The airlines know that their customer traffic is significantly impacted by whether travelers believe they can purchase cheap airplane tickets and cheap vacation packages. Fortunately most U.S. airlines sharply reduced their most recent price increase the week of April 4th.
This roll back marks the second time in a month that major U.S. airlines have withdrawn a domestic fare increase. Experts observe that the pullback may be a temporary sign that advance sales are starting to slow. Historically demand for tickets has been significantly impacted by the prices being offered.
Airlines are keenly aware of how important it is to have competitive prices and felt forced to roll back their latest increase when low fare Southwest Airlines refused to match other airlines higher prices.
Delta Air Lines eliminated a $10 round trip increase of approximately 60 percent on the routes it wanted to increase prices.
Ticket prices have increased over the last several months as airlines have attempted to offset rising fuel costs. Spot prices for jet fuel have increase approximately 50 percent since September.
Continental and United initiated the most recent $10 price increase the week of March 28th. American, Delta, and US Airways quickly matched their higher prices. Low cost airlines JetBlue and Virgin America hiked their prices the weekend of April 3rd.
Airlines continue to adjust their peak travel surcharges for the summer, which increase ticket prices on the days that when the greatest number of customers wish to travel. www.cheapfares.com