Delta President Ed Bastian says that air fares have to go higher to counter fuel costs even as it plans to add capacity in the next quarter.  And it isn’t just Delta that is adding capacity.

Air fares might need to go up to counter fuel costs but making that argument while you lose your capacity discipline and start chasing market share is just a different verse of the same song we’ve seen played out in the airline industry for the past 30 years.

Think the airlines learned their lesson?  I don’t and I think this is more evidence of that fact.  Load factors are very high and airlines think that means they can poach traffic from their competitors.  In fact, they can.

For the right price.

Filed under: Airline News by ajax
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