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The move was started by Delta, which early this week rescinded the $5 one-way increase.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
Vegas’s Billion-Dollar Secrets – What They Don’t Want Tourists to Know
Visit Florida’s New CEO Bryan Griffin Shares His Vision for State Tourism with Graham
Chicago’s Tourism Renaissance: Graham Interviews Kristin Reynolds of Choose Chicago
Graham Talks with Cassandra McCauley of MMGY NextFactor About the Latest Industry Research
Destination International’s Andreas Weissenborn: Research, Advocacy, and Destination Impact
Graham and Don Welsh Discuss the Success of Destinations International’s Annual Conference
Graham and CEO Andre Kiwitz on Ventura Travel’s UK Move and Recruitment for the Role
Brett Laiken and Graham Discuss Florida’s Tourism Momentum and Global Appeal
Graham and Elliot Ferguson on Positioning DC as a Cultural and Inclusive Global Destination
Graham Talks to Fraser Last About His England-to-Ireland Trek for Mental Health Awareness
Kathy Nelson Tells Graham About the Honour of Hosting the World Cup and Kansas City’s Future
Graham McKenzie on Sir Richie Richardson’s Dual Passion for Golf and His Homeland, Antigua
ADS PRO 
TAP Air Portugal to operate 29 flights due to strike on December 11
Qatar Airways offers flexible payment options for European travellers
Airlines suspend Madagascar services following unrest and army revolt
Air Mauritius reduces frequencies to Europe and Asia for the holiday season
Major rail disruptions around and in Berlin until early 2026