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Get ready: Plane tickets are about to go way up

POSTED June 13, 2018 8:19 a.m.
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Your plane ticket out of here is about to get much more expensive.

As CNNMoney reported, airplane tickets are sure to rise in the next few months since rising fuel prices have put pressure on airlines to make a profit.

Major carriers told CNNMoney they expect to see higher prices.

However, it’s unclear how much higher the prices will jump.

"Consumers will pay more to travel because of higher fuel costs," said Henry Harteveldt, a travel analyst and the founder of Atmosphere Research Group. "I think it will affect summer travel for people who have not already booked their flights."

Airlines can raise their prices in a number of ways — either by adding to base fares, adding fuel surcharges or even selling fewer cheap seats.

American Airlines CEO Doug Parker said in April that prices will rise if fuel costs remain the same, USA Today reported.

"If indeed this is where fuel prices are going to stay, I would expect you would see higher fares to consumers over time," he said.

Delta CEO Paul Jacobson said something similar to analysts.

"We have to be a business that gets paid for the cost of our product," Delta CEO Paul Jacobson said, according to CNN. "When the cost of that product changes, we have to adapt to the appropriate demand environment and the pricing."

The International Air Transport Association has already cut its profit forecast for airlines this year to $33.8 billion, which is 12 percent lower than what the forecast was at the end of last year, according to a report of the IATA’s recent meeting with airline executives.

The IATA said labor costs and interests rates will hurt the industry’s possibility of making a profit.

And, as Forbes reported, renegotiated labor contracts for pilots and cabin crews have also led to increased spending by airlines.

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