Airlines seek to balance competitive fares and rising fuel prices
Share Now on:
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.
Marketplace is on a mission.
We believe Main Street matters as much as Wall Street, economic news is made relevant and real through human stories, and a touch of humor helps enliven topics you might typically find…well, dull.
Through the signature style that only Marketplace can deliver, we’re on a mission to raise the economic intelligence of the country—but we don’t do it alone. We count on listeners and readers like you to keep this public service free and accessible to all. Will you become a partner in our mission today?