American Airlines wants to raise 188bet sports betting app download collectively,But I didn’t succeed this time

Big Traffic Author of 188bet sports betting app download article: Luo Songsong 2018-02-06
Airlines 188bet sports betting app download always find a way to pass costs on to consumers,But this takes time。

Over the past two months,U.S. airlines have made six widespread attempts to raise ticket 188bet sports betting app download,But they all ended in failure。

American Airlines did this to win the confidence of Wall Street,The latter is worried about the rise in international oil 188bet sports betting app download、Oversupply of domestic air capacity in the United States has caused airline profits to suffer。Last week,The stock 188bet sports betting app download of the top US airlines have declined to varying degrees。

Currently,International crude oil 188bet sports betting app download have risen to more than 65 US dollars per barrel,Reached a new high in the past three years。And usually,Fuel is the largest cost expenditure for airlines,Accounting for about 30% of the total cost。

The aviation industry is extremely competitive,Especially in a fully competitive market,The difference in fares of a few dollars may make consumers make different choices,Therefore few companies 188bet sports betting app download announce price increases alone,Because competitors may take the opportunity to seize market share。

After experiencing 9.After the 11th Incident and the 2008 Financial Crisis,The market concentration of the US aviation industry has become very high,American Airlines、United Airlines、Delta Airlines and Southwest Airlines account for more than 80% of the U.S. domestic market,It is precisely because of 188bet sports betting app download,U.S. airlines have a stronger say in setting fares,There is more or less a certain "tacit understanding"。

Currently,Air transport capacity in the US domestic market is in a state of oversupply。Therefore,Both giants American Airlines and Delta Air Lines have slowed down their capacity deployment in the past few years,This year their capacity 188bet sports betting app download only increase by 2.5%,Also to allow demand to gradually catch up with supply,Good to support higher fares。

But not all airlines are following 188bet sports betting app download "tacit understanding"。

United announced last week,By 2020,The company’s annual capacity growth rate will reach 6%。JetBlue Airways said its capacity growth this year will reach 8.5%,Alaska Airlines stated that their growth target this year is 5%。According to analysis by Bloomberg,U.S. airline industry capacity will increase by 5 this year.5%,As oil 188bet sports betting app download continue to rise,Airline profits will inevitably come under pressure。

Bloomberg analyst George Ferguson said,From the current point of view,Airlines have no pricing power,It will become difficult to offset the pressure of gas 188bet sports betting app download by raising fares,"Unless some companies adjust their expansion plans,Especially United and Southwest。”

As the originator of low-cost airlines,Southwest Airlines usually does not follow its competitors in raising 188bet sports betting app download,But regard it as a good opportunity to seize the market。And last month,When Delta Airlines wants to raise 188bet sports betting app download,As a competitor, United Airlines did not follow up。Last,Delta Airlines’ wishful thinking of raising 188bet sports betting app download also ended in failure。

If no one raises 188bet sports betting app download,In the end, the more seriously injured may be those low-cost airlines that focus on price sensitivity,Such as Spirit Airlines or some smaller airlines,Because they need to face higher labor and oil price costs。

American Airlines CEO Doug Parker said,The current fare is too low when the gas price is so high,Airlines will always find a way to pass costs on to consumers,But this takes time。Generally speaking,After oil 188bet sports betting app download rise,It will take at least 3 months,Air ticket 188bet sports betting app download will rise。

If these airlines’ price increase strategies work,It doesn’t mean they are necessarily winners,Because unreasonable increases in fares may suppress potential travel demand。“Two million passengers fly every day,If air tickets increase by US-3, 1%-3% of passengers may give up their travel plans。" Rick Seaney, CEO of 3 Victors, a company that tracks real-time air ticket transaction 188bet sports betting app download, said in an interview with Bloomberg。

*188bet sports betting app downloadWen LaiSource: Interface News, Author: Luo Songsong, originalTitle:《American Airlines wants to raise 188bet sports betting app download collectively,But I didn’t succeed this time》.

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