Fox Business
Expand
Browse All Video
Watch Live

You're watching...

Travelers Face Rising Airfares

Details

  • Description

    Farecompare.com CEO Rick Seaney on current prices for air travel.

  • Duration 3:32
  • Date

Clips

Also in this playlist...

Latest Video

Auto-advance: ON

Auto-advance
View All

Transcript

This transcript is automatically generated

Capped companies coast.

Well you might want to think twice before planning your next trip.

A new report finds airlines are trying to raise fares especially for -- last minute travelers.

But will -- price hikes take breaks Sany CEO affair compared dot com an airline price watching site joins me now.

Get -- back -- so looking at these numbers and I'm not loving it.

So airfare is rising to when he thirteen -- was what we got up four point 6% domestically.

Eight point 3% internationally what's going on here.

Why you have a couple things happening right now airlines -- -- -- Q some fuel costs -- at a higher than they have been.

Certainly you know you've got the three mega mergers for the fourth one coming that are have a pricing you have a lot fewer seeds being flown it's just giving airlines more pricing power -- right now.

There's sort of tepid demand that airlines have been trying to raise prices all of the month of January couldn't do it.

On leisure travelers and business travelers they were able to raise prices this past week on business travelers.

Loosely defined as anybody -- taking a trip in the next seven days -- -- well that's the key issue for them right because last year they tried to raise prepares many many times and it rarely went through.

-- over and over a dozen times and I think only six of those actually went through so they're trying to raise -- recoup costs they still made some profits last year.

So you know like any business are gonna try to raise as much they -- embattled C.

-- having a bunch of success.

At least the next few months as we get closer to summer I think we'll see some rate hikes at a pretty much increased the pace -- right so.

I -- book early book options answer that question.

You say that jetBlue though is for taking it another step what do you mean by that.

We basically what they did was everybody to raise prices on business travelers jetBlue.

Who typically marches to different drummer sort of outside the mainstream of raising in not raising prices they actually raid raised prices on leisure travelers as well.

But nobody else followed along with that southwest southwest did join in with the business fare hike which is basically -- -- any time.

Southwest joins and -- -- I've been watching this for over six years.

I've never seen a hype the didn't state that at southwest participated in the I think that's a really interesting tip for people who are watching air -- -- so many people travel for business all the time.

Watch what southwest does because if they're raising airfares it's really gonna mean something to you and your wallet right -- Yet they basically said the baseline in the marketplace I would say -- southwest and jetBlue says the baseline.

On any given -- -- you might see the legacy airlines -- the little cheaper price especially if it's connecting but because -- the low cost airlines.

They're cost structures gotten more over time so they've been raising prices over the last through three years out.

But definitely watch the low cost airlines there of the Bellwether.

Well are so few of those now -- did all of marriages that have gone all the mergers.

Is that gonna push fares much higher this year will we see that.

I think the three previous mergers or what's pushing fares a bit higher now the one with the American and US Airways which shall come.

In and -- a year and a half that has nothing to do with where we are today.

You know I was I was watching the segment on health care if people -- for health care like they did for airline tickets we wouldn't have a problem with health.

That's a good point Rick are -- and the airport you look like you're at an airport.

There's one behind me here but it's on the screens.

I'm not -- right now -- it's fake Rick thanks for coming -- as always great to see you appreciate it you -- thanks.

Load More