Get Ready to Pay More for Flights on Top US Carriers
Two major US airlines recently reported that their airfares are rising — which means higher prices for passengers across the board. Last week, American and Delta both shared that their passengers paid more for tickets than they had in previous quarters.
Delta said that travelers paid higher fares on average from April through June for the first time in two years while American said that it will report large fare growth, with total revenue per available seat mile to increase between 5% and 6% .
Low prices have become the norm in the airline industry recently — we consistently see sub-$400 fares to Europe and low prices to other destinations worldwide. Fares were falling because of cheap oil leading to airlines increasing the number of flights. This led to more competition on routes which eventually gave way to cheaper fares. But now with demand rising and a strong economy, airlines have been able to raise ticket prices.
Delta flyers paid 1% higher fares last quarter, and in Q3 it expects to see fares rise between at least 2.5% and 4.5%. Delta had to raise prices because fuel costs have gone up and the airline's pilots received a large pay hike thanks to a new contract. The airline's coffers took a hit when massive storms shut down many of its flights in April, costing the carrier $125 million.
American will hold its earnings call on July 28 where it will share more specific data in regards to fare growth and company revenue. United's expected to share more information at its investor call scheduled for tomorrow, July 19.
With fares on the rise, it's a better time than ever to use tools like Google Flights Explorer or IFTTT alerts to find cheap flights. And, as always, using points and miles can help you fly for little to no cost, helping you beat the airlines at their own game.
H/T: CNN Money