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Airlines Continue to Face Bankruptcy, Raise Rates

Posted by: Lisa Nichols | Apr 04,2008

This week, two airlines went bankrupt and another airline was forced to raise their rates. Find out how some airlines’ financial struggles may impact your air travel reservations this year.

 

ATA Airlines and Aloha Air File for Bankruptcy

 

ATA Airlines filed for bankruptcy this week. The airline lost a major military charter contract and was already struggling with high fuel costs. Air travel reservations were cancelled as the airlines filed for bankruptcy on Thursday. Aloha Airgroup Inc. was also forced to file for bankruptcy and cancelled all air travel reservations earlier this week. Both airlines partnered with other airlines to provide more travel opportunities for customers. ATA Airlines’ bankruptcy impacts Southwest Airlines, who partnered with the airline on long-range flights. Aloha Airlines partnered with United Airlines and United is working to honor some flights purchased through Aloha.

 

Refunds Available for Air Travel Reservations Purchased with Airline Rewards Cards

 

Customers who purchased air travel reservations with airline rewards cards or credit cards can get some relief by filing a claim with their credit card company. Customers who paid for airline tickets with cash or check will be forced to file a claim through Bankruptcy court. Customers with lost baggage or refund claims must also file for a refund of airline rates through Bankruptcy court.

 

Northwest Airlines Raises Rates, Decreases Flights to Try to Remain Profitable  

 

Northwest Airlines has decided to raise airline rates for air travel reservations and to decrease flights to try to stay operational, say reports. Airline fares, baggage fees and fuel surcharges will all increase, while domestic flights will decrease by 5%. In a press release on the company website, Northwest Airlines outlines significant increases in airline rates due to the “dramatic” rise of the price of oil. The airline will also charge $25 for a second checked bag and will charge $100 each for three or more checked bags beginning in May.

 

Resurrect Lost Air Travel Reservations with an Airline Rewards Card

 

Buy air travel reservations using an airline rewards card to avoid problems. Credit card companies can provide relief to stranded passengers after an airline bankruptcy. In addition, airline rewards cards allow cardholders to earn free air travel reservations just by using the card. 

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