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Do Fare Increases Matter?

If you watch the news (or read the paper or whatever), you’ll notice news organizations breathlessly noting that airlines have raised fares $5 or $10 and that we should be prepared to pay more.  Well, a noted airline analyst has a different feeling on the matter:  JP Morgan’s airline analyst says that despite the fact that airlines have raised fares 11 times in the past 14 months, the fare hikes didn’t actually result in passengers paying more.  In fact, for the first 3 months of this year, fares were .1% lower than during the same period last year.  (Interesting…or maybe there just aren’t any fun airline stories this week…)

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