Heading back to Dallas today from a way to quick weekend trip to London. Going to go check out Terminal5 this morning to see what all the buzz is about.
Last night Delta rolled back about 40% of it’s $20 fuel surcharge increase — not sure why just yet, but my best guess is that it is a temporary realignment, although there are definitely some signs of softening and that all important “tipping point” when travelers start pushing back on price — hopefully I’ll have a few minutes to find a Wi-Fi connecting before my outbound flight to see what happens by mid day
A quick look at last nights airfare activity shows that Delta Air Lines raised prices by $40rt on a little over 4,000 city pairs — this was to catch up to last weeks increase where they left a few out. These new increases are almost exclusively touching smaller airports across the country. These smaller cities continue to absorb the bulk of airfare hikes becaues of lack of daily competition to drive prices back down.
Separately United Airlines raised prices between the U.S. and Canada by $15 roundtrip.
I was just doing some research on prices and thought it might be interesting to quickly share the answer to one of the most common questions I get:
“How much have airline ticket prices gone up since last year?”
I hate this question because the true answer requires another question “Where do you live?”, because smaller airports have taken it on the chin and larger metros with low cost carrier competition have had modest increases and many others are in between.
One of the many things we track is the average cheapest published airline ticket price between the top 50 cities by passenger traffic, the chart is below — note that prices are up 20% since 1-Jan-07 and up 12% since 6-May-07 (1 year ago). I like the cheapest published indicator for “% increases” because leisure fares aren’t normally increased as much as business fares so it shows a good floor.
