US Airlines Raise Fare Prices on Domestic Flight as Increase Demand and Rise Oil Prices
January 12, 2011 | Airlines Companies
Airlines have been increasing their airfare prices on domestic services in response to increased demand and a rise in the price of oil. Just 2 weeks after raising round-trip tickets $10, American Airlines raised prices another $20.
FareCompare, which monitors airfare pricing, says that US Airways, United Airlines, Continental Airlines and Delta Air Lines have all matched this latest hike. However, Southwest Airlines, JetBlue Airways, Frontier Airlines and AirTran Airways are some carriers that haven’t increased their prices.
This move comes at a time when passengers are still stranded due to the blizzard that hit the US northeast over the Christmas holiday. Many flights have been delayed and thousands have been canceled due to the weather.
American Airlines hasn’t, in the past, increased fares on routes where they compete with Southwest Airlines. However, it seems as though the carrier hasn’t excluded these routes this time, following the rival matching its December 15 increase.
These latest increases come after a string of rises on both domestic and international flights, and if oil prices continue to rise, so will airline ticket prices. FareCompare chief technology officer Graeme Wallace said that the months of January and February are usually the least traveled times of the year for domestic services, and airlines normally try to roll out sales. However, if oil prices continue to rise, airfares will likely follow, he added.
Industry consultancy Boyd Group International president Michael Boyd says that oil prices have risen from $80 per barrel to almost $100. Traffic may be flat at best next year and demand will probably get slightly weaker, he noted, so revenue per passenger will go up. However, the good news is that online capacity may bring prices down if the economy worsens, he added, while the industry is pretty strong to handle a modest downturn.
JetBlue to Waive Change Fees and Fare Differences to Assist Customers Affected
January 12, 2009 | Airline Industry, Airline Service, Airlines Companies, Aviation, Trading & Market
JetBlue Airways Corporation will waive change fees and fare differences to allow customers booked to travel to, from or through New York metro airports or Boston on Saturday, Jan. 10 or Sunday, Jan. 11 Read more
Domestic Airlines Discount Airfares Fall to 17-year Low
January 12, 2009 | Airline Flight, Airline Service, Airlines Companies, Airlines Ticket, Aviation
Discount domestic airfares have hit their lowest level since 1992, according to a new survey that shows the cheapest fares are nearly 30 per cent lower than a year ago.
Read more
Couple Drops Alcohol Lawsuit Against United Airlines
January 9, 2009 | Airline Flight, Airline Service, Airlines Companies, Aviation
At the request of the Florida couple who brought the legal action, a U.S. District Court in Tampa has dismissed a lawsuit against United Airlines that claimed the carrier “negligently” overserved alcohol during a flight. Read more
Airline Seats to Hawaii Will Decline
January 6, 2009 | Airline Flight, Airline Service, Airlines Companies, Aviation
Scheduled airline seats to Hawaii between January and March are expected to drop 16.1 percent compared to last year.
Read more
American Airlines Traffic Reported Traffic Fell 8.2 Percent in December
January 6, 2009 | Airline Flight, Airline Service, Airlines Companies, Airports, American Airline, Aviation
American Airlines said Monday that traffic fell 8.2 percent in December compared with the year-earlier month, with both domestic and international business slowing. Read more
