US airline fare hikes this time taking hold?
The recent airline fare hikes this time may hold up, industry observers say, in part because of continuing record passenger traffic.
“I believe the American Airlines initiated $10 round-trip increase will, for the most part, end up successful,” said Rick Seaney, chief executive at fare tracker FareCompare.com, told Reuters.
UAL Corp.’s United this week joined the five largest US carriers in raising round-trip fares $10. The airlines say the move was made because of higher fuel costs. Delta Air Lines Inc., Continental Airlines Inc., Northwest Airlines Corp. and US Airways Group Inc. adopted the increase last weekend after it was initiated by AMR Corp.’s American Airlines, the world’s largest carrier.
The increase marks at least the seventh time this year that legacy airlines such as American have boosted ticket prices.
Southwest Airlines Co., the largest low-fare carrier, has led another five increases, according to wire reports.
“The trend toward higher fares continued in 2007 but with less gusto as various price increases initiated by individual carriers failed to win matches,” says Reuters.
US airlines in the latest statistics reached record highs.
The airlines in July carried more than 72 million scheduled domestic and international passengers, a record for a single month and 2.2% more than the previous record of 70.6 million in July of 2005, according to the U.S. Department of Transportation’s Bureau of Transportation Statistics (BTS).
Load factors have also been setting records. In July, for example, they reached an all-time high for combined domestic and international system flights. That month’s load factor for domestic and international flights was 86%, percent, topping the previous high of 85.8%
Year wide, the top airlines included Southwest, which had more domestic passengers in the first seven months than any other US airline, and American, which had the most international passengers of any domestic airline.
There’s no question jet fuel prices have pressured airlines to raise rates. Jet fuel has climbed 36% from the end of 2006.
A 1 cent-per-gallon increase in the price of jet fuel adds $30 million to annual expenses at American, say analysts.
The latest ticket-price increase applies to the continental US, and includes leisure and business fares. It excludes markets where the airlines compete directly with discount carriers such as Southwest.
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 
Phocuswright reveals the world's largest travel markets in volume in 2025
Higher departure tax and visa cost, e-arrival card: Japan unleashes the fiscal weapon against tourists
Cyclone in Sri Lanka had limited effect on tourism in contrary to media reports
Singapore to forbid entry to undesirable travelers with new no-boarding directive
Euromonitor International unveils world’s top 100 city destinations for 2025