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"I see no abatement,"
Calyon Securities airline analyst Ray Neidl told the Seattle
Post-Intelligencer. "That's showing that there's more demand than
supply."
One survey showed business fares were up by 18% this year over last
year and leisure fares were up 9%.
The airport with the largest increase was Cincinnati, which showed
an average 36.6% increase, according to the DOT. One major reason:
Delta trimmed flights after its bankruptcy filing in late 2005.
Only three markets -- Honolulu, Denver and Kahului Hawaii on the
island of Maui saw one-year declines in fares.
Last week, Delta Air Lines raised its fares $5 one way or $10 round
trip. United matched the hike, making this the seventh industry fare
boost this year.
Two major reasons for the hikes: rising oil prices and increased
demand.
But even with the recent far hikes, rates are still lower than they
were 18 years ago, according to the Air Transport Association.
Source: TravelMole |