Airlines Need to Hike Fares to Break Even, Says Delta Chief
April 25, 2008
Domestic airlines in the US can break even only if they hike their prices by 15 to 20%, reported the Associated Press, quoting Delta Air Lines’s CEO Richard Anderson.
Mr Anderson said that the fares should reflect the rising fuel costs. The US-based airlines have raised the fares nine times since December 2007, according to BestFares.com. However, only Southwest Airlines could manage to post a profit among large carriers.
American Airlines, Continental Airlines, and United Airlines have all reported a loss in the first quarter of 2008 due to rising fuel costs.