On Why Fares Must Increase

The CEO of Delta Air Lines says that fares must rise 15 to 20 percent to cover fuel costs. I think he’s right.

No business and no industry can absorb massive losses forever. Eventually the cash reserves and the credit will run out.

Delta will announce its first-quarter earnings tomorrow, and there won’t be any. The company will declare a massive loss, as three of its major competitors have already done.

No business can cut costs and reduce service forever. Eventually there’s nothing left to cut, and nothing left to sell.

No business can cut salaries and lay off workers forever. Eventually, pilots will realize they can make more money as truck drivers, and gate workers will sign up at KFC.

As drivers, we can’t avoid the high price of fuel we put in our cars. As passengers, there’s only so long we can avoid the high price of fuel that goes into those jets.

And even though we passsengers have shown that we’ll endure almost any indignity for a low fare, we can’t keep the fares from rising now. Trouble is, when the low fares are gone, the indignities will remain.


One thought on “On Why Fares Must Increase

  1. scordo17

    Hi Jeanne-
    Couldn’t agree more. I certainly don’t like paying more for airfare, but I don’t see how the airlines will survive without raising fares. Other industries have passed their higher costs on to customers in the economic environment (bakeries, brewers, pizzerias with the rising cost of wheat). The fuel costs unfortunately will need to be passed on to us. I think we’ve enjoyed unsustainable low fares for years now, and it probably should cost about 20-25% more per ticket.
    I do hope that as these fares rise, and as the travel nightmares increase this summer between crowded planes and fewer flights, more people will consider rail travel. While not the answer for everything trip, it is a refreshingly nice way to travel (when Amtrak’s on time, of course).


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