Americans traveling to Europe this summer can expect fewer airline seats offered at higher prices.
US carriers have cut back capacity on trans-Atlantic flights maintaining higher fares in an effort to safeguard business from Europe’s current economic woes, Bloomberg has reported.
“The industry is being proactive about restructuring the amount of seats that are available for sale given the European debt crisis,” Rodman & Renshaw analyst Dan McKenzie said.
As the Airlines Reporting Corporation revealed that demand for travel to Europe has remained strong, with ticket sales growing almost six percent for peak summer months, according to Travelocity, ticket prices have grown.
Airline mergers and global marketing alliances are resulting in less competition and higher ticket prices, Travelocity editor Courtney Scott told Bloomberg.
This week will see carriers release their operating results for June. Stay tuned to e-Travel Blackboard to get an initial glimpse into how airlines have fared over the first month of summer.
Source = e-Travel Blackboard: G.A