Index Remains Relatively Flat

Posted on Monday 7 May 2007

The national index is currently at 346, just 2 points above where it was before the Continental increase on Thursday.

The latest round of increases really didn’t have a major effect on the index value. Both the national and the business fare indexes show only a small uptick based on the fare initiative.

I attribute this to the fact that Northwest Airlines only matched the increase in 20% of the top markets. As long as there is a lower fare in the market, the index will not move up.

Perhaps of greater importance is where the index lies relative to previous years. As of this morning (including US Airways’ roll back), you can see that the index is significantly below 2005 and 2006.

Given this differential, I would expect continued efforts by carriers to raise fares heading into the high summer travel season.


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