Tuesday, July 22, 2008

Will Airline Fees Keep Prices Down?

As the 1st quarter numbers are being released with major losses for the airlines, many are predicting that the new fees should help drastically in the coming months. But as these fees add up, many passengers are starting to cry foul. With a fee for checking your bags, paying for soda and snacks, and paying a premium to get certain seats on some airlines, the cost of a flight can quickly add up to way more than expected. Here's the twist though. Not everyone needs or uses everyone of the amenities that are now being charged for. Just about everyone takes bags along on a trip, but is the in flight snack and movie something you can't live without? This way its going be be the few that pay for the many and I for one like the idea if it helps keep the base price of the flight down but don't look for that to happen either. With consolidation, decreases in flights, and the threat of some airlines going bankrupt there will be fewer choices in the future which by supply and demand will make it easier for the airlines to raise prices without much worry of consumer backlash. The cost of fuel may eventually come back down, but don't look for the airlines to follow if it does.

1 comment:

Debo Hobo said...

This is a good analysis on the airline crisis going on. I for one will not be flying unless I absolutely have to. I live in a big enough state that I can drive to great places for a quick vacation. No need to fly for me.