will airline fares

No, they will not. Why would they intentionally reduce their profits?
It doesn't bother you that Walmart makes billions of dollars of profit per year, or that Presidente makes so too.. Does Presidente lower their prices because they are making profits? They don't... so why should the airlines?

I juts did a research paper on airfares, the fares are lower in real dollars (adjusted for inflation) than they were 20 years ago, plus there is one little fact that many forget and that is that fuel is 30% of their costs and given the increase of fuel since the year 2000, I ask again, why should they reduce the fares?

I see no reason air fares will go down. Fewer US airlines means fewer options and less chance for competition to lower prices. Pay up or stay home.

All of them claim having very big loses, so I think they will keep the same, maybe they will add new routes but never think they will reduce prices or add more flights to existing routes, maybe is the prices of fuel keep very low for long period.

Although airlines have had a few years of losses the way the price of oil is continuing a downward spiral I would not be surprised to see at least one airline drop its prices to increase passenger volume. The real question will be will others follow

Competition is what drives prices down. If they do not go down it is because there is collusion.

travelbear said:

Although airlines have had a few years of losses the way the price of oil is continuing a downward spiral I would not be surprised to see at least one airline drop its prices to increase passenger volume. The real question will be will others follow

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Airlines do not buy fuel at spot prices. They hedge even two-three years in advance. Current "low" (still high) fuel prices have virtually no reflection in (current) airline economics.

Xavier_Onassis said:

Competition is what drives prices down. If they do not go down it is because there is collusion.

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Well, the competition like what... Poeple Express ...? which has been banned from Newport News airport (their hub) because they failed to pay their fees?
Or the newest reincarnation of Branif 4.0?

There is sufficient competition to the Big Three .... Virgin America, Spirit, Frontier, Allegiant, Alaska, Jetblue and Southwest, some of whom still carry your bag for free (B6 and WN).

You want to travel inexpensively to Asia? Use ME3 carriers or Turkish.
You want to travel inexpensive to Europe from the DR? Use Condor, Air Berlin, Jetairfly, etc.

Competition is there if only government allows. There are people who are not aware that government(s) set the parameters of routes to be flown and who flies them. There are other matters of hours of arrival and departure of aircraft as gates and gate times at airports are up to bid, the highest bidder gets the best gates and time slots. You will observe that some of the discount airlines are the ones who have the very early morning flights and late arrivals at airports, they pay less for those times and pass on the savings(?) to you.

Most airlines are at full capacity of aircraft and flight crews, aircraft are full with few or no empty seats, they have no incentive to offer lower fares when everyone is scrambling for seats. Mind you, the airlines are always looking to find new fees to stick you with. Waiting for them to sell tokens for you to use to get entry to the iron maiden they call a toilet. Note: you cannot pay cash for the tokens, credit card only.


Regards,

PJT

rubio_higuey said:

Airlines do not buy fuel at spot prices. They hedge even two-three years in advance. Current "low" (still high) fuel prices have virtually no reflection in (current) airline economics.

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While still a popular strategy, numerous airlines have drastically cut their hedges or dropped them altogether.

USAir stopped hedging years ago....and with the merger the now combined AA/USAir does not hedge either.

Of course this is all subject to change....but I think oil, like jet fuel prices, will remain low for probably at least the next year.


Respectfully,
Playacaribe2