American Airlines’ Bizarre $16 Fares

I’m going to write about an airfare deal not because I think people should take advantage of it (quite to the contrary, they shouldn’t — stay home, people), but rather because I find this pricing strategy to be rather unusual.

With demand for travel having decreased exponentially, we’re generally seeing airlines take two pricing strategies:

Some airlines are more or less maintaining “normal” fares, realizing that sales won’t generate much incremental revenue at this point, since people aren’t flying
Some airlines are offering huge discounts on fares, I guess because demand is virtually non-existent; is this purely a competitive response to other airlines, or are they actually hoping to generate demand? […]

Read More…