British Airways owner sacrifices fare gains in US route battle
IAG struggled to raise ticket prices at the same pace as rivals as the airline group boosts long-haul budget options to counter tougher competition on its core US routes. Gains in passenger unit revenue slowed to 2.2% in Q3 from a 4% jump in the 3 months through June. The increase was less than half the growth rate at Lufthansa. “There may be an adverse short-term reaction to the unit revenue trend,” with weakening pricing for North America and a poor comparison versus Lufthansa, Gerald Khoo, an analyst at Liberum Capital, wrote in a report to clients. IAG is responding to fast expansion at rival discount long-haul operators, including Norwegian Air Shuttle and Eurowings, by adding capacity at Aer Lingus and the new Level low-cost brand, which flies to the US from Barcelona. <br/>
https://portal.staralliance.com/cms/news/hot-topics/2017-10-30/oneworld/british-airways-owner-sacrifices-fare-gains-in-us-route-battle
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British Airways owner sacrifices fare gains in US route battle
IAG struggled to raise ticket prices at the same pace as rivals as the airline group boosts long-haul budget options to counter tougher competition on its core US routes. Gains in passenger unit revenue slowed to 2.2% in Q3 from a 4% jump in the 3 months through June. The increase was less than half the growth rate at Lufthansa. “There may be an adverse short-term reaction to the unit revenue trend,” with weakening pricing for North America and a poor comparison versus Lufthansa, Gerald Khoo, an analyst at Liberum Capital, wrote in a report to clients. IAG is responding to fast expansion at rival discount long-haul operators, including Norwegian Air Shuttle and Eurowings, by adding capacity at Aer Lingus and the new Level low-cost brand, which flies to the US from Barcelona. <br/>
