| | | | |  | | By Tanya Snyder and Alex Guillén | | | | | | — Fares are skyrocketing and flights are fewer, but airlines are seeing dollar signs. — D.C.'s congresswoman is trying to curb train noise near homes. — President Joe Biden and Elon Musk bicker about Tesla's layoff plans. IT'S MONDAY: You're reading Morning Transportation, your Washington policy guide to everything that moves. Alex Daugherty got married this weekend (!) and is taking a few days off, so this edition was brought to you by Tanya Snyder and Energy Team superstar Alex Guillén. We're both "Heartstopper" fans and have dropped a few Easter eggs from the soundtrack in your tipsheet this morning. Enjoy! Send your hearty congratulations to adaugherty@politico.com and your tips, pitches, feedback and song lyrics to tsnyder@politico.com and opawlyk@politico.com. You can find all of us on Twitter:@alextdaugherty, @TSnyderDC and @Oriana0214. "And I walked off you / And I walked off an old me / Oh me! Oh my! / I thought it was a dream / So it seemed"
| | A message from Freight Rail Works: America could reduce greenhouse gas emissions by 17 million tons a year if we shipped more freight by rail — and that's only the beginning. We're collaborating with experts, research universities and government agencies to develop more environmentally friendly ways to power locomotives. Learn what we're doing to reduce greenhouse gas emissions as we enter a more sustainable era of freight rail. | | | | | | CLEAREST BLUE SKIES, GREEN DOLLAR SIGNS: American Airlines and Delta Air Lines last week increased their revenue forecasts, projecting stronger sales than had previously been expected as Americans increasingly take to the skies. Delta is now expecting sales on par with 2019 levels, while American said it could see revenue 13 percent higher than before the pandemic. But beneath those rosy financials are trends air travelers won't like: Fewer flights, more packed planes and higher ticket prices. Why is it like this? Airlines know people are desperate to finally travel again. Demand is up, but higher ticket prices haven't led to any "consumer pullback," Delta CEO Ed Bastian told CNBC last week. "Even at these relatively higher fare levels, customers are prioritizing air travel, they're getting out of goods and they're moving into services," Bastian said. "Our consumers are saving and then they have the cash for those higher airfares, and we're pleased to see them." Airlines received $54 billion in Covid relief to ensure they'd be ready to accommodate demand when people were ready to travel again, but the labor shortages affecting all corners of the aviation industry have cut into the airlines' ability to keep up. Over Memorial Day weekend, airlines canceled more than 2,800 flights, about 2 percent of their schedules. Meanwhile, soaring fuel prices have increased costs — but airlines have more than made up for them with robust airfares. Ticket prices on the big three airlines are up nearly 50 percent since this time last year. This mix of factors – flight cancellations, more expensive fares and high load factors – has already garnered some attention on Capitol Hill, and will likely continue as summer stretches on. Expect more lawmakers – especially Democrats with jurisdiction over aviation policy – to continue to make hay about airline practices. (Earlier this week, Democratic Sens. Ed Markey (Mass.) and Richard Blumenthal (Conn.) blasted airlines for how they're handling credits for flights customers canceled during the height of Covid fears.)
| | | | A message from Freight Rail Works:   | | | | | | CAN YOU FEEL ME IN THE AIR? One understated reason for the squeeze is a pilot shortage, at least at the regional level, some airlines contend. Delta has enough pilots on staff, but many need to train up before they can replace the thousands of employees who left or retired during the pandemic. American, meanwhile, has been forced to ground 100 regional jets as it struggles to cover its labor needs, the Dallas Morning News reports. American is also locked in a collective bargaining dispute with the Allied Pilots Association. The labor group, which picketed outside the New York Stock Exchange last week in an effort to message institutional investors, is demanding more reliable scheduling, better pay and other workplace improvements. Pilots unions, including the Air Line Pilots Association, the largest union for U.S. pilots, dispute that there is a shortage of pilots, though — rather, they contend there's a shortage of people who want to work for the salaries and benefits airlines are offering.
| | | | STEP INSIDE THE WEST WING: What's really happening in West Wing offices? Find out who's up, who's down, and who really has the president's ear in our West Wing Playbook newsletter, the insider's guide to the Biden White House and Cabinet. For buzzy nuggets and details that you won't find anywhere else, subscribe today. | | | | | Want to receive this newsletter every weekday? Subscribe to POLITICO Pro. You'll also receive daily policy news and other intelligence you need to act on the day's biggest stories.
