Airlines test fliers’ tolerance for high prices to bolster profits

As long as the economic outlook remains stable, consumers may continue tolerating high prices, investors and analysts said. — Reuters

US and European airlines will aim to boost profits again this year with higher ticket prices as they try to squeeze what they can from the post-Covid travel boom and mitigate higher costs amid persistent plane shortages, investors and executives say.

Major carriers are straining to lay on more flights to meet demand, but are struggling due to delays in new plane deliveries from Airbus and Boeing and the grounding of jets using some RTX engines over potential defects.