Why don’t they raise fares?
I think they have. There is only so much that the customer can/will absorb though.
It’s the law of diminishing returns. Higher fares cause the budget traveler to rethink his plans and fewer seats get filled. Also, some of the planes being flown now lose money at current fuel prices even if they fly full.
Same reason that raising taxes doesn’t always raise revenue. Fewer people will fly.
Why don’t they raise fares?
They have. Fares have gone up about 14% while at the same time fuel cost has gone up around close to 50%. Do the math. If they double the fares to match the cost of fuel people will stop flying and the Net result is the same. Bankrupt airlines.
uh...
that’s too simple!
whining and going out of business are more fun.