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 line that is expected to continue as budget airlines stumble due to rising costs and a crowded field of competitors, while the industry’s 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.” American, Delta and United are the world’s three largest airlines and are projected to account for 97% of the industry’s operating profit in the U.S.
this year, according to a Deutsche Bank report. In an attempt to catch up, low-cost carriers are rolling out more expensive options for seats that come with perks such as early boarding and extra legroom, leaving less .
