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US airline fare increases just the beginning
Delta Airlines was the first but five other UA airlines quickly joined the bandwagon of higher fares, which observers think is going to be a trend all summer.
Six of the largest airlines raised some fares $50 each way. Southwestern Airlines Co. was the only carrier among the US’s seven largest that didn’t go along with the hike.
Airlines are raising their fares at the fastest pace since 2001. Their stated motive: combat fuel prices that have more than doubled.
“If the fare increase holds, it will be further evidence that the airlines are taking advantage of a situation that is good for them and bad for consumers — demand for travel is growing with the economy, yet the number of seats remains limited, giving the airlines the power to raise fares,” wrote The New York Times.
“Since we have a strong economy and increased pressure on airlines in terms of the seats they have, they can start to raise fares,” said Mike Boyd, an aviation consultant.
The latest increase will affect some of the most expensive flights, which have already gone up 21% in the last year, according to airline data-tracking firms.
The sharpest increase in fares has been in business tickets, which represent half of the airlines’ revenues.
Airlines could boost business fares another 18% before nearing their 2000 peak, said Kevin Mitchell, chairman of the Business Travel Coalition.
A record 207 million people are expected to fly this summer, making airlines fuller than any time in the last 60 years. Press reports say the public is not yet balking at the higher prices.
Report by David Wilkening
David
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