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+--- Thread: Fly the Greedy Skies: "Why airfare keeps rising despite lower oil prices" (/showthread.php?tid=173413)
Fly the Greedy Skies: "Why airfare keeps rising despite lower oil prices" - SteveG - 11-17-2014
When Delta sez "UP!", they mean your ticket price.
Why airfare keeps rising despite lower oil prices
By SCOTT MAYEROWITZ
NEW YORK (AP) -- U.S. airlines are saving tens of millions of dollars every week because of lower prices for jet fuel, their largest expense. So why don't they share some of the savings with passengers? Simply put: Airlines have no compelling reason to offer any breaks. Planes are full. Investors want a payout. And new planes are on order.
In fact, fares are going higher. And those bag fees that airlines instituted in 2008 when fuel prices spiked aren't going away either.
In the 12 months ended in September, U.S. airlines saved $1.6 billion on jet fuel. That helped them post a 5.7 percent profit margin in the first three quarters of this year, robust for the industry but lagging behind the 10 percent average for the Standard & Poor's 500.
MUCH more right here===> http://hosted.ap.org/dynamic/stories/U/US_AIRLINES_CHEAPER_FUEL?SITE=AP&SECTION=HOME&TEMPLATE=DEFAULT&CTIME=2014-11-17-13-24-50
Re: Fly the Greedy Skies: "Why airfare keeps rising despite lower oil prices" - decay - 11-17-2014
they have travelers over a barrel.
Re: Fly the Greedy Skies: "Why airfare keeps rising despite lower oil prices" - Will Collier - 11-17-2014
Same reason Apple can get a 300% markup on iPhones: demand outpaces supply. Prices rarely drop when that's the case.
Re: Fly the Greedy Skies: "Why airfare keeps rising despite lower oil prices" - hal - 11-17-2014
Will Collier wrote:
Same reason Apple can get a 300% markup on iPhones: demand outpaces supply. Prices rarely drop when that's the case.
That's not fair - airlines have tiny margins, severe cost uncertainty and are always in danger of going out of business. The reduction in prices gives them some breathing room for the first time in years. The trend will turn again and they'll be in big trouble again.
Re: Fly the Greedy Skies: "Why airfare keeps rising despite lower oil prices" - davester - 11-17-2014
Exaggerating the case with sensationalism seems to be Steve G's MO. The thread title is simply horse manure as usual. As noted in the article, their 5.7% profit is significantly below that of other corporations. Although they should definitely not be charity cases, many of the airlines have suffered through a number years of negative profits and many have failed as a result. Using the superlative "greedy" hardly fits.
Re: Fly the Greedy Skies: "Why airfare keeps rising despite lower oil prices" - Will Collier - 11-17-2014
hal wrote:
[quote=Will Collier]
Same reason Apple can get a 300% markup on iPhones: demand outpaces supply. Prices rarely drop when that's the case.
That's not fair - airlines have tiny margins, severe cost uncertainty and are always in danger of going out of business. The reduction in prices gives them some breathing room for the first time in years. The trend will turn again and they'll be in big trouble again.
Don't know that it's either fair or unfair, simply the way it is. Another big factor is that there's been a lot of consolidation over the past decade or so. There are a lot fewer airlines, either legacy or discount.
Re: Fly the Greedy Skies: "Why airfare keeps rising despite lower oil prices" - decay - 11-17-2014
If only the high cost of travel translated into quality of the service.
So many delays, being bumped from overbooked flights, late flights causing missed connections...
Re: Fly the Greedy Skies: "Why airfare keeps rising despite lower oil prices" - SteveG - 11-17-2014
davester wrote:
Exaggerating the case with sensationalism seems to be Steve G's MO. The thread title is simply horse manure as usual.
Article is entitled "Why airfare keeps rising despite lower oil prices" by the AP. Sorry you think the word 'greedy' is sensationalism when these guys are not passing along any of the considerable savings they are experiencing. In fact the opposite is true...according to the article.
Re: Fly the Greedy Skies: "Why airfare keeps rising despite lower oil prices" - Pam - 11-17-2014
decay wrote:
If only the high cost of travel translated into quality of the service.
So many delays, being bumped from overbooked flights, late flights causing missed connections...
I think poor/bad/frustrating service translates into the greed accusation. Not so with Apple products.
Re: Fly the Greedy Skies: "Why airfare keeps rising despite lower oil prices" - davemchine - 11-17-2014
I only fly two routes on a semi-regular basis and I've noticed prices have gone up significantly in the last few years. At the same time service has gone down. I've tried to start booking 1st class but it is almost always full. I finally was able to book a first class ticket for my trip NEXT MARCH but only for one direction. To me the message is clear. People will pay for something better than cattle class. The airlines need to offer more opportunity for this.