Get Ready to Pay More for Flights on Top US Carriers

Jul 18, 2017

This post contains references to products from one or more of our advertisers. We may receive compensation when you click on links to those products. Terms apply to the offers listed on this page. For an explanation of our Advertising Policy, visit this page.

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.

Featured image courtesy of Aero Icarus via Wikimedia Commons.

H/T: CNN Money

Bank of America® Premium Rewards® Visa® credit card

This card from Bank of America gets really interesting if you have a BofA checking, savings or investment account. Depending on the value of your combined accounts you can potentially get as much as 3.5x points on travel/dining and 2.625x points on other purchases making it the richest consumer banking bonus out there.

Apply Now
More Things to Know
  • Receive 50,000 bonus points – a $500 value – after you make at least $3,000 in purchases in the first 90 days of account opening
  • Earn unlimited 2 points for every $1 spent on travel and dining purchases and unlimited 1.5 points per $1 spent on all other purchases
  • If you're a Bank of America Preferred Rewards member, you can earn 25%-75% more points on every purchase
  • No limit to the points you can earn and your points don't expire
  • Redeem for cash back as a statement credit, deposit into eligible Bank of America® accounts, credit to eligible Merrill accounts, or gift cards or purchases at the Bank of America Travel Center
  • Get up to $200 in combined airline incidental and airport expedited screening statement credits + valuable travel insurance protections
  • No Foreign Transaction Fees
  • Low $95 annual fee
Intro APR on Purchases
N/A
Regular APR
17.74% - 24.74% Variable APR on purchases and balance transfers
Annual Fee
$95
Balance Transfer Fee
Either $10 or 3% of the amount of each transaction, whichever is greater.
Recommended Credit
Excellent/Good

Editorial Disclaimer: Opinions expressed here are the author’s alone, not those of any bank, credit card issuer, airlines or hotel chain, and have not been reviewed, approved or otherwise endorsed by any of these entities.

Disclaimer: The responses below are not provided or commissioned by the bank advertiser. Responses have not been reviewed, approved or otherwise endorsed by the bank advertiser. It is not the bank advertiser’s responsibility to ensure all posts and/or questions are answered.