American Airlines has bumped up domestic fares by $10 per round trip, which could trigger the seventh fare increase this year by U.S. airlines.
American made the price change Wednesday. It also raised round-trip fares to Canada and Hawaii by $20.
It's uncertain whether other major airlines will follow American's lead going into the weekend. Carriers have been boosting fares in lockstep this year to try to keep pace with the rising cost of jet fuel. Occasionally, a price increase has been abandoned when other carriers haven't matched.
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Most recent fare increases have stuck, however, and the rapidly rising cost of airline tickets mirrors 2008, the last time oil prices soared above $100 a barrel, says Rick Seaney of FareCompare.com, who closely monitors ticket prices.
"Airlines who finally started making a profit late last year
have little choice but to pass on fuel costs to consumers in the short term," says Seaney, who expects airlines to try to boost fares weekly through April.
Demand for air travel is high, airline analysts say, as more corporate fliers return to the skies and leisure travelers plan trips for spring break, spring holidays and summer vacation.
"Consumers have a higher threshold of pain for pricier tickets today as the economy recuperates than they did in March of 2008 as a global economic meltdown was afoot," Seaney says.
But Matthew Jacob, senior airline analyst at ITG Investment Research, says that while the rising cost of fuel may be making airlines more aggressive in raising prices, their goal is always to charge as much as they can for seats on their planes.
"It's not just because oil prices are high that they're focusing on getting the highest airfares they can," he says. "This is a business that has always had very dynamic pricing. You can book a flight now and pay a different price than someone who booked it yesterday and more than someone who books it tomorrow."
The same rising oil costs that are denting the airline industry could also force some people to put off travel and stay put.
"One thing that could be a speed bump to raising airfares further is if consumer travelers start to see their income pinched by ... higher gasoline prices," Jacob says. "Higher oil prices may make the airlines more aggressive, but fliers are not necessarily going to be willing to pay a higher airfare."
American made the price change Wednesday. It also raised round-trip fares to Canada and Hawaii by $20.
It's uncertain whether other major airlines will follow American's lead going into the weekend. Carriers have been boosting fares in lockstep this year to try to keep pace with the rising cost of jet fuel. Occasionally, a price increase has been abandoned when other carriers haven't matched.
FLIGHT NEWS: Our Today in the Sky community
MONEY TIPS: Our free Personal Finance e-mail newsletter
Most recent fare increases have stuck, however, and the rapidly rising cost of airline tickets mirrors 2008, the last time oil prices soared above $100 a barrel, says Rick Seaney of FareCompare.com, who closely monitors ticket prices.
"Airlines who finally started making a profit late last year
have little choice but to pass on fuel costs to consumers in the short term," says Seaney, who expects airlines to try to boost fares weekly through April.
Demand for air travel is high, airline analysts say, as more corporate fliers return to the skies and leisure travelers plan trips for spring break, spring holidays and summer vacation.
"Consumers have a higher threshold of pain for pricier tickets today as the economy recuperates than they did in March of 2008 as a global economic meltdown was afoot," Seaney says.
But Matthew Jacob, senior airline analyst at ITG Investment Research, says that while the rising cost of fuel may be making airlines more aggressive in raising prices, their goal is always to charge as much as they can for seats on their planes.
"It's not just because oil prices are high that they're focusing on getting the highest airfares they can," he says. "This is a business that has always had very dynamic pricing. You can book a flight now and pay a different price than someone who booked it yesterday and more than someone who books it tomorrow."
The same rising oil costs that are denting the airline industry could also force some people to put off travel and stay put.
"One thing that could be a speed bump to raising airfares further is if consumer travelers start to see their income pinched by ... higher gasoline prices," Jacob says. "Higher oil prices may make the airlines more aggressive, but fliers are not necessarily going to be willing to pay a higher airfare."
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