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Consumers can be forgiven for being mystified by airfares these days. Just after the airlines added holiday surcharges of up to $50 for certain days, the airlines announced the suspension of advanced-purchase requirements for the same holiday period.
One day, the airlines are socking it to passengers for what might be an additional $100 per round trip. According to Bestfares.com the next day some airfares being slashed in one case, between Atlanta and Seattle, from $1,198 to $258. Another example was a round-trip ticket between Dallas and New York City that was cut 79 percent to $388 from $1,858.
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My clients, who shall remain nameless, just wanted to go somewhere warm for five days around Thanksgiving week. And incidentally avoid their relatives. So from San Francisco, we looked at a number of packages to Mexico and Hawaii.
Puerto Vallarta, only 1,500 miles away, was $650 for airfare alone for Nov. 26 to Dec. 1. Hawaii [...]
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American Express Business Travel is predicting that global-wide international and long-haul business class airfares will rise between one and six percent in 2010.
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Once again, a major airline has reported dismal earnings. American Airlines posted a loss of $390 million for the second quarter of 2009. And other airlines are already talking about layoffs for the fall.
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Airline travelers in the U.S. have gotten used to two types of airfares. Unrestricted fares without penalties — most of them very expensive — and discount fares that are almost always nonrefundable, and nontransferable. There are only a few exceptions. But should there be more?
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A small international airline, Air New Zealand, has announced the end of fuel surcharges in its pricing. After months of complaints from consumer advocates and recent rumblings in Congress about ticket price transparency, Air New Zealand’s move may be the beginning of the end for fuel surcharges.
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The airlines have figured out that remarkable balance, where airfares are low and their customers get off their flights feeling violated. How do they manage to do that?
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A high-ranking European airline executive has pleaded guilty to air cargo price fixing. The Justice Department has already levied more than a billion dollars of fines against British Airways, Korean Air, Air France-KLM, Qantas Airways and Japan Airlines. It seems that price fixing, when it comes to cargo, is a crime. When dealing with passenger airfares, it evidently considered simple competition.
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