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Airlines flex pricing power, signaling higher fares in 2025
The post Airlines flex pricing power, signaling higher fares in 2025 appeared on BitcoinEthereumNews.com. Travelers walk through O’Hare International Airport in Chicago, Illinois, on December 20, 2024 ahead of the upcoming Christmas holiday. Kamil Krzaczynski | AFP | Getty Images Higher airfare is in store this year as strong demand, even during the dead of winter, and limited capacity growth prompt airlines to flex their pricing power. Fare-tracking platform Hopper this month said domestic “good deal” U.S. airfare in January is at $304, up 12% over last year, with more domestic flights going for more than they did last year through at least June. Late deliveries of new aircraft from Boeing and Airbus, air traffic constraints and financial pressures have limited airlines’ ability to expand flights, which has pushed fares higher. Spirit Airlines, which filed for Chapter 11 bankruptcy protection in November, was the most dramatic case and has slashed its flights to cut costs. American Airlines on Thursday forecast a jump in revenue of as much as 5% in the first quarter over the same three months of 2024, while capacity will be flat or even down as much as 2%. “We do expect airfare to come up,” American CFO Devon May said in an interview. The airline forecast a wider-than-expected-loss for the first quarter, however, disappointing investors as it expects an increase in costs, like higher wages from new labor contracts signed last year. Startup carrier Breeze Airways on Thursday reported its first quarterly operating profit, for the fourth quarter, and founder David Neeleman, the founder of JetBlue Airways, said conservative industry growth is boding well for future results. “The tide is lifting a lot of boats,” he said in an interview. “We’re exceeding our targets in revenue. Momentum we saw in the fourth quarter is continuing into the first.” Read more CNBC airline news Alaska Airlines late Wednesday said it expects…
The post Airlines flex pricing power, signaling higher fares in 2025 appeared on BitcoinEthereumNews.com.
Travelers walk through O’Hare International Airport in Chicago, Illinois, on December 20, 2024 ahead of the upcoming Christmas holiday. Kamil Krzaczynski | AFP | Getty Images Higher airfare is in store this year as strong demand, even during the dead of winter, and limited capacity growth prompt airlines to flex their pricing power. Fare-tracking platform Hopper this month said domestic “good deal” U.S. airfare in January is at $304, up 12% over last year, with more domestic flights going for more than they did last year through at least June. Late deliveries of new aircraft from Boeing and Airbus, air traffic constraints and financial pressures have limited airlines’ ability to expand flights, which has pushed fares higher. Spirit Airlines, which filed for Chapter 11 bankruptcy protection in November, was the most dramatic case and has slashed its flights to cut costs. American Airlines on Thursday forecast a jump in revenue of as much as 5% in the first quarter over the same three months of 2024, while capacity will be flat or even down as much as 2%. “We do expect airfare to come up,” American CFO Devon May said in an interview. The airline forecast a wider-than-expected-loss for the first quarter, however, disappointing investors as it expects an increase in costs, like higher wages from new labor contracts signed last year. Startup carrier Breeze Airways on Thursday reported its first quarterly operating profit, for the fourth quarter, and founder David Neeleman, the founder of JetBlue Airways, said conservative industry growth is boding well for future results. “The tide is lifting a lot of boats,” he said in an interview. “We’re exceeding our targets in revenue. Momentum we saw in the fourth quarter is continuing into the first.” Read more CNBC airline news Alaska Airlines late Wednesday said it expects…
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