United Kingdom
United States
Asia Pacific
New air fare increases shot down quickly
A broad-based air fare increase started just a week ago unraveled quickly, a development industry insiders say bodes poorly for future air hikes.
The move was started by Delta, which early this week rescinded the $5 one-way increase.
Airlines, struggling to offset historically high fuel prices, have raised fares several times in the last year. Experts told Reuters that trend may be coming to a close.
“This represents the second failure out of three broad-based attempts this year, though failures are reasonably common,” said JP Morgan airline analyst Jamie Baker in a research note.
That said, the relevance and likelihood of future increases is increasingly debatable, he wrote.
Delta’s fare hike was matched by AMR Corp’s American Airlines and United Airlines. Those two carriers also jettisoned the increase a few days later.
Northwest Airlines, which only partially matched the initial fare hike, said it was reducing fares.
Another airline expert, Terry Trippler said he expects the pace of fare increases to slow in 2007. But he still sees fares climbing between 5% and 8% over the course of the year.
Higher fares and full planes have bolstered earnings for airlines, helping them out of a severe slump that began in 2001.
Low-fare competition in the industry, however, has made it hard for carriers to raise fares enough to cover their expenses.
Report by David Wilkening
David
Exploring Brooklands Museum with Alex Patterson
Global Tourism Challenges and Upcoming Events: A Conversation with Don Welsh
Peebles Barbeque: A Legacy of Flavor and Tradition
Exploring Bok Tower Gardens with Erica Smith
Rue’s Living Water Boat Cruises: Exploring Winter Haven’s Chain of Lakes
Durango and Silverton Railroad: A Timeless Journey Through History and Scenic Beauty
Walt Leger on New Orleans’ Resilience and Major Events Ahead
Cindy Mackin Shares Estes Park’s Winter Thrills
Mark Jaronski of Explore Georgia on FIFA World Cup 2026
Connecting Small Businesses to Global Tourism Markets: Nate Huff of Tourism Exchange
North Carolina’s Resilience: Wit Tuttell on Recovery and Tourism
Kittipong Prapattong’s Plan for Thailand’s Tourism Growth: Taxes, Visas, and Campaigns
Qatar Airways adding Manchester flights
EU entry-exit system delayed again
ATC strike in Greece could disrupt flights this week
Jet2 unveils Samos as new Greek destination for summer 2026
Icelandair launches inaugural flight to Nashville