Market Overview

US Airlines’ Pullback Fares – Low Cost Carriers Responsible (LUV, UAUA)


According to, legacy US carriers rolled back ticket prices owing to competition from low cost carriers. Low cost carriers such as SouthWest Airlines (NYSE: LUV) did not increase their fares despite the hike in fares this year by leading carriers such as UAL Corporation’s (NASDAQ: UAUA) United Airlines.

Airlines have reported greater demand from business travelers, who tend to pay higher prices. Business traffic increased 1.7% in December 2009, but IATA said that business travelers are increasingly travelling in the economy class.

The increasing competition from low cost carriers for market share has resulted in second such rollback in recent weeks.

Posted-In: News Markets


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