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Airfares may stay sky-high even if fuel prices fall, airline CEOs warn

New York Post·Ariel Zilber·about 1 month ago
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Travelers hoping airfares will fall once jet fuel prices cool down could be in for a rude awakening. Airline CEOs are already signaling they plan to keep ticket prices elevated — even if their biggest cost starts to ease. “The longer consumers pay these prices and airlines get used to this revenue stream, the more likely it is (to hold),” Scott Kirby told investors on United’s latest earnings call last week. United CEO Scott Kirby says higher airfares are likely to stick even if fuel costs fall. AFP via Getty Images Passengers are already feeling the squeeze . United flyers are paying about 20% more per mile than they did a year ago. American Airlines CEO Robert Isom struck a similar tone, telling analysts he’s “bullish” on maintaining higher fares even if fuel costs retreat. “I think that what you’re seeing is recognition that travel is still a good deal,” Isom said. Delta CEO Ed Bastian signaled the airline plans to keep fares elevated even if oil prices stabilize after the Iran-driven surge.…

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