Wanjiru Waweru, Jadetimes Contributor
W. Waweru is a Jadetimes News Reporter Covering America & Business News
Airlines are eliminating more flights this year due to high fuel prices.
Executives from Air Canada, United, American, and Southwest Airlines said at an investors' conference on Wednesday, September 16, that they expect to cut less expensive and less profitable flights from their schedules in the final months of the year.
Southwest CFO Tom Doxey addressed the situation.
“If fuel is higher-for-longer, I think that’s a natural response… that you trim some of that capacity off,” said Doxey.
Airlines have recently trimmed flights from their Summer Routines and cut back on their baggage due to increasing price of fuel costs. United CFO Michael Leskinen explained that airlines are reviewing the signs that weaken fares and fees that become much higher than expected.
According to WCVB Boston News, “airfares in June, July and August were about 25% higher compared to a year ago, according to the Consumer Price Index, which is the government’s key inflation measure.”
Air Canada, United, Southeast, American Airlines did not classify any specific flights which would be trimmed later this year. Therefore, experts explain the ones would be eliminated that more affordable, less popular flights.
“There are some routes that were on the lower end (of profitability), they get pushed into not profitable when fuel spikes like this,” said Leskinen.
These flights are preferred by Bargain Hunters, then Business Travelers, according to Zach Griff, author of an airline newsletter, From The Tray Table. That involves less traveled flights including Tuesdays or Saturdays, or late evenings or early mornings.
The extension of pressure on fares this year is the escape of discount carrier Spirit Airlines,, which paused operations in May after the first fuel escalate. However other budget carriers, including Frontier, are addressing to shift directly to premium offerings.
Griff expressed that they are fewer opportunities that are eligible for the Budget Travelers.
“This is an environment that is really challenging for the low-end customer who are trying to find low priced airfares,” said Griff. “The cheap fares are going away, and the fares are increasing too.”
Airlines are continuously purchasing billions to add more fuel this year as the Iran War delays. These airlines paid 80% more for fuel during the two months – from April to June, as their mission was accomplished early this year.
WCVB Boston found this research – “the average price for a gallon of jet fuel rose to $4.56 a gallon Thursday, according to Argus Research. That’s the highest it’s been since early May, although still below its April peak.”
However, the airfares are not completely dependent on the fuel cost. Delta CEO Ed Bastian about why these companies refuse to make the rate lower when jet prices decreased from its early peak.
“Airfares are a function of supply and demand,” said Bastian. “The demand set is really strong.”
About Wanjiru Waweru
Wanjiru Waweru is a Jadetimes Contributor. You can email Wanjiru at sellmypaperwork@gmail.com.
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