My boyfriend told me that the reasom that ticket prices went up was because of the stock market drop this past Tuesday 2/27. He thinks that the stock market influences prices this fast. I believe that they do but not so fast (maybe 1 month's time). We both agree that what a company does affects stock prices negatively or positively. We disagree on how fast stock market 'drops' affect consumers. I'm saying the increase in ticket prices due to Spring Break, JetBlue's cancellations 2 1/2 weeks prior. He's saying is the stock market. HELP!!!!!!
2007-03-02 02:30:51 · 3 answers · asked by Negrita Linda 3 in Business & Finance ➔ Investing
Airline ticket prices are increasing in direct relation to the rising cost of gas prices. Once one airline raises their rates, it is pretty much a green light for all other carriers to raise theirs as well, otherwise they would be leaving money on the table. The most recent example is with Southwest raising their rates in the last month.
There is a good article about it on CNN money: http://money.cnn.com/2007/02/12/news/companies/southwest.reut/index.htm
Like any other service based industry, demand plays a large part in pricing the product. The is best illustrated by Holiday ticket prices (think long ticket counter lines at Thanksgiving, Christmas.)
2007-03-02 03:36:26 · answer #1 · answered by Drew 3 · 1⤊ 0⤋
My guess would be airline tickets went up because oil prices went up, not because the stock market went down.
2007-03-02 02:34:27 · answer #2 · answered by Faye H 6 · 0⤊ 0⤋
The airline companies are incompitent, that is why prices go up. Also the value of the US$ has gone down because of Bush's mistakes, to the tune of 20%.
2007-03-02 02:35:54 · answer #3 · answered by Anonymous · 0⤊ 2⤋