(March 21): If you’re planning your summer vacation, brace yourself for higher airfares, Yahoo! Finance reported.
A combination the rise in oil prices amid the Russia-Ukraine war and a travel demand rebound after the pandemic disruption of the last two years is leading airlines to confidently raise prices, Yahoo! Finance reported.
“The biggest surprise to us in recent airline commentary was that demand was so strong that they feel confident in the ability to pass through the majority of the fuel increases,” Bank of America analysts wrote in a note after a presentation by Delta Air Lines and United Airlines at the J.P. Morgan Industrials Conference.
“This is way ahead of how airlines have been able to price historically, and we think near term labor issues and pilot pipeline helps keep a lid on capacity,” Yahoo! Finance reported.