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Good News! American Backpedals on Latest Fare Hike

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American has rolled back its increase of $10 to $21 round-trip on flights within the U.S. and Canada after other airlines didn't match the increase, according to Reuters.

A few big questions arise from this particular failed attempt. Why didn't other airlines hop on this particular fare increase? One investment bank analyst suggested that, amidst conflict in the Middle East and uncertain oil prices, most airlines didn't want to make any big moves. However, the analyst predicted "that airlines will continue to raise revenue with fees and by selling fewer discounted seats."

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Is this the end to airfare hikes, at least for a while? FareCompare.com's Rick Seaney warns it's too early to know. However, according to Reuters, "He said airlines might want time to see if the last several fare increases lead to a drop in ticket demand."

Are you budgeting for fare increases in your upcoming travel plans, or are you rushing to book ahead of the hikes?

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