Industry experts say airfares will skyrocket soon
PHOENIX — Despite record-breaking profits in the airline industry, airfares will continue to rise.
According to experts, Arizonans can expect another bump in airline prices in the near future. They believe the spike is related a lack of supply and an increase in demand.
When American Airlines and US Airways merged, along with a separate merger between United and Continental airlines, some of the routes that used to be offered were cut.
“On the supply side, the merger among the airline companies reduced the supply,” Embry Riddle Aeronautical University Aviation-Economics professor Javad Gorjidooz said.
Gorjidooz said right now is the perfect opportunity for a company to offer discounted airfare and become the new low-cost airline.
“My perception from the market if the prices continue going up, there’s going to be another low-cost carrier that will emerge,” he said.