Airlines seek to balance competitive fares and rising fuel prices

Jed Kim Jul 3, 2018
HTML EMBED:
COPY

Airlines seek to balance competitive fares and rising fuel prices

Jed Kim Jul 3, 2018
HTML EMBED:
COPY

If you’re wondering why airfares are relatively low at the moment, the answer is that there are a lot of inexpensive seats being offered by what’s called “ultra-low cost carriers.” Those fares from airlines like Frontier and Spirit are keeping the market competitive for bigger airlines, and passengers are benefiting. But with rising oil (and, airplane fuel) costs, the airlines may decide to raise prices, especially after the summer vacation season ends, analysts said. So what might all this mean for airline profits?

Click the audio player above to hear the full story. 

We’re here to help you navigate this changed world and economy.

Our mission at Marketplace is to raise the economic intelligence of the country. It’s a tough task, but it’s never been more important.

In the past year, we’ve seen record unemployment, stimulus bills, and reddit users influencing the stock market. Marketplace helps you understand it all, will fact-based, approachable, and unbiased reporting.

Generous support from listeners and readers is what powers our nonprofit news—and your donation today will help provide this essential service. For just $5/month, you can sustain independent journalism that keeps you and thousands of others informed.