Cargo treated better than passengers — here’s the proof

by Charlie Leocha on September 10, 2008

In a continuing effort to connect the dots in the travel world, you often come across different news stories that alone tell a simple tale, but that together, provide real insight. These two stories shine a light on the importance that airlines place on their passengers vis-a-vis their cargo.

The Chicago Tribune just published a story about Northwest Airlines cutting fuel surcharges for cargo.

Northwest Airlines Corp. said Monday its cargo unit will cut fuel surcharges in certain markets because of a recent decline in the price of jet fuel. Surcharges on domestic shipments will be reduced to 46 cents per pound from 50 cents.

The story went on to detail cuts in fuel surcharges for transatlantic routes and Asian routes.

Far to the south the Houston Chronicle published a story headlined, US airlines not planning to cut fuel surcharges.

U.S. airlines have no immediate plans to reduce fuel surcharges they tack onto the price of a ticket. That’s even with recent decreases of oil and fuel prices. Most carriers have topped their fare hikes with increases in fuel surcharges, ranging as high as $170 per round trip in the United States and more for international flights.

The Houston Chronicle headline, or at least the following story, should have included a disclaimer noting that some US airlines are in fact cutting fuel surcharges for cargo, but not for passengers.

All of this has been predicted by commentators. Others have suggested that fuel surcharges may be the last to fall.

But it is tough to see in reality. Perhaps the cargo rates are going down faster because investigators are closing in on price fixing based on fuel surcharges. It would be nice if the same investigators could put a bit of enforcement pressure on the airlines in terms of passenger airfares.

We have often thought that were being moved around by the airlines and treated like cargo. Now we have proof that cargo is actually being treated better.

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Tagged as: airlines, fuel surchages

  • Hapgood

    Why is this at all surprising? There are good reasons why airline executives greatly prefer the freight cargo they load into the hold over the human cargo that loads itself into the cabin.

    Freight generates far more revenue per kilogram. Once loaded, freight sits perfectly quiet in its place until it’s unloaded. Freight doesn’t require oxygen, and it doesn’t require expensive human flight attendants to keep it out of the way, orderly, and occupied, and to and attend to its continual selfish whining. Freight is submitted by its sender using automated systems, and can be handled and tracked to its destination by computer without human intervention. In contrast, human cargo requires expensive human employees to tell it where to go, what to do and what not to do, to respond appropriately to its incessant selfish demands and complaints, and to resolve the problems that inevitably result from the human cargo’s own ignorance, stupidity, and disobedience.

    Even worse is how resistant human cargo is to the legitimate honest efforts airlines are now making to remedy the long-standing productivity problems. They’re imposing some nominal and entirely fair fees that reasonably compensate the airlines for expenses (e.g., food, water, blankets, headsets) incurred by human cargo but not by freight, and for the lost revenue from carrying (formerly) non-revenue checked baggage that displaces profitable freight. But rather than being understanding partners who are happy to help airline executives meet their obligations to shareholders, human cargo has the utter uncaring gall to complain and even throw juvenile tantrums. Human cargo is just too ignorant, stupid, and selfish to realize that airlines are doing them a great big favor by letting them occupy a middle seat (which they then cheekily complain is too small for their fat derrieres!), space that would be far more productively utilized for the shareholders if it contained freight. So why should airlines care at all about them?

    In short, freight is predictable, compliant, simple, and always contributes to the airline’s bottom line. Human cargo is complicated, disobedient, unpredictable, demanding, and is continually draining the airline’s bottom line. And airlines are having great difficulty with their efforts to force human cargo to behave more like freight. So it’s just good business for airlines to treat their Elite Customers (i.e., freight shippers) preferentially.

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