Travel is back, but airline ticket prices aren't quite what travelers remember. Airfares for the upcoming summer travel season have already surpassed pre-pandem...
“The short way to say it is we are seeing a lot of strength in the fare environment with customers who frankly value the quality of product that we have and are willing to pay us to fly,” said American Airlines Chief Operating Officer Vasu Raja. “So we’re encouraged by that and we see those trends going forward into the summer.”
“Another macro way to think about this is we’re just now getting back to 2019 levels of revenue,” Kirby said. “Arguably there’s another 16% to go.” Airlines are seeing cost pressures just like other segments of the economy facing logjams as the world emerges from the restrictions and disruptions of the COVID-19 pandemic.
Airlines are also dealing with some supply and labor problems. Boeing has halted delivery of its signature widebody 787 Dreamliner jets, cutting into the ability of American Airlines and other carriers to fly, particularly to long-haul destinations. American has already cut flights from DFW to places such as Santiago, Chile, and has delayed the launch of flights to Tel Aviv, Israel.
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