AirLines Will Not Pass Lower Fuel Costs To Customers

[Economy 52,887]

http://www.aol.com/article/2014/11/17/why-airfare-keeps-rising-despite-lower-oil-prices/20995099/

 

You would think with oil prices at 4 year lows, that air fares would be falling yet they arent. why? simply put, airlines have no reason to lower prices

 

Most companies have flights pretty fully booked, they dont have to compete for more customers so there is no economic reason to pass on the savings to the customers

 

Also many airlines want to take advantage of rising profits to invest in new planes.

 

It should be noted that the margin for profit for most airlines is lower than a typical Corporation listed in the S&P and they arent necessairily ripping off customers.

[bionic 50,111]

I think this is the right thing to do. It's better to invest, who knows what the future of the oil prices will be?

[uo111 5,283]

New planes, I hope they're more comfortable

 

Deep down I know they are just trying to figure out ways to jam more people into them though D:

[Blackwillow 2,200]

why would they? time to make profits.

[ClapDown 0]

Good for them. The airlines had to endure more than a decade post 9/11 on the verge of bankruptcy so it's good that they can make profits and invest for the future again.

[SMILE2NE1 3,566]

Lowering costs if services are at operational capacity would be a stupid move.

[chiuga 1,973]

flight tickets these days are not as expensive as they used to be before the entry of budget airlines into the market so I'm ok~

 

However I have never seen price cuts for buses and subways which are basically monopolised