U.S. airlines see increasing competition from European budget airlines in the trans-Atlantic flight market.
Bloomberg reported American Airlines Group saw a 9.1 percent drop in trans-Atlantic fares — the biggest drop since the end of the recession in 2009. American wasn’t alone — Delta also saw a downturn.
European budget carriers like Norwegian Air Shuttle ASA and Iceland’s WOW air add new flights, breaking into American markets at a fast clip and cutting into the domestic heavy hitters’ profits. The bump in seat supply is forcing fares down.
American blamed low-cost competitors for a recent second quarter decline in average fares per mile. Delta, which saw a similar decline, also laid blame on these budget carriers.
That’s bad news considering these airlines also face domestic pressure from low-cost carriers like Spirit and Frontier.
The solution will likely be to extend the basic economy pricing to overseas flights. These stripped-down fares do not allow travelers to select their own seats or choose upgrades.
Read This Next
Introducing
FX Excursions
FX Excursions offers the chance for once-in-a-lifetime experiences in destinations around the world.
#globility
Insta FeedDaily
Apr 30, 2024Six Senses Kyoto Debuts in Japan
Six Senses Kyoto recently opened its doors, making it the first Six Senses property in Japan. Situated closely to iconic heritage shrines and palaces within the ancient capital, Six Senses Kyoto invites guests to escape and enjoy holistic wellness, signature sustainability and out-of-the-ordinary experiences.
Sponsored Content
Briggs & Riley: Elevate Your Journey with Quality Luggage
Embracing a life well lived often means embracing a life well-traveled. Every journey becomes a canvas for experiences that shape our lives and at the heart of every adventure lies the indispensable companion: quality luggage.
Daily
Apr 29, 2024Hotel Indigo Grand Cayman Announces Dining Concepts Ahead of Grand Opening
Hotel Indigo Grand Cayman is slated to debut May 8. Ahead of its highly anticipated opening, the resort from IHG Hotels & Resorts and Dart Properties announces its diverse restaurant and bar offerings.
Daily
Apr 29, 2024Eames Institute of Infinite Curiosity Opens Collection to Public for First Time
As a married couple, Charles and Ray Eames gave shape, literally, to America's mid-to late 20th century. Most of us know them as furniture designers, but they also designed hundreds of other products, from airplane stabilizers to magazine covers to various types of tools. The Eames Institute presently holds more than 40,000 artifacts including prototypes, products and items not originally designed to be retained or preserved but have been collected or retained.
Sponsored Content
Hotel Indigo: The World’s Neighborhood Hotel
Part of the IHG Luxury & Lifestyle portfolio, Hotel Indigo is the world’s neighborhood hotel that celebrates how guests can discover, or rediscover, some of the most inspiring and culturally rich neighborhoods around the world. When staying at a Hotel Indigo hotel, it's not just about visiting a place — it's about being fully immersed in the neighborhood and wanting to take a little bit of it home. When traveling for business, Hotel Indigo offers a unique experience tailored to each location, making it the perfect choice to stay while traveling for work. With IHG Business Edge, travel managers have exclusive access to enticing perks, comprehensive travel metrics and carefully curated educational resources. It also includes a guaranteed discount on both business and personal travel for managers and employees, alongside an automatic upgrade to IHG One Rewards Silver Elite status after the initial IHG Business Edge stay.
Daily
Apr 29, 2024This 5-Star Hotel is Your Gateway to the Scottish Highlands
As one of the most popular destinations in the world, the Scottish Highlands is unmatched when it comes to green mountains, lush glens and vast lakes. Being able to see it in all its beauty can be a challenge when considering just how large it is, and finding a place to stay that grants easy access to some of the most scenic spots in the Highlands is important.
6 European Castles to Put on Your Travel List
Slideshow
Apr 29, 2024Daily
Apr 25, 2024Hôtel Royal Unveils evian SPA, the First in Europe
Hôtel Royal Evian Resort, France, recently debuted its all-new evian SPA, the only one in Europe and inspired by the water cycle found in nature.
Sponsored Content
A New Perspective on Incentive Travel
Incentive travel has long been a way for organizations to drive sales and reward employees with opulent trips to exotic destinations. Today it encompasses even more.
Daily
Apr 24, 2024Summer, Unplugged: Get Cozy at These Digital Detox Destinations
There is a cure for summertime blues in the digital age: Find yourself a beautiful country inn, cabin or retreat far in spirit from the maddening crowds and distractions of daily life. Next, unplug, relax and don’t look back.
ShareThis