According to a report by fare trackers, two airlines, including Southwest Airlines and JetBlue Airways are heading a round of increase in airfares on a lot of medium and long length flights by $10 for round trip. On Thursday, US Airways, American Airlines, United and Delta also said that they have matched the increases of the initial two airlines which raised prices that led to an increase in base fares for customers.
Jamie Baker, an analyst of J.P. Morgan who tracks fares said that US Airways and United Airways broadened the price increases to those routes which Southwest doesn’t fly in and also included Denver, where Southwest Airlines hadn’t increased the prices.
Another analyst and also the chief executive officer of FareCompare.com, Rick Seaney around midday, yesterday revealed that all of the big airlines of the country had increased their fares. Both analysts said that JetBlue had raised its prices in those markets where other airlines are not far stretched or are limited, including Florida. The airlines expanded them all over the country last week and Southwest Airlines joined in on Wednesday.
Of the total airline costs, jet fuel accounts for nearly 1/3rd of the total price, which is the same as labor but the bill has been increasing as crude oil prices have been on a rising trend. In this week alone, Gulf Cost jet fuel’s spot price was 12.1 percent more than a year before and has increased by 8.5 percent in 2012 only. With not even two months in this year, an 8.5 percent rise is too much. Moreover, analysts predict that as the momentum is going on and things are shaping up, the rise could increase further this year and when this happens, airlines will react by increasing their prices, which will translate into higher air fare for customers.
