Loading ...Last week several major airlines introduced increases in the price of one way domestic fares. In order for the $5 fare hike to stick, it had to be matched by other airlines or individual airlines who increased their fares would lose customers.
Continental Airlines, American Airlines, Delta Air Lines, United Airlines and US Airways were all forced to retract part of the fare increase with Southwest Airlines failed to get on board.
Airlines say that the fare increases are attempts to compensate for the increasing price of fuel. And since 2006 was the first year that the airline industry turned a profit since 2000, it appears that they could use the extra help.
“They’ve got to get some pricing strength or firmness going,” said Neil Bainton, chief operating officer at FareCompare.com. “Somehow, this has got to stick.”
Jet feul has increased in price over the last four months by around 17%. Fuel and labor are the two major expenses for airlines.
www.continental.com