AirTran Airways Triggered First Wave of Airfare Increases

AirTran Airways

Review of yesterdays 12:30pm EDT domestic airfare distribution shows that AirTran Airways triggered the first wave of increases of $5 and $10 each way between 32% of the top 50 U.S. Domestic cities, with Continental matching and extending at 8:00pm EDT along the other major airlines matching selective overlap markets and extending from their hubs.

After the 5-June 10:00 a.m. and 12:30 p.m. EDT airfare distribution feeds (next feed 8:00pm EDT) the activity is relatively light with the following highlights:

  • Continental reinforces its increase of $5 one-way for 3-day advance purchase airfares between 11% of the top 50 cities (30% Monday night), with very little Southwest route overlap
  • The other major airlines continue to maintain equilibrium by matching selected overlap markets with Continental and AirTran
  • Northwest and Delta roll back some of its matching increases from last night on competitive Southwest routes

The sensitivity to increases on Southwest routes at this point in the week is worth noting.

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Published: June 5, 2007