Newsstand - Brace yourselves everyone!

It looks like passengers won't be getting the benefit of lower oil prices any time soon.

http://money.cnn.com/2008/08/15/news/companies/airfare/index.htm?postversion=2008081512

Some industry watchers believe that the airlines need double-digit fare increases to become profitable.

Double digit percentage or absolute increases? And if we're talking absolute increases, I suppose CNN thinks $10-$99 increases are sufficient cause to start the fear-mongering. In the immortal words of John Stossel..."gimme a break!" :rolleyes:

Enough of the airline handwringing!

Just boost the flingin' flangin' fares to where they need to be to be profitable.

If people don't want to, or cannot afford to, pay the fares they can go Greyhound or stay home. Air travel is not a right.

Enough of the airline handwringing!

Just boost the flingin' flangin' fares to where they need to be to be profitable.

If people don't want to, or cannot afford to, pay the fares they can go Greyhound or stay home. Air travel is not a right.

The problem isn't that air travel is perceived as a right. It is that when fares are raised it reduces the number of people paying the fares, potentially reducing the total revenue rather than increasing it. If a carrier can sell 150 seats at $200 each that will generate $30K in revenue. If they raise the fares to $300 and only sell 90 seats they actually lose money by raising the fares.

So it isn't as simple as just boosting the "flingin' flangin' fares." Nice alliteration, by the way, though I have no idea what the first two words mean. :p

There was another article I read, somewhere yesterday (it's too early for that kind of memory function; sorry) that essentially said the exact opposite. Airlines are starting to cut fares for the fall because they feel all these fare increases & nickle/dime fees are driving travelers away (there's a surprise!).

I repriced a ticket I bought last spring for a trip in early Oct & while the fare was up, it was up much less than I expected it to be given everything that has happened since (I think maybe $30, if that).

Who knows. I tend to agree w/the article I cited (sort of) above-while those of us who travel for business & don't really experience the sticker shock the same way someone who is traveling for pleasure does, it doesn't surprise me in the least that all the fare hikes, new fees, & the ongoing security theater are combining to drive off the flying Kettles (heck, I've even cut back on 'pleasure' flying, though primarily because of the TSA).

But what is it that makes flying expensive? In terms of efficiency, I've been told that only a bicycle is more cost effective than a jet. When I look at the receipt for a flight, I'm disgusted at the number of fees tacked on.

It is that when fares are raised it reduces the number of people paying the fares, potentially reducing the total revenue rather than increasing it...I understand the concept but the airlines don't seem to be applying it in a cost effective manner. And, it may well be that the nickel and diming that they're presently engaged in (which doesn't seem to be moving them towards profitability by the way) is simply generating more, and more drawn out, bad publicity than simply raising the prices would.