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Is it Just AA? [that keep fares high even as fuel costs decline]

Is it Just AA? [that keep fares high even as fuel costs decline]

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Old Jan 16, 15, 7:40 pm
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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 ......)
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Old Jan 16, 15, 9:35 pm
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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.
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Old Jan 17, 15, 8:31 am
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At some point, somebody will see an advantage in cutting fares (at least on some routes) and the competition will match. But yes, fewer players means this will happen more slowly.
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Old Jan 17, 15, 8:34 am
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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.
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Old Jan 17, 15, 9:02 am
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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?
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Old Jan 17, 15, 9:27 am
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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.
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Old Jan 17, 15, 10:34 am
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Originally Posted by teevee View Post
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's the route? Please advise.

If it's a route where you get AA mainline or UA's (in)famous crap RJ service...well there you go.
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Old Jan 17, 15, 10:47 am
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Originally Posted by teevee View Post
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?
Well, then buy the ticket that costs $392. Why would you buy the one that is $200 more?
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Old Jan 17, 15, 12:40 pm
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Originally Posted by teevee View Post
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 ......)
It's all relative. For instance, I only paid $148.10 one-way for my upcoming SFO-CLT-FLL flights.
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Old Jan 17, 15, 12:47 pm
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Curse you, supply and demand economics!!

Originally Posted by teevee View Post
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?
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?
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Old Jan 17, 15, 2:32 pm
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AA is charging $750 RT from LGA-DTW and back....crazy! DL is just as expensive
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Old Jan 17, 15, 2:34 pm
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Originally Posted by RogerD408 View Post
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.
Unlike DL/UA, AA does not hedge fuel.
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Old Jan 17, 15, 5:33 pm
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Originally Posted by teevee View Post
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's despicable is paying the higher price. If people bought the cheaper ticket, the more expensive carrier would be stuck with empty seats or making a loss.

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.
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Old Jan 17, 15, 6:50 pm
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Originally Posted by teevee View Post
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%.
Yup, AA is the only carrier not dropping its prices sharply. You got it.


Originally Posted by teevee View Post
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?
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.
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Old Jan 17, 15, 6:56 pm
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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....
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