Travel plan idea blog

Cheap airfare in America this fall

Jetblue is announcing cheap fares for Fall travel in America. This is killing bigger airlines:

Pricing power in the industry has permanently shifted from the big airlines, which used to be able to drive out upstarts, to the low-cost carriers that can thrive at lower prices, he said.

"David knows how to make money," Parsons said, "and Goliath doesn't."

The older airlines, such as United, American and Delta, are saddled with higher costs for labor and planes and have suffered huge losses since 2001.

Fare cuts are "a continuing problem for the legacy carriers," said Ray Neidl, an analyst with Blaylock and Partners. "They are going to have to cut their costs to compete with the low-cost carriers."

Posted by James Trotta at July 15, 2004 12:18 AM