Soaring Air Fares

Soaring Air Fares In an member written in the New York Times by Jad Mouawad on September 4, 2010, the increase in airfares is looked at and explained. It states the cause of the increase in airfares is callable to the airlines not adding more flights even though the scrimping has improve. With less flights and fuller planes, the airlines piddle been able to increase fares and add fees collectable to the demand. Mouawad goes on to say that the increase of airfare seems especially steep because it comes on the heels of a particularly low point in the industry. Furthermore, the denomination mentions the economy itself as a wild card because if the economy takes a turn for the worse, fewer people fly, thus driving bells down. As it stands, the return of the line of credit traveler has been enough to rationalise rate increases and improve bottom line revenue increases for the airlines. The article found that Passengers are consecrateing the price. For leisure travelers, domestic fares have increased by more than 20 percent in the second quarter compared with a year earlier, according to data compiled by the travel Web site Orbitz. On world(prenominal) routes in that period, the climb was even steeper, with fares rising 30 percent. For business travelers, ticket prices increased by 12 percent in the first half of the year.

The article also found The price of round-trip coach tickets for a flight between Chicago and Atlanta, for instance, was virtually $250 this summer, a $50 increase over last year. A round-trip ticket from New York to Paris, which sold for less than $700 last year, salute more than $1,000 this summer. These kinds of findings make me wonder about the overall meat that airfares have on the economy. According to Principles of Macroeconomics the quantity demanded of any well-grounded is the amount of the good that buyers are willing and able to pay (67). The article suggests that the airlines did not increase the number of flights when the economy improved in order to keep supply down and increase... If you requisite to get a full essay, order it on our website: Orderessay

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