American Airlines raises ticket prices

[FA Mikey]

American Airlines said Friday it raised fares to offset the price of jet fuel.

The world's largest airline, a unit of AMR Corp., said it raised fares by $3 each way on trips 1,000 miles or shorter and $5 each way on trips over 1,000 miles.

Interesting that oil was down to 52 dollars.

story here

 

[Wretched Wrench]

Well, at least they didn't raise fares to offset the price of labor.

 

[BuffaloJoe]

Well, at least they didn't raise fares to offset the price of labor.

They won't do that, just make their employees take more concessions. So that their exec Bonus' don't get affected

 

[Wretched Wrench]

American Airlines said Friday it raised fares to offset the price of jet fuel.

Crude is down 33% from its 2006 high. Do you think someone should tell them?

 

[Nor'Easta]

Crude is down 33% from its 2006 high. Do you think someone should tell them?

Naaa!

 

[Garfield1966]

And of course there is not a chance in hell the price of oil will go up again this summer right? Seems like a good idea to start upping the prices now a few bucks at a time rather than waiting till crude is hitting $100 a barrel and then upping the price. Geez, FM is right, you guys would piss and moan no matter what.

 

[ILS2MINIMUMS]

Crude is down 33% from its 2006 high. Do you think someone should tell them?

This is an opinion I read on this subject from another website:

"I'm sure you are aware of the losses we have had in the past 5 years because passengers weren't paying enough for their tickets. Just because we (All AA work Groups except the executives) subsidized the cost of fuel in the past, doesn't mean we have to forever. Ticket prices should have been this high years ago, and I do not think it is dishonest to say they need to go up because of high fuel cost. Only difference is now supply/demand allows us to charge proper fare."

 

[ClueByFour]

A "proper" fare is what LUV's cost structure and fuel hedges say it is.

 

[AA717driver]

Maybe they're just making up for all that time last summer when fuel was through the roof and they DIDN'T raise ticket prices to compensate... TC

 

[Bob Owens]

American Airlines said Friday it raised fares to offset the price of jet fuel.

The world's largest airline, a unit of AMR Corp., said it raised fares by $3 each way on trips 1,000 miles or shorter and $5 each way on trips over 1,000 miles.

Interesting that oil was down to 52 dollars.

story here

Should have done it years ago, but then they would not have had a crisis to exploit.

Interesting how now they can raise prices all of a sudden. Are planes fuller than they were a few years ago? Oh yea capacity is down, but are the load factors higher? Do most people all of a sudden have more disposable income?

 

[StraaightTaalk]

It's about time. Let's hope the increases stick.

The first SuperSaver fares between NY and LA in 1978 were, I believe, $299 round trip. Fast forward to 2007 and the discount fares haven't increased appreciably, if at all.

Try going to the store today and try paying 1978 prices for a loaf of bread. See how far THAT gets you.

 

[Bob Owens]

It's about time. Let's hope the increases stick.

The first SuperSaver fares between NY and LA in 1978 were, I believe, $299 round trip. Fast forward to 2007 and the discount fares haven't increased appreciably, if at all.

Try going to the store today and try paying 1978 prices for a loaf of bread. See how far THAT gets you.

We know how far it gets us.

Since you are going by Supersaver fares lets go by starting rates. I think the lowest starting rate for a mechanic in 1983 was around $14/hr, now its $9.30.Almost $5/hr less, nearly a quarter of a century later.

Thanks to the TWU AA pays new hires less than they did in 1983.

AA wants its workers to try and support year 2007 families on less than 1978 wages.

The fact is that ticket prices should decline over time. Wages should not. Why not go back another 29 years and compare what a ticket cost between NY to LA in 1950 and again in 1921? I think that you would find that the trend for the last 75 years is for ticket prices to decline, in fact you would probably find that the decline was greatest during the regulated era.

 

[Wretched Wrench]

We know how far it gets us.

Since you are going by Supersaver fares lets go by starting rates. I think the lowest starting rate for a mechanic in 1983 was around $14/hr, now its $9.30.Almost $5/hr less, neraly a quarter of a century later.

Thanks to the TWU AA pays new hires less than they did in 1983.

AA wants its workers to try and support year 2007 families on less than 1978 wages.

Those numbers would be far worse after adjustment for inflation.

 

[Bob Owens]

Those numbers would be far worse after adjustment for inflation.

Exactly.

When you look at ticket prices and wages its clear that the only thing that deregulation truly accomplished was lower wages for workers. Consumers simply saw a 50 year trend continue.