People still have the money and they still want to travel,” he said. “If someone pays $20, $30, $40 more for a ticket, that’s not going to be a deterrent for them if they have to drive more than four to five hours.”Eventually, though, both the airlines and analysts expect business to drop off as fares keep rising.
The likeliest price increases are in markets where companies do not compete head-to-head with budget carriers like Southwest Airlines Co. or face little competition from other traditional airlines. During the first week of April, for example, leisure fares from traditional carriers on 280 major routes rose 13 percent from the previous year, according to data compiled by travel research firm Harrell Associates.
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