Airlines Try For Yet Another Fare Increase

Posted Jan 18th 2011 12:31 PMUpdated Jan 18th 2011 01:10 PM

TEXT SIZE:

AAA
Airfares are in a state of flux as major U.S. airlines attempt the fourth increase since mid-December.

This time, the airlines are taking a different approach and hiking fares based on distance.

Delta and United led the charge: Delta raised fares by up to $20 roundtrip, while United capped the increase at $10 roundtrip.

Delta raised fares $5 each way for trips less than 1,500 miles and $10 for longer trips.

On the other hand, United has three groupings: $2 each way for trips less than 500 miles; $3 each way between 500 and 1,500 miles, and $5 each way for trips more than 1,500 miles.

Rick Seaney, chief executive officer of FareCompare, a company that uses proprietary software to track airfare changes, tells AOL Travel News that "a large portion" of routes within the U.S. have sustained the four increases.

He says they are also broad-based increases, affecting the fares used by business travelers and the advance-purchase fares popular with leisure travelers.

The exceptions are a few routes on which airlines "tend to tiptoe around Southwest," even though Southwest has joined in the fare-hiking fray lately.

The disparity has left a patchwork of fares on some routes, with some airlines matching Delta and others matching United.

Seaney says "either United or Delta will have to modify their hike to bring them into line with one another."

Airlines still live by the rule of "never being $1 more or less than their competitor," he says.

Filed Under: News

Add a Comment

*0 / 3000 Character Maximum

12 Comments

Filter by:
BONNIE FROM ALASKA

I AM SUPPOSED TO FLY TO FLORIDA IN APRIL TO ATTEND MY SONS WEDDING AND SEE MY OTHER SONS BABY FOR THE FIRST TIME. A ROUND TRIP TICKET IS 1064.00. MY HUSBAND IS RETIRED MILITARY AND GETS A RETIREMENT CHECK AND A DISABILITY CHECK PLUS HIS JOB PAYCHECK ARE GOVERNMENT ALSO, SO IF THE GOVERNMENT SHUTS DOWN HE DOESN,T GET PAID AND I WON'T HAVE THE 1064.00 TO GO TO THE WEDDING. I DON'T WANT BUY THE PLANE, JUST SIT IN THIER NO ROOM SEAT!

February 23 2011 at 3:10 PM Report abuse rate up rate down Reply
Yes

I agree with Jenny, they should just raise the ticket price and get rid of all those incidental charges, so the public knows what it is paying for a ticket and let them decide if they can afford to fly.

January 19 2011 at 3:12 PM Report abuse rate up rate down Reply
sean

Not into the government over seeing everything. But it's time for a "Price Czar". If a company is ripping the public off not only should there be a hefty fine but the CEO should be sent jail for a year in the general population of said prison. Prices on every thing well be fare and the companies will still make there profits.

January 19 2011 at 8:22 AM Report abuse rate up rate down Reply
Sue Du

I agree with JC. I'm a travel agent. In 1982 I was selling Tampa to New York for $235.00 -That was a DEAL... years later I'm selling it for $138.00 and people were asking is that the cheapest, I said "You can't drive for that". Travel is a business...I have to tell clients politely- travel is a luxury not a necessity.. Clients don't have a savings these days but they take a vacation every year..and complain how much. I can't buy a car what I paid for 20 yrs ago...and yet I'm still selling airline tickets in 2011 for what I sold in 1982...no its not fair how they beat up on the travel industry. If your a teacher then improve your quality of your job, or a nurse...or in a office...but quit trying to think your smarter then the travel industry...it changes daily, hourly... Almost all our perks are gone, they cut from the industry employees instead of making the public pay for its worth.

January 19 2011 at 7:24 AM Report abuse rate up rate down Reply
1 reply to Sue Du's comment
Don Douglass

What a crock! I have been traveling for over 40 years and when the airlines lie to us, I do not feel sorry for them. What about the outrageous executive salaries. They tell us they are charging for baggage just to cover the higher oil prices. Did they stop when oil went back down? Of course not. They made in the billions last year on luggage. An American Airlines employee told me, "The public doesn't know this, but we make a profit when the plane is 1/4 full".

January 19 2011 at 9:23 AM Report abuse rate up rate down Reply
Ralph

We do not fly delta airways. Too expensive, surley employees, scabs etc. We choose to only fly on AirTran or Southwest. Always great prices and service.

January 19 2011 at 6:50 AM Report abuse rate up rate down Reply
Yvonne

I hope airfares continue to raise regularly, and I hope they double they carry-on and checked luggage fees! If the public is stupid enough to keep supporting their greed, it is what it is, let them profit.

January 18 2011 at 8:55 PM Report abuse rate up rate down Reply
JB

JC, you must be an airline management.... Buying a seat for a plane is like paying roulette... you never know where the ball will drop.. or in this case the fare! Fares for the same seat can be significant, depending on the whim of the airline industry... No sympathy for the devil here..

January 18 2011 at 7:05 PM Report abuse rate up rate down Reply
Zoomie

Folks, it's time to face reality. When you and everyone else shows up schlepping 50 pounds of bags and carry on junk; on a 150 passenger airplane, that's equivalent to having to carry 50 extra people. Extra weight burns extra fuel. In the good old days before deregulation, airlines charged a fair price that covered that extra cost, the cost of your food and the other goodies. If you had money, you flew. After deregulation, everyone chased the cheapest fares and well...fuel, maintenance,aircraft payments, landing fees...they all went up.

So now you have to pay a fee. If you don't want the fee? Agree to pay a fair price or drive. No one is entitled to an airplane seat.

January 18 2011 at 4:52 PM Report abuse rate up rate down Reply
3 replies to Zoomie's comment

Don't Miss

Fotosearch

Take in the sights of autumn across the country.

Hit The Road
Corbis

Tales of learning to expect the unexpected.

Change Your View
Getty Images

Unexpected encounters and wildlife tours.

Cows, Sharks, Monkeys & More

Travel Careers

amtrak train conductor

See the world and interact with people from different cultures.

flight attendant plane interior

It's as crazy as you think.