Travel Tips

Travel Tip: Airlines Find New Ways to Compete Over Price

airportIt might surprise you to learn that, according to American Airlines, only 13 percent of passengers financially support the airline.

It found 87 percent of passengers only fly the airline once a year—and they make their decision to fly solely on price.

What this means is that airlines like American find themselves in competition with low-fare airlines like Spirit for the bulk of passengers.

What does that mean to you?

It means that American Airlines—like Delta Air Lines—is now about to offer a “no frills” choice for fares starting in 2016.

Watch for deals on nonstop flights, where American is looking for ways to compete strictly on price with rivals such as Spirit, Frontier, and on international flights, Mexican carrier Volaris and Europe’s Norwegian.

Earlier this year, Delta offered something called “basic economy” fares for exactly the same reason.

Not surprisingly, the fares are totally non-refundable and don’t allow changes of any kind.

What about seat assignments? It’s a roll of the dice, and they can only be made after you check in.

For more information about airlines and fees, check out:

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