| | | YEAH, WE'RE PROMISING SO MUCH: The Senate Commerce Committee has a hearing on Tuesday probing how to use international travel to bring back tourism and travel to conventions. DOT Secretary Pete Buttigieg and Deputy Secretary Polly Trottenberg will be in Oklahoma Tuesday to promote infrastructure investments. The House Transportation and Infrastructure Committee has a Wednesday hearing scheduled on the roadway safety crisis. Then on Thursday, back across the rotunda, Commerce will hear from National Telecommunications and Information Administration Administrator Alan Davidson. He's part of the tangled mess of agencies trying to work out how to mesh 5G cell networks with airplane operations (although isn't it time to move on to 6G?) WRDA up: The House has teed up its version of the Water Resources Development Act, H.R. 7776 (117), for floor action this week. The bill expands feasibility studies and wouldn't create environmental advisory committees compared to the Senate version. It flew through committee last month and isn't expected to face serious headwinds on the floor.
| | | INCOMPATIBLE STAR SIGNS: The feud between President Joe Biden and Tesla CEO Elon Musk ratcheted up a notch Friday. Under questioning about reports that Musk plans to fire 10 percent of Tesla's workforce, Biden noted that other, unionized automakers are hiring thousands of new workers and sarcastically wished Musk "lots of luck on his trip to the moon." Musk responded via Twitter, "Thanks Mr President!" linking to an article about NASA's selection of Musk's SpaceX for the next trip to the moon by U.S. astronauts. Separately, Musk on Friday also proposed term limits to "help with the gerontocracy problem," suggesting a maximum age of 70 to run for office. Biden is 79. The next day Musk expanded on his plans for the Tesla workforce: despite the layoffs, "total headcount will increase, but salaried should be fairly flat." He's also clarified that the layoffs won't "apply to anyone actually building cars, battery packs or installing solar." Backstory: Biden has spent his time in office promoting electric vehicles but didn't utter the word "Tesla" his entire first year in office — despite Tesla's dominance of the U.S. EV market. Biden did spend time, however, championing union shops like GM and Ford. Musk has called Biden's apparent shunning of Tesla "a little biased."
| | | I KISS YOU ON THE BRAIN IN THE SHADOW OF A TRAIN: Del. Eleanor Holmes Norton (D-D.C.) plans to introduce a bill to require DOT and EPA to submit recommendations to Congress on how to reduce train noise and vibration near homes, as well as cost estimates for each recommendation. "District of Columbia residents are increasingly contacting me about the negative impact train noise and vibration are having on their health, quality of life, and the structural integrity of their homes," Norton said. I COULD BE YOUR BEST YET, FUTURE FAVORITE REGRET : Amtrak is planning a summer of infrastructure improvements along the Northeast Corridor between Washington, D.C., and New York, including the replacement of 40 track switches and updates to up to 25 miles of track in the southern Mid-Atlantic region. The railroad is spending $55 million on rail improvements this summer alone as part of a larger $130 million effort and has hired 500 new employees. Amtrak says the projects will reduce delays and improve ride quality, but in the meantime, they've adjusted train schedules to account for the work and "minor delays may be expected." They're timing work to happen at night, especially weekend nights, as much as possible to minimize impacts.
| | | | DON'T MISS DIGITAL FUTURE DAILY - OUR TECHNOLOGY NEWSLETTER, RE-IMAGINED: Technology is always evolving, and our new tech-obsessed newsletter is too! Digital Future Daily unlocks the most important stories determining the future of technology, from Washington to Silicon Valley and innovation power centers around the world. Readers get an in-depth look at how the next wave of tech will reshape civic and political life, including activism, fundraising, lobbying and legislating. Go inside the minds of the biggest tech players, policymakers and regulators to learn how their decisions affect our lives. Don't miss out, subscribe today. | | | | | | | | Veteran consumer advocate and aviation expert William McGee, who spent the last 22 years at Consumer Reports, has joined the American Economic Liberties Project, an anti-monopoly nonprofit, as the senior fellow for aviation and travel.
| | | — "Biden evacuated from beach home after plane enters restricted airspace" New York Times. — "Transportation equity for older adults." RAND Corporation. — "Where the billions spent on autonomous vehicles by U.S. and Chinese giants is heading." CNBC. — "Mercedes-Benz issues global recall of one million older cars." AFP. — "Ford polishes Rust Belt base with both EVs and gas cars." POLITICO's E&E News. — "Mexican-born engineer pushing for more diversity in space." Associated Press. — "Mayhem predicted for travel this summer." CNN. — "Southwest Airlines is investing in a sustainable aviation fuel pilot program." Electrek. — "I rented an electric car for a four-day road trip. I spent more time charging it than I did sleeping." Wall Street Journal.
| | A message from Freight Rail Works: Even as America's freight railroads work 24/7 to keep our supply chains moving, the industry continues to take the lead on sustainability and emissions reduction. Rail moves more freight than any other method of transportation, yet only accounts for 1.9% of related greenhouse gas emissions — and our industry is working hard to get that number even lower. Every year, we continue to invest our own capital into making our equipment and infrastructure more sustainable, while teaming up with governments, universities and other experts to develop innovative ways to further reduce environmental impact. Learn how freight rail is helping the U.S. move toward a low-emission future. | | | | | | | Follow us on Twitter | | | | Follow us | | | | |
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