In what amounts to very good news concerning cheap airplane tickets and discount travel packages major American airlines have withdrawn their most recent price increase of up to $120 per round trip on tickets popular with business travelers.
On Monday, February 14th Delta Air Lines initiated a fare increase which other major carriers quickly followed. US Airways then reconsidered and rolled back its prices on Wednesday. United and Continental responded by eliminating their new higher fares on Thursday, with Delta and American reducing their price increases.
Price hikes often fail if a major competitor decides not to match the new higher prices because carriers do not want to lose sales as a result of their offering higher, non-competitive prices.
Deltas most recent price increase applied to select first class, business class, and more expensive economy fares on routes within the U.S. This increase was the second and bigger fare increase targeted at business travelers in February. To offset higher fuel prices, which are almost 50 percent more expensive now than a year ago, airlines have been trying to selectively raise prices.
Historically prices increases targeted to impact corporate travelers are easier to roll out because they tend to be less concerned about prices when deciding to fly. Now experts are seeing growing evidence that even many business travelers are resistant to paying higher prices.
www.cheapfares.com