Latest news with #airfares
Skift
2 hours ago
- Business
- Skift
Delta's Use of AI for Setting Fares Sparks Concern in Washington
Some are concerned that Delta's use of AI could lead some customers to pay more airfares given the pricing system's individualized approach. Delta Air Lines said this month it had started testing AI to set some airfares, and lawmakers and consumer advocacy groups in Washington are expressing concern about how the practice might affect customers. Delta president Glen Hauenstein said during a call with analysts that the carrier was using AI to price 3% of its domestic fares, and planned to use the technology to price up to 20% of domestic fares by the end of the year. The carrier had already started experimenting with AI for pricing and reservations in 2023. 'We're in a heavy testing phase. We like what we see,' Hauenstein said. 'We like it a lot, and we're continuing to roll it out, but we're going to take our time and make sure that the rollout is successful as opposed to trying to rush it and risk that there are unwanted answers in there.' Delta ha
Yahoo
a day ago
- Business
- Yahoo
Ryanair profit more than doubles as fares jump
Quarterly profit at Ryanair has more than doubled after the Irish airline benefitted from higher air fares and a later Easter. Profit after tax rose 128 per cent to €820m (£710m) over the three months ended June, alongside a 21 per cent increase in ticket prices. Revenue rose by a fifth to €4.34bn as the low-cost carrier reported a four per cent increase in passenger numbers to 57.9m, at a load factor of 94 per cent. Chief executive Michael O'Leary said quarterly air fares had 'substantially benefitted' from having a full Easter holiday in April, alongside a weaker prior year comparison. Ryanair forecast a summer fare hike in May after a year in which lower fares caused a 16 per cent drop in profit. O'Leary said it was too early to provide meaningful annual profit guidance amid highly variable external factors, including conflict in the Middle East and Ukraine, the risk of tariff wars and European air traffic control 'mismanagement.' The airline earlier this month called on the president of the European Commission, Ursula Von Der Leyen, to step down after industrial action by French air traffic controllers caused hundreds of flight cancellations. Ryanair hits out at Boeing delivery delays Ryanair on Monday pinned full-year passenger growth of just three per cent on 'heavily delayed' Boeing deliveries. It took in five new Boeing 737 Gamechangers over the quarter, bringing its total fleet to 618. 'This summer we will operate over 2,600 routes, including 160 new routes, and we're seeing strong summer travel demand across our network,' O'Leary said. 'Our group airlines capacity constrained growth is being allocated to those regions and airports who are cutting aviation taxes and incentivising traffic growth, and we expect this trend to continue.' Competitive fuel hedging would provide a 'key advantage' amid volatile oil markets, the airline added, with the 2026 financial year nearly 85 per cent hedged at $76bbl.
Daily Mail
a day ago
- Business
- Daily Mail
Ryanair profits DOUBLE at start of holiday season as fares jump
Ryanair doubled its profits in the first quarter, thanks in part to the timing of the Easter holidays and higher air fares. Profits after tax rose 128 per cent to €820million (£710million) in the three months ending June, while flight prices rose 21 per cent. Michael O'Leary, chief executive, said fares had 'substantially benefitted from having a full Easter holiday in April, weak prior-year comps and marginally stronger than expected close-in pricing.' Revenue was 20 per cent higher at €4.34billion (£3.76billion) as passenger numbers increased 4 per cent from 55.5million in June 2024 to 57.9million in June 2025. The Irish airline said it continued to see strong demand and full-year traffic remains on track to grow 3 per cent to 206 million passengers. Defying gloom: Ryanair boosted profits in the first quarter despite industry headwinds In the second quarter, when European airlines make most of their profit, Ryanair says it expects to recover most of the 7 per cent fare decline seen last year. O'Leary said it was too early to provide full-year profit guidance as it would be heavily dependent on external factors, including the impact of tariffs, European air traffic control 'mismanagement', and conflict in the Middle East and Ukraine. Ryanair is Boeing's largest customer in Europe and is particularly exposed to the impact of tariffs on commercial aircraft. However, the airline said it was hopeful an exemption could be agreed between the EU and US. Mark Crouch, market analyst at eToro, says: 'Ryanair's latest numbers leave little doubt, this airline is built differently. 'Profits more than doubled in the three months to June, and all this while tariff uncertainty lingers and Boeing delays continue to hold back fleet growth. Most carriers would kill for these kinds of 'problems'. 'It's not just that Ryanair is outperforming a sector still facing turbulence, it's that it's doing so with a kind of swagger. 'Where others are weighed down by cost inflation, wavering passenger demand, and operational chaos, Ryanair is flying straight through it. Fewer planes? No problem. Higher fares? Passengers still pile in.' By contrast, EasyJet reported last week that industrial action by French air traffic control could weigh on profits this year. Kenton Jarvis told investors last week that French unions had presented 'unacceptable challenges for customers and crew' and created unexpected and significant costs for all airlines'. Ryanair came under fire over the weekend after an investigation by The Sunday Times claimed the airline pay bonuses to staff who catch travellers with oversized luggage. An employee claimed they were paid €1.50 (£1.30) per bag, with a €80 monthly limit.
