Get ready for higher fares and fees to give sagging US airline profits a lift
US airlines, bruised by higher fuel prices, are stepping up efforts to raise fares and increase fees to avoid a third straight year of declining profits. “Carriers have struggled to keep pace with the rising cost of fuel, among many others,” John Heimlich, chief economist of A4A, said last week. “I can assure you carriers are looking at every aspect of their revenue arsenals and cost elements to try to right the ship.” Such initiatives are increasingly apparent as the summer travel season ends. Business fares climbed 8% last week from a year earlier, even as ticket prices for leisure travel were little changed, said a Macquarie Group analyst. Investors have been betting that the push will bear fruit after dumping airline shares during the first half of the year. <br/>
https://portal.staralliance.com/cms/news/hot-topics/2018-09-04/general/get-ready-for-higher-fares-and-fees-to-give-sagging-us-airline-profits-a-lift
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Get ready for higher fares and fees to give sagging US airline profits a lift
US airlines, bruised by higher fuel prices, are stepping up efforts to raise fares and increase fees to avoid a third straight year of declining profits. “Carriers have struggled to keep pace with the rising cost of fuel, among many others,” John Heimlich, chief economist of A4A, said last week. “I can assure you carriers are looking at every aspect of their revenue arsenals and cost elements to try to right the ship.” Such initiatives are increasingly apparent as the summer travel season ends. Business fares climbed 8% last week from a year earlier, even as ticket prices for leisure travel were little changed, said a Macquarie Group analyst. Investors have been betting that the push will bear fruit after dumping airline shares during the first half of the year. <br/>
