In ordinary times, the McDonnell family from the small town of Federal Way, Wash., would have passed up the trip. But these are not ordinary times, and pert Jackie McDonnell wanted to attend the 20th reunion of her high school class in Los Angeles. Even though Jackie, Husband Bob and their two children had already taken their summer vacation in Alaska, they were tempted by the new low airline fares. Says Bob, an engineer, "We made our reservations 30 days early, we flew night Super Saver and we figure the four of us saved $259 off the regular fare." He adds: "This year we seem to be flying more miles than we are driving."
The Frank Kambara's of Chicago, a family of four, saved $251 on a round- trip to Miami; now, enticed by the bargain, they plan to spend next Christmas in Hawaii. Reason: they can fly at $545 below the full fares. Thanks to "Chickenfeed" and "Super Saver" discounts, Kathy and Randy Ray were able to fly from Denver to New York City and Miami for $206 less than it normally costs to fly only to Miami.
The McDonnell's, Kambara's and Ray's are typical of countless families throughout the U.S. and many from foreign lands who are hopping aboard bargain flights across the Atlantic and within America. Millions of people are making that extra trip they otherwise would not have made, and many are first-time air travelers. With U.S. airlines and a few foreign carriers offering reductions of up to 50%, air fares are easily the best value in an inflation-ridden global economy.
So far this year, U.S. airlines have carried 180 million passengers, a 16% increase over last year and the largest gain in airline history. Two weeks ago Eastern reached 78% of capacity, meaning that all aircraft flying on major routes at peak periods were totally jammed. Last month there were only seven unoccupied seats on all Pan Am planes arriving in the U.S. from Europe and the Middle East. The earnings of airlines are heading toward unprecedented heights, proving the old (and often ignored) capitalist doctrine that lower prices lead to higher demand, which in turn creates higher profits. In the first six months earnings jumped 16.3%, and for the full year should hit a record $1 billion. This year's surge, says Eastern Air Lines President Frank Borman, the former astronaut, "has been above our wildest expectation. We have become mass transit, and this may be as revolutionary as the introduction of the jet engine itself."
Like all upheavals, this one is rich in uncertainties, anxieties and discomfort. Neither the airlines nor the airports are prepared to cope with the passenger flood. Delays, snafu's and frustration are the daily fare of today's traveler. "No one saw it coming," concedes Richard Ferris, president of United, the largest airline in the non-Communist world. "If anyone had told me last year that we would be up 21% in traffic so far this year, we would have straitjacketed him and locked him away." Now such a prescient person would probably be promoted to Senior Vice President for planning.