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Low-cost carriers get aggressive on fare hikes
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By Roger Yu
February 2, 2011
As large airlines raised fares in recent months, their low-cost competitors have been pursuing similarly aggressive pricing strategies as demand continues to rise, according to Bestfares.com.
Fares charged by Southwest, JetBlue, AirTran and Virgin America are trending 20% to 50% higher this year than a year ago, new data from the fare shopping site show.
A one-way Virgin America fare from San Francisco to Las Vegas on Jan. 26 was $74, or 51% higher than a year ago, says Bestfares.com CEO Tom Parsons.
JetBlue's fare from Chicago to New York rose 80% to $106 during the same period. Flying from Buffalo to Houston on AirTran cost $104 on Jan. 26, or a 33% increase.
Discount carriers' fare sales have been instrumental in keeping fares low last year even as the economy began to recover. In 2010, about 90% of all domestic sales were initiated by a low-cost airline and were quickly matched by the large legacy airlines, such as American, Continental and United.
"If it were not for the low cost airlines' sales, we could have been paying 30% to 50% more," Parsons says. "More than ever, we depend on their sales."
With fuel prices rising and demand not showing any signs of abating, travelers who are buying outside sales periods will likely see "much higher airfares" this year, he says.
For example, a nonstop, round-trip fare from Dallas to New York on American Airlines on Jan. 28 is $279, including taxes, as the carrier matched an AirTran sale. Once the sale ends on Feb. 8, American will raise the price of the same ticket to about $459, Parsons says.
The best time to find sales fares is on weekdays, particularly between Tuesday afternoon and midnight Thursday. "The real game this year is to be patient, be flexible and stay within the travel period allotted for the airfare sales, he says.
Budget Travel inc Airfare News & Reviews Index:
2011; 2010: Autumn, Summer
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