Skip to content

Cheap Airfares Shrink As Airlines Respond To Higher Fuel Costs

Executives from United, American and Southwest said they expect to reduce less profitable routes during the final months of the year

Photo by Chris Leipelt / Unsplash

Major US airlines are preparing to cut some cheaper flights as soaring jet fuel costs put pressure on profitability, according to CNN.

Executives from United, American and Southwest said they expect to reduce less profitable routes during the final months of the year. Airlines have already trimmed summer schedules and increased fees as fuel expenses climbed.

The cuts are likely to affect less popular flights, including services at inconvenient times and on lower-demand days, according to airline industry experts. Business-focused routes are expected to be less affected.

💡
Airfares were about 25% higher from June through August than a year earlier, according to the Consumer Price Index. Meanwhile, the departure of discount carrier Spirit Airlines and efforts by other budget airlines to move toward premium services have reduced low-cost options.

The four largest US airlines paid nearly 80% more for fuel between April and June than during the same period last year. Jet fuel reached $4.56 per gallon Thursday, according to Argus Research.

Airline executives also pointed to strong passenger demand as another factor keeping fares elevated.

Related Tweet:

Also Read:

UN Investigators Say US Iran Strikes Killed Over 150 Civilians
Investigators also cited a separate strike in Lamerd that killed 22 civilians using tungsten pellet munitions.

Comments

Latest