Complimentary meals on U.S. airlines has officially become a bygone era, with Continental Airlines Inc. announcing that free meals served in economy class will be replaced by purchased meals in the future.
Continental, the fourth-largest U.S airline was the last remaining company to serve free meals domestically for flights exceeding three hours. Most flights that will be impacted are within the United State and Canada, and other limited domestic routes. The Houston-Honolulu route will be exempt from the meal cut. However, trans-Atlantic and trans-Pacific routes and routes to South America will still have complimentary food.
According to AP, Continental is ending free hamburgers, barbecue, and sandwich rolls for many of its passengers. Continental passengers on some international routes, on domestic flights over six hours, and those who sit in first or business class on routes worldwide will continue to be served complimentary meals.
In its press release, Continental said it would continue to “offer food and snack selections that are appropriate for the length of the flight and the time of day. Traditional nonalcoholic beverages and accompanying snacks like pretzels will continue to be complimentary on every Continental flight.”
“Our traditional free-food model has served us well for many years, but we need to change to reflect today’s market and customer preferences, “Jim Compton, Continental’s executive vice president and chief marketing officer, commented in the company’s statement.
Jeff Smisek, who was promoted as the airline’s chief executive officer, believes that paying for meals in coach is aligned with plans to convert certain products to be available on a pay-for-service basis. In October 2009, the airline reported losses of around $1 billion since the Sept. 11, 2001, U.S. terrorist attacks, according to Bloomberg.
Houston-based Continental expects a $35 million annual benefit, from cost savings and added revenue based on AP estimates. Continental spokesman Dave Messing also claimed that, “While free food was a nice point of distinction for Continental, we could not provide the same caliber of food on that basis that we can under a food-for-sale program.”
Shares of Continental rose 22 cents, or 1 percent, to $23.26, on the New York Stock Exchange. That was the highest closing price since March 7, 2008.
Global passenger travel has plummeted in 2009, marking the year as the biggest decline in air passenger traffic in the postwar era, according to the International Air Transport Association (IATA). “In terms of demand, 2009 goes into the history books as the worst year the industry has ever seen,” said the group’s boss Giovanni Bisignani.
IATA has predicted that airlines collectively lost $11 billion last year, and stand to lose a further $5.6 billion this year,” according to an IATA statement.
Continental, the fourth-largest U.S airline was the last remaining company to serve free meals domestically for flights exceeding three hours. Most flights that will be impacted are within the United State and Canada, and other limited domestic routes. The Houston-Honolulu route will be exempt from the meal cut. However, trans-Atlantic and trans-Pacific routes and routes to South America will still have complimentary food.
According to AP, Continental is ending free hamburgers, barbecue, and sandwich rolls for many of its passengers. Continental passengers on some international routes, on domestic flights over six hours, and those who sit in first or business class on routes worldwide will continue to be served complimentary meals.
In its press release, Continental said it would continue to “offer food and snack selections that are appropriate for the length of the flight and the time of day. Traditional nonalcoholic beverages and accompanying snacks like pretzels will continue to be complimentary on every Continental flight.”
“Our traditional free-food model has served us well for many years, but we need to change to reflect today’s market and customer preferences, “Jim Compton, Continental’s executive vice president and chief marketing officer, commented in the company’s statement.
Jeff Smisek, who was promoted as the airline’s chief executive officer, believes that paying for meals in coach is aligned with plans to convert certain products to be available on a pay-for-service basis. In October 2009, the airline reported losses of around $1 billion since the Sept. 11, 2001, U.S. terrorist attacks, according to Bloomberg.
Houston-based Continental expects a $35 million annual benefit, from cost savings and added revenue based on AP estimates. Continental spokesman Dave Messing also claimed that, “While free food was a nice point of distinction for Continental, we could not provide the same caliber of food on that basis that we can under a food-for-sale program.”
Shares of Continental rose 22 cents, or 1 percent, to $23.26, on the New York Stock Exchange. That was the highest closing price since March 7, 2008.
Global passenger travel has plummeted in 2009, marking the year as the biggest decline in air passenger traffic in the postwar era, according to the International Air Transport Association (IATA). “In terms of demand, 2009 goes into the history books as the worst year the industry has ever seen,” said the group’s boss Giovanni Bisignani.
IATA has predicted that airlines collectively lost $11 billion last year, and stand to lose a further $5.6 billion this year,” according to an IATA statement.
Friends Read Free