US Domestic Airlines Increase Fare Despite Low Prices of Jet Fuel
Desiree Sison | | Oct 21, 2014 08:58 AM EDT |
(Photo : Reuters) Several US domestic airlines have increased their travel fare despite low prices of jet fuel
The fear of Ebola has not hurt travel demands at all with some domestic airliners even raising their base fares on many domestic flights even though jet fuel prices are plunging in the market.
Several airliners have increased their travel fare by several dollars per round trip, like JetBlue Airways and Delta Air lines.
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Jetblue Airways raised its fares by US$4 per round trip on some domestic routes last week and Delta Air Lines have expanded its increase even though it is taking advantage of a windfall from lower fuel prices.
FareCompare.com chief executive Rick Seaney said the hike got a major boost after Southwest Airlines matched the increase a day later,
Seaney said that airliners often drop their price increases when it is being resisted by Southwest which carries the most domestic passengers.
Reports said Jet Blue, the biggest carrier in tha Logan International Airport, did not comment on the issue while Delta claimed it had matched the increase to industry fare level.
Seaney said the United Airlines admitted that it matched the $4 increase by Jet Blue Airways and the American Airlines also raised their fare. American refused to comment on the matter.
Seaney said an increase in travel fare doesn't always mean that passengers are paying more. He said that airlines usually run low price promo and other low-priced travel packages with the adjustments depending on demand and individual flights.
The fare increase showed that American's fear of Ebola has not dampened travel demand at all and that airliners have not pass their low jet fuel to the paying passengers.
The cost of jet fuel has plunged by about one-fifth since April. Fuel is the largest cost that airliners incur in their operations.
Airline executives said the last round of fare increases happened last April.
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