Fair Hike Slashed in Half Due to Discount Airlines Impact
Due to the pressure and the repercussions absorbed by discount airlines, it can be noted that the supposed-to-be large fare increase pursued by big-time American airlines has been slashed in half.
During the last week of February 2011, major network carriers pushed through a fair hike that made domestic fares up by $20 for every round trip ticket. Despite the sudden increase, the cost had been slashed in half by the afternoon of February 28. With the $10 fare implemented by Delta, Continental, American, and United, the gap between the offers of the traditional carriers and the discount airlines have been reduced, albeit still wide.
After insistent attempts to increase the broad-based fare every now and then, five rounds of increase attempt have already been made but this one has made a strong impact to the industry.