Airlines lose economy passengers as soaring fuel bills force up ticket prices

[alp227]

Source: The Guardian

That back-of-the-cabin pilgrimage to Ibiza or Miami this summer will be a little less cramped than usual, according to the airline industry's leading trade body, as economy class passengers balk at higher fares due to rising fuel costs and aviation taxes.

The International Air Transport Association said leisure travel fell 3.5% worldwide between last November and March this year, with Europe suffering the most as recession-hit passengers declined to accept ticket prices driven higher by the increasing cost of oil. IATA's chief economist, Brian Pearce, said carriers have had no choice but to hike fares because the cost of jet fuel has risen by more than 50% over the past 12 months.

With no sign of a significant decline in an oil price that is staying stubbornly above $100 a barrel, airlines are fighting to stay profitable and have pushed up ticket prices in order to recoup costs, with an inevitable consequence for discretionary spenders, said Pearce.

"If they have got a nice fat margin they can lower fares to stimulate demand but when fuel prices are up by 50% that's not possible," he said.

Read more: http://www.guardian.co.uk/business/2011/jun/07/airlines-lose-economy-passengers

[Donnachaidh]

1. raise prices and lose MORE customers -- that's the ticket!

F*ck them and their *nice fat margin* mentality.

[bluevoter4life]

2. Here's an idea

Stop charging those goddamn baggage fees. Be a trail blazer and stay ahead of the curve. Eliminate the fees, more passengers will fly YOUR airlines, more money in your pockets. Worked for Southwest. Are they hurting? I think not.

[WolverineDG]

3. of course it all has to do with the rising fuel prices

it wouldn't be about airlines treating their passengers like garbage & finding more things to add on as "fees."

dg

[dixiegrrrrl]

4. or TSA....I wish there were stats available for those who refuse to fly b/c of TAS.

(b/c=because)

oh...wait..there IS this Reuters poll of last Nov.



Are you less likely to fly because of stepped-up security procedures such as full-body scans and patdowns?

* Yes - I will make alternate travel plans to avoid intrusive security scans and patdowns (96%, 72,966 Votes)
* No - It is a necessary procedure to ensure terror plots are thwarted (3%, 2,216 Votes)
* Undecided (1%, 1,183 Votes)

Total Voters: 76,366

http://blogs.reuters.com/ask/2010/11/12/are-new-security-screenings-affecting-your-decision-to-fly/

[WolverineDG]

6. I don't have a choice at Christmas

I have to fly. But now I fly Southwest, where I don't have to pay an arm & a leg to check a bag & I get treated decently.

Other than that, my travel by flying has gone waaaaaayyyy down.

dg

[tblue37]

8. I usually fly twice a year. This year I am avoiding planes because of TSA. nt

Two round trip tickets--no biggie. But multiply that by hundreds of thousands or millions, and you end up with a significant drop in flights.

[woo me with science]

12. +1 Thank you. nt

[ccinamon]

5. It's more to do with the lack of salary

than an increase in prices....wages have been stagnant for many years.

Want people to BUY goods and services?

Then give them a salary increase that is more than the rate of inflation!

[Gregorian]

7. Good. The planet needs a rest.

[SoapBox]

9. You could have fooled me!

...I just worked, 4 flights in 2 days.

B757s...ALL 4 flights full...NO non-rev's on 3 of them.

My carrier this summer (the "summer travel season") has reservations for 45 MILLION people.

Next story.

[Prometheus Bound]

10. Interesting that taxes get as much blame as fuel costs in the opener and aren't mentioned after that

And of course they know most readers don't go past the first sentence.

[bemildred]

11. I hope they all go bankrupt together. nt