Air fares go up

No more discounting - the average price for markets tracked on Bing Travel is $281, up from $259 three week ago. I started noticing the change a week or so back when making reservations for a trip back east (quite frustrating when news stories were still talking about the desperate airlines dropping their fares on many routes). A couple of things are happening: Leisure travel has revived somewhat, as some economists had expected at this point, and airlines keep cutting capacity, leaving fewer seats to sell. From the WSJ:

As late as Memorial Day, the cheapest round-trip fare offered between New York and Honolulu was $353, according to FareCompare, which offers historical pricing information. But Wednesday the lowest price offered in that market had risen to $758. Washington-San Francisco was offered as low as $138 round-trip in May, but now the cheapest price offered in that market is $239, according to FareCompare.

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Mark Lacter
Mark Lacter created the LA Biz Observed blog in 2006. He posted until the day before his death on Nov. 13, 2013.
Mark Lacter, business writer and editor was 59
The multi-talented Mark Lacter
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