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Boyd Group International president Michael Boyd gives his outlook for the airline industry.
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Planes are about to get -- more crowded hot fuel prices well the economics forcing airlines to limit capacity on planes.
And my next guest says don't expect to see any -- sell prices any Thompson and Michael boy is because found.
Boyd group international joining us now.
From Denver what we how crowd -- can the how much more credit can these planes get just in the next year Michael.
Well the good news -- they don't get credit is get full they've been full they're gonna staple.
But don't expect of the middle seat next -- open anytime soon.
But airlines they're now on the business of trying to make money not try taking over the world -- fight with each other become like the five families they have -- little fiefdoms they've and -- dictum.
About prices in ticket prices in the increases that they -- tried to pass on so far this year.
Would you -- expect from say Memorial Day on through the rest of the year.
-- you're gonna see -- edge up in this two ways of raising ticket prices you can have a across the board increase.
Or they can -- limit the number of discount seats they face felony care plan.
But you know they're in the business to make money -- in in general the airline industry has now learned you got to sell the seat of what it cost to produce it and they're doing.
And it's Carter -- fine like nonstop long haul flights overseas in particular to some destination you're seeing.
Some airlines instead opt for a chain plain change.
Yet the reason being like American Airlines dropped Delhi to Chicago nonstop bit like a 90% load factor all the time.
-- they can flow those people over their partner British Airways over London.
In the -- the problem flying very very long haul you've got -- let that fuel all the way to Delhi and it's very expensive to carry that weight.
That's credible to think that they had a 90% load factor on that flight and it still makes more economic sense than they don't.
Those passengers halfway around the world off on a partner airline.
It is and delta did the same thing to India out of New York instead of running the non stop -- now running them through their partner Air France over Charles de Gaulle and Paris.
This is the name of the game going forward is -- alliances and that means up.
They're gonna run airplanes -- they can make the most money.
And that also applies the US and over a longer period of time you're gonna see airline service seats and a lot of places in this country want you Michael.
A lot of local airport will lose their service we think about a hundred over the next ten years.
In most cases they have other places they can fly out -- -- -- -- drive an hour to another airport which they're doing already which is why they're losing your service locally.
But -- that's gonna be -- we have a shrinking scope of air transportation system in the United States.
Michael is great to see you as always thank you take care Michael Boyd -- -- -- great thank you.
