Airfare hikes considered to be legal

Although airfares in North America and

Europe have been increasing steadily over the course of the autumn season, analysts agree that these hikes are usually legal and in no way contravene any law. Airfare increases at one airline normally spark a similar—and sometimes entirely identical—rise in fares at competing carriers. The most recent example that one may point to is how a hike at American Airlines led all major

US carriers to augment their prices within a matter of a few days. The reason behind this is that airlines that compete with each other on popular routes tend to very closely monitor each other’s prices. Although this may sometimes be to the detriment of travelers, the practice is entirely legal. What would, however, be illegal is if airlines colluded with each other by meeting and deciding together to fix airfares. Airlines that have done this in the past have normally faced legal action, fines and other penalties.

Airlines use a special mechanism for tracking fare changes at rival companies. The most common tool used is made available by the so-called Airline Tariff Publishing Company. This organization tracks airfares on a continual basis and produces reports three times a day on any changes in the industry. Carriers can thus look at this information and modify their prices accordingly. Although this method is often used to increase prices, occasionally travelers stand to benefit because carriers that compete on a given route will often lower their fares if they notice that their rival has implemented a discount, or other promotional offer.