Air fare increases likely to stay
A broad-based effort by the major airlines to raise ticket prices may likely succeed despite past failures, according to analysts.
Major airlines raised fares as much as $20 on round-trip flights in the US and Canada. Northwest Airlines apparently started the move and was followed by American, Delta Airlines, Continental Airlines and others.
“The reason for it is the continuing rise in fuel prices, and because we’re entering into what is historically been a strong travel period,” said Curt Ebenhoch, a spokesman for Northwest Airlines.
The increases often work out to $5 one way and $10 round trip for flights under 1,000 miles. For flights over 1,000 miles, the increase is $10 one way and $20 round trip.
The changes did not affect all markets, particularly in areas where some airlines are battling low-cost carriers such as Southwest.
To make the increases stick in the past, key airlines had to go along with the move.
“This time, it looks as if the increase will stick,” said USA Today.
The airlines hope increased ticket demand in the spring and summer travel season will give the fare increases staying power, according to Reuters.
“They have to stick,” Reuters quoted aviation consultant Michael Boyd on the higher prices. “We cannot sustain the existing fare structure. If fares don’t go up, the airlines are going to go down.”
Airline fare prices have been particularly low this year after a cut by
Delta in January. The airline slashed fares by up to 50% for travel in the US. Delta’s rivals soon matched the lower fares.
Report by David Wilkening
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