This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

US Airways to Stop Charging for Drinks

CHARLOTTE, N.C. -- US Airways (LCC) says it will abandon its policy of charging passengers for drinks, seven months after adopting it and despite repeated assertions that the strategy was working.

Distribution of free soda, juice, tea, water and coffee to coach passengers will resume March 1, CEO Doug Parker said Sunday night in a letter to employees.

"We know customers don't buy an airline ticket based on whether or not they will get a free soda onboard, but with US Airways being the only large network carrier to charge for drinks, we are at a disadvantage," Parker wrote. "This difference in our service has been a focal point that detracts from all of the outstanding improvements in on-time performance and baggage handling that all of us have worked so hard to achieve over the past year."

US Airways began testing its "buy on board" policy for drinks -- $2 for soda and bottled water and $1 for coffee or tea -- on Aug. 1. While nearly every carrier now charges for some amenities, particularly checked baggage, not a single major carrier matched US Airways' drink charge.

While US Airways hasn't broken out revenue from drink charges, Parker said "the program was very successful" in generating revenue. However, he said the carrier still expects to generate $400 million to $500 million in new fee revenue this year, the same amount it has regularly cited as likely fee revenue before rescinding the drink charge.

The announcement Sunday comes as a surprise, because US Airways executives have frequently touted the advantage of charging for drinks.
1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG
LCC $0.00 0.00%
DAL $41.68 1.40%
AAPL $126.84 1.90%
FB $86.76 1.10%
GOOG $520.51 -0.19%

Markets

DOW 17,619.51 +23.16 0.13%
S&P 500 2,063.11 +5.47 0.27%
NASDAQ 4,986.8670 +28.3990 0.57%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs