Airline Fares Going Up, Business Steady
Airline fares are going up again as major airlines like US Airways and others are increasing walk-up pricing, accord to CNN Money.
CNN Money reported that US Airways spokesperson Tina Swail said a $3 increase applies to flights less than a 1,000 miles and a $5 increase above 1,000 miles. The airline has increase fares nine times this year, according to a JPMorgan report.
Expectations of higher customer demand could be a reason for US Airways to go forward with an increase.
"US Airways' action appears consistent with commentary that overall revenue trends remains robust, with no measurable slippage in corporate demand," said the JPMorgan report.
American Airlines also followed suit with an increase, according to Rick Seaney of Farecompare.com as reported by CNN Money.
Even with airline fares increasing, the Philadelphia Inquirer reports that most major U.S. airlines expect to make profits or break even this year, with airline executives on Wednesday saying that bookings are steady, travel isn’t weaker.
"Forward bookings are not showing signs of weakening, and corporate bookings remain strong, as does overall pricing," Dahlman Rose analyst Helane Becker said in a statement as reported by the Inquirer after a meeting that included presentations by major airlines in New York City.