All-Star Break

Well, not really. This week marks the end of the first 6 months of 2008 and it has been, um, not so good for the industry. Not that you need proof but check out my handy dandy chart below:

Sure, it may be hard to read the details on this chart, but it tells the larger story. Everyone is down and down big. Allegiant and JetBlue are down about 40% for the first six months and they are outperforming their peers. Southwest is the lone exception with a meager 6% gain since Jan 1st.

And, oh yeah, oil is above $140.

So while the numbers are ugly let's take a quick trip down memory lane:

The year started with MaxJet passengers fighting for seats back across the Atlantic after a Christmas shutdown. Then came April where we said goodbye to Skybus, Aloha, ATA, Champion and Eos. Frontier also filed for bankruptcy protection. And Southwest and American spent nearly as much time inspecting and/or fixing planes as they did flying them.

In early April, we also learned that Delta and Northwest would be merging. Then later in April Continental told us they would not be merging with United. However, they reconciled their differences and in June they announced a cooperation. We also lost Silverjet along the way and it seems clear that Midwest will be the next to go.

However, none of these events get my 1H 2008 award for most memorable day. The winner is May 21. On May 21, 2008 American announced it would charge $15 for the first checked bag. The legacy commercial airline model that had existed since deregulation had changed forever.