FlyerTalk Forums - View Single Post - When do airlines and hotels go back to chasing our business?

Dec 5, 2018, 7:35 am

#16

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Join Date: May 2010

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Quote:

Originally Posted by florin

I don't believe that fuel costs are consistently going up. They go up and also come down. They are not aligned with inflation. Planes are also more efficient now.

Airlines have been pursuing new revenue streams for years and have been very successful at nickel-and-diming. Some examples:
1. Fees, FEES and more fees. FEEEEEEEEEEEEEEEEEES!!! US legacies are taking in billions!
2. Premium Economy is a huge cash cow.
3. Upsells: 10 years ago paid UGs virtually didn't exist and now most airlines have some sort of means to PAY more for a higher class of service.

Just about every airline has realized significant fuel increases year over year. And yes, the airlines are finding new ways to generate ancillary revenue, but margins are still declining. Costs are simply increasing faster than revenue.

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