Can't believe with how low fuel prices have gotten they are still so high. I'll remember that when fuel goes up and they say how big % of costs is fuel and they need to add surcharges.
OT: can't believe airline fares
- Thread starter huskerfan66
- Start date
forgive me if I'm wrong but i think airlines negotiate fixed fuel costs over a several year time span as a way to hedge against variable oil prices ..
I've heard it said that the reason for high airline fares is as long as they are still filling the seats(and they are), there is no incentive for them to lower prices. If people are willing to pay higher prices, then they will stay high.
Shoot my buddy just got round trip from KC to Florida (I forget where in Florida) for 150 dollars
Seems like when I fly there's a half a butt in one seat, and a half a butt encroaching into mine.
How about that! Costs get passed along to the consumer, savings get passed along to the shareholders.
It is not just airlines. Take a look in a grocery store. You heard the same thing about milk, eggs, cereal and everything else. You also heard it about building supplies. Most times the higher fuel cost is a built in excuse to create another price floor. The same excuse was used by the FedEx, UPS and the post office to increase prices, but when oil is at decade low prices, they will not move prices back down.
Don't forget how they cleverly repackaged a lot of items to LOOK the same size, but be juuuust a bit smaller so they could keep the price the same. Effectively raising the price without you noticing. I'll go out on a limb and say most of that packaging never went back to regular size.
Where airlines really make their money is from the charges of bags. I just flew from Omaha to Orlando on Allegiant and payed $156. Just got an email fare sale notice and I plugged in dates in February and I could fly for $122 rt. The only problem is you can only fly out of Omaha on Thursday and Sundays. They also fly out of Grand Island but they were higher. It is a direct flight so its nice not having to change planes.
I just checked SW's "deals"...like 1 in 20 flights is actually priced at that getaway value price. It used to be anywhere in the US for those value price sale deals.
I'll try to step back from this a bit and recognize these current prices are a reflection of the good economy and leave it at that. Semi-related but kind of odd that there are only 2 airplane manufacturers left in the entire world (Boeing and Airbus), and that both are backlogged for several years on new orders.
I'll try to step back from this a bit and recognize these current prices are a reflection of the good economy and leave it at that. Semi-related but kind of odd that there are only 2 airplane manufacturers left in the entire world (Boeing and Airbus), and that both are backlogged for several years on new orders.
Postal Service does not add a fuel surcharge like UPS or Fedex that's probably why they have the USPS deliver most of their packages for them. They charge you the surcharge and have the Post Office deliver their packages.
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