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Old May 24, 2008 | 6:38 pm
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LarryJ
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Air fares are always about supply and demand. The yield management systems are constantly adjusting the fares, and the number of seats available at each fare, in an attempt to maximize revenue. If bookings are strong, relative to the supply of seats, the available fares go higher and higher. The industry has been successfull recently, in no small part due to a number of airlines failing, at reducing capacity which means lower capacity and higher fares. Airlines such as UAL and AAL have also anounced flight reductions further reducing capacity.
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