Is it Just AA? [that keep fares high even as fuel costs decline]
#1
Suspended
Original Poster
Join Date: Mar 2014
Location: KMIA
Programs: AA
Posts: 77
Is it Just AA? [that keep fares high even as fuel costs decline]
Since i fly aa exclusively, i'm wondering if they are the only carrier to be screwing their pax by keeping fares level, or in some cases RAISING them while the cost of fuel--their largest expense--has dropped by more than 50%.
i fly the same routes eery month and am keenly aware of aa's pricing. their fares continue to go up.
i hope they read this, cuz i'm seriously considering jumping ship after 22 years of loyalty (not that they give a rat's ......)
i fly the same routes eery month and am keenly aware of aa's pricing. their fares continue to go up.
i hope they read this, cuz i'm seriously considering jumping ship after 22 years of loyalty (not that they give a rat's ......)
#2
Join Date: Nov 2004
Location: DFW
Programs: AA (ExPlat).DL,UA Hertz (Pres Circle); Avis (First), Hilton (Diamond), Marriott (Gold)
Posts: 452
All the airlines are doing the same thing. AA is no worse in this regard. When you're down to 4 major carriers (from 11 at the time of deregulation), this is what happens.
#4
Suspended
Join Date: Aug 2010
Location: DCA
Programs: UA US CO AA DL FL
Posts: 50,262
1. Only three carriers left: AA, UA and DL (as US is functionally gone for purposes of corporate control). Means less competition.
2. If you aren't regularly checking other carriers' prices and have to ask here, it proves the point that at least some people are not price sensitive.
2. If you aren't regularly checking other carriers' prices and have to ask here, it proves the point that at least some people are not price sensitive.
#5
Suspended
Original Poster
Join Date: Mar 2014
Location: KMIA
Programs: AA
Posts: 77
as we all know it's about more than just price. routes, schedules, conexions, and of course, perks and miles.
what i find simply despicable is when there is a $200 price difference between airlines on fares from 392 to 585--same cities, both nonstop. think one is being piggish?
what i find simply despicable is when there is a $200 price difference between airlines on fares from 392 to 585--same cities, both nonstop. think one is being piggish?
#6
FlyerTalk Evangelist
Join Date: Nov 2003
Location: South Florida
Programs: AA LTG (EXP), Hilton Silver (Dia), Marriott LTP (PP), SPG LTG (P) > MPG LTPP
Posts: 11,329
Airlines buy their fuel way in advance of use trying to hedge the bet on price increases. Unfortunately fuel costs don't drop for them as fast as they do on the market. But yes, one would expect the price of a ticket to reflect the cost of actually flying, but if the sales are strong, there's no reason to drop fares.
Years ago (and I'm sure still) the local water company needed to raise their base rate to cover the reduced usage due to a water shortage. Funny thing they didn't drop their base rate once water became more available. Called free enterprise? Once one competitor starts stealing your customers by dropping prices, the others usually follow suit.
Years ago (and I'm sure still) the local water company needed to raise their base rate to cover the reduced usage due to a water shortage. Funny thing they didn't drop their base rate once water became more available. Called free enterprise? Once one competitor starts stealing your customers by dropping prices, the others usually follow suit.
#7
FlyerTalk Evangelist
Join Date: Apr 2008
Location: LGA/JFK/EWR
Programs: UA 1K1.75MM, Hyatt Globalist, abandoned Marriott LTT (RIP SPG), Hertz PC
Posts: 21,169
If it's a route where you get AA mainline or UA's (in)famous crap RJ service...well there you go.
#8
Join Date: Nov 2003
Location: Here and there
Programs: AA EXP
Posts: 1,551
#9
FlyerTalk Evangelist
Join Date: Dec 2004
Location: East Coast
Programs: AA CONCIERGE KEY & 1MM, HILTON DIAMOND
Posts: 11,970
Since i fly aa exclusively, i'm wondering if they are the only carrier to be screwing their pax by keeping fares level, or in some cases RAISING them while the cost of fuel--their largest expense--has dropped by more than 50%.
i fly the same routes eery month and am keenly aware of aa's pricing. their fares continue to go up.
i hope they read this, cuz i'm seriously considering jumping ship after 22 years of loyalty (not that they give a rat's ......)
i fly the same routes eery month and am keenly aware of aa's pricing. their fares continue to go up.
i hope they read this, cuz i'm seriously considering jumping ship after 22 years of loyalty (not that they give a rat's ......)
#10
FlyerTalk Evangelist
Join Date: May 2002
Location: Pittsburgh
Programs: MR/SPG LT Titanium, AA LT PLT, UA SLV, Avis PreferredPlus
Posts: 31,008
Curse you, supply and demand economics!!
Please provide the city pair so we can look at the fare history to see an airline consistently charging nearly 50% more for the same product and keeping its customers. It would make a fascinating case study.
Why are you paying it?
Why are you paying it?
#12
FlyerTalk Evangelist
Join Date: Nov 2007
Location: Denver • DEN-APA
Programs: AF Platinum, EK Gold, AA EXP, UA 1K, Hyatt Globalist
Posts: 21,602
Airlines buy their fuel way in advance of use trying to hedge the bet on price increases. Unfortunately fuel costs don't drop for them as fast as they do on the market. But yes, one would expect the price of a ticket to reflect the cost of actually flying, but if the sales are strong, there's no reason to drop fares.
#13
Suspended
Join Date: Aug 2010
Location: DCA
Programs: UA US CO AA DL FL
Posts: 50,262
as we all know it's about more than just price. routes, schedules, conexions, and of course, perks and miles.
what i find simply despicable is when there is a $200 price difference between airlines on fares from 392 to 585--same cities, both nonstop. think one is being piggish?
what i find simply despicable is when there is a $200 price difference between airlines on fares from 392 to 585--same cities, both nonstop. think one is being piggish?
But, bear in mind that there are routes where carriers don't particularly care. By way of example, UA doesn't fly DCA-EWR to make money on the O&D traffic. It flies the route to sell DCA-NRT with a plane change at EWR.
#14
FlyerTalk Evangelist
Join Date: Jan 2007
Location: BOS/UTH
Programs: AA LT PLT; QR GLD; Bonvoy LT TIT
Posts: 12,753
Why is that despicable? If you feel that the price is too high, then don't fly AA. In my business, I charge what I think I can get people to pay. If I charge too much, the market will tell me by taking its business elsewhere.
#15
Join Date: Dec 2010
Location: Indianapolis
Programs: Hilton-Diamond Lifetime Platinum AA UA, WN-CP, SPG Gold.
Posts: 7,377
Drive, it might be cheaper.
Price is built into the liability these carriers face, people, the government, seems like everyone feels they owe them a living.
Airlines provide a service, do not use it, and it will be gone.
Worst thing about any business's is having the government and unions in your pocket, and the public wanting your service for less,
No one wants to close their doors.
Tomorrow, spend 16 hours driving to RSW, or a 2 hour flight, what is your time worth...WN....
Price is built into the liability these carriers face, people, the government, seems like everyone feels they owe them a living.
Airlines provide a service, do not use it, and it will be gone.
Worst thing about any business's is having the government and unions in your pocket, and the public wanting your service for less,
No one wants to close their doors.
Tomorrow, spend 16 hours driving to RSW, or a 2 hour flight, what is your time worth...WN....