Yet ANOTHER fare increase

[WorldTraveler]

And every legacy carrier is very active in off-tariff surplus inventory type internet sites such as Priceline and Hotwire. The retail rate increases are good news going into the summer when demand is often high enough to leave much less inventory left to be sold at surplus rates.

And, driver and 767, UA has been VERY aggressive in negotiating corporate business. Just ask AA how deep UA went to gain the contract necessary to support the SFO-NGO route. Toyota was it? Filling planes isn't hard to do but increasing revenues faster than cost increases is quite another. Thankfully, By seems to be recognizing that dumping capacity is not a good thing so they are not only raising fares but will probably start to rationalize capacity on alot of routes and that will help all of the big 3 that compete in the transcon markets.

and as for the fuel comparison, every other airline is benefitting from these fare increases but have business plans with fuel at higher levels. Because UA's fuel assumptions are too low doesn't make the assumption any less wrong just because revenue is increasing. It just means that UA has stronger revenue somewhat offsetting weaker (higher) costs. There still is no expectation by any industry analyst that fuel prices will go down.

 

[FWAAA]

Never said they will. But they certainly will keep flying at those load factors even if prices climb 10-15%, as long as everyone matches the fares.

You can take that to the bank.

My economics professor spouse disagrees with you - something about elasticity of demand. B)

You know, as prices rise, quantity demanded falls? Or is the legacy airline industry suddenly exempt from that basic tenet of economics?

 

[Deleted by Moderator]

And, driver and 767, UA has been VERY aggressive in negotiating corporate business.

Oh shoot, I forgot to mention that my husband makes all the decisions for Toyota travel in Torrance. Hmm, no kidding he picked United...I told him to. HA! Toyota flys UNITED!!!!

 

[mrman]

Never said they will. But they certainly will keep flying at those load factors even if prices climb 10-15%, as long as everyone matches the fares.

You can take that to the bank.

This attitude is what WN figured out gets one in trouble that the Legacies have not. Your biggest price competition is not the other airlines but the business peoples alternatives to fly. You are competing against the car, train, phone and internet conferencing. One of the main reasons WN caps walk up fares at a max fare of $300 anywhere in the country is to keep the business traveler on the plane and not the phone.

 

[Dizel8]

My economics professor spouse disagrees with you - something about elasticity of demand. B)

There is truth to that, however, I would only consider that true, if airfares were at a defining line, arbitrary number say three hundred, above there is demand decrease, below increase. Now for any given route I am sure this would a different number, however, I think we are well below the defining line on most routes.

Airline tickets are notoriously cheap as of late, I think I read somewhere, that we are at 1988 levels or so. Considering all cost have gone up and fuel particularily so, tickets are a bargain.

The difference between an ailine making money or losing money on a ticket, is probably a relatively low number, say 10 or 20 dollars round trip. Considering the cost of entry to say Mickey world, which I think is above $50 pr person, it would seem to me, that the increase in airfare, for a family of four being $100, would be a small drop in the bucket and considering what you get, a great deal.

Hotel prices are increasing and they do not apppear to be seeing a drop off in occupancy.

Maybe the bigger problem, is that airfares are so cheap and have been so for so long, that people are conditioned to think, that it should not cost more than say $100 to go coast to coast. Well, it would be nice if ATA, the association, not the airline, would go on the offensive and start an education campaign. Take out a full page ad in the newspapers and espouse the deal that tickets are, even with a $20 increase. Heavens know, papers like USAToday is always going overboard whenever there is a price increase. I remember seeing an article that started with: "Travellers to Europe could be hit in the wallet!"
The fare increase on that one? $20 each way!

I am aware, that airlines are not allowed to be in cahots, however, if ATA did it, I would consider it similar to the Milk campaign, where the milk producers got together to espouse the wonderful "white stuff".

 

[boeing787]

Hey Dummy,

Southwests latest fare increase brought their walkup fee to $309. Guess they are immune to price increases though eh?

 

[mrman]

Hey Dummy,

Southwests latest fare increase brought their walkup fee to $309. Guess they are immune to price increases though eh?

Dude, how did you get so bitter? Please reread my post. We are talking airlines here, not religion. Chill, enjoy life.

 

[ualdriver]

Even if this doesn't stick, more will be coming. 50 bucks each way for business travellers by UAL.


Reuters
Delta to pass along fees, match UAL fare hikes
Friday March 31, 3:19 pm ET


NEW YORK (Reuters) - Delta Air Lines Inc. (Other OTCALRQ.PK - News) said on Friday it will start adding airport fees to its ticket prices on connecting flights and match a separate fare increase by UAL Corp.'s (NasdaqNM:UAUA - News) United Airlines.

http://biz.yahoo.com/rb/060331/airlines_delta.html?.v=6

 

[KCFlyer]

Even if this doesn't stick, more will be coming. 50 bucks each way for business travellers by UAL.

$50 for business travellers, while UAL "competes" with Southwest out of Denver by offering fares that are 15% lower than Southwest's lowest fare. IMHO, y'all need to be raising fares for the leisure traveller by $50 and not trying to put the losses of competing for market share on the backs of your most loyal "business" passengers.

 

[Busdrvr]

$50 for business travellers, while UAL "competes" with Southwest out of Denver by offering fares that are 15% lower than Southwest's lowest fare. IMHO, y'all need to be raising fares for the leisure traveller by $50 and not trying to put the losses of competing for market share on the backs of your most loyal "business" passengers.

so when did UAL start offering fares that were 15% lower than SWA's lowest fare? A little exageration perhaps? But here's an idea since you're full of them (it) today, I'd just be happy if SWA quit expanding during a time they are losing money flying airplanes. SWA's capacity dumping at a loss is getting a little old

 

[ualdriver]

The $50 portion of the fare increase didn't stick, anyway.

 

[KCFlyer]

so when did UAL start offering fares that were 15% lower than SWA's lowest fare? A little exageration perhaps? But here's an idea since you're full of them (it) today, I'd just be happy if SWA quit expanding during a time they are losing money flying airplanes. SWA's capacity dumping at a loss is getting a little old

Whatya know...Southwest lowered their lowest fare since yesterday. Because yesterday The lowest internet special fare between Denver and LAX was $309 and the United fare was $258. Do the math.

 

[boxer]

Whatya know...Southwest lowered their lowest fare since yesterday. Because yesterday The lowest internet special fare between Denver and LAX was $309 and the United fare was $258. Do the math.

KC
What difference does it make to you since you have stated (ad nauseum) that you would never fly United because of a poster's perceived attitude on this forum.

 

[KCFlyer]

KC
What difference does it make to you since you have stated (ad nauseum) that you would never fly United because of a poster's perceived attitude on this forum.

Because I wouldn't fly them doesn't mean I would want to see them fail. But undercharging a LCC to dominate market share seems like a road to failure.

 

[Busdrvr]

Whatya know...Southwest lowered their lowest fare since yesterday. Because yesterday The lowest internet special fare between Denver and LAX was $309 and the United fare was $258. Do the math.

OK, now I understand, SWA lowest fare is also their system wide highest fare....