ATA and Hawaii

In message SMS
wrote:

DevilsPGD wrote:

The only cost that should be skyrocketing is fuel, and given that prices
are going up, shouldn't that cover fuel too? Or if not, why aren't
airlines adjusting prices to cover actual cost increases?

Because for discretionary travel there is a limit to how much people
will pay before deciding to just forget about going at all. Unlike
flights to Europe where they advertise a low fare then tack on hundreds
of dollars in surcharges, they don't do that for domestic flights, so
cost increases have to be carefully considered. Also, not all price
increases by one airline _stick_, since often competitors don't match
the increases. People complain about service, food, legroom, rude
employees, dirty planes, etc., but when it comes down to it will often
switch carriers for a $10 difference in price.

Then we're back to the same thing, either drop prices and compete on
price, or go out of business.

Maybe that's what is happening here?

What I don't get is the fact that the flights are still full right up to
shutdown, which means that they haven't raised prices sufficiently to be
noncompetitive yet.