Dallas, TX (May 12, 2003) – Consumers planning a trip after June 1st should also plan to pay more for their flight. Monday, several major airlines added $5 per flight, matching American Airlines move on Friday.
While United Airlines quickly matched the move, American needed Northwest Airlines to match the increase. In years past, Northwest has squashed dozens of attempted price hikes. After Northwest confirmed it had matched the increase, most large carriers followed, with the exception of Southwest Airlines.
Travel expert, John Krieger says most passengers won't even notice the increase. This is good timing on the airlines part. The $5 hike coincides with the temporary suspension of a federal security of $2.50 per flight. The airport security tax suspension will last four months. It is designed to help airlines recover after the war with Iraq. In addition, the increase will affects only some of airfares and not the discounted prices paid by many vacation travelers.
The price hike doesn’t come as a surprise, says Mr. Krieger. American needs the extra revenue. The airline lost $1.04 billion in the first quarter. However, he says next month’s increase isn’t likely to boost airlines revenue much.
Travel expert, John Krieger of Admiral of The Fleet Cruise and Tour Center is available to discuss what this means for passengers, airlines and the travel industry.
About Admiral of The Fleet Cruise and Tour Center
Admiral of The Fleet Cruise and Tour Center is a world-class provider of leisure travel services and is based in Dallas, Texas.
Admiral of The Fleet Cruise and Tour Center is a world-class provider of leisure travel services and is based in Dallas, Texas.
