With an increase in oil prices international flight prices almost doubled. For three months, it has been falling down and it keeps going in that way. Will airlines reflect it to the prices?
No one can predict what will happen that far in the future – including the airlines.
For one thing, airfares are set by supply and demand. If demand is strong, the airline has no reason to reduce prices – regardless of the price of oil. If demand for seats is low, the airline may be unable to raise prices enough to cover increases in expenses without losing large amounts of business.
With the world economy doing poorly and getting worse, perhaps demand for seats will be low next year and prices will come down. However, nothing in life is certain.
February 22nd, 2010 at 6:46 pm
Only g-d knows……………..and g-d could be wrong in this case.
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February 22nd, 2010 at 7:21 pm
No one can predict what will happen that far in the future – including the airlines.
For one thing, airfares are set by supply and demand. If demand is strong, the airline has no reason to reduce prices – regardless of the price of oil. If demand for seats is low, the airline may be unable to raise prices enough to cover increases in expenses without losing large amounts of business.
With the world economy doing poorly and getting worse, perhaps demand for seats will be low next year and prices will come down. However, nothing in life is certain.
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February 22nd, 2010 at 8:00 pm
I sure hope so i would love to get back to the philippiones to be with my wife
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February 22nd, 2010 at 8:37 pm
I think swimming is cheaper!
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February 22nd, 2010 at 9:12 pm
It is hard to say because summer is usually peak travel season. We will have to see how the airlines are doing and how the economy is. If the economy is weak, people may not travel much so flights may decrease a bit.
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