How come Airfares are so high right now?

It seems like airfares to Vegas are outrageous right now. Almost anything I run across is more than $400 round trip a few years ago if I waited for bargains I could get there and back for less than $200.

Southwest just lowered our outbound flight to Vegas in December from $230 to $184. Still high, but for 2 of us it makes a difference.

I do remember $59 round trip...those were the days.

They still have some cheap fares from LA.

Do you fly out of Louisville or Indy?
My Southwest roundtrip out of Indy in December was only 17,000 points...or roughly 200 dollars. Its like rental cars...you need to check almost everyday until the price is right.

Having said that, the airlines are consolidating. Reduced number of seats give them leverage in the pricing game. Historically, no sane financial advisor would let any client buy an airline stock. Thats changed this year too.

But here's how its gonna play out....with all these profits the airlines will go out and buy a bunch of new planes believing it will add growth and profit. But actually it will do the opposite. Seat capacity will go through the roof and fares will collapse as a result. The airlines never learn this lesson which is why you have a big bankruptcy parade in that industry every 10 years or so. We're at the part of the cycle that is least favorable to consumers. I dont expect us to be here long

Southwest out of Detroit for mid week flights in January are $132 each way, with no baggage fees, that's a decent price. Bob

Airlines are flying at near capacity, so it easy for them to raise prices.

Airfares are high everywhere

I have a friend who is an executive at American Airlines and directly involved in pricing. I asked what the deal was on airline prices and what makes them go up and down so often. His answer, "Hell, I don't know. It's all voodoo."