Monday, July 6, 2009

Air fares on air


They're nice to us over at NPR; they had us on Morning Edition the other day, and one point we made bears repeating: international routes, a source of profit strong enough to help keep down domestic fares, are now suffering, and their prop is gone. So domestic fares are going to start back on the way up, and have already begun to do so. The back of the plane is getting pricier as the front empties out, with premium travel, travel in first and business class, continues its plunge. Revenues from premium fell by 44% in April, reports IATA. And it's going to get worse, with transatlantic travel plummeting, enough so to threaten the future of British Airways.

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