Tag Archives for airfare.
When the ‘solo traveler surcharge’ news was first broken by Thrifty Traveler, Delta and United pulled these fares from the market. American – which by all accounts was first to implement this idea – pulled only some of their fares. However, they’ve largely returned.
Airlines were embarrassed over a pricing strategy to charge passengers traveling alone more than passengers traveling together. When called out on it, they quickly ended the practice.
According to data from Cirium, the price of U.S. domestic airfares are up 9% versus 2019, while inflation is up 19%. That means tickets are cheaper in real terms.
U.S. airlines are lobbying against Chinese airlines’ restoration of pre-COVID flights to the U.S., hindered by Russian airspace restrictions and a complex web of political and economic factors, leading to strategic route squatting and financial losses amidst a slow restoration of flights between the two countries.
For years United Airlines CEO Scott Kirby has argued that there’s an historical relationship between airfares and GDP. Fares have been lower than they have been in the past, and so they’re likely to snap back. In fact, five years ago, he was essentially arguing that airfares should double based on this natural relationship.
Fares aren’t usually cheaper when you book roundtrip the way they used to be. And, outside of basic economy fares, there usually aren’t change fees anymore – so buying one way tickets won’t ‘double the change fees’ if you have to cancel a trip the way that they used to. So much of the time you can take advantage of the flexibility that separate tickets offered.
Markets began tanking this morning on a higher than expected 8.2% increase in the Consumer Price Index. Food and energy costs are drivers of this, but so is airfare.
Here’s why fares are going up, and why the airlines – through their conscious decisions – have caused a piece of inflation that’s driving down markets.
The strange thing is that American Airlines had bundled fares a decade ago – and US Airways management eliminated the idea after taking over the airline. Now they’re bringing it back.
United Airlines CEO Scott Kirby blames high fuel prices for unprecedented increases in airfares. That’s a new tune for Kirby who argued for a doubling of airfares even in 2018.
Airfares increased 18% in April, the biggest increase for a month since the government began tracking this nearly 60 years ago. Fuel prices, though, aren’t the reason why.
When American Airlines announced the end of the ‘Shuttle’ product in November they shared that they would turn over New York LaGuardia – Boston flying to JetBlue and introduce Shuttle-like fares to several markets.
New “Main Select” fares would be refundable, bundling priority boarding and check-in, free seat assignments for any coach seat (including extra legroom) and free same-day confirmed changes. According to a spokesperson these fares are now available on several routes:
Gary Leff is one of the foremost experts in the field of miles, points, and frequent business travel -- a topic he has covered since 2002.
Co-founder of frequent flyer community InsideFlyer.com, emcee of the Freddie Awards, and named one of the "World's Top Travel Experts" by Conde' Nast Traveler (2010-Present) Gary has been a guest on most major news media, profiled in several top print publications, and published broadly on the topic of consumer loyalty. More About Gary »
