Of course, the DOJ seems to think fare hikes aren't possible with this many airlines, it is getting close to the point for the airlines to put through another fare hike. With the recent jump in fuel, fuel costs are getting near the high end of Q3 fuel guidance. I get the feeling the DOJ finds the thought of fares going up because of fuel rising unconscionable ... after all, it's not the flying publics' fault fuel is going up ... why should they pay more?
Though I have to say, if revenue maintains its July strength, the right business/leisure mix should still leave LCC beating estimates.
Mitch ... I think you right about fares relative to 10 years ago. Of course, the DOJ cherry picked the fare comparison to 2008 when fares couldn't be raised and they were at a level set for cheap fuel (what was it, a buck something?). I'm not surprised though, since they don't blink an eye cherry picking comparisons for political purposes all the time and count on the public being dumb ... but this should be business and I hope the judge looks at it that way.
Raising fares because fuel costs tripled is not an oligopolistic abuse.