Most airlines in the US have hiked up their domestic fares and the timing of the price hike comes just before summer season which is the high season for air travel.
Koamnews.com reports that American Airlines has hiked up their airfares by $5 and other airlines like Hawaiian Airlines and Southwest too have caught up with this trend of hiking the domestic airfares last week.
American Airlines and Southwest confirmed Thursday about the price hike while Hawaiian Airlines refused to comment about it.
American Airlines price hike was first spotted by J.P Morgan analyst Jamie Baker Thursday. People in the aviation industry are surprised to learn about the increase in airfares especially at a time when the prices of air fuel have dropped. It may be highlighted that last week’s price hike of domestic airfares by most US airlines came very quickly, it is only less than a month since the last nationwide price hike was implemented. Jamie Baker in his report also confirms this by saying “we weren’t expecting another increase so soon.”
The price hike of the airfares implies that there is a good demand from the business and corporate travellers to buy increased airfares despite the slow US economy.
The hike in the airfares may be bad news for the travelers but is good news for the investors because the share prices of the airlines have gone up. Shares of AA have increased by 6% Thursday while Hawaiian and Southwest shares increased by 2% and 3% respectively reports koamnews.com.
