U.S. Air Travel Prices Expected to Rise in 2010 to Offset Losses
Posted on 15. Jan, 2010 by Kat Schneider Fotheringham in Blog, Business Travel, Uncategorized, executive accommodations, international business travel
Although we aren’t very far into 2010, The Corporate Housing Network isn’t surprised to report that U.S. airline passengers, who are already paying higher checked-bag fees and fuel surcharges this year, should brace for more increases as the industry tries to return to profit.
Delta Air Lines Inc., United Airlines and Continental Airlines Inc. are each raising their prices to check a first and second bag this month. The new, higher fees follow last week’s $20 increase in the round-trip fuel surcharge on flights between the U.S. and Europe by the five biggest carriers with international service.
Traditionally, the practice of hiking fees or adding surcharges eliminates the uncertainty airlines typically experience when they apply fare increases, which carriers usually rescind unless competitors match the higher rates they propose. United added the first bag charge in February 2008, joining airline fees that were already in place for getting meals or snacks, specific seats, blankets and pillows or to speak with a reservation agent.
Still, the overriding good news here is that companies and organizations are making a slow but sure return to business travel in 2010, so while the price shifts that many in the United States may face when boarding a plane for a business trip might be unwelcome, the rise in business travel is an indicator that economies are stabilizing and growing again, with business leading the way. And once the seats on these flights start to fill up again, the need for additional increases will taper off.
Ultimately, it’s all good.
