Business travelers can expect higher air prices next year
US air travelers can expect even higher prices next year, according to the 2007 American Express Global Business Travel Forecast.
Ticket prices are expected to go higher, although the increases will occur more slowly than in 2006, predicted the forecast.
The cost of an economy-class seat on a U.S. airline could grow another 3 to 5 percent during 2007. International business fares could jump as much as 4 percent.
The cost of an average domestic business trip, air and ground, will increase 4.5 percent, or roughly $45, according to the forecast.
The higher fares are helping to move the long-ailing U.S. airline industry toward prosperity. Most of the major airline companies expect to report a profit for 2006 — the first in years.
The industry’s prospects turned after carriers started shedding capacity — the supply of airplane seats — while demand for air travel began to surpass the record levels seen in 2001. As long as demand remains strong, the airlines are likely to continue pushing their ticket prices higher, industry analysts say.
That’s forcing companies to tighten travel policies with mandates on things such as which airlines, hotels and rental car companies to use, said Caleb Tiller, a spokesman for the National Business Travel Association.
“We’ve seen business travel on the upswing since 2004,” Mr Tiller said. “Business travel remains essential.”
Report by David Wilkening
David
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