Low-fare airlines are now setting the pace for pricing in a major shift in the market, according to a story in The Detroit Free Press.
“It’s a permanent shift in the market,” said Kevin Mitchell, chairman of the Business Travel Coalition. “Low-fare carriers now have a critical mass, and it’s irreversible.”
All airlines are adding seasonal flights to meet growing summer traffic. But this summer, and for the foreseeable future, low-fare carriers such as Spirit Airlines are likely to dictate fares, the newspaper said.
Competition for seats is so intense that larger airlines can’t increase their fares despite higher jet fuel prices.
Report by David Wilkening
