The San Francisco Chronicle predicts that while airlines are upgrading seats and in-flight services…higher fares, hotel rates, and car rental rates will mark the year ahead in travel. The Travel Industry of America predicts only a half a percent of growth in domestic airline passenger traffic, and 5.5 percent growth for international traffic.
U.S. Airlines, who have not upgraded their products much over the last few years due to industry-wide bankruptcy and losses, are playing catchup to the international carriers, who have been. They are preparing to replace older planes, renovating existing planes with improved interiors and in-flight entertainment, as well as business and first class seating comparable to the international carriers, who boast lie-flat seating on their long-haul flights.
Today, American Airlines increased fares from $5 to $20 one-way in most domestic markets, citing higher fuel costs. Fares were raise $5 for each 500 miles, up to $20 for 2001 or above.