Aircraft delays and capacity constraints are contributing to higher airfares in the US. Airlines are facing financial pressures and are prioritizing profitability, leading to fewer fare sales and increased ticket prices. Despite these challenges, some airlines are reporting strong revenue growth, particularly in trans-Atlantic routes.
Aircraft delays have added to growth limitations.Fare-tracking platform Hopper this month said domestic"good deal" U.S. airfare in January is at $304, up 12% over last year, with more domestic flights going for more than they did last year through at least June.and Airbus, air traffic constraints and financial pressures have limited airlines' ability to expand flights, which has pushed fares higher.
"We do expect airfare to come up," American CFO Devon May said in an interview. The airline forecast a wider-than-expected-loss for the first quarter, however, disappointing investors as it expects an increase in costs, like higher wages from new labor contracts signed last year."The tide is lifting a lot of boats," he said in an interview."We're exceeding our targets in revenue. Momentum we saw in the fourth quarter is continuing into the first.
AIRFARE AIRLINES CAPACITY DEMAND PROFITABILITY
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