State of the Airlines

Thursday, April 28, 2005

NEWS: American Airlines Bumps Fares Up Again

American Airlines announced that it will increase one way fares $5 and round trip $10 effective immediately. American cites fuels costs as the driving factor for the increase...I know...I'm shocked too. According to the carrier fuel costs have increased $65 dollars per round trip over the last five years while the average fare has decreased by $45. That's an impressive statistic but to me it simply points out how ridiculous the airline business model had become.

And let's talk about these fare increases...I can't be the only one thinking that airlines are some of the big pansies in the world when it comes to raising prices. In the face of another year full of massive losses they meekly raise prices $10 bucks a round trip. Come on, at least hit us all up for a $20.