Sticker Shock

From the New York Times online:

...and others have been discovering in recent months, airfares in most of the world are on the rise as the global economy picks up and demand for air travel climbs, particularly for business trips. Airlines, meanwhile, have been reluctant to add more flights to meet that growing demand. That is increasing pressure on ticket prices and making for packed planes and longer standby lines as the year-end travel season approaches. 

This has been a boon, of course, for an industry that is expected to roar back into profit this year, to the tune of $8.9 billion. That comes after airlines collectively lost nearly $26 billion during the previous two years, according to the International Air Transport Association, an airline industry group. Many of the world’s leading airlines are reporting that the three-month period ended Sept. 30 was one of their most profitable quarters in years. 

The degree of sticker shock varies significantly by region and by class of seat, with fares on some routes still at or below those of a year ago, despite some large increases in traffic.




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