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Southwest, American to Bump up Ticket Costs

Southwest, American to Bump up Ticket Costs
Ryan Boyd

On Thursday of last week, both Southwest Airlines and American Airlines indicated that they expect ticket prices to increase in 2018 due to a mutual prediction of rising fourth-quarter profits as compared with the same period in 2017. The prospective rise in fares appears to be in direct relation to airline profits in the third quarter of this year, which reached their nadir last week, as well as the dent in airline profits made by natural disasters this year.

To read more on this story, go to Chicago Tribune.

[Photo: Shutterstock]

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1 Comment

  1. 1StRanger

    November 1, 2017 at 6:36 am

    Ryan, sorry, but it looks like you mixed up the facts.
    You wrote: “… both Southwest Airlines and American Airlines indicated that they expect ticket prices to increase _in_ _2018_..,”
    But the Chicago Tribune article says differently: “American and Southwest airlines are expecting their average prices to move higher the rest of _this_ _year_ …” “American, for example, expects its costs to rise sharply in the _fourth_ _quarter_ before _easing_ _next_ _year_.”

    Additionally, “mutual prediction” is not an accurate term here. Their predictions are similar but appear to be independent of (i.e. not influencing or addressing) each other. “Mutual” means some relation between them through interaction. Hence, your use of the word is misleading. See, e.g.
    Note that “They are enjoying mutual hobby” example assumes them doing that together. Mutual does not mean “the same”. (I.e. you cannot say “they have a mutual car”, meaning the same model but two separate cars. It is an awkward sentence, but it would mean that they are sharing a car.)

    And just in case, you can google and find that e.g. “mutual prediction approach” relies on the interaction of two different entities (e.g. social media and analysts) or on two sources of information combined.

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