As if the skyrocketing cost of driving a car isn't bad enough, another form of transportation is about to see a major price hike.
Now that people have taken to the skies again, major U.S. airlines are jacking up ticket prices by as much as 10 percent, airline reps said Tuesday at a JPMorgan investor conference. Among them was Delta president Glen Hauenstein, who blames the hike on rising fuel costs. "We're seeing an increase in demand that is really unprecedented," Hauenstein says. "It's really been the strong demand and better pricing environment [that has] allowed us to more than offset the fuel cost."
It may take longer for airlines like Southwest since they "hedge" their fuel contract. BUT when that contract expires, whenever that may be, you can bet it will skyrocket prices too. They've been doing this since 2001 when jet fuel prices were sky high to try and keep costs down and profitability up
Some airlines are increasing their prices as the cost of fuel continues to go up. Reuters is reporting that Delta is raising ticket prices roughly ten percent, with United and Southwest also joining in. The increase in ticket prices comes the same day both American and Southwest announced flight schedules were being cut going into the spring, due to fuel prices and staffing issues. Delta recorded the highest ticket sales of all-time last week, with United and American also saying flight demand was increased.
The cost of airline fuel is expected to rise between 17 percent and 33 percent before the current quarter is over, reps from the airlines said.
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