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My Personal Finance Journey

Personal finance observation, musing and decisions in a journey toward financial independence by 36 with at least $1 million.

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Air Fare Follies





It doesn't seem that anybody has pricing power in the airline industry.

From New York Times:

The $499 limit on one-way walk-up coach fares adopted by major airlines in January has come under attack, but after four days of thrusts and feints by major airlines, it was still standing yesterday. Last Thursday night, four of the six major carriers, led by Northwest, raised those fares by $50, but retreated when it became clear over the weekend that two carriers, Delta and American, were not participating. By yesterday, the last holdouts, Northwest and Continental, had withdrawn their increases on the fares, which are typically used by business travelers making last-minute plans. In addition, airlines that late last week increased less-expensive advance-purchase fares by $5 to $10 each way dropped those increases over the weekend, said Terry Trippler, the airline analyst at Cheatseats.com.

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