NEW YORK, NY--(Marketwired - Apr 25, 2013) - Passport Premiere has detected widespread business class fare sales in response to weak demand for elevated fares on several routes. American Airlines, Air France, LATAM, Malaysia Airlines and Swiss all initiated fare corrections of up to 65% for both near and future dated departures. Fare corrections occur when carriers overestimate the true value of their premium class seats and slash fares to avoid empty premium class cabins.
On April 9th, American Airlines lowered its already discounted business class fares to both Argentina and Chile by an additional 60%. On the Miami - Buenos Aires route, the lowest business class fare fell from $3,038 to just $1,222 round trip. Both American and LATAM (formerly LAN) have also initiated price cuts of 65% to Santiago, with business fares starting at $1,250 round trip. Both sales end on April 29th, 2013.
On April 22nd, Air France, KLM and Swiss completed a sale that cut business class fare premiums up to 70% via Canadian gateways to Africa, Asia, and Europe. During this buying event, business class fares to China and Singapore fell from $6,103 + taxes to just $2,175 + taxes Business class fare premiums to South Africa were also slashed to $2,122 + taxes. This buying event, which required travel be routed via Canadian gateways (Montreal, Toronto, Vancouver), was initially withdrawn on April 15th, 2013 and later reinstated on April 18th, 2013.
On March 12th, newly appointed One World carrier Malaysia Airlines completed a fare sale that drove business class fare premiums down by 55% on select routes. The Los Angeles-Delhi route fell from $5,749 + taxes to just $2,500 + taxes. While this offer has ended, Malaysia Airlines launched similar sales in both December and January and could reinitiate deep discounting offers in the weeks ahead.
Passport Premiere advises its subscribers whether current fare levels are supported by legitimate demand or speculation. Subscribers receive route specific BUY and HOLD recommendations and use Fare Monitor to determine if current fare levels are fairly valued or are likely to fall at a later date. Subscribers are first in line to capture downward fare moves when fare change happens. International premium class travelers seeking to reduce their travel costs can register by visiting the Passport Premiere website. Current trends suggest additional buying events should be launched in the weeks ahead.