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Airlines look to fare sales to fill seats

Weak economy erodes demand for air travel

By Harry R. Weber, Associated Press

Published January 7, 2009 at 12:05 a.m.

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A wave of fare sales has spread across the airline industry in the early days of the new year as the weak economy continues to put pressure on carriers to fill seats even after they drastically reduced capacity and some expressed willingness to cut more.

Many experts and even executives at some airlines had expected that after deep capacity cuts went into effect starting in September, the number of fare sales would be fewer and farther between. But fuel prices have come down significantly, and the weak economy has eroded demand for air travel.

Even so, on average base airfares outside of the travel periods for the recently launched sale fares are higher today than in the last few years, said Rick Seaney, head of airfare research site FareCompare.com. He noted there were 30 attempted airfare hikes between summer 2007 and summer 2008, two-thirds of which were successful.

The fare sales just announced do not affect fees for baggage or other services charged by some of the carriers.

It's not unusual for airlines to announce fare sales in January, but what's different for several carriers this year is that the discounts are for travel extending as late as April, May or June, Seaney said.

The sales last January were typically for travel through March, he said.

Seaney said he believes uncertainty in the economy is the reason for the change.

"They're not sure what's going to happen at the last minute," Seaney said.

A handful of major carriers and discount carriers have launched fare sales since Dec. 31. Others are expected to follow with sales of their own, or to at least match discounts offered by rivals on competitive routes, Seaney said.

Denver-based Frontier Airlines launched a four-day fare sale Monday that is good for travel in the United States, Mexico and Canada, through June 10. Its lowest round-trip sale fare is $98 from Denver to Albuquerque, Omaha or Salt Lake City. The price doesn't include some fees.

Frontier spokesman Steve Snyder said the company wants to galvanize sales for May and June a bit early this year.

"January has historically been a very strong booking month for us, and this year we want to try to capture some of the early summer travel by offering some very competitive prices while people are in the travel booking mode," Snyder said in an e-mail.

Other carriers that have launched fare sales recently include Dallas-based Southwest Airlines Co. - for travel between Jan. 15 and April 30; Fort Worth, Texas-based AMR Corp.'s American Airlines - for travel within the U.S. between Jan. 14 and March 4, and between March 5 and April 30 at slightly higher fares; and Chicago-based UAL Corp.'s United Airlines - for travel within the U.S. from Jan. 14 to March 4 and for travel to several foreign destinations as late as April 30.

United's fare sale was launched Dec. 31. It has done a New Year's fare sale for several years now, spokeswoman Robin Urbanski said.

Discount carrier AirTran Airways, a subsidiary of Orlando, Fla.-based AirTran Holdings Inc., said Tuesday it was offering a nationwide fare sale with one-way fares starting as low as $39. The fares, available for purchase through Jan. 15, are good for travel to and from Florida and San Juan, Puerto Rico, through March 11, while all other sale fares are good for travel through May 20.

"We are uncertain about the economy and we are trying to build business on the books for the winter and spring," AirTran spokesman Tad Hutcheson said.

New York-based JetBlue Airways Corp. said Monday it was offering a fare sale involving more than 40 destinations in the Northeast, Florida, California and the Caribbean. For most city pairs, travel must take place between Jan. 12 and April 1.

Most of the airline offers come with restrictions that vary by carrier from advance purchase requirements to minimum stay requirements to blackout dates.

Comments

  • January 7, 2009

    5:18 a.m.

    Suggest removal

    Buffs writes:

    So now that fuel prices have gone down, shouldn't the various airlines stop charging passengers the $15-$25 per bag fee since they claim higher fuel prices were the reason for the fee in the first place?

  • January 7, 2009

    7:04 a.m.

    Suggest removal

    rezdawg8 writes:

    They would reduce those fees, but the airlines are already locked in on fuel hedging prices they paid for when the price of oil was significantly higher.

  • January 7, 2009

    7:35 a.m.

    Suggest removal

    SheikYurBooty writes:

    Buffs - apparently the market isn't requiring that.

  • January 7, 2009

    1 p.m.

    Suggest removal

    bph writes:

    Airlines need to cover their costs. I think the airlines should not nickel and dime people however the public needs to get over the idea that air travel should be cheaper than driving your car. Figure out what it would cost you to take your family of 4 on a 3 day road trip from Denver to Orlando. Account for gas, food, hotel. Don't forget to account for depreciation on your car per mile. By the way double that dollar figure when you realize you have to drive back.