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$10 Domestic Airfare Hike Sticks and Another Business Class Hike Attempt

February 22, 2011 | Posted in: Airfare News,Pricing Activity

$10 Airfare Hike and Business Class Hike

Friday’s $10 roundtrip airfare hike attempt initiated by Southwest Airlines (the fourth broad-based domestic hike this year) was quickly matched over the weekend by all domestic airlines.

It also appears that legacy airlines are adamant about raising the domestic price point for business travelers who buy tickets at the last minute or squeeze into the last seats on oversold flights.

Yesterday afternoon (Monday, February 12), American Airlines initiated a hike of $20 to $60 roundtrip on “walk-up” fares – again, the kind of fares last minute business travelers buy with a same-day advance price that can approach $1000 roundtrip. Later that evening, it was matched by United/Continental, and today Delta and US Airways joined in. Note that this is on the heels of last week’s similar airfare hike attempt, that ultimately collapsed.

Interestingly, the pace of recent domestic airfare hikes almost exactly mirrors those which occurred in the same time period of late 2007 and early 2008 – when oil prices leapt into the mid $90’s per barrel. The big difference today, however, is that airline baggage fees and widespread peak travel surcharges hadn’t been a staple in the total amount travelers shelled out for air travel.

We will update with any significant changes if and when they occur.

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