Will airlines lower airfares because fuel costs have fallen?
If you have been following the news, you know this is not going to happen. Just about every airline has reported that it has no plans to lower fares just because gas is cheap. Why leave money on the table?
Today it was Alaska Airlines' turn to weigh in. Here's what Andrew Harrison, Alaska's senior vice president of planning and revenue management told Wall Street analysts on Thursday:
Several of you have asked us if we are pricing to account for the lower fuel prices, and the answer is no. When pricing tickets we look at the supply and demand in each of our markets and adjust prices to balance the two. Approximately 90% of our flying is in the United States domestic market and the U.S. economy continues to be strong.
What do you think of Harrison's comments?