Travelers are getting accustomed to paying an ever increasing number of ancillary fees that airlines keep dreaming of.
With the big increase in fuel costs, airlines did not waste any time in implementing seven fare increases in 2011 alone. Fuel surcharges have also moved up for international travel.
Airlines have also responded by cutting capacity further by an average of 1.5% of the available seats in 2011. Many discounted fares have been quietly removed from inventory.
While flights might appear to be jam-packed, let us not forget that the reduction in the number of flights and the downsizing of aircraft is giving the false appearance that things are going well for the airlines.
However, the sky rocketing fares are finally catching up with the cost conscious travelers and many are beginning to push back. Some fares to destinations with little or no competition are at historic highs.
Some airlines will probably log losses for the current quarter as many have been unable to hedge for their fuel costs which account for 35-40% of their total operating costs.
www.premieretravel.com
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