Tuesday, April 26, 2011

Delta, US Airways Ready to Up Fares

Airline travelers should expect higher fares in the coming months, according to Reuters. Delta Air Lines and US Airways Group are both indicating they will increase rates.

In a comment to analysts, US Airways President Scott Kirby said that the pricing environment was strong, pointing to improving corporate demand "consistent with underlying demand ... evidenced by another system-wide successful fare increase last week."

Delta Chief Executive Richard Anderson told analysts, "Where we cannot get the necessary revenue increases to offset the increased cost of operating the flights, we will remove capacity, particularly in our post Labor Day schedule."

Of course, there is an opposing view via Paul Krugman:
....there’s nothing...to suggest any reason to consider inflation a problem.

1 comment:

  1. Krugman has an out. He can say that at the time he made the statement there really was no evidence and that anybody at that time who thought there was evidence for inflation was just some nutcase. He will say "Even a broken clock is right twice a day." Anyway, since Krugman is God, he is in charge of what counts as evidence, when and where it appears, and of who gets to use it. I am sorry Mr. Wenzel. I agree with you. But you can never be right, even if it looks like you are. Even if you were always to appear to be right, it would be an illusion. You would just be a very peculiar kind of broken clock.