In a victory for cheap airplane tickets and cheap vacation packages, major airlines rescinded their latest price increases last weekend because low-cost carriers did not match their higher fares.
Last week United Airlines raised its prices by $10 per round trip, with other traditional large airlines following suit, only to roll back prices later in the week.
Recently major airlines have reported seeing an uptick in demand for tickets, especially from business travelers, who often pay more than leisure travelers. Business travel increased almost 2 percent in December of 09 when compared to a dismal December 08, which was the first increase since May of 08, according to IATA (International Air Transport Association).
IATA observed that the business air recovery is still off in the future since business travelers are increasingly flying in economy seats.