Management perceived a consumer under significant pressure, with spending falling due to the impact of higher interest rates and inflation. Consumer pressure is and was the biggest story of sluggish yields.
People want to get out there, but they're just a bit more cautious in how they're spending their money," Sorahan said on an earnings call.
Budget airlines, similar to other businesses, raise prices when the conditions are right. It can be a more direct way to increase profitability than reducing costs.
The danger with increasing prices is that it can shift consumer behavior. If the prices get too high, consumers look for alternatives.
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