Airlines Try Yet Another Fare Increase

by Michele McDonald
Airlines Try Yet Another Fare Increase

Six weeks into the new year, U.S. airlines have attempted five air fare hikes. That’s as many as they tried in all of 2015. 

The latest hike of $10 roundtrip was initiated by Southwest in the afternoon of Feb. 19. Within four hours, American, Delta, and United had matched the increase, and it appears to be holding steady, according to FareCompare. 

Business travelers, late shoppers, and residents of smaller cities will bear the brunt of the increases. FareCompare said hikes have not been detected on “hotly contested” routes.  

If the increase sticks, the airlines will have raised roundtrip fares by $22 so far this year. Two of the attempts have failed. 

The airlines are under increasing pressure from investors to squeeze every nickel out of every square inch of aircraft, and are likely to try more hikes, FareCompare said.

The current economic climate and the steady demand for travel means they are meeting with less resistance than they did last year. 

FareCompare noted that the price of oil has dropped from $36 to $30 a barrel since the beginning of the year. Oil-producing countries such as Saudi Arabia and Venezuela have said they will cut production to boost prices if other countries follow suit, but newly unfettered Iran is likely to resist such a move.  

Here is the scorecard so far:  

Jan. 4, up to $6 roundtrip, initiated by Delta. 

Feb. 3, $6 roundtrip, initiated by JetBlue, failed. 

Feb. 10, $6 roundtrip, initiated by JetBlue. 

Feb. 18, $6 roundtrip, initiated by Delta, failed. 

Feb. 19, $10 roundtrip, initiated by Southwest, in progress.  

Pic: Colin Brown

  0
  4
Tip of the Day
Remember that we are in an amazing business and you help people fulfill their dreams. Sometimes we just need to look around again to remind ourselves that we are in the mansions of industries with really fun and exciting products to sell.
 
Scott Koepf, TMR Columnist 
Daily Top List

Top Three Travel Destinations For Fall

1. Havana, Cuba

2. Lisbon, Portugal

3. Madrid, Spain

Source: Elite Daily

TMR Recommendations
Top Stories
Travel Corp. CEO Sees ‘Huge Opportunity’ in Tour Segment
Travel Corp. CEO Sees ‘Huge Opportunity’ in Tour Segment

The hunger for both authentic and purpose-driven travel is creating a huge opportunity in the tour segment, but travel agent and consumer perceptions still lag, says Brett Tollman, CEO of The Travel Corporation.

Hoteliers On The Move, September 2017
Hoteliers On The Move, September 2017

To help you keep up with your favorite GMs and hotel executives as they move around and open new properties, Mary Gostelow offers up a monthly update of who's doing what.

Hurricane Maria Update: Resorts, Cruise Lines React
Hurricane Maria Update: Resorts, Cruise Lines React

Hurricane Maria made its way to the Dominican Republic Thursday, bringing with it winds near 115 mph and heavy rain.

Puerto Rico Left Without Power After Hurricane Maria Makes Landfall
Puerto Rico Left Without Power After Hurricane Maria Makes Landfall

Travel companies are being forced to react to yet another natural disaster as Maria barrels through Puerto Rico and now toward the Dominican Republic.

Central Mexico Rocked By 7.1-Magnitude Earthquake, Hundreds Killed
Central Mexico Rocked By 7.1-Magnitude Earthquake, Hundreds Killed

The death toll climbed to 226 as emergency workers continue to search for survivors.

InterContinental Hotels Group Reveals Name of New Midscale Brand
InterContinental Hotels Group Reveals Name of New Midscale Brand

IHG also shared renderings of the proposed properties.

News Briefs
Advertiser's Voice
Advertiser's Voice: Imagine Bliss