Saturday, June 23, 2012

The move follows an airfare hike by JetBlue Airways last week of $10 round trip on most domestic fli




The move follows an airfare hike by JetBlue Airways cheap hotels in italy last week of $10 round trip on most domestic flights. Virgin America over the weekend increased fares by $2 for short one-way flights and $5 for long one-way flights.
Typically, when airlines such as Southwest and JetBlue increase fares, the major legacy carriers follow. Delta Air Lines, US Airways, American Airlines and Frontier Airlines matched within hours. United Airlines did as well, according to Rick Seaney, CEO of FareCompare.com, which closely cheap hotels in italy monitors fare increases.
"Over the past two years, Southwest has been a leader in increasing fares, so this current hike is not an anomaly. I would expect the industry to follow," says William Swelbar, a research engineer at MIT's International Center for Air Transportation.
cheap hotels in italy Atlanta and Denver, two cities that were excluded from the last Southwest hike, were included this time, as were markets operated by AirTran Airways, which is merging with Southwest, cheap hotels in italy airline analysts at JPMorgan pointed out.
It's the fifth attempt by airlines so far this year to raise fares. Two have been successful, but only when Southwest was willing to participate. Last year, airlines tried raising fares 22 times. Nine of the increases stuck.
"I think increased demand and lower capacity are driving fare hikes just as much as higher fuel costs," he says. "We've had higher fuel costs than presently, but what we haven't had is so much industry consolidation. That's what's driving this: Fewer competitors."
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