Airlines’ flexible pricing power indicates higher fares in 2025 | Real Time Headlines

Due to strong demand, airfares will rise this year even during the harsh winter. Capacity growth is limited Promote airline pricing flexibility.

Fare tracking platform Hopper said this month that a “great value” domestic air ticket in the United States was $304 in January, up 12% from last year, and that at least through June, more domestic flights are priced higher than last year.

New aircraft delivery delayed boeing company Like Airbus, air traffic restrictions and financial pressures have limited the airline’s ability to expand flights, pushing up fares. Spirit Airlines Apply Chapter 11 Bankruptcy Protection November was the most dramatic case and cut flights to cost cutting.

American Airlines Thursday Forecasted revenue surge Compared with the same period in 2024, production capacity in the first quarter will increase by 5%, while capacity will be flat or even decrease by 2%.

“We do expect ticket prices to increase,” U.S. Chief Financial Officer Devin May said in an interview. However, the airline expected a bigger-than-expected first-quarter loss, disappointing investors as the airline Costs are expected to increase, such as wage increases from new labor contracts signed last year.

Entrepreneurship carrier breeze airlines Reporting first-quarter operating profit for the fourth quarter on Thursday, founder David Neeleman JetBlue Airwaysindicating that conservative industry growth bodes well for future performance.

“The tide is lifting a lot of boats,” he said in an interview. “We have exceeded our revenue targets. The momentum we saw in the fourth quarter will continue into the first quarter.”

Alaska Airlines It said late Wednesday that it expects first-quarter revenue growth to rise by “high single-digit” percentage points, with capacity growth of no more than 3.5%.

United Airlinesone of which First quarter profit forecast Far exceeding analysts’ expectations, there was a similar sentiment, especially regarding domestic travel.

“As underperforming airlines eliminate unprofitable capacity at an ever-increasing rate, and Business traffic growth is accelerating and the domestic pricing environment is improving. “As airlines prioritize profitability, discount rates are lower and industry fare sales are less common. “

Delta Air LinesThe airline earnings season kicked off earlier this month. Forecast revenue growth Sales in the first quarter increased by 7% to 9%, and sales on its global network continued to grow.

Traveling in off-season, especially to Europehas always been a highlight for large US operators. Delta Air Lines President Glen Hauenstein, for example, said on a Jan. 10 earnings call that transatlantic growth is growing as demand “benefited from strong U.S. sales points and an unprecedentedly extended off-season.” Unit revenue should grow by mid-single digits.” Peak results. “

Operators also saw it More customers buy Roomier and more expensive seats.

jetblue airways and Southwest Airlines It is scheduled to report fourth-quarter results next week and provide a 2025 outlook. Both operators are working hard to increase revenue through more new services premium seat and introduce other amenities.