Airlines in America raise fares due to increasing costing

Airlines in America raise fares due to increasing costing

Four airline companies have raised their fares by around 100 dollars on their highest walk-up fares. This is just the latest round of fares as they have been increasing quite frequently in the last couple of months due to increasing cost due to rise in prices of the aviation fuel. Delta Airlines has raised the prices of the tickets which are bought at the last minutes of the flights mostly purchased by the business travelers. The cap on the ticket prices on first-class flights has also been increased by USD 100.

this increase of fare at Delta Airlines comes after the introduction of ‘Simplifares’ which is a a simplified fare structure to help the airline company compete with low cost airlines. They are not alone to raise the prices of the plane tickets as United Airlines, US Airways and Continental Airlines also raised their prices yesterday.

This price rise is very important for the airline companies as it lets them manage to meet the increasing prices of the aviation fuel which has touched a massive USD 61 per barrel in the recent days. Delta Airlines introduced their Simplifares pricing structure when the prices of the barrel were a mere USD 43 in comparison. Their competition is also increasing the pricing on the similar routes where Delta has increased their prices to match the fares. It is a common practices in the airline industry to keep the prices comparable for similar routes.

US Airline industry is already going through a tough period with many airline companies even operating under bankruptcy especially US Airways which is now due to merge with America West Airlines.