Sometimes things don’t make a lot of sense – one of those things is airfare pricing. With fuel prices coming down, many flyers were hoping that the decreased fuel costs would see fare prices coming down. However, that was not to be.
Reports are that JetBlue kicked off a base fare increase of $4 on their domestic tickets with Delta, Southwest, United and American also hiking base fares by $4. Not only does this show that they are not passing the fuel savings along to customers, but it also shows that the airlines are not worried about a decrease in ticket sales.
Yes, it is only $4, but that is just another hike on the airline tickets. We saw the TSA fees increase this summer so the cheapest of domestic tickets will now be around 10% higher now than the cheapest of fares in the spring.
To balance that out, we have been seeing more fare sales lately with Southwest offering two fare sales for around the same period within two weeks of each other.
To summarize, it is a good time to be an investor in airlines!
For more information, check out this article.