« Northwest Airlines Reports Loss for 2nd Quarter | Main | AirTrans Holdings Inc., Adds New Services from Detroit »

Aug 7
United, Continental, Delta, and Northwest Push Through Fare Increases
Airlines are banking on squeezing out every penny they can for the last few weeks of the summer travel season as August can see slower demand.  The parent of United Airlines, UAL Corp., (UAUA) was the first airline to push through the fare increase.  Fares were hiked $5 one way on routes shorter than 1,000 miles and $10 on fares that were over 1,000 miles.  United then took back the fare increase on which they compete with low cost carriers such as Jetblue, Southwest and Frontier. 

Other major carriers such as Continental, Delta and Northwest all matched the fare increases. 

"Lacking any evidence of consumer resistance, our demand bullishness only continues to strengthen," said JP Morgan analyst Jamie Baker in a note.

But airlines have also shown a readiness to cut prices on certain routes in response to competition or to spur demand. US Airways and Delta last week lowered some fares on their New York to Boston routes by as much as 54 percent. Discount carrier JetBlue Airways Corp. cut prices 18 to 34 percent for some seats on flights this autumn, when travel demand generally slackens.

Reuters.com

0 Comments/Trackbacks




submit a trackback

TrackBack URL for this entry:

post a comment

Name, Email Address, and URL are not required fields.





Comment Preview

« Northwest Airlines Reports Loss for 2nd Quarter | Main | AirTrans Holdings Inc., Adds New Services from Detroit »

Advertise

recent comments

    sponsored ads



    subscribe


    Prefer Email?
    Subscribe below-

    Enter your Email:


    Powered by FeedBlitz What's this?

    Current News

    Support This Blog

    blogroll


    business social media

    Use these fast growing business social media sites to promote your business, feature your products, spotlight your business leaders, create links, and drive traffic back to your company site, all for free!

    BIZZlogos - Add your logo - free link to your site
    BIZZphotos - Add photos of your products and people
    BIZZprofiles - Submit your profile and build your online visibility
    BIZZspotlight - Spotlight your business with free links
    BIZZvideos - Videos about businesses, products and business people.
    BIZZbites - "Digg" for Business - Submit your articles and posts

    Know More Media - Aerospace / Airlines / Defense

    know more media network

    View Network Map

    Network Feed List (OPML)

    Know More Media Network
    Feed


    we support unitus

    PRWeb

    Influencer



    TheAirlineHub is a member of the Know More Media network of business related blogs.

    Here are some current headlines from some of our business publications:

    ProductivityGoal

    CallCenterScript

    AdHurl

    TheBizofKnowledge

    LandingTheDeal

    CustomersAreAlways

    HealthCareVox

    BrainBasedBusiness

    TheInsurancePolicy

    MarketingBlurb