Or it could just be supply and demand.....
Most carriers contract a year out for fuel. They do get a price break that way ... should fuel prices rise, they’re locked into a set price. They only loose if prices fall which over the years has risen ... if their contract is up during the price drop then .....
I was driving to Hawaii, but I had to turn back halfway there because I couldn’t find a gas station.
And the author knows this how? Does he know the purchasing routine for each airline? Like when they purchase their fuel and when they receive their fuel? Or does the author affirmly believe that because the price of oil is going down today, that the airlines simply buy off the rack at that exact moment in time and receive their fuel as if it were an email sent to him via the internet.
People have become enamored in the had to have it yesterday philosophy that they have absolutely zero sense in how real world purchases are made and then delivered. The author probably never heard of 99% of business terminology when it comes to purchasing inventory or raw goods for manufacturing.
People like this author assumes that because they can go to the grocery store and get their food now that it is that way everywhere for everything. The author may not realize the food he bought today and took home to eat at his table tonight was ordered over a week ago by said grocery store. So maybe, just maybe, the ticket prices will fall to reflect today’s current prices in the future.
He his also forgetting one other thing, this is holiday travel season when ticket prices go up anyways not because of fuel but because of demand is higher at this time of year more so than any other part of the year. Or maybe he saw that ticket prices were higher this part of the year has no clue why and just wants to whine about it. Here is the solution, buy your ticket before September when ticket prices get changed for the holiday travel season.
Demand Up Supply Down = increase in prices. Economics 101.
Because they know they’re too big to fail — they were bailed out BEFORE the banks were, remember?
Sometimes they lose money, sometimes they make money.
Since I am a populist-leaning, rightwing nut job not officially affiliated to either party I'm expected to blame the Jews.
Instead I'm going to blame the Grays living on the dark side of the moon.
Who in tarnation wants to fly, packed in like sardines on a sealed tube?
Are they joking?
There’s so much consolidation, there’s not enough competition to drive prices down. Airtran is gone, so Delta own’s ATL again and connecting flight prices. Continental gone. USAIR gone. It’s United, American, Delta and Southwest that pretty much run the show. Southwest can be competitive, but as another poster mentioned, they are masters of supply and demand. There’s no need to cut prices right now.
Sanitizing planes against Ebola is probably fairly expensive.
;-)
I was under the impression that airlines bought oil futures so when oil and gas prices drop, it takes longer for it to effect their costs.