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Latest fare increase and travel plans

April 4, 2011

United, Continental, Delta and American raised their prices by about $10 last week, but some of the low-cost carriers had not matched the increases by Friday afternoon.

Citing reasons like natural disasters and Middle-East tensions for an expected higher costs for fuel, they have pushed through at least six broad price increases this year, but the last two in March failed when some airlines declined to go along.

US Airways, Southwest and AirTran Airways said they had not matched the increase. The $10 increases applied to heavily traveled routes and to some between smaller cities.

Even if these prices go away as the fuel costs go down, the summer travel season is just about to start and prices will continue to rise. That makes us wonder if the travelers who availed of the deals posted by airlines and travel websites/companies will still hold true. And the more we wait to book our next trip, the riskier it gets.

On the other hand, The Age reports a surge in travel plans by Australians, saying that the strong Australian Dollar, breaching the USD 1.04 mark, is making about 13 million Australians intend to take a holiday in the year ahead.

Do you think the latest increase in fares are valid? Does this make you alter your travel plans? Let us know.

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