ABC News
5 days ago
- Business
- ABC News
Darwin's airport operators hike landing fees to 'more than double' anywhere else in Australia
Darwin's airport has taken on the unenviable title of the most expensive capital city airport in the country, after operators hiked its landing fees by more than 110 per cent. The fee hike by Darwin's Airport Development Group (ADG), which came into effect on July 1, has already seen charter companies Hardy Aviation and Fly Tiwi raise their passenger airfares in response. Darwin-based MP and Special Envoy for Northern Australia Luke Gosling said the changes would make the NT's landing fees "more than double anywhere else in the country". "It's an unacceptable increase, in my view," he told ABC Radio Darwin. Mr Gosling said the ADG's fee hike had been referred to the nation's consumer watchdog, the Australian Competition and Consumer Commission (ACCC). "I'll be doing what I can with the ACCC [around] this power imbalance between the monopoly ADG, who runs the airport and sets the fees, and smaller operators," he said. Commercial airline Virgin has previously said that the ADG's plan to raise high landing fees would "put pressure on airfares and will not incentivise airlines to grow services to Darwin". Mr Gosling said it was more than likely the fee hikes would put upwards pressure on commercial passenger fares. "Unfortunately, that is the reality of it, that the airlines will seek to pass on some of those costs, which makes it even harder for us," he said. In a statement, the ADG blamed ongoing runway works for having to raise their fees. Darwin's commercial international airport operates under a "joint user deed" with the Australian Defence Department, which has been driving the airport's runway works. "The current adjustment is necessary, driven by the [runway works] which has significantly impacted [the airport's] operating costs," it said in a statement. "This is compounded by a decline in aeronautical activity and broader increases in construction costs driven by inflation. "ADG acknowledges the impact this adjustment may have on the [general aviation] community and is actively engaging with both the Northern Territory and Australian governments to explore mechanisms to support the sector." The ADG has previously said the runway works were also responsible for a downturn in flights, after negotiations to get more AirAsia flights into the Northern Territory fell over. Since that period, the airport has managed to attract more flights from AirAsia to Malaysia, however flights between Darwin and other cities within Australia remain scarce and expensive. At present, there are no daily daytime flights between Darwin and Melbourne, and flights to many other capital cities cost high rates and fly mainly in the middle of the night. The ADG said its fee hike was in line with ACCC and Productivity Commission principles. The ACCC has been contacted for comment.
Forbes
6 days ago
- Business
- Forbes
Domestic Airfares Increased Less Than Inflation, According To Study
Domestic airfares have remained relatively steady since 2019. getty Despite inflation rearing its ugly head over the past six years, with the Consumer Price Index (CPI) up by 26% since 2019, domestic airfares have remained comparatively steady, increasing at less than half the rate of inflation over that time period. Since 2019, economy fares are up 10.7%, with business class fares up just 1.5%. In contrast, the cost of a dozen eggs surged by 80% during this time, while a loaf of bread increased by 44.6%, a gallon of milk went up by 32.2% and a gallon of gas increased by 21.9%. The study tracked price changes for a range of items. FCM Travel FCM Consulting, a division of leading travel management company FCM Travel, has released a new analysis comparing the cost of domestic airfare in the U.S. to the overall rate of inflation. The study tracked price changes for a range of everyday household items – including eggs, bread, milk, gas and more – from 2019 to 2025. A key measure of inflation across the U.S. economy, the CPI reflects the average change in prices paid by consumers for a market basket of goods and services. In May 2019, a standard basket valued at $1 rose in price to approximately $1.26 by May 2025. Competition between air carriers has kept airfares at historically low levels, and has also led to better access to air travel for all Americans, according to In fact, nearly 90% of Americans have flown, half of them before their 16th birthday. Since airline industry deregulation in 1978, domestic fares have dropped nearly 50% (adjusted for inflation, including fees), and now passengers have more choices than ever. From 2000 – 2024, the number of competitors per domestic air trip rose, as did passenger access to lower-cost carriers. In 2021 two new low-cost airlines entered the U.S. air-travel marketplace. Airlines have been shifting their pricing strategies. getty 'In the U.S. aviation market, we continue to see strong competition among carriers, which has led to more stable airfare pricing over the years,' says Ashley Gutermuth, Head of FCM Consulting, Americas. 'Even as fuel prices and operating costs fluctuate, airlines have mostly avoided aggressive fare hikes on domestic routes in order to maintain yields and passenger load factors. Rather than raising base fares, airlines are instead shifting their pricing strategies and optimizing per-passenger revenue through optional add-ons and evolving loyalty program offerings.' Frequent flyers can leverage airline loyalty programs by accumulating points or miles through flights and other purchases, then redeeming these for rewards like free flights, upgrades and other travel perks. These programs also offer benefits such as priority boarding, lounge access and exclusive deals, enhancing the overall travel experience. In late January, travel demand began to slow. getty Jason Kramer, FCM Consulting, Global Senior Air Consultant, says, 'U.S. airline pricing strategies have remained mostly stable since the end of Q1 2025. However, earlier in the year, there was a distinctive shift driven primarily by macro-economic conditions, and a couple of high-profile flight incidents. In late January, travel demand – both business travel and leisure – began to slow. In response, U.S. airlines started offering lower fares and maintained those lower thresholds much closer to departure dates, when historically airlines would raise fares for last-minute, on-demand business travel. This has led to more stable pricing in 2025, compared to previous years, which saw sizable year-over-year increases in fares.' Airlines were quick to assess their capacity. getty According to Kramer, as travel demand began to slow in early 2025 and has since stabilized, airlines were quick to assess their capacity (frequencies, aircraft type, markets, etc.) and trim to better align supply with demand. He adds, 'This, in part, has led to fare stabilization, and resulted in prices not being pushed even lower. Airlines, as is their nature, remain focused on trimming costs through capacity controls, employment levels and investments.' MORE FROM FORBES Forbes Explore Celestial Wonders Of The Night Sky At These Locations By Roger Sands Forbes Two Influential Women Hospitality Leaders Talk Shop By Roger Sands
