Airfare Hikes Stick; More To Come?
COURTESY: FARECOMPARE.COM
The ever-increasing price of oil means airlines are passing along higher fuel costs to customers.
This week, Southwest Airlines hiked fares by up to $10 per round-trip ticket. Atlanta-based Delta and other carriers quickly followed suit.
Domestic airlines have attempted five price hikes so far this year. Three, including the most recent, have stuck.
Will the trend continue?
Rick Seaney is the CEO of FareCompare.com. He says airlines are testing two things: one, will competitors match the increase? And two, will people buy tickets at the higher price?
“Consumers are still very sensitive after the tough economic times,” he says. “If prices even go up by $5-$10, a certain number of people won’t book.”
Even a small drop-off in bookings can cause an airline to back down.
Still, Seaney expects carriers will attempt another fare hike or two within the next few months.
Despite that likelihood, Seaney suggests passengers planning to fly June through August should wait to purchase their tickets. Airlines have yet to release their lowest-priced seats for summer travel. Seaney says that should happen in the next four- to six-weeks.
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