Airfare Increases Stay Low For Now

This might be the last thing you want to think about during the May sweeps,
but if you have vacation plans for the summer that requires air travel, I
advise you to run to your travel agent or online booking service and get
those tickets now. For the second time in less than a month several of the
major air carriers tried to raise leisure fares only to be rebuffed by a
competitor. But these low prices won’t last.

American Airlines began the latest attempt at a fare increase last week when
they tried to boost leisure fares by $10 each way on a discounted ticket. In
an industry known for playing follow the leader, Continental, Delta, US
Airways, and to a lesser extent America West all followed suit.

But the increase didn’t last long as Northwest Airlines and United refused to
play the game. Their refusal forced the other carriers to drop fares to
remain competitive.

Earlier this month Continental tried boosting fares by $20 only to have
Northwest Airlines step in once again a refuse to play along.

Carriers will make several more attempts this year to hike prices and
eventually some will stick. Load factors; that’s the number of people per
flight, have increased significantly since September 11. Strong consumer
demand will eventually play right into the hands of the airlines forcing
prices upwards, it just a matter of time.

One way to avoid higher ticket prices is to buy early. Sixty to ninety days
out is a good benchmark for popular destinations.

There is a fine line between buying to early and buying too late. The
airlines don’t usually start closely monitoring the load factors for
particular flights until about 90 days from departure. If they look full the
price may increase. If they need to boost sales on a particular route the
fares will drop, so it’s a good idea to monitor those prices and jump on a
good fare as soon as possible.

If you are flying to a destination that is not so popular, you have the
option to wait until 45 days or less before departure to purchase tickets, as
prices will more than likely come down.