Airlines are going premium. Prices are rising. Will cheap tickets be harder to find?
In the midst of holiday shopping and travel, Colorado resident Tom Pipes didn’t want to spend extra money on a plane ticket. He flew from Colorado to Los Angeles on Southwest, the grandfather of budget-friendly airlines.
“If there was a first-class option, I wouldn’t use it,” Pipes said this week after arriving at Los Angeles International Airport. “I fly for the price.”
Unfortunately for Pipes and travelers like him, inexpensive tickets probably are going to become increasingly difficult to find.
Over the last year, the average cost of a domestic U.S. flight increased more than 4% to $269 in November, U.S. Bureau of Labor Statistics figures show. It is a trend that is expected to continue as budget airlines stumble because of rising costs and a crowded field of competitors, while major carriers press ahead with strategies focused on pricier, premium ticket options.
“You can expect to see pricing across the board firm up and move higher,” said Tom Fitzgerald, an industry analyst at TD Securities. “If you’re really price sensitive, there may not be as many deals for you.”
