Thu, 23 Jan 2025

Airlines flex pricing power, signaling higher fares in 2025

Airlines say strong demand and limited capacity are keeping fares afloat.

* American Airlines forecasted a 5% jump in revenue for the first quarter, but also expects an increase in costs.
* Alaska Airlines predicted revenue growth of "high single digit" percentage points with capacity up no more than 3.5%.
* United Airlines saw strong demand for domestic trips and expects industry fare sales to be less prevalent as airlines prioritize profitability.
* Delta Air Lines forecasted revenue growth of 7% to 9% for the first quarter, with unit sales growing across its network. Additionally, many airlines are seeing more customers buy up for roomier seats, which is contributing to higher fares.
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