Monday, September 3, 2012

Transatlantic flights have become a bit of an issue for many airlines, as demand falls quicker than




At a time when it seems like airlines are doing their best to charge us for everything from checking in a bag to breathing while in their aircraft (well maybe not to that extreme!), there was a small but welcome victory for the general public when United Airlines backtracked on their earlier intention of increasing fares.
Arguably the main reason for this is the undeniable fact that demand has softened quite considerably for airline tickets, but until now all of the major US carriers had all been intending to recoup any losses from the post-holiday slump through fare increases.
After United Airlines announced that they were no longer going to increase their fares as planned, rivals including Delta Air Lines and American Airlines also took a step back from plans to make it more expensive for people to fly.
It is not known how long this suspension of fare increases will last, when airlines will start to increase fare prices, how much they will increase airline tickets by or even if they will continue to reduce capacity and frequency of flights so that they have more planes flying with a full cabin (which travel nurse employment comprehensive benefits is the most profitable scenario for an airline).
Transatlantic flights have become a bit of an issue for many airlines, as demand falls quicker than they can reduce capacity.  This has been blamed on the economic uncertainty surrounding Europe and the fact that they are struggling to find the money to travel into the US on their holidays when they would have easily been able to pre-2007. travel nurse employment comprehensive benefits  I have seen this myself.  I used to travel to Europe almost once a year, mainly to Dublin for a week s holiday in the summer. travel nurse employment comprehensive benefits  In as little as two years, the absolute cheapest ticket I can find is roughly 40% more expensive than it was previously.
While a quick look at the finances of airlines might show you that the passenger yields for US travel are continuing to move in an upward trend, what they don t show is why.  These yields, or profit per seat to some people, are heavily supported by charges for extras on top of your flight ticket.  This can include charging you more for sitting in exit row seats to get a few more inches of legroom, charging you for checking in a bag or even to use Wi-Fi as people look to stay connected to their smartphones at all times, even in a plane!
Revenue managers at airline face a tricky task in balancing how much they charge for a ticket with how many planes they put in the sky.  The US economy is not growing at fast enough speed for a lot of people, and the cost of oil remains as volatile as ever.
If the airlines had gone ahead with their planned fare increases this week, then it would have been the fifth increase in 2012 already!  If they push up the prices much further, then airlines may find people move away from flying and get to their destination another travel nurse employment comprehensive benefits way, maybe they take their car or the bus.  Either way, the airline will lose out on the revenue that customer would have provided, making any more price increases this year a risky proposition.
Recent Searches plane tickets to new orleans airline ticket cheap international flight tickets travel nurse employment comprehensive benefits cheap fly airline tickets carry-on baggage carry on luggage checked baggage besttimetobuyairlinetickets net 102 In flight carry on luggage

No comments:

Post a Comment