Say goodbye to cheap flights: Here’s why you can expect plane ticket prices to jump
With fuel prices increasing, travelers can expect to see a hike in airfare prices in the coming months.
高雄到上海航班Delta Air Lines, the second largest U.S. airline, reported record revenue in its first quarter earnings, but warned its costs continue to climb.
Experts say the Delta earnings are a sign commercial airline ticket prices are likely to rise soon, as airlines continue to compete with each other to offer customers the best deals.
Delta said its first-quarter fuel prices were 20 percent higher than during the year-ago period, but company leaders hope high customer demand will help weigh out costs.
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“We have confidence in our plan to grow earnings in 2018 through top-line growth, improving our cost trajectory, and leveraging our international partnerships,” said Ed Bastian, Delta’s chief executive officer.
Jay Ratliff, local aviation expert, said jet fuel prices are approaching at a three-year high right now. He said the impact on airline prices will be more clear as airlines post quarterly results.Fuel prices are going up,” he said. “Airlines are wanting to pass those costs to the consumer. The problem is, consumers are not that loyal. If another carrier has a cheaper price, they’re going to go with it.”
Ratliff said airlines previously hedged, or negotiated a deal with fuel suppliers locking in a set price for a certain period of time. If the fuel prices went up, the airlines benefited from fuel hedging. If the price of fuel decreased, the airlines were paying more than they needed to.
