The Idea Blog

Airlines and fuel prices

Posted by Mark on Tuesday, June 3rd, 2008. Filed under Customer Service.

According to a BusinessWeek story, “because of the spike in fuel costs, airlines now lose roughly $60 on every round-trip passenger, a slow bleed that puts the industry on pace to lose $7.2 billion this year, the largest yearly loss ever.”

Sure, that’s bad. But if fuel costs are hurting, why not raise your fares? Will I not fly? Are they going to make it up in volume?

This is another part of my data dump on airlines as I - with your help - remake the industry. Or we could just ignore the airline industry. They’re ignoring us.

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One Response to “Airlines and fuel prices”

  • Mark, I have never agreed with anyone more than you on airlines. First, I agree that they should raise their fares and those that can fly on flights that are profitable will fly. Those that can’t, won’t. Why keep running flights that are not profitable especially when doing so creates an experience that is worse than taking a Greyhound bus to Amarillo?
    The entire flight experience has become a joke. The fare structure is the most convaluted pricing system known to man and only disenfranchises the majority of those that should otherwise be loyal customers.
    I go out of my way to avoid flying anywhere other than long distances and then, I drive anywhere from 50 to 100 miles to fly on an airline that treatss its’ customers like they should (and not on the “cheapest” flight either. The airlines are creatures of their own making and, I believe, deserve what they get!
    Sorry for the rant but you hit one of my two real hot buttons. Let’s talk about property and casualty insurance next…………………..

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