combined with loss of (direct) service will all combine to result in fewer WDW visitors. This is just common sense. No economics degree or CNBC talking head needed.

Orlando (along with Las Vegas and Los Angeles) is one of the top leisure markets in the country. That means a VAST majority of fliers have ben kicking back and enjoying ridiculously low prices to fly (often well under $200 round trip including taxes and fees from the East coast and Midwest) to WDW. There also were far fewer of those business travelers paying full-fare to fly up front to off-set all the bargain hunters in the back.

Those prices weren't profitable for most carriers when oil was (where it still should be) in the $50-60 range. At $135, they're suicide.

People should also not underplay even something as seemingly trivial as non-stop service. Many folks hate to fly (I actually love it. I just loathe the TSA experience brought to us by an incompetent bureaucracy designed to instill fear in people instead of making them safer.)

Many people feel particularly hate the whole up-and-down deal. So when they lose their direct morning flight to Orlando and wind up needing to waste the better part of a day by going to Atlanta or Cincinnati or Salt Lake in between all for a price that is much higher than previously with more hassles (like folks bringing even more luggage into the cabin) included, many people are going to sit back and say 'Let's just go to (fill in the blank with the nearest locale vacation destination be it a lake, a city or a theme park) instead.'

It's quite simple. Losing capacity is never a good thing.
MCO is losing a lot from its largest carriers.

[WDW1974]

As long as the airlines keep charging cheap fares... they will not impact the Disney parks as much I think.. But kiddies, do enjoy your $2 glass on Coke on board and your $20 charge for bringing that extra bag. Muhahaha...

Give me Virgin Atlantic any day over our tired, poorly run, desperately in need of regulation (why does government interfere everywhere EXCEPT where it makes sense?) 'legacy carriers.'

I am an elite flyer on Continental, so other than higher prices and fewer flights, I am not going to (currently) be affected by any of the zaniness affecting the airlines right now. Pretty soon, oxygen in the cabin will be extra.

But, that said, when a carrier like VA can offer a coach experience that (except for a hard seat) is equal or better than a First Class experience on my carrier, well, it almost makes you feel like we should just shut all the airlines down and start from scratch.

[speedemon]

Less flights with larger planes helps keep down the costs... this is probably their strategy. Why take a van when you can take a bus? You will still see people traveling. High fuel cost = larger planes... I would wait and see how this one turns out... Also, don't forget about the government subsidizing helping the industry to protect GDP.

[WDW1974]

FYI, Disney stock is down 7% in trading in 2008 ... most financial talking heads will tell you this is based on one factor and one alone: fear of what oil prices will do to the theme park and resort division.

(Glad I sold half my stock early last fall!)

[TheStarTrader]

I am looking at going to WDW next April from LAX and while browsing I found many flights for about $400 last week. Now, most are no longer there and the remaining ones are $550!

[#1Goofy]

I booked our flight from Sacramento,CA to Orlando in Oct. and got a price of $500. for me and the misses. Now that exact same flight is $300. more! I'm glad I booked when I did!

[Monkey joe]

Right now most flights around here are $440 or a cheap flight from Dayton,Ohio for $233.