You're watching...
Boyd Group international chairman Michael Boyd on airlines raising ticket prices to boost revenue.
Also in this playlist...
Auto-advance: ON
Auto-advance
This transcript is automatically generated
Fox business -- as the saying goes only death and taxes are certain and -- but you can add one more thing to that.
Rising airline fares southwest the latest airline to raise ticket prices and our next guest says the trend is not going away may -- ever Michael.
It's the Boyd group.
And joins us with more again more more you -- them how high can prices go before it hurts demand Michael.
Well I I think remember there -- rationing down the number of seats is selling they're not after demand thereafter rep maximizing that the revenue they get proceed.
Is the first time in history were airlines -- chasing volume they're chasing revenue so you know they're gonna match revenues to how much they can.
Charge for and it -- reality is they don't care about -- -- -- about making money do they care.
Out the passengers at all and -- the list are eventually and all -- that's.
Well the -- is going to be the people who are gonna be the victims of raw economics.
Airlines are gonna fly as many places as they used to fly to the equipment isn't there anymore the economics are.
-- and when you do fly you're gonna be if paying more right now the average -- -- about ten point 6% higher than it was a year ago.
And that doesn't include against Hillary's what you're paying for your seat selection what you're paying for your carry on bag things like that figure look at about 15% higher than a year ago.
What about the transparency of all those -- Michael and you've talked about this before but.
It's also the taxes that the government slaps on the people constantly overlooked when complain about that's.
Yeah it's really Yahoo! would help the secretary of transportation wants airlines to be upfront about their fees when it comes to taxes are people -- -- -- that.
18%.
Eighteen -- nineteen to 20% depending where you're going you're paying to the federal government.
For various fees and taxes that's outrageous that's worth paying for -- bad paper bag I know I get my back I think.
But you're paying of a federal -- for security what are you getting.
So -- it's it's it's again it's not transparent.
Yet what are you getting as it it is is that figure out completely towards security.
No there's a security -- that a number of -- -- but a lot of goes into the the big black vapor whole of government overspending.
We're spending.
It's something in the neighborhood of about -- half those these were paying -- but they're gonna fix the air traffic control system which is getting worse by the day there's just no accountability for those fees.
Lahood says if you pay a bag fee the airline has to refunded if you're Baghdad and get there it be nice if he was held at the same standard in terms of what we're paying the government.
One less thing -- gets the service aspect -- flying right.
What airline.
-- -- Well there's no question about you get.
You jetBlue and southwest -- mean.
Southwest is -- successful they not because of low fares.
It's because there -- people really actually care about the customer so if other airlines can continue to work and that directional of a better system but.
Is southwest is -- they wanna fallen through an employee attitude.
One last thing I told you about the passenger with the open staph infection allowed on a flight with me recently.
And then moved into the emergency road even though he could not move.
That was delta thank you delta appreciate that Michael pets all a totally I tell you next time here on.
Thank you really until you.
