American airliners increase prices airfares
Wednesday, July 25, 2012
New York - Americans will soon see an increase in the prices of domestic flights. Analysts say the increase is the result of a reduction of the total seat capacity of the aircrafts. Almost all American airline companies have raised their rates over the last few days, with United Airlines kicking off last Friday. For a return flight, passengers will be paying an additional four to ten dollars.
On the highly competitive U.S. market, increases are only possible and successful if competing companies also start charging higher rates, and that is precisely what happened in this instance. After the discounters JetBlue, Virgin America and Southwest raised their prices, the network airlines followed. Now Delta, American and US Airways have increased their rates with four to ten dollars as well.